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It won't happen but it should. Ridiculous that someone needs to be certified to give a manicure but anyone can hang a sign and say they are a tax preparer.

An electronic buzzer that shocks clients if they are toodling along doing their own bookkeeping and they make a prior year change. Yes, one can lock them out, but that's not always as fool-proof as it sounds. Oh, and tax documents without bits of dried food on them ... that would be another one of my wishes.

All nursing home costs, including the cost of lodging and meals, are medical expenses on Schedule A if the principal reason they are in the nursing home is to receive medical care.

There are quite a few deductions/credits not allowed on MFS student loan interest deduction being one of them. State income taxes go to each from their withholding on W2's. If only one spouse is on mortgage or deed, then all goes to the named person. If only one spouse is on a charitable receipt, that is the person it goes to. For joint mortgage, receipts etc. you can either split 50/50 if payment came from joint account or prorate according to income. For example if combined income is 150K and one spouse is 100K and other is 50K then items would be split 67% and 33%. Same for interest, investment accounts, etc. If both on account either 50/50 or prorate. You should use same method for both income items and deductions. Sounds like this may be a situation where they are separated. If so, present options and then they need to fight it out and both sign off on the method used.

Ok - A lot. Like a million dollars so I could quit this business. But, here and now, I wish ATX had a simple little extension letter I could spit out: Hey - Filed your extension. NYS took this fee. IRS is happy til Sept. Stuff like that.

Focus on our Tennessee friend Rita B -who was good enough to host a gathering a few years ago. Rita lives in Cumberland County - site of an unusual geological instance. Not far from her is a tiny town of Crab Orchard. Over 100 years ago, an usual sandstone rock was discovered near the town, and was called "Crab Orchard Stone." This is sandstone - so brittle that you can break it with your bare hands. In fact if you handle it, it might even break without effort at all. Geologically speaking, limestone rock is much harder - impossible to break without a jackhammer or something really tough. However, rainwater will dissolve limestone, and leave sandstone intact. This gives rise to limestone caves, such as Mammoth Cave in Kentucky. There are more limestone caves in Kentucky, Tennessee, and North Alabama than in the rest of the world combined. All this to say that the brittle limestone, if sliced by a saw, can cover a frame, and will not break at all. Ever. Crab Orchard sandstone is light reddish, with streaks of light brown, and blue, purple and yellow. In the 1920s, this gorgeous rock was shipped all over the world because of its beauty. By the 1950s, Crab Orchard stone was pretty much mined out. There are more buildings covered with this stone in Cumberland County than anywhere else. Some of it is in Nashville, and a few other towns in the United States. If you get off the Interstate 40 in Cumberland County and take the old road, U S 70, you will see several older homes and buildings with colorful coverings of sandstone. There is probably the most in Crossville at the county courthouse. Not a tax topic - but perhaps a refreshing journey into the Sunny South. If any of you are close to Manchester TN, drop me a message before you come, and I'll take you to a good meal.

Since Congressman Cohen is in the minority party, this bill is DOA.

Where are you entering from? On the 1099DIV input, if you will pick the country there, you can put in Regulated Investment Company. I don't think you can override the field on the 1116 because it is pulling from the DIV entry field. That is my story and I am sticking to it.....someone should write a song like that....oh yeah, they did. Tom Longview, TX

March 10, 2025 Press Release IRS would regulate service providers with minimum competency standards WASHINGTON – Congressman Steve Cohen (TN-9) today re-introduced the Tax Return Preparer Accountability Act to provide the Internal Revenue Service with the explicit authority to regulate tax preparation services by enacting training and integrity requirements. Congressman Cohen made the following statement: “Most tax preparers are honest and trustworthy but, unfortunately, we’ve all heard or read about unscrupulous tax preparers who take advantage of customers or assist clients in claiming deductions to which they are not entitled. To guarantee that taxpayers get the quality service they deserve, the Tax Return Preparer Accountability Act will permit the IRS to establish minimum standards for accuracy and fairness.” The bill would also: Direct the IRS to implement an automated formula to identify taxpayers at risk of economic hardship; Authorize the IRS to establish minimum competency standards for federal tax return preparers and revoke the identification number of sanctioned preparers; and Recommend tax software changes, including requiring all tax software providers to adhere to prescribed information security controls and regular updates of security standards for tax software providers. https://cohen.house.gov/media-center/press-releases/congressman-cohen-re-introduces-tax-return-preparer-accountability-act

Just this. Sounds really good to me today.

It should be on form 1120S, Line 4 "Net gain (loss) from Form 4797, Part II, line 17" for ordinary gains(losses) as long as it doesn't involve sec 179 and isn't rental related. The figure on 1120S line 4 becomes part of the ordinary income on 1120S, line 22 that then flows to Sch K, line 1.

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.

Sorry, I guess I only saw K1 and missed the 1120S part. I was thinking Partnership; probably because I am working on one today.

Interestingly I'm working on one today. Her only income is SS disability. He had house before they were married and she was never added to deed or mortgage. Sch A total is less than 29,200, but with pushing it all to him on MFS other than small charity in her name, they come out better MFS.

I wish I'd known back when Rita held that lovely get-together. I'd have done some more-careful looking in my driving around. Thanks for posting this!

Ah, I see what you're saying, Tom - not that there's something else further down the page to indicate it, which was what I was trying to picture last night, but that instead of the usual Various in box 8a, use RIC there to force it onto 1116. Good tip, I wouldn't even have thought about it!

I have two deceased clients in January of this year. One account is being handled by son. Does he need to mail a Form 56? There will be refunds federal and state so I know to include 1310 but not sure about 56. I think the 2024 filing will be really small maybe even under the filing requirement just refunded withholding next year. There is no estate but likely small probate. Second has a surviving wife in hospice so daughter is managing all affairs. I've requested that she get 2848 while mother is still competent. The deceased's trusts, etc, are all now in wife's trust so 2024 will be normal except same question about 56 and 1310. Would daughter be personal representative given mother's condition? All other income sources are retitled to wife but there will be a trust return for 2025, not enough for estate return. There are expected refunds. I hate it when lovely clients pass away and am glad it's been a while so I need this refresher. Thanks

There was PTC to reconcile. I tried to efile and it was rejected stating 8962 was needed as SSN was on record. Client had to request a copy of 1095A. When I entered the data, efile sailed through. I will review the other recommendations about who gets what after the season but it will involve amending both GP and son returns and I don't have it in me just now. I am also not convinced at the moment that it is the right way to go. But I will definitely check it out.

I have to do drops in both eyes three times a day and ointment at night. It only makes my eyesight better. I wish the same for you.

Agree with Lee, and the withholdings allowed by SSA are flat percentages, and iirc, that percentage is applied to the net benefit after subtracting the Medicare premiums. You can test that from last year's 1099. If you have last year's 1099 for the gross figure, it should be relatively easy to get to the current year's gross without the 1099. You know the COLA increase and the monthly medicare withheld, then look to last year's withholding % and apply that to the current year's figures. For FWT, the recipient may choose from the following %s to have withheld: 7, 10, 12 or 22%.

On t he theme of SALY - the Ceiling Numbers?