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A new update on Hobbes-I was afraid to say anything. but Andrew took him to another vet Tuesday before he making a final decision and we are glad that he did. The vet said that he would try to save him by getting the fluid out of his lungs and trying some different heart medication. He improved some by yesterday and today he is eating a lot and they took him off of all oxygen. He won't live to a ripe, old age and maybe even just a few years, but it's something. He will need pills twice a day, so he will have to decide how to make sure that Hobbes is taken care of while he is flying. I just hope for him to have a happy life, since the first year that he lived on the streets was terrible. A lot of family and friends were praying and maybe it helped some. I am relieved and just hope for no more emergencies for awhile. Thanks, Bonnie

There are times that we all wonder why we as taxpayers need to obtain some type of credentials. In the articles below, I didn't see any specific designations for the prepares who were caught by the IRS, in the past I have seen CPA's and others guilty of some type of wrong doing. Some of these cases just amaze me. Do folks who are preparing returns actually think they could squeak these things by the IRS? To me, some of the expenses and other items come glaring right off of the article. Now for the client, do they really trust these people and do they know their return is being fraudulently prepared and what the consequences are? Personally. I couldn't begin to do these things. I worry about honest mistakes and question the death out of a suspicious client. How do these folks sleep at night. https://www.accountingtoday.com/news/tax-season-begins-jan-29

Wow, I am always surprised that I am surprised. What an article. And, oh my goodness, at the DIY stuff we all see. Not to hijack your thread, Terry, but recently I was asked to amend a self-prepared return done by a taxpayer that bills by the 1/10th of an hour. (And that's all I'll say about that.) She wanted a dependent removed. When I looked at the enormous return, she had a $38,000 loss on line 17 for five passive rentals, four of which had zero gross income. She omitted AMT. She had a sale of commercial property, and a 50,000 loss on a retail business. I don't have a clue if anything on Sch C, 4797, Sch D is correct, but I know that the rental loss and missed AMT jumped off the page at me. She owes IRS at least $46,000. I told her I'd have to amend everything or nothing. She was going to think about it, and surprise, she decided she could do it herself. I doubt she does anything, but if she amends that thing to only take off the dependent, will IRS catch any of this? Surely they will. But I don't know.

I am so glad that your son got a second opinion! Sometimes it makes all of the difference.

Great news to start the day Bonnie. There's usually nothing we won't do for our pets. As a veteran of keeping many rescue dogs alive with a good quality of life, I know the feeling when you find the right doctor and medications, pure elation. Yes, it gets very expensive, but the reward can be immense. All the best to Hobbes and you and your family, you've done a great job helping Hobbes, what would he do without you? Bill

Crying. Team work makes the dream work.

Bonnie, I'm sorry Hobbes is battling this at such a young age and am relieved for you that he got that second opinion! With a good vet, meds, and attention to details, I hope that your son and Hobbes will have lots of quality time for a long time yet. I've been battling this with my pack for years now and am finally now down to the 4th and final dog of my pack going through CHF. Getting the pet stabilized and out of oxygen is a big part of the battle, and then finding the proper dosage of meds to maintain that is critical. It will be especially important for your son to watch for signs that some fluid may be building and get it to see the vet when the dosages need adjusting.

From your details, it appears that he is a qualifying relative and the parents are entitled to the dependency exemption and also the AOC. Pub 970 states : Who Can Claim the Credit? Generally, you can claim the American opportunity credit if all three of the following requirements are met. You pay qualified education expenses of higher education. You pay the education expenses for an eligible student. The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Note. Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. It does not distinguish qualifying child vs. qualifying relative. If the parents' income is too high for them to receive the credit (over $180,000) then you could consider having the student file and claim the refundable portion, He can only do this if the parents do not claim him and he does not claim himself.

Chili is not Chili without the beans. I haven't tried bacon but it sounds delicious.

I remember a wedding in the 60's with a potluck reception and chili. We were all starving college students. The student who brought the chili said "chuck." It was woodchuck.

Beef chuck if I don't mind simmering for a long time, otherwise grass feed ground beef.

Here's to Hobbes, that he has comfort being with those he loves and with those who love him. As for a joke or two (or a half), nothing like a little pressure, but here goes. This could happen to us someday. Technically not a joke, more of a public service message. In the village of Riverwalk, an over 55 community people often eat at the clubhouse. One morning Jerry, an older gentleman didn't show up for breakfast. Some of his neighbors went to check on him and knocked on his door. They could hear him thru the door and he yelled he was running late and would be there shortly. So everyone went back to the clubhouse. An hour later Jerry was still not there. They went back to the house and found Jerry at the front door with a death grip on the railing. He was having trouble walking. They wanted to call an ambulance but Jerry said he felt fine, just help me to the clubhouse. Once there he had breakfast but could not get up from the table. His friends called an ambulance and brought Jerry to the hospital. An hour later the friends called the hospital and asked how Jerry was. The nurse said, he's doing fine, but that he just had both his legs in one leg of his boxer shorts. Moral of the story, if you get old, be careful and pay attention. The Biggest Lie I tell myself is....I don't need to write that down, I'll remember it. Gone are the days when girls used to cook like their mothers. Now they drink like their fathers. I decided to stop calling the bathroom the "John" and renamed it the "Jim". I feel so much better saying I went to the Jim this morning. I didn't make it to the Gym this morning. That makes five years in a row. Last year I joined a support group for procrastinators. We haven't meet yet. Why do I have to press 1 for English if they just transfer me to someone I can't understand anyway? Am I ready for the Catskills yet?

Business returns (1120, 1120S, 1065, 1041, 990) can be Efiled starting Monday Jan 8.

I thought that he could only do this if the parents CAN NOT claim him, regardless of whether they do. And if he has no income and fully relies on their support, they can claim him. Just out of curiosity, in 2018 when there are no dependency exemptions, will the situation be different?

Accepting returns as of 1/29 but no processing for another couple of weeks. Sure; we'll go with that (like we have a choice). That's actually the date I expected (though on an online poll I picked a slightly earlier one for some bizarre reason).

I got all my client W-2's printed out today but have not answered the phone or really any client emails today. The snow has been blowing sideways all day (I took a video on my camera and need to figure how to put that on facebook), there are drifts, and the winds are really howling! Still have power, hooray. The local emergency mgmt folks did reverse-911 calls last night telling folks to set their house thermostats to 72F (I guess to keep them warm a bit longer if power does go out). It feels decadently warm in much of the house - but not the office, on the north side above the garage. I made a white pizza for dinner and as soon as it cools off enough to cut, we'll see how well it turned out!

Thanks for clarifying, Terry. I also itemize now, even as HOH, but I'll lose my last dependent in 2018 (she's graduating with a Doctorate in Physical Therapy thank God on many fronts), so the 20% deduction will be a lifesaver when I move to Single brackets. So glad it's a deduction for income tax purposes only. I don't mind paying SE tax (well I do who am I kidding), but I look at that one as a pension investment. LOL.

This BB goes bonkers when I try to start a new topic, so maybe one of you can cut/paste this into a new subject line... Issue Number: IR-2018-1 Inside This Issue 2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers WASHINGTON ― The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15. Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds. The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns. The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return. The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2017 tax return. Using an electronic filing PIN is no longer an option. Taxpayers can visit IRS.gov/GetReady for more tips on preparing to file their 2017 tax return. April 17 Filing Deadline The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation. The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The IRS and Summit partners continued to improve these safeguards to further protect taxpayers filing in 2018. Refunds in 2018 Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS expects more than four out of five tax returns will be prepared electronically using tax software. The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers. By law, the IRS cannot issue refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. This applies to the entire refund — even the portion not associated with the EITC and ACTC. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if those taxpayers chose direct deposit and there are no other issues with the tax return. This additional period is due to several factors, including banking and financial systems needing time to process deposits. After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving Presidents’ Day may affect their refund timing. The Where's My Refund? ‎tool on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers in late February. Taxpayers will not see a refund date on Where's My Refund? ‎or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund. IRS Offers Help for Taxpayers The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov, the official IRS website. Taxpayers can find answers to their tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide links to these and other IRS services. Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 18 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process. In addition, 70 percent of the nation’s taxpayers are eligible for IRS Free File. Commercial partners of the IRS offer free brand-name software to about 100 million individuals and families with incomes of $66,000 or less. The online fillable forms provide electronic versions of IRS paper forms to all taxpayers regardless of income that can be prepared and filed by people comfortable with completing their own returns. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free tax help to people who qualify. Go to IRS.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider. If eligible, taxpayers can also locate help from a community volunteer. Go to IRS.gov and click on the Filing tab for more information. The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

The state with the highest sales tax allowance, $3745, for incomes over $300K, is .............. TN. Mississippi's is $3613.

Seriously. If I left $13 in interest off my return, they'd put my in the cross bar motel.

If client gifts stock (transfers to son's name), it has to be done through a transfer agent, otherwise it could result in a taxable transaction. https://finance.zacks.com/transfer-shares-stock-another-person-2598.html As for the mother, there is no gifting between spouses. The money can be transferred back and forth without any consequences. However, for the mother to gift to the son, the funds would have to come from her own separate bank account, not a joint account with the father. So if there is no separate account, it should be set up before transferring from spouse to spouse.

Greed, on the parts of the preparers and taxpayers, is a powerful motivator. Sadly, our society has devolved and continues to do so into a strong consumerist and 'me' centric environment. It's sad to see the growth of me vs. us. There are times when I question clients about non-charitable deductions. When they have to put the value on that bag of clothes, I ask them to consider whether the intent of the contribution was charity or simply a tax deduction. Would the donation have been made without the tax benefit? It will be interesting to see how contributions compare with the new tax law.

Jaw drop emoji

This kind of stuff amazes me. I don't know how people think that they can or should get by with this stuff. I would never be able to sleep if I had knowingly done anything like that.

ultimately decided against it and will use ATX again.

iirc, HSAs can be used after retirement for the primary health insurance premiums including medicare and the medicare drug coverage, and long-term care policy premiums, but cannot be used for medigap supplemental policies. If the premiums aren't paid directly from the hsa, the owner can request reimbursement from the account for these. If paying for these or being reimbursed from the hsa, then obviously they aren't eligible for inclusion as Sch A deductions. HSA can also pay COBRA premiums.

I will bring my appetite and a spoon!

A qualifying child must be younger than age 19 at the end of the year or younger than 24 and a full-time student. Since your son has already turned 24, he is no longer considered a qualifying child. ... As a qualifying relative, your child can be older than 24 and still be claimed as your dependent.Feb 5, 2013 Thanks to both of you. Andrew will not be younger than 24 on 12/31/18. He will remain a full time student. I'll check to see if he can get dependency as a qualifying relative. If so we still have the question if the AOC applies to a qualifying relative.

Yep, some carrots in mine, red and black beans. Bacon Jalapeno (!!!!) would be a winner here and will have to try that next time.

They were afraid we'd paper file a return with SSN suppressed. I said fine, don't allow SSN suppression on Filing Copy print packet, but please let me suppress SSNs on Client, Preparer and Custom print packets so the PDFs on my computer are more secure and I'd feel better about emailing returns.

It's soup and warm bread for us tonight. Saturday is a really, really big bonfire at church, burning Christmas trees with our volunteer firefighters in control, and the proceeds going to Weston Warm-up Fund to help our neighbors with heat this frigid winter. Chili and all the fixins inside. I'll watch the bonfire from inside, I think!

We need to have a chili cookoff. I will bring my Bacon Jalapeno chili with red kidney beans. I will bring some cornbread too. And I don't want to hear from any of you Texans that chili should not have beans in it. Tom Modesto, CA

As soon as the airport opens I'm there. Do you have enough cayenne? I could also pick up some crusty pancetta and parmesan bread from Little Italy.

Microsoft is issuing an Win 10 Emergency Security Update at 5:00 PM EST today. It will be automatically installed on all Win 10 machines. Microsoft may issue Security updates for older OS next Tuesday.

We got lucky enough to be in the area with lower accumulations, but it's still drifting. As long as the power stays on, we're fine. If not, we'll fire up the generator. I do feel sorry for those suffering the more extremes of this storm and especially the southerners that aren't equipped. I'm fighting the bone-chilling colder temps and the wind (only at 45 mph here) with a big batch of homemade chili. Who's coming for dinner?

See qualifying relative rules, instead of qualifying child rules

Also, there is a 2017 tax extenders bill currently in front of congress, that wasn't made part of the new tax law just passed.

Why isn't the student a dependent?

I stayed in today. We have about 7 - 8 inches but its blowing sa hard that we have drifts of 3 - 4 feet. Power is on so I'm happy.

FYI, you can only suppress the Client copy print packet. That's the one I use for K1s so I can email them to recipients. I asked ATX to allow to suppress SSNs on any print packet but they said that we were too stupid to have that feature.

Thanks for the info! I got to thinking when I was reading them about the regional high level IRS representative who once spoke at our tax group. She said she hates that preparers use organizers and thinks that we are being unprofessional, even breaking rules. She was intimating that she wished there was a fine she could impose on preparers for using them. Obviously she has never sat across the desk from a tax client during tax season. How the heck could you get though all of those questions, yes she thought it was our job to ask every one of them, and still somehow get any returns done. Just watching clients slowly handing over one document at a time, docs they often times have no idea what there even are, makes me usually reach over and grab the whole stack so I can rip through them in 30 seconds. There are only so many hours in the day and the organizers are so helpful to get 80+ percent knocked out.

Yes, looking at tax only, this is correct. Tax is $514 more. But if I understand correctly, if the three dependents are under 17, the credits will be $3,000 more. ($6,000 instead of $3,000). If the three dependents are over 17, the credits will be $1,500 more. ($1,500 instead of zero.) Don't think the Family Tax Credit is refundable, but I think your client is better off in 2018 either way.

Driving west to the dentist this afternoon, I saw sundogs with rainbows! Go google for images yourselves, since most folks here don't want to click on links. It was stunning.

Nature is phenomenal! I am jealous that i did not get to see this. I did once stand at the end of a real rainbow. No there was not any gold. But it is a sensation i will never ever forget. Happy New Year!

I never use the CD. I download the install file and use it. Then when updates come out, I download the update file and run it. If I have to reinstall or install on another system later in the season, I download the latest install file. It will have all the current updates in it.

Maybe the handlers (do the handlers change, or is the same small group really in control of politics? Maybe I do not really want to know...) of those we elect are wising up too, and trying a new sales pitch... It would be fun if they had to drink what they sell (think VitaMeataVegamin).

Have you noticed they haven't used the word 'simplification' for awhile now?

I use ProSeries, and if my computer is idle, I have to re-sign in. And I have to change my password every 90 days (or something close to that, I don't really track it.) It is a nuisance and I don't think that it makes everything that much more secure but I try not to get upset over things that I cannot change.

This is an IRS mandate for all tax software starting with tax year 2016 software. The same goes for requiring a password as well as changing it every 90 days. All IRS mandates.