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Has the father signed an 2848 or an 8821 authorizing his son to receive information and/or act for his father? If not, just tell the son you are not authorized to discuss the father's tax return with him. Unfortunately, no matter what you do, this is going to continue to be a PITA.

Well, he wasn't being as big a PITA as I supposed, but then got an email (right after the one where he said he wanted the return done right) and his ex hired a CPA and that CPA is going to do both returns. Clean my hands of him. And sent a bill for $500. whether that gets paid or not, I really don't care.

Sounds like a good candidate for firing.

Within Drake, go to the state tab and open the PA area. From there, you'll be able to generate the W2WK schedule to explain any differences from the W-2 wages to the PA return. That schedule reconciles the Fed and Medicare wages to the PA wages. For a PY or NR, you may need to make a manual entry for wages earned (calc'd on the basis of what PA taxes) during the period of nonresidence. PA does not allow a deduction for retirement plan deferrals such as 401K contributions so those are an add-back on the worksheet, but it does not tax GTLI reported on W-2 box 12 as code C so that would be a subtraction. You'll notice on the W2WK worksheet that those 2 items already have predefined boxes in the appropriate columns for proper reconciliation. With some PY PA returns, I found that having the paystubs for year-end and the one immediately prior to moving in or out of the state to be extremely helpful. There have been times where I attached my own reconciling schedule as a pdf. If client has Sch D that is a net loss, that amount will show up on Sch D and will carry to the PA-40, pg 1, but it will not be included in the math total to arrive at taxable income because PA taxes income and doesn't allow losses. Cap gain dividends do NOT flow to PA Sch D but are included in the dividend line on the PA return. PA doesn't have itemized deductions, but some employment-related deductions are still allowed for employees that receive a W-2 and have unreimbursed job-related expenses. If your client is in a profession that may have those, such as salesperson, you may want to check out Sch UE, and those flow to PA-40 pg 1 and are shown as a reduction of the PA wages. PA allows a deduction for 529 plan contributions made by the taxpayer. Schedule O. Off the top of my head, I'm not sure exactly how this is handled for PY returns though, so if you have this, you'll have to check the instructions on that one. PA return, you'll need to enter the school district that the client lives in and the dates of residence. That's on the PA tab. For the local return, Drake has a separate tab for that. You'll have to look up the municipality and its rate. PA does allow a credit for income taxed in two states, if you have that situation, and the local return will allow that also, and that is calculated similar to the state credit but is further reduced by the amount that was already used on the PA state return. Also for the local, you'll need to get the instructions from the locality or collection bureau that they live in. Each municipality has their own rate, and you'll have to read the instructions to find out how it allows for withholding if the taxpayer works in a different municipality than where they live. I'll wish you good luck with the input. I find the PY returns particularly fiddly and feel like I always waste some time getting it to present properly even when I'm certain of what the outcome should be.

I have few like that before and my answer to them is go to IRS website and all answers are there.

Check some of the prior year's threads about ATX print cache problems.

By "net" , do you mean that is after subtracting the amount of reimbursement from the LTC contract, or do you mean something else? Which box is checked in box 3 of the 1099? Was it a per diem allowance or truly a reimbursement? Do you know if the contract is a tax-qualified contract or a non-tax qualified one?

Aww, thank you! ::blushes::

@Patrick Michael You just got a PA master class for free. Lucky you. @jklcpa You are the bomb! Tom Longview, TX

"• Certain family members may be eligible to receive monthly benefits, including: —A widow or widower age 60 or older (age 50 or older if disabled). —A widow or widower of any age caring for the deceased’s child who is under age 16 or disabled. —An unmarried child of the deceased who is either: ◦ Younger than age 18 (or up to age 19 if they’re a full-time student in an elementary or secondary school). ◦ Age 18 or older with a disability that began before age 22. —A stepchild, grandchild, stepgrandchild, or adopted child under certain circumstances. —Parents, age 62 or older, who were dependent on the deceased for at least half of their support. —A surviving divorced spouse, under certain circumstances"

There are differences between superseded and amended returns for statute of limitations pertaining to assessments and also for refund claims. The following article has a good summary of the issue, and also the difference between IRS view and the Supreme Court view on this. https://www.thetaxadviser.com/issues/2021/jul/superseding-returns-statutes-limitation.html

Other Income not subject to SE tax; under $400.

I've never understood the point. My understanding is that if you amend before the due date, including extensions, then it is considered superseding. But either way, the final numbers are the same, so who cares.