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Hi everyone! I'm sort of new to this forum. Joined last year, but haven't participated. I mostly lurk around between the wee hours of the morning and the quiet time after dinner when I herd the last clients out the office door. I don't really remember how I found this place, but I am glad that I have. You've all provided me with help (I find a lot of answers here to supplement my own research - so thank you! ) and humor (because we all need it this time of year), and I'm grateful for that. 3 more weeks! And then we can have our lives back. At the very least, we can sleep while it's still evening.

She's a prime candidate to use TT that would allow her to see the bal due/refund change with every fabrication additional business expense or deduction she made up forgot on her first attempt. /sarcasm

I don't understand the use of the word "tried" here. Is she saying she had business income when she did not? Or is she reporting income that she always has and normally does not report? I may have this all wrong, and if so I apologize. If I'm not wrong, I would never let a client decide what income to report, or suggest what income to report. Besides the obvious (it's wrong), I would not want that to be told, and it will be. They made some bad moves and do not qualify for a credit that a lot of people didn't qualify for. I'd try to keep emotion out of it and just reconcile the income and taxes and credits. You might try MFS. It's not your fault that they didn't think taking distributions would increase income. It's also not your fault that the price of health insurance is obscene. Tax pros can't make it affordable. Try not to worry about it, neighbor or not.

I love neighbors and friends that use me when they need me. /s I have turned away very few people in 24 years, but I declined to take back two clients in two days this week. One was a long time friend who got mad at me last year for telling them I have 10 weeks to make a living and cannot re-do your return every year because you forgot something [you can't manage your W-4 and are making up ship for your side business]. She has not spoken to me in a year and her husband made her ask if they could bring in their stuff. I apologized at the time for my attitude, I apologized again Sunday night when she texted, but politely told her no. I have been smiling ever since.

I'm glad you finally came out of lurking. Pretty soon when the season's over and we'll be back to the die hard skeleton crew that sticks around for the rest of the year. Now I have The Beatles "Hello, Goodbye" stuck in my head.

Yes, this is why God made Turbo Tax. This ship kind of advanced planning is bullship above my pay grade. We were about to part ways anyway. It really could not have gone better.

Hugs - If you don’t respect yourself, no one will.

Stop hiding and come out into the open more often. As you have found - not many folks here have too much of a bite. Well, there are a few exceptions - but you will never be abused here.

I got 8 done yesterday and then my Office Manager tells me as she's leaving for the day that we have more returns in now, than we had on 4/17 last year. Holey shirts, Batman! I need to crush it!

PS. I realize ending a sentence in a preposition makes English teachers crazy, but I subscribe to Churchill's declaration, "That is the sort of bloody nonsense up with which I will not put."

Three thoughts: 1. §267 ( b ) clearly states that a fiduciary of a trust and a beneficiary of that trust are related parties. If the Property is rented (and the funds actually paid) at Fair Market Value, then there is no issue with deducting losses. If the rent charged is not FMV, then the expenses, other than that which would be generally deductible on Schedule A, would not be allowed. This is the same general rules for a rental between a parent/child or a child/parent situation. 2. I think you are being a little quick to judge on the fiduciary duties. Real Estate is a generally sound investment. Since title is presumably not passed to the son, the corpus of the trust is still intact, except for normal losses of first year rental that will presumably be recovered in future years. Just because it threw a loss in year one due to an extraordinary item does not make it a breach of fiduciary duty IMHO. 3. I am guessing that the trust document gives wide latitude to the trustee to provide for health, welfare and general maintenance of the son as current beneficiary. I would also guess that it specifically allows for invading the corpus to do so. And it probably says on the death of the son, the remainder corpus goes to the grandchild. To sum it all up, you need to only determine that the rents paid by the beneficiary are at FMV. If not, I believe you have a related party loss that cannot be recognized for tax purposes. Then if gets interesting, to see if you have a distribution or not. But I don't think you would, unless the trustee was also paying for items that were personal in nature and not related to the preservation and maintenance of the home (electricity, water, etc) Hope this helps. Trust but verify. Tom Modesto, CA

got them to change their IRA to traditional from Roth and saved them a bundle!! Thank you!!!!!!!

Ship happens or hits the fan

Is there another marker flag in the back 40?

I'm so sick of picking people up off the floor when they learn their tax liability after these moves. "But, but they took 10% taxes out." Yea, that covers the penalty, but now you have to pay the income taxes, go into a higher tax bracket, lose your active participation rental loss, maybe some itemized deductions and exemption amounts, etc. " Why oh why don't they call us before trashing their retirement savings?! Plus, what do they think they are going to retire on?

Because that would make SENSE. Besides, the barber's brother-in-law said it was FINE - so obviously he knows tricks we don't. It's our fault for not knowing those tricks.

It's EASY to find a preparer now! However, if you want a COMPETENT preparer - or better yet, a GOOD one, it just ain't happening.

Awesome. This is why you do this crazy job? For when you can really help a client - LEGALLY! Tom Modesto, CA

Why wouldn't there be a foreign tax credit for the tax paid to Eritrea? My German clients with income here and in Germany have a tax credit for the tax paid on income taxed by both.

They won't anyway. You better hold your head up and apologize when you're wrong. And not take any ship from anybody.

well it was a suggestion by a financial adviser - and i know she has done daycare in the past - no idea if ever claimed as I have never had them darken my door before... so ya - why do they not call us first! like ghost busters!!

No abuse, plenty of hugs!

Incredibly poor planning. I have a somewhat similar situation where the family member living in the house pays zero rent. Fortunately in my client's case, the trust has other significant income producing assets Still a bad situation. I I tried vigorously to get my client to go back the the attorney who created this mess, but ? I inherited this return from a CPA Firm who ignored the situation. To compound the issues, this trust is related to my second largest write up/payroll client whose annual fees run well into 5 digits. You can tell, I just love attorneys who do all this magical estate planning, who took a one semester tax class in law school. Just enough knowledge to create a big ugly mess.

Hahahaha, no, I am so happy to be rid of them. And they fired themselves. Win/win. And good luck finding a preparer now.

In ATX this is what you use Customize Master Forms for. I have a very long list of things that need to be checked, unchecked, linked, etc. on many, many forms.

Well, you might ask him how entering $2,000 on Line 12 and removing it on Line 32 would help. Seriously, I would ask.

All final returns are accrual. The fees should have been deducted on the final return.

1040 Sch-E: You can deduct unreimbursed ordinary and necessary expenses you paid on behalf of the partnership if you were required to pay these expenses under the partnership agreement. (Sch-E Instructions)

...contribution, possibly deductible, possibly not, possibly excess... Why oh why don't they call us before trashing their retirement savings?!

Tag Team Tax Services, LLC

Same here, love the quiet time, also clients are impressed when they see my early emails. If we had a partnership it would be a 24 hour tax service....not sure that is a good idea though, clients would take advantage and might call the wrong number and wake one of us up.

When I become President and make the rules, everybody will open their own mail and dispose of all of the envelopes before it gets to the accountant's office.

In general, you are correct that it is probably all nontaxable. That is true as long as none of the medical expenses were included in medical expenses on Schedule A in prior years that provided some tax benefit. If any of those medical expenses were on Sch A in prior years did provide a tax benefit, then the portion of the settlement for those expenses that were previously deducted would be taxable as "other income" because it's a recovery. You are also correct about not deducting medical expenses paid with the settlement because that would be double dipping. In effect, those medical bills were paid by someone else.

There is no penalty for filing a 1099-MISC that is not needed - but there ARE penalties for not filing when they are needed. Better safe than sorry, I always say!

I was hoping someone else would answer you, because I don't use ATX anymore and I am not sure what you are asking by line numbers. The only difference I am aware of is that Virginia is sticking to the 10% threshold instead of the 7.5%, and they allow LTC premiums even if you don't itemize so that sometimes there is an adjustment for that. Without knowing what lines 10 and 11 are, that is all I have. Maybe this will bump it up where someone with ATX can help you.

I don't have a macro set up and that box is checked on all of my Drake returns. There might be an option in the setup that is allowing it to check them automatically, and those settings are rolling forward each year. It's been so long I don't remember, so when I get back to my desktop I'll check it out.

His personal return would include only income up to date of death. If a trust or estate return is necessary, you can elect a fiscal year (ending June 30, 2018) or calendar year (ending 12/31/17.) Both methods are still timely. Calendar year would be due 4/17/18. Fiscal year would be due Oct 15, 2018.

2nd IRA distribution is taxable and subject to penalty unless otherwise exempt. When client put it back, it’s a contribution, possibly deductible.

In my software, 999999 prints as VARIOUS. I almost always have the real sold date. I use the real sold and acquired dates when I have them. If I'm missing acquired, then it's 999999, marking L if true. In the rare case without real sales date, it's 123117, marking L or S if needed.

Hmm, I thought the DL was a state requirement. I do get a nasty note if I've overlooked re-adding the not rolled over info for Ohio. I thought it was an OH requirement not IRS. I got a blue or yellow reminder for my Australian clients who don't file a state return but if I forget for Ohio, it's red.

Sssssssshhhhhhhh

But how is she going to get her loan approved if you don't drop everything right now and do all of them immediately? Those paying clients can just wait while you take care of HER emergency.

I hope you went to bed by now, it's almost 6am and I've been here an hour already, we're on opposite schedules. The DLs are driving me nuts too for the same reasons. Before the season started I printed out all my NY clients' NY INFO sheets (over 100) showing the license info since it doesn't roll over. I curse when I look at one and it's expired. This year I am not showing the info on the NY INFO so I've been updating the 2016s manually for next year. Trying to make a lousy situation better, but it's probably a good idea for ID theft, I guess. All I know about Utah is I once floated in the Great Salt Lake and Marie Osmond lost 30 pounds on one of those TV diets.

thank you!! needed that after an hour of fruitless searching and finally turn here for answers ! thx

Yeah, here I am with not one of the five family returns complete; although, I have emailed them for DL info and a couple of other questions. One of them moved to Utah! I never met anyone who lived in Utah. Is there anything I should know about Utah? But, I have heard from two that I emailed yesterday. A couple of kids with kiddie tax, but I don't prepare parents' returns. Dad emailed me info tonight. Then mentioned his son received a 1099-MISC for opening a bank account, $50 deposit from the bank. Darn. Is that Line 21? Haven't had that before. And an couple who confirmed bank accounts, but will send me DL info tomorrow! I'm trying to work faster, but I'm getting answers slower, like pulling teeth. And, when someone faxes their NY DL, those teeny, tiny DCN are unreadable; so I have to email them to type out the numbers for me. I hope these DLs are doing some good, because they're a real pain to deal with. Rant over. Will try to flesh out the five returns before I sleep. At least the phone isn't ringing and almost no one is emailing me now. If hubby stays out of my office, I'll be good.

IRA to get you to 400%. Had a client that required $1600 to IRA. Saved them $4000.

I finished a monster today - one client with a 1040, 3 S-corps and 2 partnerships. I'm mailing him about 18 pounds of paper.

Complete 3 returns today in 9 hours.

Same with me... met with 14 clients, however. So, there is THAT!

Yes Try an IRA. I had one who had to pay ALL back because of the 401% but they put in 1500 IRA and it went below the 401% and only small pay back. They can use any refund to fund the IRA also as in my case.