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Discuss with your clients WHY they formed a MMLLC. And, if they should dissolve it to save the cost of preparing Form 1065 in the future. Did they watch a TikTok that told them they could write off anything in an MMLLC?!!

I assume they did this so they could have an EIN and not have to give out their Social Security numbers to all of these contests. In my state, you don't say how many members are in the LLC you're forming, but when they applied for the EIN, I'm guessing they did tell the IRS that they had multiple members, and the EIN letter says the IRS is expecting a 1065. Cheapest solution is to dissolve the LLC, form a new LLC and get a new EIN for a SMLLC that will be disregarded for tax purposes.

That only works in a community property state. Otherwise, an MMLLC files Form 1065, unless they elect to be taxed as a corporation. If not entered into with a profit motive, follow the Hobby Loss Rules. How could $200,000+ ever be usual & necessary for revenue of $900, especially with NO profit motive?! Did they actually run their hobby income and expenses through the LLC bank account or LLC charge card? If they paid their hobby expenses personally and deposited their hobby income into their personal account, then you report their hobby income on Sch 1 line 8. Hobby expenses are NOT currently deductible until the sunset of the TCJA. (After the TCJA sunsets, if Congress doesn't change the law, hobby expenses will be deductible -- up to the amount of hobby income -- in the 2% miscellaneous section of Sch A.)

Room & Board does NOT qualify for the AOC, but it does qualify to make 529 Plan distributions non-taxable. Way too many details in all the different education benefits!!

Do you know how to edit letters? If so, which variable is used in the estimate letter section?

Thank you!!

Sch 1 Line 8 j

GOOD question and one reason I detest those %^&Y* things.

Either they were paid late or if AGI over 75/150 110% was not paid.

I don't see anything on my friend Google about a blanket change in the dates that estimates are due, nor do I see anything on the IRS website. I am getting my hair done tomorrow, I will ask my hairdresser.

Since Room & Board is not a qualified expense, a scholarship for Room & Board is taxable to the student. Any amount used for tuition and other qualified expenses is not taxable.

It must be. I have never heard of a Wisconsin Energy Tax Credit on taxes.