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thinking of you frozen friends

Just makes me sick. I paid 100% for my education, went part time. I applied for no aid. WHAT WAS I THINKING! Maybe that my fellow citizens are not responsible for my higher education

I also worked through college and paid back student loans for nearly 15 years after graduating. Not paying them was never an option. I borrowed the money and paying it back was the legally and socially/morally the right thing to do. I'm proud to say that I have instilled that same sense of honor and moral character in my daughter who has started repaying her student loans. Don't get me wrong...I'm not saying that this kid/client had a choice...from what he is telling me, the bank was not willing to work with him at all..but it bothers me that he thinks he should be able to walk away from the debt without suffering at all. This sense of entitlement that is common in the younger generation is worrisome.

Back in 1970-74 I was fresh out of the Air Force, my wife and I were attending college, and I was working a part time job to help support us and our newborn baby. Between the GI bill, my part-time work, and lots college loans we scraped by. My brother-in-law who worked for Social Services kept telling me we qualified for food stamps, and that "everybody was doing it". I kept refusing to apply because our financial difficulties were a result of lifestyle decisions we made to get an education in anticipation of a better future. I felt that food stamps and other welfare programs should go to the truly needy. It took us 15 years to pay off some of the college loans - just in time to go another round of loans when our daughter went to college. If I had it to do all over, I wouldn't do anything differently, but I realize we were (and still are) chumps in terms of what our culture embraces today.

Absolutely. I worked summers as a waitress back in the 80s and paid for college that way. It was doable, too. Tuition is ridiculous now because of all the easy money we throw at everybody. So the price goes up. Of course it does. Paying for three to go has been tough. And, it makes my kids sick, too, to see some of their friends MAKE money on grants.

Started at minus 19 today and made it all the way up to plus 25. And if the prognosticators are correct, we could very well see 38 degrees on Sunday with an 80% chance of "wintry mix". What the heck is wintry mix - it almost sounds like a drink.

Several years ago I had a female client with a newborn. After 30 to 40 minutes into the interview she began to nurse her baby. No blankee, no towel, no cover up no modesty. Now I know some of ya will say....It's just natural....Which its was, and that's how I viewed it..... I sure had a story for my wife over supper that night.

I'm nominating your guy for craziest. Nothing I've encountered so far this year tops him, and I'm hoping to God that it stays that way.

The mantra...at least once a day. The stock market was good. Non-active traders...those with managed accounts etc....are unaware that their managed accounts have capital gains etc. They just see the value going up. And, I have to explain...over an over. And I tell them they should be celebrating because they made money. (But they don't see it this way....since they didn't take possession of the cash.) When they want to know how to avoid this in the future....I suggest investing in a long term CD...where they will be guaranteed .00000001%....and have a minimal tax liability.

"Why is my refund $30 less than last year?" 1460 vs. 1430. $6,000 extra W-2 income...

We all do love you, Rita, you are a dependable source of both good tax advice and also day-brightening humor. Hang in there, spring is on the way. [if it doesn't get lost in the blizzard.]

This is from memory as I don't have my software installed on my laptop and my "Go To My PC" isn't accessible as my office computer is off. I was really disgusted when I saw Wal-Mart's name on the E-File Info sheet in my ATX software. Wal-Mart is competing with ATX's clients and we all have paid them well for their product. "We'll prepare your return and give you a $50 gift card instantly" per tv ads and billboards outside Wal-Mart. And ATX expects us to even suggest to our clients that they receive their refund on a Wal-Mart card (by memory again)!!??!! CCH needs marketing personnel with some common sense desperately!

We see a bunch of these coupons every year. Since no one in the office has the time to work on their own returns, we're tempted to use them ourselves. Or maybe bring a PIA return to them and let them do the work at a discount, bring it back to the office and charge the client full price. Or hand them to PIA clients and tell them that place can do their return cheaper. Whatever you do don't shred them....the possibilities are endless.

You might wish you had a drink when it hits there. We made it up to +24 today and is now +13. They are predicting "something" for this weekend.

You should treat this as a purchase and capitalize and depreciate. As well, I would create an amortization schedule for all the payments, busting out the interest from the purchase price of the equipment. The contractor should know what the purchase price is of the equipment and it should be easy to take the "rent" payments and get to the principal and interest on the amort schedule. The interest should be currently deductible and the rest depreciated. I have done many of these in my position in the construction industry. Tom Newark, CA

Oh, gosh, I let one slip past me. RSUs she exercised and held. Now that you post about it, I realize she had no 1099-B but sure enough, enough shares were sold to cover her w/h taxes. Well, I'll tell her to contact me as soon as she gets her refund AND her 1099-B (I think it might be Merrill Lynch) and I'll amend for free. How did I let that slip past? I know the 1099-Bs straggle in later and later each year. She filed later last year. And, she had a lot of paper re all the dividends she received. I was rushing, or tired, or both, and thought I had paper on everything, investments, HSA, highly compensated changes in her 401(k) limits, etc.. I goofed on her return once years ago, different issue, so hope she's forgotten that. She brought me lunch the last couple of years, so I want to take good care of her!

I don't think it's a matter of owning stock in the paper industry...since most people probably don't do paper print outs. It's just to make it appear complicated. The CPA who does my husband's business gives me "way too much paper" which I assume she does with everyone. Psychologically...it justifies the price. Me...I like it simple.

I had a new customer come by yesterday; he looked like a cross between ZZ Top and Duck Dynasty. He reeked of Tabaco and had all his tax returns going back to 2000 and wanted to show me all of them. I told him all I need is last years. He asked about Casualty Theft and Loss; he said the police raided his home and confiscated all his guns. He said the guns were legal in FL but not NJ. He was told the guns were destroyed by the police, and then he slammed his hand down and said the township stole his guns and he want to deduct them. I explained it wasn’t deductible. He need to get more paperwork and said he would be back. He stopped by today with his property tax information and receipts for his father’s funeral expenses and asked if he could deduct the expenses that totaled $7,000. I explained he cannot deduct the expenses on his return, but it would be deductible on his father estate return if one needed to be filed. (one doesn’t need to be filed) He continues to say he paid for the food also for all those people, can I write it off as a company picnic. I said no. He looked at me like I was crazy. Do people really think we as preparers will lie and cheat for them? Total strangers but we’ll lie and help them cheat on their taxes. So what are some of your craziest customers and or request?

How I wish I had video of this guy.

I had a TP once asked me if our office had coffee, I said yes, but the person who makes the coffee does not come in today, they said no problem and made it themselves.

I found the discussion. It's titled Oh Crap! I forgot the election, Feb. 9, around page 6.

Agree. The client should complain loud and long to their employer.

The commissons from the store should have been on her W 2. Her employer is trying to avoid the employment taxes.

I did the same thing and KC alerted me to filing a 'superseded' return before the 15th, mark it boldly as such, and include the election. There is a discussion on this earlier and perhaps a moderator will reference it as I don't know how to include here. The key is that it is not an amended return.

DITTO!!! I guess we took the wrong path having ethics, morals and a sense of responsibility for ourselves. It also appears that we are quickly becoming the minority in America.

Lion, we all do the same thing. Hopefully with clients in rotation, rather than the same one year after year!

W-2 or 1099misc on line 7. In event it is subject to SE taxes. (I agree with Jack).

Or they could invest in a low-cost, tax-efficient mutual fund such as Vanguard's Total Stock Market Index. They get a 100% guarantee that they will do as well as the entire US stock market - no better and no worse. They also get the benefit of keeping their investment earnings rather than paying outrageous commissions to a financial advisor who is exposing them to unknown risks while raking off 1.5% to 3.0% of their principal, and in some cases additional commissions on the transactions, even in years when he fails miserably. They could also invest some money in Berkshire Hathaway B shares, which reinvests all profits and never pays dividends. That way, their entire investment increases tax free (assuming BH does well), and they get to control when they receive a distribution by selling shares. They also get the benefit of capital gains treatment on all their gains this way, while controlling the timing of the tax liability. The only reason people get surprised by taxes on Dividends and CGD's is because they are too lazy to pay attention to what's happening with their hard-earned money.

The commissions are received a part of doing her job there. It is correctly reported in box 7 and should be subject to SE.

His original post said "the paving is keeping the property in it's original condition", so it is not an improvement, it's maintenance.

Wish I could help, but after I reviewed the instructions for Form 8960, I wanted to throw up!

Every year I see this & every year it puzzles me. A client comes in with a fancy W-2, computer generated in one of those fancy & expensive sealed sets that open sort of like the SSA-1099 form. When you open it up, one part of the page is a discount coupon for a national tax preparation chain. I assume they either pay for the advertising or maybe the pay for preparing the W-2 forms. Anyhow, I've always thought this was against the rules. Yet, this is a very large grocery chain with enough lawyers on staff and retainer to prevent them from breaking the law or doing anything to get on the wrong side of IRS. As I'm shredding the coupon, it always puzzles me how they are getting away with this.

Yes to expensing it, if desired, and yes the election should be made annually.

Oh, I like that idea. Give the coupon to a PIA and say "We've arranged to get you a discount."

Yes, it is wrong. If I do a system or data backup on an external hard drive with EaseUS to go; I can access any file on the backup just as if it were on the hard drive. By now most of you know that I use both the jump drive as I go and the system backup at least once a week.

It might be cheaper and easier to just fly in here and check out the slopes in my parking lot.

Even if you report it, nothing will be done. Sad but true.

I stumbled across a possible answer to this question. Seems outlandish, but just might be true. The rules prohibit any advertising ON the W-2 form itself. They also prohibit putting a business card or coupon in the ENVELOPE containing the W-2. All the ones I've seen have been the tear-apart forms with serrated edges all around that you burst open to get at the W-2. In the process of doing all that folding & tearing, this coupon is the inside part of one of the outer protective "pages". It was suggested that this isn't an envelope in the traditional meaning of the word. So it technically complies with the rules because it isn't in an envelope. If that really is the explanation, then I have to hand it to some slick lawyer somewhere for the most creative reading of a rule I've seen in a long time.

Even efiling, it's not like someone is going to hack my system to file returns for my clients. I'm going to bet these are all TT online customers that are hacked.

Get it as a PDF if you can. TT includes 3pages for EVERY SINGLE CHARITABLE CONTRIBUTION!!! And considers these 'important worksheets', which you will get if you choose the option to 'print with only important worksheets'. But if you want carryovers and depreciation schedules? Gotta print with ALL worksheets which gives you that hundred page monster.

Good thing I posted about my memory loss

Actually, we all love you. So far I have not had the asset problem. The cold problem, yes; but we are used to and prepared for it. Pile on the blankies and stay warm. I really wanted to retire this morning and it isn't even March yet. At least, we can skip over the ACA returns for the time being and the clients can't blame us.

Hahaha, I love you, too, RitaL. We are actually doing ok. Here's the baby:

I love you. If you want to work at my spare desk, we have a generator. You can even bring your calf; two acres, large garage. Up to 16 degrees now with snow and lots of ice from Sunday warming up to the 30s; but I keep it in the 60s in the house. I love you.

My bank includes a Turbo Tax coupon. I actually called a manager one year to vent.

Nothing yet. Marilyn said she would have somebody from tech support call me. Stand alone (so alone), Windows 7 Pro, 25 degrees here, and I have been without power at home since Saturday. Huge ice storm. 40 degrees in the house. Bottle feeding a calf. 70 degrees in the office. I'm dealing with this ok so if everybody would just back off already OMG. /s

Also, with the 1099-B not having to be sent out to taxpayers until Feb 15th, 28th or even March 15th, you may have many times that the W-2 is in hand for A LONG time before we get the 1099-B with the stock sale. Do not let the taxpayers desire to FILE NOW force your own hand. Wait for the documents. And I have seen W-2's with known options sales, and no code V... So that 1099-B is coming, and its a time bomb. (Here is looking at you Google...) Rich

Snowing today in my old home place, but so far this year I have yet to even wear a coat. Did wear a sweater 2 nights. I'm sending warm thoughts your way!

JB: If he didn't skip out of your office... $5,400 in tax instead of $54,000 in debt at $400/month for 20 years.... Yes. He should be skipping. That is a definite WIN on his part. Who cares about $1,000 of those HRB *billions*... That is a windfall of about 75k! Rich

Hey, JB, tell him he got $54,000 in tuition and stuff that RitaB's kids did not get. Plus RitaB paid SE tax on her $54,000 that is gone. Maybe that will help. Here I am judging again. Sorry. Nah, not really. And how does that happen, that his student loan debt is cancelled two years out of school? Was I so mad about ObamaCare that I missed that one?