Margaret CPA in OH

Whew! I was almost having panic attacks. I didn't realize how very often I check this as it is my home page. It's different when we have a heads up for maintenance and are prepared. Thanks to those who began the FB page so I knew we were not alone. And thanks again, ever so much, Eric, for providing this space for us. Maybe a little bit for you, too...True thanks!

I could think of lots of pubs to go to about now

THAT's just what I need!

For me, making myself use the 10 key with my left hand in initial accounting classes so that I wouldn't have to constantly put down my writing implement was among the better skills I learned. Then a few years ago to relieve achy neck and shoulder on the right side I trained my left to do the mouse work. Instant relief as stress is more balanced.

and not only do they walk among us but they breed!!!!

Way too many people live above their means succumbing to the constant barrage of advertising and envy of what others have (whether or not actually paid for). We've known for some time that we have lived quite a bit below putting as much into retirement as possible. As my husband is retiring the end of June, it was gratifying to hear the advisor remark that we must have been living below our means for years as it appears we are covered for 30+ years. My son was likely relieved when I told him that while he may end up choosing our nursing home, at least he won't have to pay for it.

Now that we are allowed to retain electronic copies, I never cut them unless I have to prepare a paper return for a locality to be filed that requires a W-2 attached.

I don't know if this is IRS but check this scary notice I just received: Dear Margaret, This is to inform you to appear in the Court on the April 04 for your case hearing. Please, prepare all the documents relating to the case and bring them to Court on the specified date. Note: The case will be heard by the judge in your absence if you do not come. The copy of Court Notice is attached to this email. Sincerely, Anthony Neal, Clerk of Court. This was to my diver address which gets many such spam things. It's from [email protected] I didn't open the zip file. They will have to just manage without my presence. If you don't hear anymore from me, I've probably been hauled off to jail

Thanks for this and I actually remember this now. It's just been a while since I've had college students of clients. Most of my current clients are, well, of a certain age past having college age kids. Yes, mom does provide much more than 50% of total support.

Yes, of course I know the daughter must file as she also has W-2 wages. In fact, I also know that Form 8615 is called for. My question is about mom taking all education expenses above this amount for the education credit. I think it reasonable to assume (also given mom's note) that these funds were used for college expenses but anything beyond is on mom's return as daughter is dependent (and financially she is even with wages and this income).

Client has dependent daughter in college with UTMA account in daughter's ssn. Securities sold for school expenses with cap gains of $2300. I don't have all the school expenses yet but think this should be on daughter's return but mom takes education credit beyond what was spent from this. What say y'all?

I understand. Recall the $53 haircut issue I recently raised. Client cut her hair and rather than leaving it on the floor to be swept away, gave it to an organization for wigs. She had a definite benefit and would have cut her hair anyway. Group consensus was to let it go. I still feel a bit uneasy, though.

I just turned 70 Sunday and, frankly, prefer to be considered a woman. Kind of a respect thing to me... Meanwhile, good for you for continuing to practice your profession. That is inspiration. I am training for a marathon now, ran 18 miles last Saturday with 20 this coming Saturday. I do hope to inspire women and girls alike.

Hmmm, maybe had you hired a woman, things just might maybe have been different. The girl was surely aiming to please.

Thanks, that what I have discovered now also discovering that the options for full year and part year residents are not identical. My clients are shaking their heads thinking that they would file joint federal, husband single KY and wife single OH. Not even close! Now I have to keep track of which return is which with which adjustments to minimize total liability and not miss anything. Fun times. And the husband was trying to do this on Turbo Tax. At least they are higher income so I will bill accordingly. Thanks again to all for working through this with me.

My point - my husband is a neat desk freak and I am 180 degrees opposite. I have to have everything in reach and I do know what is in each pile. I've tried neatness and it just doesn't work for me. So glad to know I am not alone out here!

Dragons?

And I responded too soon. The link was for Form 740 which provides for 4 options for filing status. Clients are filing 740NP, part year which provides only 3 options. On rereading, again, those instructions, It appears to say that spouses may file jointly or separately regardless of federal filing status but, in my reading, it is completely optional. The question in my original post stands and I was and am looking for agreement that my interpretation is correct. Sort of like a comfort letter because it seems a bit strange to be able to choose status so freely.

Thank you. I did not find that.

Of course $79 does not cover the cost. You didn't ask and I didn't write the savings for combined federal and Ohio tax. Jack, you know quite well that MFS for OH often is a savings but filers must also file separately for federal purposes so the savings is combined, not independent. I must have been clear as mud that I was asking specifically and only about the KY requirement. I already know that answer for federal and OH. I just cannot find a definitive answer as to the requirement - or not - to file KY jointly or separately depending on the federal filing status. Sorry I asked and wasted your collective times.

The tax is lower based on calculations of percentage of joint deductions. It's only $79 but not nothing. I was just unable to see definitively whether KY filing is required to follow federal as does OH.

Clients were married October 2015. Husband moved to OH from KY in December. It seems for KY they are allowed to file separate even though federal is joint (as of now). OH requires same as federal. ATX provides comparison with federal and OH but now I need to determine KY liability. It seems that wife can/must file KY separately even without any KY income or deductions and as a full-year non-resident should owe no KY tax although husband would. Is this a correct assumption? I think it would benefit them combined with OH and federal MFS. Thanks!

The Lima regulations state that a resident is anyone domiciled there. Typically the taxing municipalities in Ohio withhold earnings tax from all employees working in the municipalities and require that residents file and pay tax as residents if they work elsewhere. If the student does not live (is domiciled) within the city, s/he would not be required to file. It's possible that the other jobs are technically outside the city limits or they just aren't withholding.

Have you read through the instructions for OH military personnel? Somehow in nearly 20 years of practice here, I've never had a military client. The OH return begins with federal AGI however so adjustments should be made from that. Did you put the S-corp income on line 1a of 1023 and deductions below? For 2015, there is a new IT1040 that taxes business income separately and uses Ohio Schedule IT BUS accessible from line 6 of OH IT1040. If I have time later, I'll try to reconstruct something such as your description.

My point of view is that the client derived a benefit from the haircut, that wasn't entirely altruistic. I could also be a bit jaded by the fact that there was $0 cash donated but $770 in, well, used clothing and household - with AGI of $200,000+ I know, unfair value judgment. With taxable income of about $175,000, there is no danger of being pushed into the 28% bracket. Then again, it IS worth $13!