Leaderboard

The study time of course depends on how much time you have to devote to it. I studied relentlessly for six months (I'm an academic bookworm anyway). I studied so hard that I vowed that I HAD to pass all four parts (back then) the first time because I was never going to study that hard ever again. I succeeded. Many didn't, and they just kept trying until they passed. The world doesn't come to an end if you don't do it on the first shot. Unlike very few things in life, on the SEA you get a second chance, and maybe a third or more. There was one guy in my EA prep course who took the exam over 10 times and failed, and here he was trying again. We all respected him. I warn you against feeling "I'm sure I'll do fine on the individual portion." In my prep course at H&R, we all felt that way until we took the first practice exam. We all fell fifteen notches when we scored in the 70 percents and lower. Part of the study process is to learn how to approach the questions. As you know, the IRS is big on double negatives. (You cannot not do this or that.) We also learned that if a question addresses something you never heard of, just pick any ole answer and don't waste time on it. Came in handy when I encountered a question on the optional method of calculating Social Security income. Also examine your motives for wanting to be an EA. The designation may confer some approbation in the tax professional community, but so do your years of experience. You do get to represent clients before the IRS, but do you really want to do that? IRS audits are no fun, and I have encountered some auditors from hell who were especially no fun. If you just want to prove to yourself that you can do it, give it a shot. If you tell yourself that you are just doing it as an experiment, knowing that it may or may not work and really doesn't change your life, the test anxiety level should be minimized. You'll still be the exact same knowledgeable, experienced person the next day. Nothing gained, nothing lost.

It really depends on facts and circumstances of how they were hired, how they are directed by the organization, if they can be fired...much like any other employee that we look at to determine employee status v. self-employed person. Your client may actually be properly classified as an employee, but you should ask to be sure the W-2 is prepared correctly. If you google "topic 417" on the IRS page, you'll find more information. Even for a minister that should be reported as you described and expected, the minister and treasurer can agree to withhold as FIT amounts sufficient to cover the minister's FIT and S.E. taxes, making it possible for the minister to avoid paying quarterly estimates altogether. In that case, the W-2 would be reported with boxes 1, 2, and 14 filled in.

If its really what you want then by all means go for it. I assume you will regret it if you dont. When I was studying for the CPA I took a review class and the best advice I got was. "Remember, the test was written by individuals and is designed for individuals. Many have passed so dont look at it like its impossible. If you want to do it, and you prepare sufficiently, you can do it!" And I did on my very first attempt. Its a great feeling!

Too many warm corona's??? Tom Modesto, CA

You are the favorite person on this board. And Judy had to nominate you for the star of the week. I think it is a conspiracy to keep me from my star, so I am crying..... Right now, it looks positive for us to get out to see you, so long as there is some business purpose (Abby Class on ATX customization?). I love me some BBQ, and I could use a hug.... Tom Modesto, CA

NONVOTING POST - Look, I took a selfie : Aww, Tom, sorry. I've been waiting to see if anyone else would nominate someone or make more posts. You're all stars in my book.

You are killing me with that sad face, @BulldogTom. I can't wait to feed you some BBQ and give you a hug.

Vote here for @RitaB as I am nominating her for a star because of her announcement last Friday in the "ATX client letters" topic that she is willing to play host to a bunch of you this coming June 23rd. Rita, you are a treasure, always willing to help and always with good humor.

Start your research with Pension Protection Act of 2006 and IRS Notice 2007-50. There are volumes of Tax Court cases regarding conservation easement contributions which ultimately, per the Tax Court rulings, failed. Lots of rules to be followed to be successful.

just downloaded updated forms did not look for all of them but you can now enter PMI

This is fixed for Kansas. Glory be!

There is no 4361 in place for the Taxpayer. He had a long career in the working world and is not religiously opposed to government payments. @jklcpa That is what I wanted to know. Now I just need to fiddle with the Clergy Worksheet to get the additional SE Tax from the housing allowance on the return. I think I have this ...Thanks Tom Modesto, CA

That sounds right.

Don't do what I did. Took part 1 and passed, then waited too long to study for part 2 as life got in my way and the 2 years expired, time flies. This was over 10 years ago and now I'm too old, I mean older and not interested anymore. I would take part 2 first, getting the hard part over with will give you great incentive and be able to easily get it done. Good luck!

That is how I interpret it.... "4. At least one of the child's parents was alive at the end of 2017." "These rules don’t apply if neither of the child’s parents were living at the end of the year." As long as they did not adopt her. I did some reading on this, the intent of the rule was to avoid wealthy pushing tax to the kids rate, maybe the IRS had a heart and figured if both parents are deceased that is not the motive..

If they had just put it on the 1098 to begin with, we would have waited to prepare the return, and they would not have had to print and mail 1098s twice. It was Pennymac Loan Services. This is not my most favorite tax season.

You can do this! I am giving advice on how because I took it back when it was paper and so I don't know that what I observed still holds true. But I have confidence in you!

Nothing to do with the test because I can not speak to that since I have never studied nor taken it, but I just wanted to state a comment that is on my wife's exercise bulletin board. It seems to apply here. "If it is important, you will find a way; If it is not, you will find an excuse!" Sounds a bit harsh but there is a lot of truth to it. Grab the bull by the horns and go for it. Good luck!

I used the Gleim product with many, many,many practice tests. I knew it was going to be OK when my practice test scores got well above the passing grade. I also learned that every. single. time. I went back to a question, my second answer was wrong and my first was usually right. It saved me untold agony during the testing just not going back to older questions. You CAN do it. Instead of worrying about test anxiety, think instead that the worst that could happen is that you would have a better idea of what to expect a second time. You won't lose any clients, you don't have to cut prices, you don't have to wear a scarlet letter... It's all OK, and we'll all still love you.

Kook of the week nominee..... Get a call from a Texas number. Guy leaves a message. Referral from another client. I call him back and he starts telling me how he has this little problem with the IRS. Apparently, he has not paid his taxes from 2013 and 2014. Says he has been disabled and he can't seem to get through to anyone at the IRS because they keep getting disconnected while he is on the line. The penalties and interest are really piling up. But the last person at IRS he talked to said if he would fill out a "Form 22 something" he could get all the penalties and interest wiped out. So I start asking questions. Do you have your tax returns from 2013 forward? "Well, I moved and I don't know where they are". Did you prepare your returns or did you have someone do them? "Well, my daughter did the returns". Can you get the returns from her? "Well, we aren't speaking right now". His next statement "I only have disability this year, but I need my taxes filed and that 22 something form filled out. Can you do that?" My response..."Yes, I can do your tax return. The representation is at $XXX per hour, and will include taking a power of attorney, getting copies of your transcripts for the years in question, communicating with the IRS and you, and then coming to some resolution that allows you to pay back what you owe, or put you in the Currently Not Collectible status until such time as you can start making payments. I estimate a minimum of 10 hours, and I require a 50% retainer before I start working on your case." His response..."Well, let me look for my returns and I will get back to you." Tom Modesto, CA

Also, when you install a new printer, ignore the warnings to not connect the data cable. Printer companies want all this crap software running on your computer. Just connect it and when windows detects it, it will install a driver for you, or you can browse the CD that came with the printer and find the driver file there. Although you need to be a bit tech saavy to know which folder on the CD to use. But the windows driver will normally be fine, and most likely come from the printer manufacturer anyway.

Quite possibly: Unfortunately, some persons deed away their homes without reserving a life estate. Arguably, the federal estate tax inclusion ends up being lost by such a maneuver, but the literal language of Section 2036 quoted above can salvage the step-up in basis: note that the word “retained” is used. The Internal Revenue Service has successfully argued in the past that a right can be retained without having been reserved, and that the continued occupancy of the home after the transfer of title, without paying fair market rent, is evidence of an implicit agreement, understanding or assumption of the parties of the transaction. (See Estate of Linderme v. Commissioner, 52 T.C. 305 (1969).)

There is a step up on half when father died. If in a community property state full step up when father died.

The two receiving the cash would have gain based on Mother's basis - unless they ponied up money at the time of transfer from Mother.

Not for me. I love 95 degree days!