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No... Not really. I lived way to long not appreciating what I had. I try every day now...

Bulldog: The worst part is CA is a prostitute with a gun.... I think I have it figured out. I adjusted the Federal amount in Sch CA540NR Column B, instead of Col E. He owes $8,700 now... Have to argue down the number with the state now. Rich

I don't know, Rich...sounds like a little fluff in that statement.

I'm the culprit who committed the derailing offense on the original thread. I apologize for having started down that rabbit trail since the question remained unanswered at the time. I'll plead "off-season antics" in my defense.

In addition to the ridiculously-defined circumstances presented by Black Bart, there are an abundance of cross-references to other regs, such as: a part-time exchange student from Bora-Bora who designs software [described in reg 1.2637-4(i)(6)]during the week and picks fruit on weekends is an HB-1 non-resident alien [described in reg 1.934-18(viii)(12)(a)] who also sweeps out the premises of a non-profit organization [see also reg 1.436-7(xii)(2)(j)(iii)] nights for amounts which vary according to the phases of the moon. The amount of his earnings subject to {whatever} is... They assume we can open 15 windows just to research the question, which may have been as simple as: "Are unemployment benefits taxable?"

Yes, Cathy, The fraudsters will try anything that might work. We believe that EFiling is what they use to commit fraud, but they also paper file a very large proportion of the fraudulent returns. Why not try with 1040x's? It just takes longer to get paid... Rich

Above posts were moved out of another topic to keep it from derailing further.

Ain't it the truth? I swear they stay up nights dreaming up the most unlikely of possible scenarios to illustrate anything. They'll say something like "a part-time exchange student from Bora-Bora who designs software during the week and picks fruit on weekends is an HB-1 non-resident alien who also sweeps out the premises of a non-profit organization nights for amounts which vary according to the phases of the moon. The amount of his earnings subject to {whatever} is..."

To wit: This year CT, with no announcement, decided that every state resident who receives a pension will automatically have 6.99%withholding for state income tax unless they fill out a new W-4P. That rate normally applies to singles making $500+k and couples making $1m+. So now everyone who gets a $20k or $11k pension will give CT 6.99% and only get it back if they file a state return (or correctly fill out the form). We have had probably a few hundred calls from clients asking how to fill it out. I worry for those who don't make enough to file returns and have no one to call, so they throw the envelope from their pension place in the pile and soon see their small pensions diminished; they may not even know to file next year to get the confiscated funds refunded. The W-4P was also changed so that most folks can't understand it. It used to let you enter a code for the withholding table to use OR spaces to enter how much you want withheld, either a dollar amount or percentage. Now you can only enter a code (the form comes with four pages of instructions and a bunch of tables, like any nontax person can wade through that). I am convinced that the state made this move explicitly to extort funds from people who don't normally have to pay state income taxes or maybe just a little. Now the state is grabbing a lot and they will have to jump through hurdles to get it back. I am angry about all the time it took up to answer all those calls but even angrier about what they are doing to retirees, especially those who need every dollar they get just to live.

The city of Kansas City bills people for made up stuff all the time. I have way too many clients who just pay to make it go away.

And no exemption for the child or spouse if they work for a corporation, partnership or estate/trust even if you control the entity EXCEPT if all the partners are parents of the child, then the partnership doesn't prevent the child from being exempt. They probably could make this more confusing if they tried. Maybe.

So no exemption for yourself, except the 20k/qtr. It's infuriating how they mention every family member but the person who owns and runs the farm.

Taxation of cryptos may be confusing to the general public, but not to tax pros. If it used strictly for investment, then it is treated the same as any Cap Gain/Loss transaction, such as stocks. If it used for personal expenses, expenses being paid with the crypto, then it is a personal property transaction. It is better to cash in the crypto and then pay in dollars. If it is mixed use, then record keeping gets more complicated. Also, there is no IRS guidance on what constitutes an investment, or business account and a personal account. It might be the fad of the day to call oneself a cryptocurrency specialist, but there things we deal with as tax preparers almost daily, that are far more complicated. This article from Forbes gives more details. https://www.forbes.com/sites/greatspeculations/2018/01/03/what-you-should-know-about-taxation-of-cryptocurrencies/#6dbb7b3a1346

From page 78 of Pub 225: ( The next to last section addresses Entities ) "Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. However, certain exemptions may apply to wages paid to your child, spouse, or parent. Exemptions for your child.(p78) Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) aren't subject to social security and Medicare taxes. However, see Nonexempt services of a child or spouse, later. Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, also aren't subject to social security or Medicare taxes. Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, aren't subject to FUTA tax. Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. Exemptions for your spouse.(p78) Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, aren't subject to social security, Medicare, or FUTA taxes. Nonexempt services of a child or spouse.(p78) Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. A corporation, even if it is controlled by you. A partnership, even if you’re a partner. This doesn't apply to wages paid to your child if each partner is a parent of the child. An estate or trust, even if it is the estate of a deceased parent. In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. Exemptions for your parent.(p78) Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. Social security and Medicare taxes don't apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. You have a child (including an adopted child or stepchild) living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in the calendar quarter services were performed. You’re a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, can't care for your child for at least 4 continuous weeks in the calendar quarter services were performed. Wages you pay to your parent aren't subject to FUTA tax, regardless of the type of services provided.

I am not sure I agree with the majority. Do you have any way of knowing what the person covering S-corps and sole proprietors is covering? If they go before you, and spend the bulk of their time covering QBI, you might be rehashing a lot of the same material. Or not. There are a ton of details in this new law, and I am afraid some of those details are really going to catch us by surprise if everyone spends all of the CE time talking about the QBID.

Well said, Rich! I have also won the lottery. I am an American, EA, married to a wonderful man. I have two amazing and wonderful grown daughters, one of whom is engaged to be married to a very nice young man who almost deserves her. I have friends, a good church (some overlap there), and know that my life has purpose and meaning. Oh, yeah - I also have enough money to take care of myself and my family, with some for good causes, too. I am wealthy beyond the wildest dreams of my childhood, in everything that truly matters.

Well.. I have already hit the lottery. I am an American, CPA, and married to a wonderful woman. Having a ticket worth 1 million or a billion is just a bonus. Rich

Get back to work because someone hit the mega millions and ain't you. I will do the same.

It's so hard to comprehend 1.6 Billion. That's a crazy number. At one point last night the news indicated that 25% of combinations had yet to be played. How is that possible?? With all the states that play and all the individuals buying tickets, how can 25% still not have been played. Amazing. Anyway, it was nice to dream for a bit. Now any lottery that doesn't hit a billion will seem small.

Another important thing.... Will they provide you a stool to stand on, so everyone will be able to see you?