I'm going through something very similar with my daughter who needs a specialized wheelchair van. One thing I discovered that might help is to also check if your son qualifies for any state vocational rehabilitation services. In many states, if the vehicle modifications help with independence or potential future employment, vocational rehab will cover a significant portion of the costs. Also, definitely keep detailed records of everything - not just the modification costs, but also any medical documentation from your son's doctors stating the medical necessity for the accessible vehicle. I learned the hard way that the IRS wants clear medical justification, not just receipts. For the 401k withdrawal, make sure you understand the timing. You can only use the medical expense exception for unreimbursed medical expenses in the same year as the withdrawal. So if you withdraw in 2025, the medical expenses need to be from 2025 to qualify for the penalty exception. Have you considered financing through the modification company? Many offer medical financing with lower interest rates than what you'd lose by early 401k withdrawal. Sometimes the monthly payments are more manageable than the tax hit from a large withdrawal.

I work for a CPA firm that specializes in disability-related tax issues, and I wanted to add a few important points that might help your situation. First, regarding the van modifications - make sure you get a detailed invoice that separately itemizes the base vehicle cost versus the accessibility modifications. This is crucial for both the medical expense deduction and any potential HSA withdrawals. The IRS will want to see this clear breakdown. For the 401k withdrawal, consider this alternative: many 401k plans allow loans rather than withdrawals. With a 401k loan, you're essentially borrowing from yourself and paying interest back to your own account. The interest rates are usually much lower than medical financing, and there's no early withdrawal penalty. The downside is you typically have to repay within 5 years, but it might be more manageable than the tax hit. Also, don't overlook the possibility of spreading the expenses across tax years if timing allows. If you can pay for some modifications in late 2024 and others in early 2025, you might be able to exceed the 7.5% AGI threshold in both years, maximizing your deductions. Finally, consider consulting with a tax professional who has experience with disability-related expenses before making any major moves. The rules can be complex and the stakes are high with a $70k purchase.

Does anyone know if HSA contributions work the same way? My employee wants to contribute to her HSA through payroll and I'm not sure if I need to pay employer taxes on that portion.

This is such a common source of confusion for small business owners! I went through the exact same thing when I first started my business. The key thing to remember is that retirement contributions like 401k and SIMPLE IRA are "pre-tax" for income tax purposes, but they're still considered wages for FICA (Social Security and Medicare) purposes. So in your example with the $65,000 salary and $25,000 retirement contribution, you'll pay employer FICA taxes on the full $65,000. The employee's income tax withholding will be calculated on $40,000, but that doesn't affect your employer tax obligations. One tip: make sure your payroll system is set up correctly to handle these different tax treatments. I learned this the hard way when I had to file amended returns because my initial setup was wrong. It's worth double-checking with your payroll provider that they're calculating employer taxes on the pre-deduction amounts for retirement contributions. Hope this helps clarify things while you're waiting for your accountant to return!

One more tip: If u have an irs account online (irs.gov) you can access your tax transcripts which often show refund info before Where's My Refund updates. Look for a code 846 with a date - thats ur refund date! Just be warned the transcript is confusing af to read but there's lot of youtube videos explaining how to read it. Way better than refreshing WMR every 5 minutes lol.

Great thread! Just wanted to add another option for those still struggling to track their refunds. If you used Jackson Hewitt and opted for a refund advance or had fees deducted, your refund might be processed through Axos Bank (formerly Bank of Internet USA). You can check the status at their taxpayer portal: https://www.axosbank.com/Personal/Checking/Refund-Transfer Also, for anyone who used Liberty Tax, they typically use Republic Bank as well, same site that Aurora mentioned above. One thing I learned the hard way last year - if you're checking multiple clearing house sites and none of them have your info, that usually means your refund is going directly from the IRS to your bank without a third-party processor. In that case, the IRS tools and your bank are your best bet for tracking!

Just want to add a quick point - make sure you file your state tax return too if you worked in a state that collects income tax! People often forget this part. The camp was probably in a specific state that might have its own filing requirements separate from the federal return.

I work for a tax resolution firm and deal with these situations regularly. The good news is that your case is very straightforward and won't impact your ability to travel on ESTA. For a $160 tax liability from 2018, you're looking at roughly $300-400 total after penalties and interest - still very manageable. The key is getting this resolved proactively rather than waiting for the IRS to come after you (which honestly might never happen for such a small amount). Here's what I'd recommend: File Form 1040NR for 2018 as soon as possible. You'll need your W-2 from the camp, so definitely contact them or CCUSA first. If you can't get it, request Form 4506-T from the IRS to get a wage transcript. Most importantly - small tax debts like this are NOT immigration issues. The State Department and IRS are completely separate systems. I've never seen anyone denied entry over a resolved tax matter of this size. Just make sure you have documentation showing you've addressed it when you travel. The depression and financial hardship you mentioned might even qualify you for some penalty relief if you can document those circumstances. The IRS has "reasonable cause" provisions that can reduce penalties in situations like yours.

As a newcomer to tax preparation, I've been following this discussion closely and it's been incredibly enlightening! I just received my PTIN last month and had similar assumptions about it being a "universal license" for tax prep work. What's really eye-opening is how the compliance landscape varies so dramatically between states. The Texas restrictions on using "accountant" terminology, California's CTEC requirements, and the various state registration programs - none of this was covered in my PTIN application process or the basic tax prep courses I took. I'm particularly concerned about the remote preparation aspect since I was planning to help some college friends who now live in different states. Based on this discussion, it sounds like I need to research the regulations for each state where my potential clients reside, not just where I'm located. That's a much bigger undertaking than I anticipated. The resource recommendations have been invaluable - from the NASBA website to state CPA society guidance documents to the spreadsheet tracking approach. I'm definitely going to start with my home state this season and use the time to properly research expansion opportunities for next year. One question for the group: For those who've expanded to multiple states, how do you handle the ongoing compliance monitoring? With rule changes happening throughout the year, it seems like staying current across multiple jurisdictions could become a full-time job in itself. Do you rely on professional associations, legal services, or just manually check each state's updates?

As someone brand new to tax preparation who just got my PTIN this month, this entire discussion has been a real wake-up call! I had no idea that the state-by-state regulations were this complex when I started this journey. Reading through everyone's experiences, I'm realizing I was dangerously close to making some serious compliance mistakes. I was already drafting marketing materials that used terms like "accounting services" and "full-service accountant" - thank goodness I found this thread before launching anything! The advice about starting with your home state first really resonates with me. I was initially excited about the possibility of helping clients nationwide, but now I understand that would be setting myself up for failure. Better to build solid expertise and systems locally before expanding. I'm particularly grateful for the practical resources mentioned here - the NASBA website, state CPA society guidance documents, and especially the spreadsheet tracking approach. These seem like exactly the tools I need to navigate this properly. One thing I'm curious about: for those of you who've been through multiple tax seasons across different states, are there any common compliance mistakes you see new preparers making repeatedly? I want to make sure I'm not just avoiding the obvious pitfalls but also the subtle ones that might not be as apparent to someone just starting out. Thank you all for sharing your hard-earned knowledge - it's exactly the kind of real-world guidance that makes all the difference for newcomers like me!