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That always annoyed me to no end, but I wonder if it's because many of us don't work the off season, and so might miss any notices sent later. Like others, I quit MAX 2 years ago. Last year it worked out to be about the same cost, but then I fired all my non-profits, and a bunch of 1040 clients. This year I'll fire more 1040s. Goal is to hold onto tax season but without extensions and without clients who stress me out, lol. This year the delay in so many K1s is kinda screwing that up, but as long as I have everything done and double checked, I'm ok with just plugging in the K1s later on.

Their procrastination is not your emergency. This is a motto I have to remind myself about constantly. I'd warn him that he'll likely face penalties and interest, and then go ahead and file a zero extension.

Probably. The tribe should have the ability to not 1099 if the item is not taxable. Giving a 1099 tells the recipient the amount is being reported as income. A perfect comparison in IHHS (at least what they call it in CA) to care for someone in their home. Those living in the same home as the client (say a parent caring for an adult child, or vice versa) make a statement to the county affirming they live in the same home (which means the amount received is not taxable wages) and no 1099 is generated. Without that statement, a 1099 is issued. Ultimately, the facts determine taxability, even receiving a 1099 does not mean taxable (say if the letter was not prepared or the payer still issued a 1099). Depending on your engagement, you might accept the 1099 as fact, and leave it up to your client to prove non-taxability. Or maybe your client has engaged you to investigate.

And you can drive home the point that preliminary tax planning would have saved time and confusion.

It's more likely that this is some sort of stipend that isn't taxable as federal wages but had the SS & Medicare withheld. As others said, either ignore the w-2 completely or enter $1 as federal taxable wages. Personally I'd ignore it if there isn't anything in any other boxes that needs reporting. Nothing on the that W-2 that affects any state return?

The person who set it up made a lot of money. Apparently enough to "incentivize" brokers.

Indeed, posted prominently in my space: Lack of planning on your part does not constitute an emergency on my part. I also have to remind myself of this frequently, however, as it seems at times I care more about the client than they do.

Yes, this has been on my To-Do list for 2 weeks!! Just have to remember to grab my credit card.

That is against the unwritten rules. No one may ask for tax advice before doing something. The more idiotic the step, the more strictly this is enforced.

I agree wholeheartedly. I haven't been here much this year because it's been a crazy season for me but I always know that this is a place I can turn for good sound advice and knowledge. Thank you to Eric and to all who participate here. You are all appreciated very much. That said, I made my donation today.

Anyone looking for a couple of CPE hours in late April, I'm presenting online. https://www.bigmarker.com/tax-practice-pro-inc1/When-1040s-Go-Wrong-Navigating-a-Tax-Train-Wreck @Lion EA saw the first presentation of this, live, last September.

I don't think you can efile with $0 in Box 1. We've talked about this previously to just enter $1. Only time I ever had one like yours, it was due to stock options where they withheld SS and MEDA from the amount but they didn't have any earned income. Is there a stock transaction report?

Or put $1 in box 1

Either ignore the W 2 and don't file or paper file the return.

For me, this site is a place to learn, get answers, vent or commiserate, or just take a break during the day. It continues to be an invaluable resource that's been a part of my daily routine for 17 years. Eric has taken care of us from the site's inception, mostly unseen, and his work is ongoing. Soon he will migrate the forum to a new host and is waiting for us to get through the 15th before doing so. I've made a donation today and hope others here will consider that as well.

Any Form W2-C exist for this employer to this employee, that used along with the W-2 you have would solve the mystery?

That is a good point, however the remodel is treated as a separate asset for depreciation purposes. 3115 is your friend, use it.

I don't know why they can't wait until after April 15.

Double and triple check that you have the EIN listed correctly. If it still demands a 1041, I'd say paper-file the thing and be done with it. Even include the e-file rejection 'reason' if you wish.

No. It is different for a corporation and not at all the same as how a partner handles UPE. Corporation would need to set up an accountable plan and reimburse the shareholder. An example of where this is used is personal auto used for business purpose, shareholder keeps mileage log and submits a report to the corp for reimbursement. Corp reimburses at the allowed federal rate. There are other accountable plans that have more specific tax law rules such as medical reimbursement plans or when to reimburse shareholder paid disability insurance premiums. If there is carelessness or intentional comingling of expenses paid from the corp accounts, you may want to have a discussion with your client about not using the corp's checkbook as his/her own.

There can be both, but separate contributions after tax from the employee do not show up on the W2. That is information that is given to you by the client. I think you are fine. Only occasionally do I have a client who contributes to the HSA after tax.

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?