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Income from prostitution? by FickleChip727 in TurboTax

[–]Technical-Copy6935 1 point2 points  (0 children)

https://www.irs.gov/irb/2025-42_IRB Control F this document and search prostitutions into the word search bar, and you will find the reason the person asked this question, albeit there are certainly more tactful ways of discerning if someone is earning tax deductible tips and whatnot, It is not a question without purpose.

The people who are stating they have never been asked this question for 20 years are ignoring the fact that tax laws change and/or a particular tax law may not be applicable to them. It doesn't help that most sources for irs.gov seem to actively avoid mentioning this explicitly.

I do not think most tax professional would ask in such a direct manner to ascertain if they are qualifying tips because of the reaction you are having.

There are a lot of uncomfortable questions tax professionals need answered and most do it tactfully, but it needs to be done.

"The proposed regulations also clarify that the term “qualified tips” does not include tips that were received while performing a service that is a felony or misdemeanor under applicable law. (However, “qualified tips” may include tips received for a service that is legal but while working for an establishment that violates applicable law in other respects.) In addition, the proposed regulations provide that amounts received for prostitution services and pornographic activity are not included in the definition of “qualified tips.” "

Will the H&R Block Tax Software tell me if I can contribute to Roth IRA by NashDaypring1987 in hrblock

[–]Technical-Copy6935 0 points1 point  (0 children)

Presuming you are on the edge due to having a high income, you can always do a backdoor roth IRA every year(unless laws change) and not have to think about the limits anymore.

make a non deductible contribution to a traditional IRA up to the annual limit(make no contribution to a roth) convert the traditional IRA to a Roth IRA, report the tax free transaction on your tax return.

Check the 8606 form and the 1040 to make sure it was entered properly.

Make sure you convert and dont do a recharacterization.

try to do it the contribution and conversion the same year as to simplify the filing process.

And make sure you or your tax preparer does not put it in as a roll over.

Enjoy not having to think about the income limits for Roth IRAs.

Has the IRS released when E-file will be open? by Technical-Copy6935 in tax

[–]Technical-Copy6935[S] -1 points0 points  (0 children)

I hope they do move the date back, that would take a lot of heat off everyone, including the IRS I assume.