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This would be a nonaccountable plan for reimbursing expenses, and those reimbursements would be included in compensation.

LOL! I don't think seniors that have Social Security and a couple hundred of interest income need to worry about SOL. No reason to pay me to prepare a return that is not required or offers them zero benefit.

Some of those old-timers are still positive they are getting a huge deduction on their itemized deductions, that currently-not-available-to-most-employees Form 2106.

I have encountered clients who are not interested in being educated on accountable plans and insist on doing it in the least tax efficient method.

It's possible but it's not smart. You're creating phantom income, which costs both the business and the individual more taxes. Yet, I still have clients with old timey sales reps that want it that way because... wait for it... THAT'S THE WAY IT'S ALWAYS BEEN DONE! Stupid is as stupid does.

I was married in 1960. Wouldn't want to go back, but if these tax laws get any more convoluted, I don't know how much more I can take. We are so crazy busy and I am training a young lady and learning new things at the same time. We are still having fun though. My husband brought us both flowers today.

That's the best part. And the irony is that to take the mileage deduction, you had to have accounted for it anyway. Of course, their "accounting" is just pulling a number out of the air at year end.

It never ceases to amaze me some people's ability "not to listen" and make no attempt to understand a detailed explanation. It has a scientific explanation called a "normalcy bias". Any day now everything will return to "normal."

Low income seniors might qualify for a little EIC now or the RRC3. Some of the towns around me offer a property tax discount or credit or rebate for seniors with low income; some need to take in tax returns every year or every other or every third year. Some of my clients need to show a couple low-income years after a high-income year (sold house, maybe) to get their Medicare cost back down. As you say, some state filing thresholds are lower than the federal. Start the SOL. So many reasons to file.

Maybe we need some kind of been there, done that emoticon/reaction button.

Damn, 1960 is the year I was born!!

Your should have access to reports that tie to the bank deposits. Quick online search reveals that the difference is Uber's service fee which they deduct from the gross.

The NYS Child tax credit has changed? ATX is only allowing $100 for my client's daughter instead of the usual $330. Has anyone heard about this or is the form wrong? Thanks!

Likely in the same group that believes a calculation of zero withholding cannot be correct, and the employer must monitor the employee withholding to make sure the employee does not owe at the end of year.

Always report the 1099 amount to get by the IRS computer, then show the difference as an expense. Checks mailed late in December and not received until January, cause this all of the time.

Glad to hear there are some youngsters on this board.

The form is wrong. It is not bringing the earned income to the IT213. I hear ATX is aware of it and working on it. I have just been overriding it for now in order to keep moving forward.

You need attach a PDF of the signed 2553 to the efile

I have had this come up but not in recent years. Never thought of using an actual letter, but it's a good idea. It needs to have a phrase, "based on the information and documents that you have provided to us . . . . . . "Please contact us if you become aware of any additional information . . . .

Maybe the 40s. The 1840s.

Under Form Residency on state info did you click Resident? Then right below doesn’t the NYS county of residence drop down open? I wish they kept it the old way. Like the new 1040 Schedules, more work and time wasting.

But with one kid, the increased tax from filing separately might more than offset the extra $700 gained.

That's how I am reading too. I have a family with 6 kids under the age of 17 who will be getting over $10,000 more filing separately.

Cash basis is pretty straightforward. Although, what typically happens at year end is back dating checks written after year end, and holding incoming payments until the following year. Not saying this is legal or correct. It's just reality.

I can't recall that smoothing income and expenses is a tax principle. It certainly wasn't part of my CPA Exam or my Enrolled Agent Exam. However, it's certainly become part of what CFOs of publicly traded corporations do at the end of every month, quarter and year.

As long at it was oversight and missing distribution is taken before filing return, they won't assess the penalty. From 5329 instructions: Waiver of tax for reasonable cause. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows. Complete lines 52 and 53 as instructed. Enter “RC” and the amount of the shortfall you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54. Complete line 55 as instructed. You must pay any tax due that is reported on line 55. The IRS will review the information you provide and decide whether to grant your request for a waiver. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.

I just finished one & sent it out. Yay!

Thanks for all responses. We got it figured out by getting more info from the school. This board, as many will attest is an incredibly valuable resource. Thanks again

I would also see 2020 1098T didn't not include scholarships that should have been included. As Lion correctly pointed out, see if the university report helps you figure it out.

A scholarship received by a child who is a student isn't taken into account in determining whether the child provided more than half of his or her own support. (See Pub. 501 or code section 152(f)(5)) However, watch out for the kiddie tax. The $13,000 is considered unearned income for purposes of the kiddie tax, so child's return would need Form 8615 if it is all taxable.

Scholarships in excess of tuition would be compensation. However, you'll need her bursar's statement to see the actual ins and outs. Colleges still report wrong much too often.

Yeah, sorry, I let every call go to voicemail unless it's a known number.