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About RitaB

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    ATX Supreme Guru
  • Birthday February 10

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  1. form 8863

    I'm wondering, too. If the numbers on the 1098-T pan out (they probably will not, in my experience), and the excess is $8603, there would be no credit.
  2. Tax Star of the Week for 2/16 - 2/23/18

    You are killing me with that sad face, @BulldogTom. I can't wait to feed you some BBQ and give you a hug.
  3. Tragedy causes young child to get 1099r

    Ah, so Kiddie Tax return is not done in this case, and niece may NOT have investments. Thank you. Nice catches.
  4. Tragedy causes young child to get 1099r

    Aunt can claim niece if niece did not provide more than 1/2 her own support. Aunt technically doesn't have to provide more than 1/2. Donna, you mentioned Kiddie Tax. Niece also has investments? So, is aunt is socking away at least some of the $20,000 in investments owned by the niece?
  5. should be payroll but got a 1099

    Well, yes, thank you, Max, it's much less than that. (49,000)(0.0765) = 3,749 (49,000)(0.9235)(0.153) = 6,923 6,923 - 3,749 = 3,174 Then you deduct (0.5)(6,923)= 3,462 for income tax purposes. At 15%, that saves 519. So now we're down to 3,174 - 519 = 2,655. Of course the client only sees the $11,000 and thinks that's ALL due to the boss not wanting to pay payroll taxes. When you boil it all down, if people would make estimated tax payments, they'd feel better.
  6. should be payroll but got a 1099

    I agree with Rita L. Let her decide. Be sure and explain that the extra cost to her is 7.65% [of the net income, subtract expenses, if any], not the entire kit and kaboodle. On $49,000 the cost of being self-employed is about $3,750. It might be unwise to give up the job over that amount. Just being real.
  7. Client chooses penalty instead of free insurance

    A few don't want the taxpayers providing insurance for them. I think very few. Many have been under a rock since 2010 and don't know how to apply or that they should. I think in general, people are pretty helpless about being their own advocate. And I don't have time or the desire to sign them up for insurance. Paid or otherwise. Plus we all have that free counselor side gig. Some of them have tax preparers who are entering the unaffordable exemption on 8965 and getting away with it. Or using DIY software and entering unaffordable and getting away with it. It seems very logical. Health insurance IS unaffordable now. Not for SRP purposes, though. The SRP cannot go away fast enough for me. I am losing business because I am preparing returns correctly.
  8. ATX client letters

    Well, alrighty then. June 23rd. My house. Visiting hours (not like funeral home) begin at 2:00. Cookout for supper. Message me for directions, my email address, all that stuff. Absolutely no hurry on the RSVPing. I'm excited!
  9. ATX client letters

    What the what? I'm gone five minutes and y'all are doing menus. I was actually kidding in my first post, but I can see a cookout happening at my house after May. May is a graduation, a wedding, and a new grandbaby. We can "play the corn holes", as my very unique neighbor says. Bull riding. You know, the usual stuff that happens in the back 40. Let's get thru this little tax season and talk about it later.
  10. Ridiculous Housing Allowance

    2106. I give up.
  11. Ridiculous Housing Allowance

    "...he's limited to deducting the least of the three..." Sorry, it feels like February 53rd.
  12. Ridiculous Housing Allowance

    The amounts on Form 2016 are the ones that will lower SE. If no unreimbursed EE expense, he'll pay SE on $55,105. As far as income tax goes, he's limited to the least of the three amounts below. The FRV of the furnished home plus actual utilities may be the show stopper, I think. "How much can ministers who own their homes exclude as a housing allowance from income for federal income tax purposes? Ministers who own their homes can exclude the lowest of the following three amounts from income for federal income tax purposes when their church employer properly designates a housing allowance for them: The housing allowance designated by their church; or Actual housing expenses (including mortgage payments, utilities, property taxes, insurance, furnishings, repairs and improvements); or The fair rental value of the home (furnished, including utilities). Example: Reverend Smith owns his own home, and his church designated 40% ($16,000) of his $40,000 salary as an annual housing allowance in advance. His actual housing expenses for the year were $15,000. The fair rental value of his home (furnished,including utilities) was $17,000. Reverend Smith can exclude $15,000 from income because his actual housing expenses were lower than both the amount designated by the church and the fair rental value of his home."
  13. ACA penalties and the 8965 worksheet

    I'm working on one now, because the client just knows coverage was unaffordable. Unaffordable does not mean what they think it means. The clients think if the premium is more than 8.16% of income, it's unaffordable. But it's the "required contribution" that has to exceed 8.16%. These people fall right in there at 269% of poverty level, so they would have gotten insurance practically free. That's affordable. Logically, it seems to me that this exemption would be as rare as hen's teeth. Logically, I get it. But these worksheets. Wow, these are the worst. Well, that iterative calculation for SEHI might beat them, there's that.
  14. Rant - Electronic Documents

    It's ridiculous. And the correct answer can be post #3 and the same old ones will think of all the 0.03% possibilities and confuse every issue out the wazoo. There will be fifteen posts below the one helpful post where the fat heads argue with each other. I once suggested a "like" button so we could at least help people know what to research further. A fat head told me it wasn't a popularity contest. Uh...