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https://www.journalofaccountancy.com/issues/2018/may/self-employment-taxes-llc-members.html

Simple. State-paid insurance for nearly anyone who applies. And vicious penalties for not having insurance pushing people to apply.

The IRS should have cleared this up years ago by finalizing the proposed regulations. I had an audit of an LLC member who was not active in the business at all, and the IRS agreed with me that the member was not subject to self-employment (SE) tax. The agent told me that the IRS was using a 'facts and circumstances' decision making process for these cases.

You should switch to SSDs. The prices have come down considerably and the performance leaves HDs in the dust.

Go to the census office and ask them "Can you print this out for me 'cuz I don't have a computer?"

Does the client have a 10-12 year-old child, grandchild, niece, nephew, or neighbor?

SSD = Solid State Drive. In reality, it is not a drive, but a very large and powerful RAM chip with programming burned into it. No moving parts.

Edsel and Abby Normal, here are some of the answers. I took the highlights below from a Politico article and pruned it down to try to eliminate the politics without changing facts.

Agree 100%

I would hope the state calc of the penalty would be simpler than the federal one, but having prepared a few NJ returns, I'm not betting on it.

Thanks, Judy. I just kept thinking this was too good to be true for the client.

I have filled these out for years for my write up/payroll/tax clients. I filled one out several weeks ago, but I had to call the census bureau and get a temporary password so I could log on to the website and fill out the pages of information for my client.

Local library with volunteers?

I ate too many doughnuts... Then this dude beat me up...@#%$*&

Alternately, you can just add the 1040X to the original file and not utilize the amended feature of ATX. That's what we do because we prefer to just have one file. The downside to doing this is you have to manually enter the numbers in the original column but we still prefer it. And, welcome!

You will select which ones to rollover. Yes - there will be two but you will need to decide which one you want to rollover. On another note, to make that process easier, you can always rename one of the returns.

Seems so simple, doesn't it.

90% of the time, it is easier to recreate the old 1040 with all the mistakes, tax reported, credit reported and the whole enchilada. Then you save it. After that you invoke the amend return command and a copy of that return will be kept intact and a new amended file will be created. On the new file, form 1040 will stay and 1040X will be added. Work on the 1040 and prepare it correctly as it should have been done in the first place. After you review the 1040 and you feel satisfied with it, go to 1040X and enter the explanation of what happened. The calculations should be OK but take a look at the 1040X just to make sure. The other entries are easy to be answered with a check mark or entering a 1 on the correct column. Going to your question, since 1040Xs are mailed and take a long time to process and some times we amend a year o two later, you will be better off if you roll over the old, incorrect 1040 file. The only time I think I will roll over the "amended" file will be if depreciation is involved. For example if they didn't include rental income for the 3 months (Oct, Nov, Dec) and I entered the cost and life of the house. Keep in mind that any required, extra form or schedule needed on the corrected 1040 needs to be attached to the 1040X. Also any schedule or form that change figures, needs to be included. For example, additional child tax credit form that had an entry of $250 and now has been bumped up to $760. I said that 90% of the time it is a good idea to recreate the old, messed up return because: Most 1040Xs report an extra W-2, 1099 series form, deductions not taken, dependents not claimed, credits not claimed, income not reported and errors by tax preparers. All these type of omissions are beautifully handled by the software if you follow what I said above.