Leaderboard

He normally is a "tax resident" until he surrenders his Green Card (which describes its holder as a "permanent resident"); so Form 1040 is the appropriate form. Citizenship is not the same thing as tax residency. He might be risking his entitlement to a green card by residing almost exclusively overseas, but that is a legal question in the shade of his tax situation, for purposes of this forum. I'd have to look into Illinois residency requirements to be sure but will venture to say that, if its requirements resemble those of New York and the few other states I am very familiar with, he would not be required to file unless he earned amounts from Illinois sources in excess of the filing threshold or, more unusually, manifested 'close connections' to the state such as owning property there, voting locally, etc. Once "expatriates" take up residence overseas they typically escape state taxation lawfully.

Just have the estate pay estimated tax payments on behalf of the beneficiaries, or advise the beneficiaries to do it themselves. I'm guessing there's concern that the beneficiaries will be irresponsible and not have money to pay taxes when they're due? There's no box on the K1 for withheld taxes.

After 20 years with ATX, I switched to Drake last tax season. However I continued to use the Payroll Compliance program this year, since it has always performed well for me with minimal problems. Now I am switching over to new Drake Accounting program for payroll compliance filing because: 1. July 1st, 2018 Oregon's "Statewide Transit Tax Withholding" went into effect, which requires the quarterly filing of 3 new forms, OR-STT-1, OR_STT-2 & OR-STT-V. The 3rd quarter forms were due October 31st. ATX created the forms, but they are still not approved for filing. Called support, but they were not aware any effort to get the forms approved. 2. I filed a Form 4419 with the IRS which was returned because the ATX version was not the current version. Just checked, the current version of this form is still not available from ATX. So, now I am severing my last connection to ATX. Used to be a great organization and a great program. Now, not so much. C'est la vie

I've never had a QCD not done correctly by the trustee. For me the biggest problem is ensuring the client doesn't include, and we don't deduct, the charitable contribution. That is WAY to easy to do.

ATX will calculate the correct depreciation for the year when you choose standard mileage. And, unless they need a huge 179/depreciation expense in 18, I would choose mileage to keep the option open to switch to actual later on. If you use actual in the first year, you must use actual forever for that vehicle. And if you do use standard mileage the first year, you must use SL depreciation in years you switch to actual. Eventually, this chart will be updated with the 2018 depreciation portion of the standard mileage rate: https://www.irs.gov/publications/p463#en_US_2017_publink1000298667

Virginia insists that you are a domiciliary resident of Virginia until you change your residence to another state as a rule. If you are living overseas and you left from Virginia, you are still Virginia resident if you are filing a federal tax return. There are a few exceptions, but if you ever filed in Virginia, and are still using a Virginia address, Virginia is going to try to collect state tax if you reach the filing threshold with your federal income.

It seems to me that they have been recruiting CPAs and EAs for several years now.

Also, tell the WF rep to check with WF tax department or higher ups. Get it right before the checks are issued.

That's actually all too common. And we end up having to back it off either on the IRA line or the other income line (whichever is easiest in our own software).

I always highly customize the questions and get rid of the ones that are way too obscure. Always tweaking my wording when I see too many clients misinterpreting the question. I don't like to send them until after the new year. I like to let people enjoy their holidays without having to think about taxes.