Margaret CPA in OH

I have a Brother HL-L2325DW, laser, which holds half a ream I think but love the double-sided copies it can make. It has a smallish footprint and is perfect for my small practice.

Client showed overpayment for 2021 and applied to 2022. Amended return shows 2021 actually had small balance due. For amended return does client actually owe and must pay money not received or have underpayment penalty for not paying estimated payments thought covered by (nonexistent) overpayment applied? Never had one of these before so any help welcomed!

Just WOW, Catherine! I can imagine the time involved with this. Hope you charged and got paid well!

I was a poll worker for the first time last fall. My check and stub were for $185. I guess this area doesn't pay so well! I just included it under Other Income not subject to SE tax.

Yes, there is a separate email address but, as I recall when I got mine, one has to have photo and other credentials. I can file it through my other IRS login but this seems odd to have individuals to have to use their personal ID.me to file for a company. She is coming by next week, we'll try to figure it out together. Thanks.

I looked online and on this forum but cannot find the answer as to how a non-profit creates an ID.me account which is required now to submit a 990-N. I would like for my client to do this for the organization and not have me do it. However, she has a personal ID.me account. It doesn't seem right to use a personal ID.me login for a business login. What am I missing (besides many brain cells)?

Thanks for this additional information. I used to have many SD 100's but now just one. The take home is to also know which base the SD uses and they do differ. Like all the muni's, another PIA!

Thanks, Jims, for updates. I did omit that extra 0 on the business exclusion (details, details) and I even have it on my own returns. Businesses do not pay school district tax https://tax.ohio.gov/researcher/tax-analysis/tax-data-series/school.district.income.tax

Hi Catherine, Generally there is nothing special other than the usual registration on the Secretary of State with Articles of Organization https://www.ohiosos.gov/businesses/ Check the last box about Revised LLC Act as of Feb. 2022. For the clients this might help https://ohio.gov/business/resources/business-first-stop SMLLC is just Sch. C and no special filing as Ohio income tax begins with federal AGI. There is a 'big' exclusion of business income for taxes up to $25,000, though. If MMLLC, then 1065 and, as a pass-through entity, there may be additional requirements for out of state members. It can get a bit complicated. So this is a start and follow up depends on what the clients decide to do. That, of course, will lead to the right research path. Good luck! Oh, just be aware of the multiple municipalities that all want to tax so the location of their business is important to know.

I think the funeral home should never be paying church employees for those services. Why would the funeral home pay church employees for anything? Or are they outside independent contractors or are they employees of the funeral home and work for the home at various funerals and not for this specific church? If funeral home is paying the minister, that is part of the clergy Schedule C. Who actually works for what entity?

As a former and current church treasurer who also relies on Church and Clergy Tax Guide: 1. Yes, as the clergy are performing pastoral duties. If paid from family or funeral home, Schedule C. If paid from the church, the budget line item may be different from the salary line, but still taxable income included on W-2. 2. If the others (non-pastors) are employees of the church and paid through the church, yes, part of payroll. Again, may be a different account but still employee pay. Part of the pushback may be coming from 'charitable contributions' made to the church to be passed through to these folks. This can and does happen. Employees getting paid from employer for doing their job have taxable income.

Yes, just scroll down a full screen (in ATX). Under Conversions From Traditional, SEP, or SIMPLE.... 2 lines more has a checkbox to Check box if qualified charitable distribution (QCD) and enter qualified charitable distribution amount. Over the years I am constantly finding how many screens have so much more to see if one just scrolls up or down. For such a relatively inexpensive program (despite some faults and less than stellar support), I really think ATX has so many features, more than I know how to manage even after 26 years with it. It pays to just browse around sometimes, something I'm trying to instill in the office admin at church with the membership database.

Ain't it the truth!

It will be interesting. What is the fiduciary? I split mine among 4 charities in the past. The 1099R from Fidelity just showed the full distributed amount with no tax withheld. I entered the QCD on the worksheet and QCD showed up in the right place. I do have a second amount from a 403(b) in TIAA-CREF so the total distributed was higher than the taxable amount.

Yes, ATX has the place to indicate QCD and the amount of the distribution that was donated. As my church's treasurer we have received several checks from the fiduciary, some stating purpose but not that it was a QCD. The donor indicated via email. I have my church donation sent to me made payable to the church and I deliver it. I have had the others mailed directly to the charities. None of the checks indicated QCD. I have the acknowledgement letters and report the total of the distributions on the 1099R data entry screen. I ask those clients who may have given QCD amounts for copies of the acknowledgements 'to be sure I indicate the correct amount of the distribution that is not taxable.'

My 1099's from Fidelity do not indicate this and have not for the last few years.

Well, not exactly correct from my reading, cbslee. I have had ALL vendors complete W-9's. My question is whether services provided by LLC's should be reported on 1099NEC (as LLC's often are since they are not C-corps) and if a sole prop or LLC vendor provides goods AND services (equipment and installation) should be reported and, if so, separate the material aspect from the service. Typically a sale includes installation and the vendor would have the equipment as COGS on Sch. C or, if filing as a p'ship, 1065, or, if filing as an S-corp, an 1120S. The W-9 just has a check box to confirm legal status, not how a return is filed. I'm also uncertain whether SAAS provided by an LLC warrants a 1099NEC or, if paid online, will receive a 1099K from the bank. Just confused right now.

What do you folks do when a service is provided (say online) by an LLC re 1099NEC? And if there is an equipment purchase and installation by an IC or LLC? With so many LLC's around these days, I'm getting a bit confused as to the reporting requirements. And if a service is paid via debit/credit card online, not to worry as they would receive 1099K from the bank/cc company? This isn't for myself, rather for my church. They would like to not send any at all but I think a couple are required. Thanks for clarification. It used to be so easy or straightforward, or so I thought!

And this is why I will have zero clients who have had any dealings with virtual currency. It is waaay too complicated for me and, apparently, for at least a few others. Pacun, I assume you have taken some courses in how to report these things. At least you can ask what appear to be real questions. It will be an interesting exercise to read the replies and answers and see how this works out. For me, an exercise in reading, only! Good luck to all who venture into this land.

Marilyn, I'm with you. And I keep my cell phone for myself, not use for business. I still have a land line and voicemail box. About 5 of my clients have my cell number because they are also church members and it's in the directory. But I do not want to use my cell for business. And the majority of the time, I have the sound off. I check it frequently and do have my personal and business emails downloaded to keep up, but almost never respond on my phone. When I retire in 3 years (I think) and give up my website and land line, I may keep a simple second cell with the number we've had since 1988 with 4 mailboxes - just for fun. Dual sim cards? Over my head, too, and I travel abroad every year.

I've seen several of these from clients over the years as I have many referrals from clients at the local university. Now, however, my church wants to hire a foreign national for a part-time music position. She is in a master's music program so it aligns with her major. She/university is in the process of filing I-765 for the EAD (Employment Authorization Document) which will likely come in a couple of months. Our payroll service (Paycor) does not manage these but I believe I can. I am currently treasurer - again. I've read the instructions and it seems relatively clear but - there are always buts, right? She will be paid quarterly. Any hints, advice, recommendations? I would like to assure the choir director that it is manageable once she receives her EAD. Thanks!

Marilyn, we are so alike. I nominally say I charge by the hour/time involved in my client cover letter but I am the timekeeper. Sometimes all the time isn't recorded/remembered or charged. I am aware of the situations of most of my clients and am sensitive to those struggling. Although my engagement letter states payment must be received before returns are transmitted, I have held to that once. And I always remind folks that I know where they live . In over 25 years I have been outright cheated once. I'm okay with that. And the vast majority of my clients are really friends, too. I recall one who broke down in tears the first time she came to me as her prior preparer 'fired' her and she was bereft. We worked it all out and she never cried again. And, at 76, I still work because I really do enjoy the work and the money pays for my exotic dive trips and my husband cannot say a word .

After reading this, I did decide to up by $10, I charge by time. It has been 2 years since my last increase but I do charge extra for any tax credit work, i.e. Form 8867. The increase is small but my costs have hardly increased. The slight bit for the software but Verifyle is still the same as is my insurance. I make enough and work as much as I wish. It's been wonderful since relinquishing bookkeeping, payroll, and virtually all small businesses - just a couple of small SMLLC's and a couple with rentals. I'm okay and I know some of my clients don't have a lot extra. Gail, do work less. Your time and mental and physical health are so much more important. Charge more, work less with the remaining better clients. It seems to work with lots of folks.

Thanks, Terry. Over the years I have had several employees but I have been the single return preparer. I was asking about this just for education as the terminology (domain vs network) was new to me. No, I do not and never did need a network setup, just my single desktop! And with my license renewal last week, just 3 more years

Thanks - I think. At least it isn't something I need to worry about as I have just a single desktop and just me. It's always good to learn, or try to learn, more.