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Just enter the ones that matter. And if you don't know which ones matter, you shouldn't be preparing taxes.

I would insist on copies of the prior years tax returns or take the LLC.

I am not here to rob them. I am here to help them. Believe it or not, this is a very small business and they came to me set up as an S-Corp., and were paying mega bucks for their tax prep. I want to do what is best for my clients. I could have set up a Sm Partnership, but why? Just to get paid for filing another return? I charge them what I think is plenty and still don't come near to what they were paying before. Ethics!!!!!

Code K indicates noncash distribution, yet custodian is saying "funds" were wired. How can that be if it was noncash? Also, if noncash, then it is entirely possible that there was no cash that could have been withheld and paid. Custodian should be able to tell your client exactly what these noncash assets were and where they were distributed to. I have several client whose brokers invested in PTP partnerships inside IRAs because of ROI and within acceptable risk. Is it possible your client's transaction involved only a change of account titling to client's personal name and is reported as a distribution?

Will the CBRF provide a letter? I have several clients at a full care facility that are given a breakdown, i.e. 17% for assisted living, 100% for the "memory care" unit.

A rare bird sighting. A client who is questioning a deduction!

I deducted a similar $ amount each year my mother-in-law was in a memory care facility for advanced dementia.

I agree with Lee. Another requirement is that they were still undergraduates at the start of 2023, so that is easy to check. And on a broader note, I wouldn't take a new client without seeing their last return.

Well, it was already established earlier in the discussion that the types of assets code "K" is used for are non-cash types and because FMV of cash IS readily determinable. As I already said, if only non-cash, there would be no transfer possible into a cash-only type bank account and no possibility of tax withheld or remitted, and that is the reason I speculated that it may be assets distributed in-kind with a change of ownership title. You already have a meeting set and only the broker, supervisor, or client would be the one(s) to tell you, or provide documentation, what asset(s) were transferred and/or to where. If something was "distributed" in-kind via name change from IRA ownership to individual, then that will be taxable. If that is the case, I'd ask how the gross and taxable portions reported on the 1099R were determined.

That's how I interpreted it when I posted that it meant "noncash" which doesn't match with the wire transfer scenario. This situation is like wrestling with pig, the pig enjoys it and you end up all muddy.

Everything that I read says that my 91 year old client can deduct medical expenses for 10.5 months in a CBRF. She was declared chronically ill by a licensed physician. She requires extensive assistance with more than two activities of daily living. She paid $70,712 for her total share. Long term care insurance paid $12,600. I am having a difficult time convincing her son that $69,512 is a legitimate medical deduction. It is a difference of paying in and/or getting about a $6000 refund because she had paid in estimates. Am I right or wrong?

sounds fine, as long as you're using $12,600 of it on Form 8853

What Judy says ^^^. Something doesn't pass the smell test....but I see conspiracies everywhere I look. Tom Longview, TX

That is true for the dependency calculation. Not true for the refundable AOC calculation - for that, it doesn't matter who actually paid for the support, just that the earned income was more than half of the support costs.

If he did not use the income for his support, but rather put it in savings, them it would not be part of his calculation. If he did use it for his support and what he paid was more than half of his support, then he must claim himself and he gets all of the credits If he did not use it for support and he did not provide more than half of his support, then the parents can choose not to claim him. He cannot claim himself, but he can get the nonrefundable portion of the AOC. There is a box to check on the form that shows that he can be claimed by another but is not claimed.

Even though parents earn enough to be in phaseout territory?! But doing the support worksheets is a good idea in any case to CYA.

I filed one yesterday. On the Main Info sheet, State Info: On the line with the residency status drop down box there is a filing status drop down box and we selected HoH Single. It was accepted today. I don't think we checked anything else.