I am 28 years old and file in the state of Minnesota as a single person with no dependents. I took out a 401k hardship withdrawal of $21,668.72 this year, which included federal and state tax withholdings but not the 10% penalty. My total income for 2023, including the 401k withdrawal, is $100,700. I have paid $10,949 in federal taxes and $4,419 in state taxes year to date. I am unsure how the 401k withdrawal affects my tax liability and how to calculate the total amount I might owe, including the 10% penalty. Can you assist?

January 17th, 2024

If you accumulated over six figures of profit in sports betting, would you need to declare it upon filing taxes, and can professional gambling be considered a profession for tax and loan purposes?

August 17th, 2024

I have been trying to contact the IRS regarding a notice for a December 2020 tax period deficiency of $864, dated September 5, 2023, which I received on October 27th. I am the accountant for the client and we are interested in using the IRS Fresh Start program to settle this issue as soon as possible. What is the best way to reach the agent involved and resolve this matter?

January 10th, 2024

I am an LLC-S-Corp small business owner with a seasonal business. I need to carry cash over into the next year for operating expenses, but as an LLC-S-Corp, I cannot roll money over each year. If I make a profit this year and need some of that money for operating expenses, is that portion considered profit for tax purposes? Additionally, I want to increase my Social Security by paying myself more this year. Should I give myself a bonus at the end of the year? Also, can I have retained earnings as an LLC, and if so, how does that affect my taxes?

March 6th, 2024

I have some money saved up in a 401k and am planning to buy a new home. As a first-time homebuyer, can I withdraw from my 401k? How much can I withdraw? What are the tax implications? Are there any penalties? What else should I know or consider?

March 24th, 2024