Leaderboard

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.

But, Rita B. has all the weirdest clients!

Client chose NOT to get health insurance. Client had income of $24,300. Was offered $496/mo subsidy on Silver plan with a cost of $631/mo...leaving her contribution at $135/mo...less than the required contribution calculated by 8965. I inform client that she does NOT qualify for the affordability exemption and will be assessed the $695 penalty. She thinks I am wrong because: 1) She could not "afford" to pay $135/mo with all of her other bills 2) Her sister makes $27,000 and did her own taxes and qualified for the exemption. Client requests I file her return claiming affordability exemption anyway. I told her I would NOT do that because the 8965 calculations do not support it. Since the return is complete and I'm charging her regardless, she told me to file "as-is" with the penalty and then she'll take it to her sister to amend (claiming the exemption). In the end, her sister (who she now views as a tax genius) will amend her return...and IRS will probably not question it...and client will get her $695 refunded. I know her amendment will be wrong (and potentially fraudulent), but client (former) will assume I was wrong and spread that story via word-of-mouth. sometimes I hate people

First post I saw this morning and it cracked me up! We already have categories built in that change as members' post count increases. Maybe we should have a special award for Tax Studs.

Uh oh. Tom called the women 'babes'.

My kook of the day doesn't believe in health insurance or the flu or paying the penalty, so I can calculate it but she's not paying it because she read that the IRS has no authority to collect it! She also called me from the parking lot because she couldn't find my office.

When did it become permissible to have fun during this season? I must have missed that memo.

New tax client this year and I'm looking at last years return: she owns a house in New York State but doesn't live there visits for vacation. She works 7 months of the year and rents an apartment in Missouri. She works 5 months of the year in New Jersey. Here's the problem, they filed 3 state tax returns all as non-residents. The W2s show her having income in the state of New York. One W2 says she made $60k total and attributes it $60k in Missouri and $60k in New York. She has another W2 from her time in New Jersey that does the same thing but the preparer did a manual override of THAT New York attribution of income. The software prints off a W2 so I know they entered it into the software. Very weird.

Exactly...my client has no kids... client's sister does not want to share...wonder why

Well, I'm humbled by others tax knowledge on this forum and others routinely. Computers are an accountant's best friend (and worst nightmare some days). Doing accounting programming in the 80s, I saw how computers could be great time savers, if you make them do the work for you. Then spreadsheets came out, and macros, which got renamed to scripts at some point. Hell, I even have a script to type 'Tax Returns' which saves me thousands of keystrokes during tax season. Besides, I often typed Retruns.

I think we should have a pinned topic every week for the "Kook of the Week" where we bring our weirdest tax clients/situations. Whoever gets the most reactions to their posts in that topic gets to be "TAX STUD" or "TAX BABE" for the following week. Tom Modesto, CA

Ok, if the guys can be tax studs, what would the ladies be called? ONLY LADIES MAY ANSWER THIS QUESTION.

Whatever Judy says they are...... Or it depends on the quality of what you promise to bring to the Rita Cookout this summer for Abby's educational seminar..... Tom Modesto, CA

Every year, I have one customer who calls to complain, loudly, that it is my fault they have to install updates several times a year. This person pays someone to come in and install for them. Like I have any control over when the IRS and states publish withholding changes, when the IRS publishes the new 941, 940, and W2 forms... I learned a long time ago, not to try to explain, as it wastes my time and annoys the other party, so I wait until they are done, hang up, and still collect their fee.

Not only is Abby Normal a Tax Stud, he's also pretty savvy when it comes to computers and programming and writing scripts as evidenced by his "AutoHotkey" use.

Keep in mind that many of these are just my personal preference. I also didn't include my MD preferences since most of you don't do MD returns. 1040 Check third party designee on page 2 Yes Check to print Filers Info Check to print Ln 7 Wages Check to print Line 40 Standard vs Itemized Check to print Line 44 Tax Calc Check to print Line 48 Foreign Tax Credit Check to print Line 52 Child Tax Credit Check to print Line 54 Other Credits Check to print Line 64 Federal income tax withheld Check to print AGI Split Check to print Earned Income Late Filing-Override Late Payment Penalty due date to 4/15 (or 16, 17 or 18). Trick: You have to change tax return due date field first. Then restore this field. Late Filing-Override interest rates as they become available. Sch A (1040) Check to print even if not required Sch B (1040) Check to print Sch D (1040) Check to print Tax Wkst Check to print AMT forms 1040 EF Check Practitioner PIN Check ERO entered for Taxpayer (only) Enter ERO PIN Link Date signed field to 1040 page 2 date. Payment and Refund tab: check to print Check No for Protection Plus Add text box for signature and date (see text file) Mailing Inst: don't print PIN tab: check to print E-filed Forms: check to print 1040-ES Options check Round to 100 Payment options online or paper check Check to print IRS Estimate Wkst Check to print Options 1099-DIV Detail tab Add 9 lines (total of 10) Uncheck Add to Payer Manager Leave cursor in line 1 1099-INT Detail tab Add 9 lines (total of 10) Uncheck Add to Payer Manager Leave cursor in line 1 1099R Detail Tab Add 4 columns (total of 5) Uncheck Add to Payer Manager Leave cursor in column 1 Uncheck to not print Summary Totals Check to print Summary Payers Uncheck to not print Code Summary 1116 Check Income Reconcilation to print Check AMT Reconcilation to print 2848 Page 1 check box to receive communications Ln 3 Enter INCOME for description and 1040 for form Page 2 at bottom enter Designation: Jurisdiction: Cert#: 4868 Open 1040, 1040 EF, Comparison & 4868 Enter an amount on Comparison line 63 Total tax Prior Year column Link line 63 prior year to 4868 tab 1 line 4. Enter 0 on 4868 line 7. Check box Lock amounts and carry Restore line 63 on Comparison Efile Info-Check Practicitoner PIN Efile Info-Link taxpayer & spouse PIN to 1040 EF Efile Info-Check ERO entered checkbox for taxpayer Efile Info-Link ERO entered checkbox for spouse to 1040 EF checkbox Efile Info-link Date Signed to 1040 date Efile Info-Enter ERO PIN Payment-Check Paper check 8283 Add 3 records Type of property: Household items and clothing Date acquired: VARIOUS Date of contribution: 12/31/yy Type of Charitable Org: 50% Description: HOUSEHOLD & CLOTHING Condition: GOOD How acquired: Fair market value: 500 (this makes 'Were goods...' question appear) Method: Thrift shop value Were goods or services exchanged for the donation: check No box Restore Fair market value field 8582 Line 7 Mod AGI, check to print 8615 Check all pages to print 8949 Detail tab Add 9 rows (total of 10) Check to not print Gain(Loss) Summary Bank Account Check use prior years Check show only jurisdictions in return Check personal Check No for foreign Check apply to all jurisdictions IRA/Roth Wkst Mark all pages to print except SS With IRA K1 Input (1065) Check to print PTP Summary & AMT K1 Input (1120S) Check calculate basis (Must have 1040 open for box to show) Set holding period to long-term for excess distributions in Basis section (Trick: enter name at top to get Basis section to appear.) Restore name field when done. NOL Mark all pages to print W2 Detail Tab Add 2 columns (total of 3) Uncheck Add to Payer Manager Leave cursor in column 1 Uncheck to print summary totals Check to print summary payers W2G Detail Tab Add 4 columns (total of 5) Uncheck Add to Payer Manager Leave cursor in column 1 Uncheck to print summary totals Check to print summary payers ***************************END OF INDIVIDUAL FORMS********************************* 1041 Check May IRS discuss return with preparer Sch K1 (1041) Global Info: Print Page 2 K1 Codes Input: Entity Type I 1065 Check May IRS discuss return with preparer Options complete Schedules L, M1, M2 Line 20 Other Deductions check to suppress preset descriptions Sch L Balance Sheet per Books: Check to NOT print this worksheet Sch K1(1065) Global Info: Print Page 2 K1 Codes Uncheck Print K1 letter Print partners basis statement Print partners basis summary Print capital account summary Input check domestic partner 1065 EF Check Practitioner PIN (same form for 1120 & 1120S) Check ERO entered Enter ERO PIN Link Date signed field to 1120 page 1 date. Signing Inst: don't print PIN tab: check to print E-filed Forms: check to print State EF Info Bus: first name, last name, title, date signed, email & phone to fed EF 1120 Check May IRS discuss return with preparer Options Complete Schedules L, M1 and M2 Line 26 Other Deductions Check to supress preset descriptions Sch L Balance Sheet per books Check to NOT print this worksheet 1120/S EF Check Practitioner PIN (same form for 1120 & 1120S) Check ERO entered Enter ERO PIN Link Date signed field to 1120 page 1 date. Payment and Refund tab: check to print Mailing Inst: don't print PIN tab: check to print E-filed Forms: check to print 1120S Check May IRS discuss return with preparer Options Complete Schedules L and M1 Line 19 Other Deductions Check to supress preset descriptions Sch L Balance Sheet per books Check to NOT print this worksheet Sch K1 (1120S) Global Info: Print Page 2 K1 Codes Uncheck Print K1 letter Print shareholders basis statement Input: Shareholder type I 1125-A Check Lower of cost or market Check No for question e: does 263A apply Check No for any change in determining quantities, cost or valuations 1125-E Check to truncate officer's SSNs Elections Deprec and Amort check box to Apply De Minimis Safe Harbor to Expense 263(a) Check box to Apply Safe Harbor for Small Taxpayers-Eligible Building Property 263(a) Blank Elections Copy/Paste from last year. Uncheck to print. (I have several elections that ATX doesn't have. Either that or I simply couldn't find them.)

Here's how I customize form 8283. I add 3 records and customize the fields shown below. I restore the Fair Market Value field before I save, but the 'Were goods or services exchanged...' question doesn't show until you enter a FMV of 500 or more. This save me a lot of time. I have quite a long list of form customizations that I posted awhile ago, that I could post again if you'd like. I'm constantly adding to my list.

I hate this form with the power of 1000 suns. Please post the customization list. I hope I'm smart enough to duplicate it in my software. Thanks so much!

haha, you guys don't listen to me! We could make something of this and have some fun this season. What about having monthly winners of the title during the busy season with some little spiffy awarded? I'd need input on the criteria.

yesterday already, I decided taxes were fine - government nasty and I do not like people anymore - too demanding!

I would request a copy of the sisters tax return, if the sister has a brood of kids and she doesn’t, that will make a difference.

2106. I give up.

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

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."

What Expenses Can Be Used to Justify the Housing Allowance Exclusion? Generally, any expense to provide or maintain the home can be used to justify the housing exclusion. Regulations do specifically state that expenses for groceries, paper products, personal toiletries, personal clothing, and maid service cannot be used. You may legitimately include the following: (1) rent, principal payments, or down payments plus the cost of buying the home; (2) taxes and mortgage interest (even if these are includable as itemized deductions); (3) utilities (heat, electric, basic telephone, water, etc.); (4) the purchase of furniture, appliances, dishes and cookware, and decorating items including rugs, pictures, curtains, bedspreads, sheets, towels, etc.; (5) insurance on the home and contents; and (6) miscellaneous expenses including improvements, repairs and upkeep of the home and its contents, snow removal, lawn mowing, light bulbs, cleaning supplies, etc. Here is a link to where I found that information. https://www.ecfa.org/Documents/TheMinistersHousingAllowance.pdf I

Post yours and maybe some of us have others that we have fixed. Thanks

Timing out after a period of inactivity is an invention of the Security Summit. I personally think that using a hotkey defeats the security. In UltraTax, you don't time out if you are actively using another program. When I am working on a client's books or eating lunch, I keep email on the screen and periodically click on any message so I don't time out. I also type in the password in the morning verrrrry sloooooowly so I don't mess up and have to prove I'm not a robot.

Your clients actually read the transmittal letter?

I haven't gotten enough wage earners in yet, but based on my business clients, the new withholding tables seem way off. I've been telling them to warn their employees that they need to look carefully at it when they get their taxes done. No way yet to help anyone plan for state, our legislature isn't even in session yet, so no idea how/if they'll conform. Based on experience, we may not know until late March.

man - add $50 to her price!! or next year!

If the sister amends, (not likely she knows the proper procedure) then the client gets that letter from the IRS, it will be the problem of the sister and the client. Not likely the sister will sign the return, so again, the fraudulent people have no worries about being caught, and us honest people have to jump through the hoops like we are the criminals.

I don't let them escape tax free on any of the housing allowance that is worth more than renting my house Really. $4,333 a month? In Nashville? That might be light. Rich

I use AutoHotkey for a bunch of scripts to save me typing, so I wrote a script that's triggered by pressing 2 keys that types my password for me. I honestly don't even know what my password is. I have the same password for 16 and 17, and when I change one, I change the other.

This site is for tax professionals using a specific brand of software not used by the generalpublic . We do not answer questions posed by nonprofessionals here. You should consult with a knowledgeable tax professional or hire that pro to prepare your returns.

JB, me, too. And I wonder about future years. How long will we be required to change the password every 90 days? With the 3 year sol, we sometimes go back to prior years to amend or even prepare original returns. Frankly, I have my passwords on my desktop so I don't forget. It's just me here, home office, all alone...

I think I've spent more time typing my user ID and password into the 2016 and 2017 program than I have actually doing taxes. OK..not really, but it sure feels like...I truly hate the password requirement. It is just me...working out of my home office...no clients in my office...no friends or family in my office.

You will have to show up at Rita's home this summer for Abby's training seminar to find out. Stay out of the back 40 and for God's sake don't accept a hug from anyone. Tom Modesto, CA

I did one last year for a family partnership that owned a large farm, that was sold after both parents died. A trust was created when dad died, and an estate when mom died, and the trust dissolved on mom's death and was split to the kids... yeah, I likely screwed this up but the end result looked reasonable?