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About Possi

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  1. His only NII was $582, NIIT was only $22, so it's not an issue. His additional medicare tax was $1686.
  2. No, he didn't mention a different state at all. Good reading, though.
  3. One of my favorite clients is a high income Dr. (over $350k) Last year, he became a partner, and he himself is a PLLC. The partnership pays him and issues the K1. No W2 at all. He is asking me about becoming an S Corp to save taxes. I told him that he already pays the max FICA and that he will always max out on it. He won't save FICA dollars by incorporating. And I told him that the net income from an S Corp is taxes at ordinary tax rates, so there isn't a savings there, either. People watch a video online and think they can save on taxes. He called an 800 number and was told that if his PLLC CHOOSES to be taxed as an S Corp, it could save him upwards toward $30k in taxes! He called me because I've done his taxes for many years and he trusts me. He was a military Dr. until a couple of years ago. Now that he is in private practice, his income has tripled and it's not so cut-and-dry anymore. I would love to be able to help this guy save taxes, but I don't think this is the way to do it. Any discussion?
  4. I always take NATP's live seminars, Not the national one because it's too expensive. There is always one close to me. I take 2 days. It's the 1040 and Beyond the 1040. I am not an EA, but I did pass the RTRP way back when, so I always register the CE. Regardless, I have always taken at least 2 days of live seminars and I think I've taken these particular ones for the last 9-10 years.
  5. "Them" don't tell me how to do my job. Penalties apply. If it's repealed and they back up the truck, everyone will get their money back.
  6. She is. I'll check in to that, but the income subject to SE tax is less than $3k.
  7. Perfect. Thanks for the clarity!
  8. It only took a little bit of GOOGLE. I got it. Thanks! You are in business abroad as a consultant and qualify for the foreign earned income exclusion. Your foreign earned income is $95,000, your business deductions total $27,000, and your net profit is $68,000. You must pay self-employment tax on all of your net profit, including the amount you can exclude from income.Oct 26, 2016 Self-Employment Tax for Businesses Abroad - Internal Revenue Service https://www.irs.gov/individuals/...taxpayers/self-employment-tax-for-businesses-abroad
  9. Always? Do I stand corrected? There I go again...
  10. If it is set up under the corp, and the contributions are from the corp, it will be on the 1120S. I'm in the same position on my own return, and I make the contributions personally, then take the adjustment on the 1040. That's my short and sweet. I'm sure there will be more responses.
  11. My clients live and work in Romania. He is retired, but she is a teacher. She has regular foreign wages. Her regular job is for a school and that income is clear to me. The second income is for a couple of extra classes she teaches, also in Romania. In the past, this income was reported similarly. This year, the extra income was reported on a 1099 Misc and the address of the same school as before, has changed to Bethesda, MD. She earned the money while in Romania. Since this is foreign earned income, is it included on Line 7 and included on the 2555, excluded as foreign income?
  12. I raise my prices a little every year, on most clients. I usually keep the simple returns pretty cheap, or I lose the easy money. The more detailed returns always go up every year. It's better than skipping a year or 2 then hitting them noticeably hard. All prices go up. Social Security benefits are the only thing that remains the same. So, my prices increase.
  13. Still, couldn't this be fraud, an attempt to get information? I have never heard of forms not flying with the efiled return.
  14. All I do are tax returns. No accounting, no payroll. I'm not ready to retire yet, but at 61 I am still thinking about how many more years I want to work. "WANT" being the operative word. This year I did clean up my client list by sending several clients away, for a better fit. We all know what that means. I don't want to work forever. I am getting less and less enamored with being locked to my computer for 4 months, having over 40 extensions, and having the tax season drag on until October 15th. I want to play. I want to go outside and play in the sun. Without any work hanging over my head. I love my clients, love my work, love the challenge. But most of all, I love the "seasonality" of the business. And that season is spreading out too much. The responsibilities and complexities of being a tax professional might be what actually has me whipped. It's almost like I have to stay sober all year long. Geez...
  15. My financial planner doesn't want me to sell the business. I don't think he understands how much I want it. I would love to sell the business and work for whoever buys it, for a few years. To get this business out of my house and be able to be off, truly off, after April 15th would be a dream come true. The older I get, the harder it is for me to deal with late filers, extensions, and just plain WORK in the off season. So, he would rather I just keep working, a lighter load, and keep the business. Yes.