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Two employees? W-2? SSA? Paper forms. Why? because it makes it a bit tougher for the employer to neglect to print and retina their own copy. Especially for a small employer that does not already use something that can print forms, they are more likely to have a need for copies later. Just sayin' - given many years of experience...

Income distributed from a trust is not That question was addressed in PLR 200305001 where the wife received distributions of farm income through a QTIP and CREDIT BYPASS trust. It was determined that distributions related to services provided to the trade or business of the farm were subject to SE tax. Generally, distributions from a trust or an estate are not subject to SE tax per section 1402. Many tax court cases have been lost by those who have established trust to avoid SE tax. In regards to the original post, it depends on the facts and circumstances.

unemployed, young couple just had a baby, sickness, I give discounts all the time but don't label them as to why. They know. I would rather get the "thank you call or note" than the extra $20-50 from people who I think deserve or need.

You miss my point. Assume the beneficiary of the trust that holds the business operation, also works for that business. It's like the difference between a partner who does no work in an LLC and partner who does work in the LLC.

Good question, but doesn't the character of income passed through to the beneficiary retain the character it has while in the estate? If that is the case, prior to final settling of the estate while the farm is still in the estate, I think that income would not be subject to the SE tax. Once the farm is transferred to the beneficiary, then the income becomes subject to the SE tax again.

No, if you file those on paper, they must be on the red forms. E-file those and you eliminate that headache. The recipient and payor copies can be printed on the black forms.

It will be fun getting to know you all better outside of the work-related questions.

I always used "full price first, then, less discount" not only so that you don't lock yourself into a low price for the future, but because you don't want them telling other future clients the low price. You want referrals but based on your competence and service, not only on price.

I hope everyone who uses facebook joins, it can be a fun place to share things.

This was one of the reasons that I switched to ProSeries, and the fact that I continue to see posts about this issue is a major reason that I have not switched back. And I won't switch back until I see a tax season where this does not pop up. With all of the program issues that have to be done last minute due to law changes, and the glitches that result from that, why would I want to use a program that won't fix a KNOWN issue during the off-season?

Is the reimbursement to the spouse part of wages? If no, then her employer is breaking ACA rules which have a hefty penalty. Even if the employer of spouse reimburses the husband employer, they are still breaking the ACA rules because it seems they are purposely avoiding coverage. MAS

^^ that, what Lion said! Laughed at this:

I have always asked my clients to get the student's account from the bursar with dates, amounts, etc. Some colleges actually print it out on the back of the 1098 or include in the same mailing. In a time pinch I have settled for clients going through their check registers for amounts paid. And, like our Dear Abby says, most of my students are at schools with tuition in the tens of thousands of dollars with little in the way of scholarships, so just checking that the student didn't pay it all himself via student loans is really enough. Except for the last year when tuition was probably paid the previous December.... But, that student at a community college, I really wait for the bursar statement for anyone that might possibly have paid less than $4,000 out of pocket. As a rule of thumb, if tuition is less than $20,000 I need to see a breakout of who paid what and when and how much. See it now or see it later when the IRS letter arrives!