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What does the will say is supposed to happen with the residence and that vacation home? Was the estate supposed to sell them, pass to one or more of the beneficiaries?

Bonnie, you are correct. The kiddie tax doesn't apply to wages or self employment income. As far as what danrvan said, if this was paid from a partnership, the child must be the child of both partners, so having a third partner or a partner other than a parent will knock that out. Also, the income would have to be paid as wages for it to be exempt from from FICA and Medicare taxes and the employer's match. Since it was reported on a 1099, the child would be subject to s.e. tax on this income.

Terry, make sure to include a second set of calculations and a 1045 filled out on an AMT basis even if the client wasn't subject to it on the original return or after the carryback. The IRS will ask for that if you don't provide the calculations, and it will delay his refund.

I would file those returns with Sch D to formally document the loss carryforward with the IRS even if the overall return is below the filing threshold. ETA - I know nothing about the effect on WI homestead.

I don't know how I managed it, but I cooked most of the time, take out once a week. I tried to make things that were in large enough quantity to last a second day, then fill in with simple meals that I could throw in the oven that cook themselves or a quick breakfast meal one night. I also cook for 2 of the dogs that are old and in the early stages of kidney failure. They have other issues and can't take the meds, so custom home cooked diet has helped tremendously. At the beginning of March I made a month's worth for both of them. Tonight I'm finishing 2 more weeks for each....still have to cook lots of sweet potatoes and portion them out.

Just what John said. It's a compliance issue and meant to cut down on fraudulent returns. I've known many of my clients for 30 years or more. One client I've known for 50 years, she's mom's age and her daughter and I went through school together. In fact, she and her late husband grew up with my parents, she was a teller in a local bank.... All have understood the request without having a problem with it. Like I said, I think the former preparers weren't very good based on what she said and some things I saw on her prior returns. Because they'd never asked, she wondered why the need. I explained and her hesitation vanished.

I agree with you John and Jack. The funny and aggravating thing was that she sent other docs with sensitive info to me by unencrypted email, but didn't want to send the cards. After I explained that it was a compliance issue and helped cut down on fraudulent tax returns, and the penalties assessed on preparers, blah, blah, blah, she sent them right away by encrypted email. She was a new client this year, and will be a good client once I get her trained. She asked a lot of good questions, and part of those came because the preparers she'd used in the past either weren't very good or were loose and sloppy.

From client's email: I am not happy about copying them either. I have never had anyone ask me for these is this something new? Do you just need to look at them as the tax preparer or do the IRS expect a copy be filed with the e-return? Can you go ahead and proceed with the e-filing with just the forms? If you have to look at them, I can bring them by tomorrow when you are going to be home. So can I just look at the cards and notate in my file that I verified that names, SSN, and DOB match? These are not strangers to me, but are people I've known since elementary school. These are higher income earners, no kids, no credits of any kind on the returns. Return has W-2s, a rental, Sch A, and home office.

It sounds like you have an NOL. Unless you elect to only carry forward, you have to carry the losses back first.

No one is hysterical here, there isn't a substantial amount devoted to politics, and no one is suppressing your freedom of speech. Within the general chat, non tax posts are clearly marked so that you may avoid those if you consider them a waste of your time. If you don't like the tone or slant of the politics here, you may completely avoid that forum altogether since it is separated out, join in the political discussions by posting your rebuttals in the topics made by others, start your own topics with your point of view No one is forcing you to visit the politics forum or open any topic you don't want to see. No one is even forcing you to come here if you dislike this site so much. You complain about the politics, and yet when I look at the topics you've posted in since the beginning of 2014, I see that just over 1/3 of those are in the politics forum. You either like it here or you don't. If you do choose to continue to come here and participate, please stop the whining, complaining, and especially the KC bashing. You've been doing it for years, and it is tiresome. Do you attend a party hosted by someone you strongly dislike, and upon your arrival do you announce to all the other guests your dislike for the host, the home's decor, and the food being served? Do you stay at the party, pick at the food, spit on the other guests? How long do you think it would be before you were asked to leave?

Yes, this would be reported on 4684. At this point, before any of your adjustments it sounds like the Quickbooks "Undeposited cash account" is -0- and the loss of cash is in bad debts expense. I don't know why you would want to go through the equity accounts at all, or seem to want to reverse the entries made by the bookkeeper. Why not just credit B/D expense and debit the theft loss account. If you are trying to leave a trail, your journal entry description should suffice: "reclassify theft loss out of B/D expense".

I got lots of exercise shoveling snow.

Thanks Tom. That means a lot to me. I had to refill my popcorn bowl after I got angry and threw the first one against the wall.

Well, I haven't had my say completely so I'm going to waste a little more of my time and answer SCL again. SCL, you don't get to question KC here. She is the moderator that Eric chose at the very inception of this forum to lead the group, and she is a big part of why many people stay. Eric recognized that she is a kind, generous, and level headed person, and a knowledgeable professional willing to help anyone here that is in need. She has shown that time and time again, including during the extended periods of personal struggle first with her husband's illness and passing and then with her own medical issues, that she is here for us any time one of us asks. Some of the newer folks may not have been aware of some of that, but that proves that there is no one more dedicated to this forum than KC has been and continues to be. I have personally benefited from her advice when no one else had answered, and she also patiently answered me during a time when we were actively disagreeing on issues. To me, that exemplifies the kind and generous person that she is, that she can put personal feelings aside to help a fellow practitioner. KC and a handful of others, and of course Eric, are the core group that holds this forum together year round that have my respect and my thanks. You joined a few days after the forum was created too, so this information shouldn't be anything new to you. I do wonder why anyone would continue to come here for years when one finds the slant or tone of this forum to be so distasteful, and since that is clearly the case with you, I really wish you would leave. We don't need your continual antagonistic posts that add nothing of value.

You should apply for an EIN so you can file form 1041 and report this income properly and allocate the withholding to your client. That is how the IRS will have a trail of the withholding from the 1099R that was issued, and then that withholding will be shown on the K-1 in your client's name that then can be properly claimed on the 1040 individual return. This form 1041 will probably be the first and final return. If you don't have the EIN by 4/15, file the form 1041 with "applied for" in that block.

Yes, I agree with you. No moving expense.

Your latest post "ATX issues" says a lot though about wasted time during the busiest part of the year. The one-time conversion might take some doing, but how much aggravation would it have saved you, and how much more productive would you have been when it mattered most? I could use a vacation about now. For a fee, I'll come down to GA (?) and do your conversions. Will you renew with ATX for next year too?

I "like" all the posts. You are all making me feel better. Yes, we all make stupid mistakes because we are human and are overworked. My former boss said if we never make a mistake, we aren't working fast enough. Make too many, we are working too fast. Like the 3 little bears, find the consistent speed that is right for you. I don't know of my mistakes yet. Something will surely make itself known in the next month or so.

None here. I've never asked.

OK, that actually made me laugh out loud. That is really dense! Still laughing....

SCL, no one was talking about politics in this thread until YOU brought it up. When purely political posts are made here in general chat, or when topics here turn into political discussions, they are being moved. KC posted this in general chat for the humanitarian aspects of the case and it was clearly marked N/T. If you don't like that, feel free to skip over it, but please stop your personal attacks on KC. They are not welcome here. Anyone care to get back to the topic of Justine Pelletier?

I had one picked up today that had a Roth open for more than 5 years, 1099R came through with "T" also. Cambridge Investments. My husband had one last year from Vanguard that was reported correctly with code "Q". Account had been open about 15 years.

See Old Jack's answer's from this topic:

The family resemblance is very strong.