I actually just went through this exact same situation a few weeks ago! The $295 setup fee is definitely frustrating when you're only owing a relatively small amount. Here's what I learned: You can absolutely cancel the installment plan, and the sooner you act, the better your chances of getting that setup fee waived. When I called the IRS (using the number on my agreement letter), I explained that I wanted to pay in full immediately and requested that they waive the setup fee since I was paying so quickly after receiving the agreement. The representative was actually pretty understanding and did waive the fee in my case. I think the key was being polite but firm about the fact that I was paying the full amount right away. For the website issue - that's totally normal. When there's an installment agreement in process, their online systems often show conflicting or unavailable information. Don't let that stop you from moving forward with your payment. One thing I wish I'd known: make sure you ask for written confirmation that both your balance is paid in full AND that your installment agreement is officially cancelled. I had to call back a second time to make sure this was properly noted in their system. You're definitely making the smart financial move paying it off in one go rather than dealing with monthly payments plus fees!

I went through something very similar recently! The good news is that you have several options to get out of this situation without being stuck with that hefty setup fee. First, call the IRS immediately using the phone number on your installment agreement letter. Explain that you want to pay your full balance and cancel the installment agreement. Since you're acting quickly after receiving the agreement, there's a decent chance they'll waive the $295 setup fee - especially if you explain that the fee represents such a large percentage of your total tax debt. For payment, you can use IRS Direct Pay online (which is free) or pay by phone/card with a small processing fee. Don't worry about the website showing your account as unavailable - this happens frequently when installment agreements are being processed in their system. A few important tips: - Be persistent but polite about requesting the fee waiver - Ask for the total amount due including any interest that may have accrued since your original filing - Request written confirmation that your installment agreement is cancelled AND your account is paid in full - Keep detailed notes of your call (date, time, representative name/ID) The IRS phone system can be frustrating, but early morning (8-9 AM) or late afternoon (4-5 PM) tend to have shorter wait times in my experience. You're making the smart financial decision by paying in full rather than dealing with ongoing monthly payments and fees!

bruh the irs needs to get their act together. like how does this even happen 🤦‍♂️

This is a major red flag! Higher One banks are frequently used in tax refund fraud schemes. Here's what you need to do immediately: 1) Call Wells Fargo fraud department and ask them to explain why this account appeared, 2) Log into your IRS account online and check if your direct deposit info has been changed, 3) Call the IRS Identity Protection Unit at 800-908-4490. Don't wait - these scammers work fast once they've compromised your info. Also freeze your credit reports just to be safe!

Am I the only one who thinks it's ridiculous that tax software makes it so hard to find where to enter common tax forms? Companies are increasingly offering ESPPs and I get this form every year, but I spend hours trying to figure out where to enter it correctly.

I had the exact same frustration last year! After struggling with FreeTaxUSA's interface for my Form 3922, I finally found it buried pretty deep in their system. Here's the exact path that worked for me: 1. Go to "Income" tab 2. Click on "Miscellaneous Income" 3. Look for "Stock Options" or "Employee Stock Plans" 4. Select "Employee Stock Purchase Plan (ESPP)" 5. Enter your Form 3922 information there The key thing to remember is that the discount amount (your $2,800) gets reported as ordinary income, not capital gains. FreeTaxUSA will automatically calculate this for you once you enter the purchase price, fair market value, and number of shares from your Form 3922. Also, make sure you keep track of your adjusted cost basis for when you eventually sell those shares - you don't want to get double-taxed on the discount portion. FreeTaxUSA should help with this calculation too once you have everything entered properly. Hope this saves you some of the headache I went through!

Brady, this is such a smart question to ask early in retirement! I just went through this process myself about 6 months ago. The 10% default at Fidelity definitely wasn't right for my situation. Here's what I learned: you really need to look at your complete tax picture for the year. IRA withdrawals are taxed as ordinary income, so they get added on top of everything else - Social Security (which might be partially taxable), any pensions, part-time work, investment income, etc. I started with 10% withholding and quickly realized it wasn't enough once I factored in my Social Security benefits becoming taxable due to the combined income thresholds. I ended up bumping it to 18% and that worked much better. A few practical suggestions: - Use a retirement tax calculator that accounts for Social Security taxation rules (the regular IRS calculator doesn't handle this well) - Consider your state's treatment of retirement income - some states don't tax it at all - Remember you can adjust your withholding percentage anytime through Fidelity's website if your situation changes One thing that really helped me was doing a "dry run" calculation with my expected annual numbers before taking my first distribution. Better to overestimate slightly your first year than get hit with underpayment penalties! What other retirement income sources are you expecting this year? That'll help determine if 10% is in the right ballpark or not.

Brady, congratulations on your retirement! This is definitely one of those things they don't really prepare you for during your working years. I went through the exact same confusion about 18 months ago when I started my withdrawals. The 10% default is really just Fidelity covering their bases - it's not based on your personal tax situation at all. What I discovered is that you need to think about your "marginal tax rate" for retirement, which includes how all your income sources work together. Here's what caught me off guard: if you're getting Social Security, there are these "provisional income" thresholds that can make your Social Security benefits taxable. For a single filer, if your adjusted gross income plus half your Social Security exceeds $34,000, up to 85% of your benefits become taxable. That can push you into a higher effective rate than you expect. My suggestion would be to gather all your expected income sources for this year - Social Security, any pension, part-time work, investment dividends - and use a retirement-specific tax calculator to estimate your total liability. Then divide that by your expected IRA withdrawals to get a rough withholding percentage. I started at 12% and had to bump it to 16% once I realized how the Social Security taxation worked. Much better to adjust early than get surprised in April! Are you planning to take monthly distributions or larger quarterly/annual withdrawals? That can also affect your withholding strategy.

I'm dealing with a very similar situation and wanted to share what I learned from my tax preparer. One key point that hasn't been mentioned yet is the importance of the "personal use" test. If you bought collectibles for your own enjoyment and later decided to sell them (even if they appreciated), they're still personal capital assets, not business inventory. However, there's a crucial distinction for items sold at a loss: personal capital losses can only offset capital gains, not ordinary income. So if you have $2000 in gains from some items and $1500 in losses from others, you can offset to show $500 in net capital gains. But if you only have losses and no gains, those losses generally can't reduce your regular income. For documentation, I found that creating a narrative for each significant item really helped. For example: "Pokemon Base Set Charizard - purchased at Toys R Us in 1999 for personal collection, approximate retail price $4, sold on eBay 2024 for $180." This shows clear personal use intent rather than business activity. Also, don't panic about the 1099-K amount looking scary - remember it's just gross sales, not profit. The IRS knows you'll be reporting your actual taxable gain/loss after deducting your basis and expenses.

I just went through this exact scenario last tax season and wanted to share some practical tips that really helped me. The 1099-K can definitely be intimidating when you first see that total, but remember it's just gross sales - not your actual tax liability. Here's what worked for me: I created three categories in my spreadsheet - "Clear Gains" (items I knew made money), "Clear Losses" (items I definitely lost money on), and "Uncertain Basis" (items where I had to estimate). For the uncertain items, I spent time on WorthPoint and PriceCharting to find comparable sales from when I originally bought them. One thing that surprised me was how much the eBay fees added up - between final value fees, payment processing, and promoted listing costs, I was able to deduct almost $300 more than I initially calculated. Make sure to download your annual seller summary from eBay which breaks down all these fees. Also, don't stress too much about having perfect receipts for everything. The IRS understands that normal people don't keep receipts for personal purchases from years ago. As long as your estimates are reasonable and you can explain your methodology, you should be fine. I actually got audited (totally random, not related to eBay) and the auditor was completely fine with my documented estimation process for a few items. The key is being honest about the personal vs. business distinction and keeping good records going forward!