Margaret CPA in OH

Plus you can sit and read or snooze or daydream or do your nails or ......

From 2016 Church and Clergy Tax Guide, Richard Hammar, JD, LLM, CPA: A 403 (b) plan has several tax advantages: You do not pay tax on contributions to your 403(b) plan in the year they are made. (And so forth just like other retirement plans with deferred comp) Elective contributions (through salary reduction) to a 403(b) plan do not necessarily constitute self-employment earnings in computing the self-employment tax liability of a minister. However, if these are after-tax contributions (made with funds that you must include as income on your return, they are not excluded from income and are not deductible. I think you need to check to see whether they are pre or after tax. For life insurance premiums, the cost of employer provided group term life insurance is excluded so long as the amount of the coverage does not exceed $50,000. So I think you need to ask whether that amount is already included in Box 1. When I was church treasurer for 7 years and prepared the payroll, these items were treated as pre-tax (deferred comp) and included in box 1 (life insurance premiums in excess of $50K coverage). I think you have to ask the church treasurer or payroll service to see how these were actually processed to be sure.

Quickfinder lists medical aids such as wheelchairs, ..crutches, braces...and medical equipment and supplies sold "over-the-counter" (without a prescription) including ..crutches,... I would consider these items as necessary as crutches and medical aids and equipment.

Thanks for the reply. However, my client received the money, not paid it out. The basis to my client was documented in the divorce paperwork. I have no control over the company that bought the stock from her properly recording what they paid for it. I believe my client received the $143,000 and believe the basis in the divorce document. I'm just not used to reporting stock sales without a 1099-B. As ATX has an option that none was received, guess I will just go with that!

New client received stock (never actually in her hands) in divorce. Stock was held in husband's name in closely held business. That company bought 300 shares for $143,000 and provided Form 1099-B. A company that invested in that business bought 300 sh from client for $143,000 and insists they are not required to report on this form. So do I just use Form 8949 Box "F-LT-Form 1099-B not received"? Seems that is no matching possibility or proof of cash received. Is this an issue for which I need to be concerned?

At this time, our heads are not solely reliable at times. At least mine isn't, which is why it is good to check with the other heads on this great board!

Yes, this requirement to purchase separate efiling for RITA, a city form really yanks my chain, too. I have figured out that I have to delete the efile part and can fill in the RITA manually and print. The clients (fortunately only 3) either mail in or take to the local tax office for filing. I despise the whole RITA concept as currently implemented anyway. Rental carryovers are generic and can't be tied to the specific location now. General city is the way to go, I think.

Line 71 has excess SS tax withheld and one of my clients, with 4 IT jobs, had significant excess refunded, no problems.

May the force be with you!

I had outstanding assistance with TPA. She cut through tons of BS, obstruction and obfuscation (dying to use that word!) for a client who was denied exemption of child despite proper submission of 8332. Guess like the lottery when calling anyone at IRS. Sometimes we get lucky.

I've had a few of this sort of things over the years including one this morning. I just point out, from a tax perspective, what I see and advise them to have a good talk with the investment advisor to be sure they understand what, exactly, that investment is and why the advisor thinks it's a good one. One client a few years ago had an advisor that I am convinced was churning the account with scores of short term transactions. After the third year of pointing this out and showing that she had over $35,000 in losses without the likelihood of using them, I again suggested she have a chat with the advisor. The advisor left me a nasty voice mail message but the client moved her accounts and was much better off.

Clients of many years bring me info 2 weeks ago. I input everything, email with questions as CTC now involved with 8867 and, oh by the way, older son is in college now. So along with 8615 issue, CTC and maybe AOC, I assume (bad me) that his investment account paid for at least some of school so ask for 1098T. Client takes time to respond that grandparents' education trust paid for everything. I wonder if it is possible client is confusing 'trust' with grandparent-funded investment account, UTMA. Client has to consult with grandparents who are on vacation. Cool heels.... Just now, "after speaking with my folks and their accountant, they would like him to file our taxes this year since he handles the trust that provides the money for college son. We will of course pay you for your time on our behalf...." So I do want to bill them the full 3 hours not including the emails. Fair?

I, we ALL, hear you. I just escorted out the 92 year old, still driving, after hearing again and again and again about, well, her late husband dead 30+ years, where she went to college and how she had no idea where her SSA1099 was but she received the same amount every month, blah, blah, blah. And that was after the 78 year old with inheritance issues, I could go on but won't. Just know that you are not alone. I was planning 2 more seasons after this one. Might be rethinking that

Check Pub. 463, I think it covers this pretty well.

Meal time in the nest now. It might be a dove or other bird getting plucked and ripped to little pieces for the chicks.

I just checked the link and the eagle flew off revealing a couple of fluffy chicks! Wonder if food is on the way. I watched ospreys nesting and raising chicks last year and saw some, um, interesting meal times.

Two weeks ago a plate of chocolate chip cookies, Monday a plate of variety cookies and shortbread, and today a fresh from the oven a home made chicken pot pie (client acknowledged how busy I seemed). I love (most of) my clients.

Thanks, short course was just what I needed and glad to know my logic was on track even if the brain was weary (legs, too, after 18 mile run at 7 this am). I do have the kiddie tax issue going with 2 of the 3 kids. The third is below the passive income level. Parents won't be happy with the extra time but maybe the ed tax credit will help. Thanks again!

Client's parents have been funding Uniform Transfer to Minor to children. Accounts are in ssn's of kids so income has been reported as required in their names. Oldest began college using those funds. I'm not quite able to decipher from my research whether the money is applicable for education credits. My logic says the money has been gifted to the child with the intention to use for college but it is his and he is spending it from his account. (Years ago I recall a saying that these accounts would be used for one of the 3 c's: college, car or cocaine as the funds were available to the minor at 18 or other age according to the state law.) The parents are using the term 'trust' but the Vanguard statements are UTM. I don't think there is a separate trust although will ask. Comments? Another first after 20+ years - wish this would stop.

All of mine were efiled, every year.

I am taking a rare tax season dive trip April 6-15 to Cuba. I have been on trips early in the season, January or February, but this was a not to miss opportunity and only cutting by a week and a half. And clients were alerted in January mailing of engagement letter. Swamped now!

I might try that but for now prefer not to give out my cell to clients if they aren't friends otherwise.

I don't text clients. Maybe two clients who are also friends have my cell. I email. Yes, you have permission to hug at will, results according to your input.

I thought you just said above that you created the efile with the anticipated date. If it isn't an issue to postpone, do so. If it is, file now. I would file now myself. With my AU clients, it wasn't an issue to postpone so I did. YMMV

I used the physical presence test the first year but bona fide resident the following 4 years. They are actually becoming citizens in 2017.