Anyone know if you can offset the gain with other capital losses? I sold a similar item but also lost money on some stocks this year.

Maxwell, you definitely need to report this $20K sale on your tax return. Since it's a collectible (baseball cards), any gain will be taxed as a collectible capital gain, which has a maximum rate of 28% - higher than regular capital gains. The tricky part is determining your "basis" in the cards since you don't have receipts. If you inherited them from your grandfather after he passed away, your basis would be their fair market value on the date of his death (called "stepped-up basis"). If he gave them to you while alive, your basis would be what he originally paid for them. Since you don't have documentation, you'll need to research what similar cards were selling for during the relevant time period. Look at price guides, auction records, or consult with a sports memorabilia appraiser. The IRS expects a "good faith" estimate when original records aren't available. Report the sale on Schedule D of your tax return. Even without a 1099 from the auction house, you're still required to report it - the IRS can potentially discover large bank deposits through other means. Better to be proactive and report it correctly than risk issues later.

This is such a frustrating situation, and unfortunately it's more common than it should be. I went through something similar when my employer miscoded my state for the first half of the tax year. The reality is that while the tax liability is technically yours regardless of withholding errors, you absolutely have leverage here. Start by documenting everything - every conversation, email, and interaction about this issue. Then approach your employer with a clear breakdown of the financial impact their error has caused. Most companies will work with you on this because they know their mistake created the problem. In my case, I presented three options: they could cover the full amount as a corrective payment, provide an interest-free advance through payroll deductions, or at minimum cover any penalties and interest that resulted from their error. Also check if your state tax authority offers penalty relief for situations where the error was caused by employer mistakes - many do, but you have to request it specifically. And definitely look into payment plan options with your state to avoid having to pay everything at once. The key is being professional but persistent. Don't let them brush this off as "just your responsibility." Their payroll error created a legitimate financial hardship, and most reasonable employers will acknowledge that and work toward a fair solution. Keep pushing until you get an outcome that doesn't leave you financially devastated by their mistake.

I'm really sorry you're dealing with this - it's incredibly frustrating when someone else's mistake puts you in a tough financial spot. I've been following this thread and there's some really solid advice here. One thing I'd add is to make sure you're documenting the timeline of when you provided your correct state information to your employer versus when the error occurred. If you gave them the right details during onboarding or when you moved, that strengthens your case that this was purely their administrative failure. Also, when you do speak with that tax attorney, ask them about whether your employer's error constitutes negligence that caused you financial harm. Even if there's no specific tax law requiring them to pay, there might be general liability principles that apply. In the meantime, I'd definitely pursue the approaches others have mentioned - check your employee handbook for error correction policies, request penalty relief from your state, and present your employer with multiple solution options. The fact that you're dealing with nearly $4,000 makes this a substantial financial impact that any reasonable employer should want to help resolve. Don't let them make you feel like this is just "your problem to deal with." Their mistake created this mess, and while the ultimate tax liability might be yours legally, they have a responsibility to help make this right.

This is so typical of government tech systems! I've been dealing with the same "exceeded daily limit" error since Tuesday. What's really annoying is that it seems completely random - sometimes I can check once and then get locked out, other times I get the error immediately. I've found that clearing the app's cache and data sometimes helps, but honestly the whole system needs an overhaul. For something as basic as checking refund status, we shouldn't have to deal with these constant technical issues. The IRS collects our money efficiently enough, but when it comes to giving it back their systems fall apart 🙄

Been having the same issue since yesterday! The "exceeded daily limit" error is so misleading because I haven't even successfully checked once. What's really frustrating is that this happens every tax season - you'd think the IRS would have learned by now to scale up their servers when they know millions of people will be checking refunds. I ended up switching to the desktop website which worked better, but even that was super slow. Really wish they'd invest some of those tax dollars into actually functional technology for taxpayers 😒

This is such valuable advice from everyone! As someone who went through a similar decision with my event planning LLC, I wanted to add a practical consideration that really helped me: creating a detailed cash flow projection for the next 12 months. When I was debating whether to pay off my $45K business loan, I mapped out my expected monthly revenue and expenses, including seasonal fluctuations. This exercise showed me that while I could technically afford to pay it off entirely, doing so would leave me uncomfortably tight during my slower winter months. I ended up paying down about 60% of the loan, which cut my monthly payments significantly but still left me with a healthy cash cushion. The reduced monthly obligation freed up cash flow during slower periods, and I used some of the remaining cash to invest in marketing automation tools that actually increased my revenue. One specific tip: if you do decide on partial payoff, ask your lender about "principal-only" payments that don't affect your regular payment schedule. This lets you reduce the total interest over time while maintaining predictable monthly obligations. Also, @Andre Moreau - given that you mentioned your studio had a great year, consider whether this success is sustainable or if it was influenced by one-time factors. If there's any uncertainty about future revenue, maintaining more liquidity might be the safer play even if it's not the most mathematically optimal choice.

There's been some great strategic advice here, but I want to highlight something that might get overlooked - the importance of documenting your decision-making process for your business records. Whatever route you choose (full payoff, partial payoff, or restructuring), make sure you document the business rationale behind your decision. This includes keeping records of any analysis you did comparing interest costs vs. investment opportunities, cash flow projections, and the reasoning for maintaining specific reserve levels. From a tax perspective, having clear documentation shows that your financial decisions were made with legitimate business purposes in mind. This can be helpful if you ever face questions about large cash movements or changes in your business debt structure. Also, @Andre Moreau - consider discussing this with a tax professional before making the final decision, especially given the significant amount involved ($58K). They might identify tax planning opportunities specific to your situation that could influence the optimal timing or structure of the payoff. Sometimes spending a few hundred dollars on professional advice can save thousands in the long run. The fact that you're even asking these questions shows you're thinking strategically about your business finances, which is exactly the right approach!

Don't forget to make sure you're mailing to the correct IRS address! The address varies depending on your state and whether you're enclosing payment. I sent returns to the wrong processing center once and it delayed everything by weeks.

Great thread! I just want to add one more tip that saved me headaches when I mailed my past returns last year - include a brief cover letter with each envelope explaining what you're sending and why. Something simple like "Enclosed is my 2021 tax return being filed late due to [brief reason]. Please process and send any correspondence to the address on the return." This gives the IRS processor context and can help prevent your return from getting stuck in the wrong queue. Also, if any of your past returns are amendments (1040X forms), those need to go to a different processing center than regular returns, so make sure you're using the correct address for amended vs. original returns. The IRS website has separate address lists for each type. One last thing - if you're claiming refunds on any of these past returns, be aware that you only have 3 years from the original due date to claim them, so check those deadlines before spending money on postage!