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There is a new line on Sch 1 to report 1099K personal items sold at a loss.

I have several clients who are dealing with mild dementia / chemo brain fog / TIAs and it has me worried about my future. I was thinking today - how quickly could you get tax season done if everyone delivered everything correctly tomorrow morning? Wouldn't that be wonderful? One thing I'm reminded of every tax season is that we can choose to be happy or unhappy - it's completely up to us. I had meetings with three ladies this weekend who have very little to be happy about in life right now and were pure joys to spend a 1/2 an hour each talking with. I had a meeting last Thursday with a lady who has ever reason in the world to be happy and she was completely miserable and her negativity was just soul sucking. It's a choice we all have.

One safe harbor that's not too time-consuming is to have them pay in enough with their extensions to bring their payments up to 100%/110% of what they owed the prior year.

Child is QC for both son and GP. For qualifying relative (other dependent) the person claiming needs to provide more than 50% support. For QC the rule is child did not provide more than 1/2 of their own support.

What's crazy about this is the banks can pick any old date to write off things and clean up their balance sheet. Meanwhile, it's been 3 years since the client made settlement and it was actually written off. And that's 4 years in real time. Client doesn't remember. Maybe he was insolvent then. Maybe not. I have had an issue with the bank's loose-ness (is that a word?)of this ability to report ever since Obama created it.

In this situation, I always ask for a copy of their last 2024 pay stub to make sure.

The Code W on W2 includes both employee pretax contributions through cafeteria plan and employer contributions. It doesn't matter the mix between employee/er. As the Box 1 W2 income is already reduced by the contribution, it shouldn't be entered anywhere else. IF the employee makes additional AFTER TAX contributions, that is entered on Line 2 of 8889. The max for 2024 is 9,300 if over age 55 and family coverage for full year. Something seems askew with what you are saying.

I can sure see a situation where it would be allowed. But for OP, I have to question what knowledge was derived from a "free" seminar with $x,xxx of related travel expenses. And if the knowledge was so critical to his/her profession, was there no other way to obtain it?

In 2024, my employer contributed $1,200 to my HSA account and I contributed about $7,000. When I entered code W and $8,200 in my W2, the program automatically did "everything" and after stating that I was qualified for 12 months, I thought I was done. After I created my efile file, everything passed but I noticed a few blue warnings. While clicking on a couple of them, I noticed that my HSA contribution worksheet correctly listed $8,200, but "amount contributed by employee" was blank. When I entered $7,000 on that worksheet, my tax liability was reduced by more than $2K. My clients don't like HSA and very few trust 401k, so I doubt I made mistakes on client's return. Please ask your clients with Code W, how much they contributed and make that entry accordingly.

I fill out 8853 to show the total costs and ins and outs then list on Sch. A any unreimbursed long term care expenses. It may be belt and suspenders but I want to show to IRS and my clients the details. YMMV

Maybe I'm reading something wrong here. I'm understanding it to be: GP's, son and baby lived together all year. Son had 9K earned income, while GP's income was significantly higher. GP's claimed baby for 2K CTC. Son is filing single and not claiming baby. If son claims baby he would have around 1K CTC as refundable and another 3K in EITC. While EITC and CTC can be split between parents, I don't think they can be split between GP and parent.

Perhaps your client needs to check his credit report for fraudulent activity?

"FREE", throws up a red flag for me. A quick search revealed 3 counseling Institutes in Africa, one in SA and 2 in Nigeria. They all charged fees. My guess is that the free seminar is to get attendees to listen a few hours of actual seminar followed by a high pressure sales pitch to enroll in a series of expensive courses. Tread carefully.

Thanks for replies and discussion. Client's son earned just $941 no FTW and SS was $1824. Dependent chart shows a qualifying relative has to live in home for the full year and wife did not in 2024 but will in 2025. I asked about MFS thinking there was the possibility of EIC but her learned that isn't an option. While client said wife earns $1400 per month (looks to be under the $1620 BrewOne states), it is not an issue for 2024 if each adult disabled child will be claimed by their respective parents. I think I have ti for 2024, we'll see about 2025 and how the respective parents resolve the fact that they live together the full year in my client's home. Small issue is that client said the 'pay rent' of $200 per month for their private room and bath. I asked client to track how much support they provide, allocation of utilities, additional food purchases, etc. I think it is more reimbursement or sharing of expenses. Thoughts? These folks are amazing. Over the years this nurse practitioner and now retired physician have fostered about 8 children, all with special needs. They adopted this one son and now have custody of a granddaughter of another former foster. Idealists from the 60's actually making a difference, in my opinion.

Was it really necessary for him to attend the seminar and incur all of the travel expense?

I went to a local IRS office to get something about 15 years ago (last time I went) and you had to go through a scanner just to get into the building (like the airport). It wasn't a sole IRS office building. I always wondered if that was appealing or unappealing to the rest of the tenants. I would think it would be a pia.

Those are the clients that I have come into my office and get them online together. And no need for a printer as long as you can download a PDF.

I just called one yesterday to ask if they had any investment income this year. She said, "Oh, that just came today. I didn't know that you needed it. She dropped it off, I finished the return and filed it. Today she texts me a picture of a K1 that she received today, but of course she didn't think that we needed it since they didn't draw any of that money out. It isn't going to change the outcome of their return, but I feel ethically bound to include this in their income to avoid repercussions.; so will amend. I told her to take her time getting it to me. I am busy.

My daughter is expecting her first child in June so I agreed to host a baby shower at my house on the 12th of April. Don't know what I was thinking! But - it is what it is and I will try to be done with most returns by then.