He Tried the Backdoor Roth — and Got a Surprise Tax Bill
A coworker said the backdoor Roth would be tax-free. The pro-rata rule made most of Marcus’s conversion taxable. Here’s what to check first.
Tax Stories
Tax Stories
Practical strategies to reduce your tax bill, including deductions, credits, and smart tax planning techniques.
Tax Stories
Maxing Out Their 401(k) Wasn’t the Answer — Their Health Insurance Was
Maxing out a 401(k) felt right — until it threatened their health insurance subsidy. How pre-tax contributions lower MAGI.
Tax Stories
One W-4, a Lot of Confusion — What F-1 Couples Need to Know
Both on F-1? Here’s why you can’t file jointly — and exactly how to fill out the W-4 as a nonresident alien couple.
Tax Stories
“My Accountant Always Handled It” — A Visiting Nurse’s $22,400 Tax Surprise
A visiting nurse earned $100,000 on a 1099. She had no idea she owed $22,400 — until filing day. Here’s why self-employment tax hits so hard.
Tax Stories
Four W-2s, One Surprise Tax Bill
He worked four jobs and still owed the IRS. Here’s why multiple W-2s and a 1099 trigger a surprise tax bill.
Tax Stories
47 Checks, 18 Mysteries: Why “I’ll Remember Later” Fails the IRS
January arrives with a year of checks and blank memo lines. 18 out of 47 untraceable. Why IRC §274(d) makes “I’ll remember later” a dangerous strategy.
Tax Stories
How David Earned Social Security Credits Before Retirement
At 60, David had a green card and 22 Social Security credits. Here’s the math—and the deadline—that got him to 40.
Tax Stories
What Filing Status Should You Use the Year Your Spouse Dies?
The year your spouse dies, you can still file jointly. Skipping that fact cost one widow $23,000 in deductions.
Tax Stories
“There’s Nothing Left for Me to Fix” — How a Bookkeeper Made an Antique Store’s Tax Bill Smaller
An antique store’s books were so clean the tax preparer had nothing to fix — and the owners saved thousands. Here’s how.
Tax Stories
My Old Accountant Did It This Way” — How a Dry Cleaner Couple Almost Walked Into an IRS Audit
A dry cleaner couple discovered $35K of personal spending hidden in their “business” credit card. Here’s what the IRS sees.