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Margaret CPA in OH

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Everything posted by Margaret CPA in OH

  1. I hear you about marketing with seminars and webinars. I take many webinars for many reasons - cost, convenience, topic variety, etc. And then do get on the email marketing list to which I promptly unsubscribe. The valuable information and reference links provided still outweigh the annoyance of having to unsubscribe. Heck, even the AICPA and Ohio Society of CPA's (member of both) more than frequently push 'products' but I accept that and just delete what doesn't interest me. The title or first few words or lines are clues!
  2. Hmm, if closed so quickly, I do hope it is offered again and soon!
  3. I prepare my own engagement letter based on the one provided by AICPA. For additional information, I also have a cover letter where I remind people about FINCEN filing if applicable, my current year rate and other items. For many forms you can customize but I don't see that form/letter in the list. Perhaps someone else who uses it may reply.
  4. So I am not the only one for which this situation is new. I told this now-client that her situation taught me something I had never, in over 30 years of practice, seen. Filing status of single is correct if "(a) taxpayer is single if unmarried or separated from a spouse, either by divorce or a separate maintenance decree, on December 31." My bold and my, because she called it alimony, misspeak. The payments are separate maintenance. From Topic 452: Alimony or Separate Maintenance – In General Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony or separate maintenance payments for federal tax purposes. A payment is alimony or separate maintenance if all the following requirements are met: The spouses don't file a joint return with each other; The payment is in cash (including checks or money orders); The payment is to or for a spouse or a former spouse made under a divorce or separation instrument; The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.); There's no liability to make the payment (in cash or property) after the death of the recipient spouse; The payment isn't treated as child support or a property settlement; and The divorce or separation agreement does not designate the payment as not includable in gross income of the payee spouse and not allowable as a deduction to the payer spouse. And I also have learned more about CA taxation and community property! This is such a great group, right? And I have a new client
  5. The separation agreement was around 2015 or so. Okay, then, about no community if filing single. Since they are not actually divorced, I wasn't sure about 'community' as uncertain that filing status trumped legal arrangement - or however that should be stated. I've just never had anyone filing in a community property state or anyone with alimony. I guess I've lived a charmed professional life! Thanks to all for comments and guidance!
  6. Okay. she just left. She receives $85,000 in alimony, files single (not MFS as I was told) with a court decreed separation agreement, and has only dividends and some cap gains from a few stock sales. I just question about the alimony being CA 'sourced.' It's personal checks not pension or other distributions from spouse. Spouse has retirement income to generate the alimony funds. When spouse dies, likely before her, she will have some pension income as he reduced current distribution for her to have income after he dies. Would that then be CA sourced? It's from a university but not a 2023 issue as he is still alive. Thanks!
  7. Thanks so much, Tom! I've been reading some CA instructions and think I do not understand why the OH resident would have to pay on 50% of community income if there is none (I think only retirement). I read this: Nonresidents of California are taxed only on income from California sources. Nonresidents of California are not taxed on pensions received after December 31, 1995. For more information, get FTB Pub. 1005, Pension and Annuity Guidelines. so wonder how the OH resident must pay on retirement income and SS, for example, when she has moved her accounts (that's another story) to OH fund manager. Why would this retirement income be from CA source? Does that get adjusted in the Schedule CA 540 NR? I'll have to look at that. She will be arriving soon so more details to follow!
  8. Oops! Edit to say they are MFS not joint. Sorry for any confusion. I'm confused enough!
  9. Potential new client coming in today. She and spouse are long separated filing MFJ for personal reasons. Spouse is CA resident, client is OH resident and thinks she is paying unfair amount of tax. I'm speculating that it is because CA is a community property state but OH is not. I have begun reading through CA info but am not finding useful information. I would appreciate any hints, clues, suggestions, references, whatever you have to point me in the right direction. I've never prepared a community property state return so am on new ground here and looking to my peeps for help. Thanks!
  10. Another pet mother here so sorry for your loss. But you may not need to change your avatar. I have lost all three of my office helpers/paper weights in my avatar but love seeing them again every time I check this site and post. Warm memories...
  11. A late client, into her 90's, frequently used the excuse of an active forgettery when she couldn't remember something. It was endearing coming from her and an important part of my life and vocabulary now as I near 80!
  12. Well, I offered my opinion, not really advice, and provided the research etc. offered here then turned it over to the donor and the church. I do find it exceedingly hard to believe (though not impossible) that the state gaming commission would go after an independent donor receiving no cash and offering something (yes, of value) merely for turning in a pledge for time talent OR treasure, which cannot be legally enforced, by a given date. I'm out but still have found this interesting. I am not a lawyer but would be surprised if a lawyer (I will ask one at church) would take the threat of legal action in this seriously. Thanks for the opinions and advice of all.
  13. Well, I think, as it is not really a business transaction, the donor/gifter of the trip would not have to file a 1099. Neither the donor nor the church are my clients although they did ask my advice/opinion of this possibility to encourage early returns of pledges of time, talent and treasure. I've shared the collected comments from folks here with the pastor and donor. The decision is theirs. I still feel that the church, while possibly benefiting for budget preparation purposes, an early idea of the financial trends of pledges, has no real reporting role here. Thanks to all for the discussion. This forum is always surprising with the variety of topics to ponder.
  14. And I was reminded that our pledge forms ask about time, talent, and treasure. It is and has been possible to pledge to offer time for maybe committee work and/or talent to be in the choir, provide IT services, etc. No pledge of money is required - although it would be nice
  15. No raffle ticket was purchased but money was exchanged. From the description here, only those who bought/paid for groceries were entered into the raffle. Was it possible to have been part of this event without having 'paid for' groceries? Maybe you got a gift. But you paid for the groceries to even qualify for the $5. In my church case, no money will be exchanged, nothing purchased to qualify. The only way to enter is to submit a pledge by a certain date. Even then, there is no legal, just moral maybe, obligation to actually pay the pledge which would be to the church, not the donor of the trip.
  16. Thanks for additional info. I don't think I am too surprised about the grocery prize because it was from a business and money (bought groceries) changed hands to enter into the game of chance. This is from an individual and does not involve money of any kind to 'win,' just turn in your pledge by a given date. And, of course, church pledges are not even legally enforceable. I have forwarded the notice to this person and also alerted the pastor who may or may not go along with it. Interesting exercise....
  17. Hmm, those entered in this raffle will not have paid anything, though. And the church is not sponsoring it. The person giving out the points is a member but she is doing this on her own to encourage others to pledge early. So maybe the points donor should file the W-2G. As nothing is paid for the possible entry into the raffle, (a) 0 (the amount a person paid for a chance...) reduced by the wager = less than zero or (b) the payout is at least 300 time the amount of the wager or 0 x 300 = 0. And since it is not an organization providing the prize, I read that it is not the responsibility of the church to withhold anything. Thanks for looking this up! I will ponder a bit more but am not seeing any responsibility of the church here.
  18. A church member wants to 'donate' vacation rental points (she cannot use them before expiring) to the church stewardship campaign to be raffled off. Sort of. To encourage contributors to complete pledges by, say, October 31, each would be entered in the drawing with the winner being able to use the points for about a 3-4 stay at a resort. I cannot think of a tax issue anywhere - you? She cannot and is not interested in any kind of deduction. Does the winner have to report as income? Value would vary, I think, based on location of stay. Would the church have to be involved at all or just the donor? I'm thinking it is for the benefit of the church but really just between the donor and recipient.
  19. I, too, have a Pixel, love it! and agree with the great spam blocking. I so appreciate that there is a message that does allow a legitimate caller to leave a message. Bad folks don't.
  20. I never answer unidentified calls on either my land line or my cell. I have voice mail available and virtually no callers that are unidentified leave a message. I've done this for literally years. There is the odd occasion that a number has been spoofed (I think that's what it's called). Last year there was a call identified as my township government office. I didn't answer it having no expectation of a call from that office. There was no message so I did call that office back and asked the reason for the call. That office did not call so I alerted them to the issue.
  21. For those who have a desire to help, one place which usually does not bite politically is foster care / CASA. The bite is you do have to become a little more self aware about town as you may run into a "parent" who believes you helped take their child from them, but in most cases, those folks don't bother seeking revenge. I just became a CASA last fall and finished my first case 3 weeks ago. I get my second child/family this evening. Definitely no politics. For those unfamiliar, CASA is Court Appointed Special Advocate and the advocate is a trained volunteer for the child/children. So many children need an advocate, someone just on their side only.
  22. I began in a 4 person firm and found auditing incredibly boring. I thought I had made a serious career mistake. Then tax season rolled around... Made my days! Master's in Tax and never looked back.
  23. Oh my, you do have lot going on! Your health, physical and mental, should be the highest priority, in my opinion. I'm glad you have a diagnosis and plan for treatment. I would suggest that you migrate your payroll clients to another provider/service midyear rather than waiting until year end. It will be less stressful for you and you can be available to help the process. My guess is that your clients will appreciate the care you are providing as you have for all the past years. I would also guess that the potential loss in revenue would be not so much while easing the stress you would otherwise be having. You could assess a charge for assisting in the migration and helping clients choose the right provider. They will have to make changes anyway and may will be grateful for your hand holding on the path. When I decided to stop doing business returns and payrolls after my other CPA assistant retired, this process worked well for me. I still retained several for individual return preparation and some chose payroll services. I believe they all appreciated a transition period, my guidance and oversight and lack of abrupt change. Best outcome wishes for all of your future moves.
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