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Self-prepared using some online site for 2022. I've already told him he needs to find someone else for next year. I've put the return on extension and have asked for a phone conversation. I may ask him to go elsewhere for 2023, too, as I am getting increasingly uncomfortable with this whole mess. Considering for all of 2023 they took in less than $5K (and yes, spent it on PF purposes), that's saying something!

Just saw the Weather Channel and there is a big storm just north of Rita. Too close for comfort. Stay safe out there. Tom Longview, TX

That was it !! Thanks so much

Did you make the change on Sch. A or on the 1040-X? You need to make the change on Sch. A.

I had to file an amended return for 2022 for a client and it wouldn't efile because 'the withholding was wrong'. I got the Wage & Income transcript and lo & behold, the wife's 1099-SSN wasn't in the transcript. Nor her withholding on the 1099. But I had a copy of the 1099 issued in my sweaty little palm. It was weird and now you've got one too.

I have withholding from my RMD so if I owe anything, I just pay when I file. I file in March usually so there isn't any interest. I rarely owe much.

Ok I tried this. I clicked Amend return in the original and it did create the new amended return and added the 1040-X and State It 201-X. As noted the Itemized Deduction amount changed and I made the change in Column C and from there things flowed correctly and calculated the refund due. However, still getting the same error message linking to Column C " Taxable Income must equal the amount on Form 1040. In addition I get three subsequent errors all saying the same thing relating to the 1040. Thank again

Three magic words: "First Time Abatement". But consider if you want to use that up on this one. I would probably go with reasonable cause first. Take a POA, write the letter and put all the mangled docs in and ask pretty please to abate for reasonable cause. If they reject, then speak the three magic words and it will go away (providing you have not spoken the 3 magic words before). Tom Longview, TX

I would send everything the PO sent back, along with whatever letter or form. Make copies first, just in case it happens again. I would also try to get the person to at least mail with some sort of tracking. It can be done at home (printing a priority mail "label" and stuck on a 9x12), or if extra cheap, they can order free priority envelopes from USPS.

Client received letter from USPS that his payment envelope was mangled by machine. Check was returned to him. No date on letter, and original envelope not returned. He doesn't like electronic payment, so please skip the lectures about that. Any other ideas than to mail check back along with letter from PO and a note asking to abate penalties?

When we do an amended in ATX, we open the original return and click "Returns" then scroll down to amend return. This creates a new return as originally filed. Close the original return. Make the changes in the Amended Return and all should flow correctly. By copying and adding the 1040x, the flow gets broken.

I suppose they blow it off as immaterial when their balance sheet doesn't add up by $2045. But when I try to use it it kinda messes up my spreadsheet. Does my little heart good to show my client that they were way over-paying for inaccurate financials.

Client neglected to tell me about volunteer miles in 2023 so preparing amended Federal and State returns. Nominal impact resulting in small refunds. I made a copy of the original return and added the 1040-X to the copy. Column A shows original amounts and in Column C the new Itemized Deduction amount and from there the adjusted Total Income, Tax, etc. Seems pretty straightforward but when I do an error check I get a message " Taxable income must equal the amount on Form 1040". When I click on the error it jumps to Column C which is the corrected amount. I get three more similar error messages all linked to Column C. Not sure what I am doing wrong but would appreciate any help you might be able to offer. Thank you.

I should've put that phrase in quotes! I meant to say that if he insists upon filing that form, it has to be filed and paid on pay.gov anyway, so he may as well do it himself, because none of us see a reason for him to file it. It would be nice if he tells you which criteria he meets for filing. Or, if he gives you a cite from his "tax-savvy" advisors.

For the 2022 tax year, checking in October 2023, I found a 1099-NEC where my client's SSN was being used in California. I also found a very large 1099-K for a client where her organization had mistakenly given her SSN to Square instead of the organization's EIN. Lastly, I found a 5498 for a 74 year old client who had never taken money out of a Traditional IRA. None of these clients had heard from the IRS.

@BrewOne, I'm curious about how often you find issues by going through this exercise? I have only one client where I feel this may be useful but have never done anything like this and haven't personally known any preparer that does. Maybe this is will be year I get this client a POA.

It's in the 1040 instructions, pub 501, the interactive tax assistant on the IRS site, tax research books such as The Tax Book, Master Tax Guide, should easily be found using a search engine such as google, etc ....

Bingo Kathy the very number I was looking for. Please advise where you got that $ 4,700 income limit from. That was the number I recalled but was unable to pinpoint where I got it from. Which , of course, means he cannot be shown as a dependent. I am going to ask his parents to get a statement from his school clarifying whether or not he is considered by them to have been a full time student in 2023 as each institution can advise on that. If they certify he was then case closed.

If 1099LTC is only for reimbursed expenses, you don't file 8853.

He is not a qualifying child as he was not under age 19 or a full time student 5 months of the year. He is also not an other dependent as his income is above the 4,700 income limit for 2023.

I would check the number of units completed and the school's full time units number. Earning 7k, or even zero, could be covering support with loans, grants, etc.

I think he has lost the student exemption by not meeting the requirements for being a full time student. His sole income is some $7,000 or so earned at Walmart in 2023. Since he cannot possibly cover half his support with that I will simply show him as an other dependent.

Well let me phrase it this way. Laying aside the student exemption. At what income level does a child 19 years of age and older living at home loose his or her dependent status for their parents ?

Gross income test applies to qualified relative but not to qualified child, so it depends.

Silence is golden