Christian

A client has a 59 year old son who has no income and who he supports. His son has lived with him for over five years and the client never mentioned this to his former tax preparer. I added the son as a dependent for 2024. Can i amend his 2021, 2022, and 2023 returns to reflect this change. Never carried one back this far and for this reason so I need to make sure it's legal.

Herein lies my confusion. However, when you die, any capital loss carryover is lost. It cannot be utilized by your estate or surviving spouse except in the final tax return filed for the year that you die. Therefore, it’s important to use as much of the remaining deduction as possible in the final year (or in the years prior to death). There are planning techniques available to help accomplish this goal.

I should have clarified. This is her final personal return and not an estate return.

So the now deceased client can only deduct the $3,000 normally allowed per year. They must have changed this in 2017 perhaps.

I should have said are all of the losses deducted on the Form 1040 which would require possibly overriding the line item as using Schedule A the client may not have gotten the full amount taken off. It is a moot point as her itemized deductions far exceed the standard deduction but the ATX software shows only the $3000 yearly amount on the Form 1040 so I will simply deduct that from the total loss and show the remaining amount on her Schedule A. I think this is correct but I have not done one of these in many moons.

A client passed on in 2024 having some $25,000 plus in remaining capital losses. Are these deducted on Schedule A or on the Form 1040?

The parents advise the funds were paid for fees, books, and supplies so it's a moot point although I see Kiplinger a tax publication I subscribe to advises room and board do not qualify.

I did some further reading and with what was provided by members here am pretty well satisfied I understand the matter. However, on one of my queries room and board was treated as an expense which qualify as a tax free use of scholarship funds.

A client's dependent who is in college has received his 1098-T which shows his scholarship and grant payments handily exceed his tuition. Since the tuition is fully covered my question here is as follows. Is the amount exceeding the tuition reported as income on his parents return ? Clearly the college got him some extra funds for something.

I go back quite aways myself as I like many moved from the Maine produced software (Saber?) to ATX. I miss hearing from Rita and a number of others I no longer see post. I got ready to renew my software this AM and got a threatening email from WK that I appeared to be attempting to access my account from different locations! I had to replace my older computer about a month ago and suspect that is the problem. I have had no small difficulty in connecting with anyone at ATX. Unable to get my rep. What a hassle ! Finally got a call back from tech support which hopefully will resolve the problem. She advised that they had sent out a number of these emails so I am evidently not the only one. This after over twenty years as a client.

They have substantial losses which will shield them from federal and state income tax for years. The tax due was SE tax for which they have no protection. After deducting 2024 expenses along with depreciation they owed that. She came in today and had reconsidered her objections.

On rereading my post I can affirm what others have said. Cattle are bringing more money. A local farmer's wife brought me their 2024 figures which had doubled and even tripled their sales figures from prior years. On calling to advise their returns were complete she asked if I was getting them back a lot of money! I have prepared that return for about ten years with perhaps one in profit. On being told they owed money I was abruptly informed I would not be paid !! I had her review her figures only to find she had failed to bring a $50,000 plus feed bill. This cut the bill but they will still owe some tax. I would not be surprised if I don't see them next year.

I used the word tuition for lack of a better descriptor. This is a private company sitting in with an individual working towards a job which here is a county or state position. I sent her back to inquire if anyone there knew of any tax benefit applicable to these payments. As noted I have never seen anything quite like this. I will wait to see if she comes back with anything.

A client has come in and is working to become a clinical social worker. She has to be supervised while on the job for a number of hours and has paid a company some $2,000 plus at $75.00 dollars an hour at this point. There is no statement of tuition for this leaving me at a loss to determine if these expenses are in any way deductible. I have never encountered this before so appreciate any input if available. I would think the state would handle this.

It was reported on Schedule F. It's been a loooong season.