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has worked fine with the few clients I've tried it. And as you mention, they have been older clients; younger ones I've pointed them towards Direct Pay. Just had another instance of client's check going missing--the 1040-ES arrived but not the 1040-V. Even though elderly, I think he is savvy enough with the computer to use direct pay going forward. We have a serious problem in my area with stolen checks, including those dropped off inside the Post Office.

No, only the label for line 9 is unclear to you. Perhaps it should read "contributions made through and by employment". The instructions for line 9 are very clear. It says this line should include all contributions made by the employer AND by employee through a cafeteria plan. When the employee contributes through a cafeteria plan offered by the employer, the employer has the funds and acts in the capacity of agent to remit those funds to the HSA on behalf of the employee.

I have quite a few clients that use direct debit. Never had any problems. They like better because they don't have to remember to do it.

There's a current discussion in the Drake subforum here that touches on it. It works well, but there is no confirmation number or record without logging onto the IRS account or verifying through bank activity. I've used direct pay for the balance due but not for estimates. I really don't want that level of responsibility for clients' payments.

When ATX barks at me about that, I just put a 0 in the employee contribution line (it will accept that) because the employee/employer contributions through the W2 (code W) all count the same, as mentioned above. Enter a '0' and the error will go away.

Please see the instructions for form 8889. Line 9 instructions say to include employer contributions AND those from the employee through a cafeteria plan. That information is on the W-2, box 12, code W. Line 1 is for the overall limitation for the year. Line 2 is for contributions made separately by the employee outside of payroll NOT on the W-2. Doesn't ATX carry the amount automatically from the W-2 and fill in the limitation automatically if it is a full year coverage and you simply indicate it is either self coverage or family coverage?

For sure! My IT person stops in or calls nearly once a week during tax season just to make sure that everything is going well. I know that I am very fortunate to have him and he has taught me a lot of things that I can do myself.

Same Boat. I am still in good shape on my desktop running Win10. Still can open 2 years of ATX if I am only looking at one return and working on the other. But I have had this desktop for about 5 years and it has served its purpose. Time to get my next 5 year investment. Anyone in Texas who builds computers? Otherwise I think I am going to do Dell again, but I hate all the extra programs that Dell loads on their machines. Tom Longview, TX

I think they need an online account, because Direct Pay (which doesn't require an account) will ask for a confirmation number if you want to look up a payment

Ha. But I'm using Windows 10 and don't want to upgrade or get a new computer with Win11 if Win12 is coming soon.

I think I will wait for Windows 13

I really don't want to be responsible for client's payments, but I had done it for one client for a few years that wanted it. I also did it one time for the 2022 return for a long time older client who is so disorganized that the return wasn't filed until Nov of last year, and I knew that the balance due may not be made. I also have trouble getting him to bring me or send me the notices he receives. I strongly nudged him in the direction of allowing me to schedule the payment for him.

Many clients use this. My one warning is that partial payments do NOT work. They take the full tax due. If someone wants to make a partial payment, have them go to Direct Pay or the state site - or use checks and coupons.

Unless there is some exception (real estate agents?), commission is fine, but still have to monitor and make up, if less than min wage for all time worked. Likely some federal rule to start, then possibly modified by state rules. These days, with CA and ABC, and what DOL is doing/trying to do to somewhat align federal with CA, everyone should be considered an employee unless an exception can be mapped out case by case. Payroll is more complicated than ever, with many unqualified people handling payroll using the employer's choice of "magic" software (the kind which says or implies no knowledge is needed. (Sound familiar to tax preparer's world?) In a group of payroll "pros", who pay to be part of the group, there are multiple posts, daily, asking essentially why they should withhold for the worked in state, even if the company is located in another state. Granted, many of the posters are new, but even needing to ask in a forum tells me how little the employer is aware that the software or online processor they use is "doing" for them. Today, one of the posts was about a payroll software which allowed allocation of wages by state, with another which somehow was allocating some by worked in state and lived in state. neither is correct, since one has to track time worked at each location, and where an employee lives/gets mail is not material.

speaking of which - then the gross was netted against commission - whichever was higher - so I feel the month of January, I feel I got paid -0- As the w-2 paycheck was an advance against the commission.. and earning no commission in Jan = zero paid for! such a deal - work the first month for free - Should have started in Feb!! Am I correct in my thinking? D/WI

The first thing to suspect when that kind of activity is going on, is a virus or other malware. This is the antivirus supplier I've used forever. https://www.eset.com/us/download/tools-and-utilities/

Yes, taxable scholarships count as unearned income for the kiddie tax, so if unearned income is more than $2,500 and they are otherwise subject to the kiddie tax, they have to file Form 8615 - but only if they are required to file. For example, a student who is a dependent (so they cannot claim AOC for themselves), and has only scholarship income, would not have to file unless the scholarship income is over $13,850. But once they hit the filing requirement, any amount over $2,500 would require Form 8615.

Employers can make contributions to an employee's HSA, and employees can make pre-tax contributions through a cafeteria plan. These are treated the same and both are reported as code W on Box 12 of the W-2 and will generally flow through automatically to the 8889 line 9 - no adjustment on the tax return can be taken for these. If the employee makes additional (post-tax) contributions, they are reported on line 2 of Form 8889 and an adjustment may be taken.