IRS
CommunityGovernment Services
Can't reach IRS? Claimyr calls for you, so you don't have to wait on hold.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Military Member Confusion: Standard deduction or itemized deduction? Need tax advice for rental property
Title: Military Member Confusion: Standard deduction or itemized deduction? Need tax advice for rental property 1 Hey everyone, I'm currently serving active duty in the Navy based in North Carolina. About 4 months ago, I purchased my first property - a duplex in NC where I'm living in half and renting out the other side. My legal state residency is Montana, which means I don't pay state income taxes there (definitely a nice military perk!). I just turned 24 and this is my first time dealing with property ownership while in the military. I'm trying to gather as much info as I can before tax season - should I go with the standard deduction or would itemizing make more sense in my situation? If I do choose to itemize my deduction, I'm confused about the sales tax part - do I need to add up only the sales taxes shown on receipts or the entire amount spent? Any advice from people who've been in similar situations would be super helpful!
Join the conversation
Is the entire business laptop deductible after trade-in or just the difference above trade-in value?
So here's my situation - I just traded in my old laptop for a new one that I use 100% for my small consulting business. The old one was limping along and finally started having major issues last month. The new laptop cost $1,450, and I got a trade-in credit of $325 for my old one, so I ended up paying $1,125 out of pocket. When I'm doing my taxes, can I deduct the entire $1,450 as a business expense, or am I only allowed to deduct the $1,125 that I actually paid after the trade-in? I'm not sure how to handle this on my Schedule C. This is the first time I've done a trade-in for business equipment, so I'm a bit confused about how to report it properly. I use the laptop exclusively for client work, video calls, reports, invoicing, everything business related. Nothing personal on it at all. Just trying to maximize my deductions properly while staying within the rules. Any help appreciated!
Join the conversation
Another option to consider: If you're using accounting software like QuickBooks, you can actually record this properly there first and it'll flow correctly to your tax forms. Here's how: 1. Record the purchase of the new laptop at full price ($1,450) 2. Record the trade-in as a "sale" of the old asset for $325 3. Make sure your old laptop has the correct remaining book value in your system The software will handle the calculations and depreciation correctly. This is what I do for all my business equipment, and it makes tax time so much easier.
Does this work the same way if I use FreshBooks instead of QuickBooks? I find the asset tracking in FreshBooks a bit confusing for trade-ins.
FreshBooks handles fixed assets a bit differently than QuickBooks. In FreshBooks, you'll need to create a new expense for the full amount of the new laptop, then create a "credit" entry for the trade-in value. It's not as automated for calculating the remaining book value, so you'll need to know the remaining undepreciated value of your old laptop. If you're using FreshBooks, I'd recommend creating a simple spreadsheet on the side to track your fixed assets, their original purchase prices, accumulated depreciation, and current book values. This makes it much easier at tax time and ensures you're reporting everything correctly when you have trade-ins or sales of business equipment.
Just to add a real-world example - I just went through this with my 2023 taxes. I traded in my old business MacBook ($2,100 original cost, depreciated to about $840 book value) for a new one that cost $2,300. Got $750 trade-in. The IRS considers this a "like-kind exchange" of business property. I deducted the full $2,300 for the new laptop, and had to recognize a small gain since my trade-in value ($750) was more than my remaining book value ($840). My accountant said as long as you have good records showing the original cost, depreciation taken, and the trade-in value, you're fine. The only tricky part is if you used the old laptop partially for personal use - then you have to allocate.
Thanks for the example! Did you handle this with regular depreciation or did you use Section 179 to expense the whole thing in the first year? Also, did you have to fill out any special forms for the "like-kind exchange" part?
Getting Priority Tax Relief for 2025 Filing: Options and Requirements
I've been dealing with a serious tax debt situation for the past few years and it's really starting to affect my financial stability. I owe around $32,000 to the IRS from my small business that didn't work out during 2022-2023. I've been getting letters about liens and levies, and honestly, I'm stressed beyond belief. I keep seeing commercials for these tax relief companies claiming they can settle tax debt for "pennies on the dollar" through something called an Offer in Compromise. Has anyone actually worked with these priority tax relief services? Are they legitimate or just scams? I'm wondering if I should try negotiating with the IRS myself or if these companies actually provide value. My credit score has already tanked, and I'm worried about losing my car and possibly my house if I don't figure this out soon. Any advice from someone who's been through this would be amazing. I'm desperate for some real solutions before things get even worse.
Join the conversation
Be careful with tax relief companies! My cousin paid $5,000 to one of those places you see advertised on TV, and they basically just filled out forms he could have done himself. They promised to get his $40k tax debt down to $5k but in the end, they just got him on a payment plan. The IRS actually has taxpayer advocates that can help you for FREE. Call 877-777-4778 and they can assist with navigating your options. Saved me a ton of money when I was in a similar situation last year.
Do you need to qualify for the Taxpayer Advocate Service? I thought they only help in hardship situations or when you've been trying to resolve an issue for a long time without success.
You're right that the Taxpayer Advocate Service typically helps with hardship situations or cases where you've made multiple attempts to resolve an issue with the IRS without success. They prioritize cases where people are facing immediate negative financial impact, like the threat of losing housing or transportation. In most tax debt situations, especially ones with liens or levies threatened, you'll likely qualify for their help. But even if you don't qualify for their full service, they can still point you toward the right resources. They're one of the few truly free options available, and they work for the taxpayer, not the collection division of the IRS.
Has anybody tried DIY tax resolution? I'm considering just calling the IRS myself and trying to negotiate my tax debt down. I owe about $18,000 and don't have much income right now.
I did this successfully last year. Called the IRS (took forever to get through) and set up a payment plan for $22,000. First, I requested Currently Not Collectible status which they granted for 6 months when my income was really low. Then I set up a $250/month payment plan after I got a new job. They were actually reasonable to work with once I finally reached someone.
I tried the DIY approach and messed it up badly. Filed the wrong form for an OIC and got rejected, which reset my collection timeline. I think it depends on how complicated your situation is and how comfortable you are with tax forms.
Haven't filed taxes since 2019 - where do I start? Need guidance for multiple years
I'm 28, going through a rough patch and trying to get my life back on track lol. I haven't filed any tax returns since 2019 and honestly have no idea where to begin. I've been working part-time jobs while finishing college, mostly earning below minimum wage with tips at restaurants. Not sure if I even made enough to be required to file for all those years, but probably did for a couple of them. What documents do I even need at this point? W-2s from my various jobs and transcripts from university? I was a part-time student most of this period. Also, I never received any of the COVID stimulus payments everyone was talking about. Is it too late to claim those now? Do I need to fill out something specific on my returns to get that money? I've heard the IRS is backed up for months. I also just learned that the 2019 filing deadline passed recently...ugh. Is there anything I can do to speed things up? Would hiring a tax professional be worth it in my situation? I received several Pell Grants for school in the last few years if that matters for anything tax-related.
Join the conversation
Don't forget about state taxes too! Everyone's talking about federal returns but you probably need to file state returns for those years as well. Each state has different thresholds for who needs to file.
Ugh you're right, I totally wasn't even thinking about state taxes. Do I need to file state returns for every state I lived in during that time? I moved twice in the last few years.
Yes, you'll need to file in each state where you lived and earned income. If you moved mid-year, you might need to file part-year resident returns in both states for that year. Most states follow similar rules to federal for filing thresholds, but some have much lower income requirements. You'll want to file the state returns for the same years as your federal returns. Many states have their own tax forgiveness or amnesty programs that might help reduce any penalties if you owed taxes. Some states also had their own stimulus programs during COVID that you might have missed.
FYI - definitely get your Pell Grant info in order. If you used the money for anything besides tuition, fees, books, and required supplies, you might owe taxes on that portion. Like if you used some for rent or food.
How would the IRS even know what you used the Pell Grant money for? I just got a lump sum deposited to my account every semester.
How to handle 1099-K with accrual method for my boutique design business?
I own a small interior design consultation business and I've chosen to use the accrual method of accounting since it makes more sense for how I track revenue by project completion. When clients give me deposits for future design projects, I don't count those as income in the current year because with the accrual method, I only count that money in the tax year when I actually complete the design work (I hope I'm doing this right?). I just received a 1099-K from PayPal that's showing about $34,000 more than what my actual taxable sales should be according to my accrual method accounting. When I use TurboTax, it lets me enter the 1099-K amount and then manually adjust it downward so the total matches my actual completed project revenue — but I'm worried this might trigger an audit with the IRS. I definitely want to handle this correctly, but using the much higher 1099-K amount would mean I'm paying taxes on money that isn't actually income for this tax year. Should I still enter the 1099-K and make the manual adjustment in TurboTax? Or should I just enter my actual taxable sales as general income and completely ignore the 1099-K? I'm really confused about the right approach here.
Join the conversation
I'm a bookkeeper for several small businesses who use accrual accounting. Here's what we do: 1) Always report the full 1099-K amount on Schedule C 2) On Schedule C Part V, include an explanation of the difference 3) Keep a detailed spreadsheet showing: - Client name - Date payment received - Amount received - Project completion date - Tax year revenue should be recognized The IRS computer systems automatically match 1099 forms to your return. If you don't report it, you'll 100% get a letter asking why. But properly documenting the adjustment is totally legitimate and accepted accounting practice.
Thank you for this detailed breakdown! For the Schedule C Part V explanation, how specific should I be? Is something like "Adjustment for deposits received but not earned under accrual method of accounting" sufficient?
That explanation is a good start, but I recommend being even more specific. Something like: "Adjustment of $34,000 for client deposits received in 2024 for design services to be completed in 2025 - accrual method of accounting." The more precise you are about the exact nature of the adjustment, the clearer it will be to anyone reviewing your return. Also, make sure your record-keeping is impeccable - for each deposit, have the client contract showing when services will be delivered, and your invoice clearly marking the payment as a deposit for future work.
Has anyone had an actual audit triggered by this situation? I'm in the same boat with my consulting business. My CPA says it's fine but I'm still nervous about the big difference between my 1099-K and actual income.
I had a "correspondence audit" (by mail) about this exact issue last year. They just asked me to provide documentation explaining the difference. I sent them my client contracts showing future service dates, my bookkeeping records showing when payments were received vs when work was completed, and a reconciliation worksheet. The case was closed with no issues or additional taxes. The key was having good documentation - if you can clearly show why the difference exists and that you're following proper accrual accounting methods, there's nothing to worry about.
Ana Rusula
10 I was in almost the exact same situation a few years ago! Based on my experience, here's what you should consider: With a duplex split 50/50, you'll likely do better with the standard deduction for your personal half unless you have significant other itemizable expenses (like major medical expenses or large charitable donations). The rental side is reported separately on Schedule E where you can deduct expenses regardless of whether you take standard or itemized deduction. Don't forget about depreciation on the rental portion! That's a big deduction many new landlords miss. And definitely take advantage of your Montana residency - that's a smart military tax move.
0 coins
Ana Rusula
Author1 Thanks for the advice! I didn't even think about depreciation. Is that something I calculate myself or do I need an accountant? And are there any military-specific deductions I should know about with this setup?
0 coins
Ana Rusula
Author10 Depreciation is actually pretty straightforward for residential rental property. The IRS lets you depreciate the building portion (not the land) over 27.5 years. You'll need to determine what portion of your purchase price was for the building vs. land - your property tax assessment often breaks this down, or you can use a reasonable estimate like 80% building/20% land in most areas. As for military-specific deductions, you can deduct unreimbursed moving expenses (still available for military even though civilians lost this deduction), and you may be able to exclude combat pay if applicable. If you paid state taxes in non-resident states where you were temporarily stationed, you might get credits for those in certain situations. I'd recommend talking to a military-experienced tax professional your first year with this setup.
0 coins
Ana Rusula
22 Has anyone here used any particular tax software that handles the military + rental property situation well? I've used TurboTax in the past but it seems confused when I try to enter my duplex info and military status.
0 coins
Ana Rusula
Author24 I've tried several and had the best luck with FreeTaxUSA. It handles the Schedule E for rentals really well and asks all the right questions about military service. Plus it's way cheaper than TurboTax especially if you have rental income - TurboTax forces you into their premium version for that.
0 coins
Ana Rusula
Author22 Thanks! I'll give FreeTaxUSA a try. TurboTax was charging me nearly $200 for the premium version plus state filing, which seems excessive considering we get free filing options through Military OneSource.
0 coins