Margaret CPA in OH

My son did that several years ago when the limit was $4000.  It made a huge difference and he is now set with real estate.  I'm not sure of any requirement that the 10% penalty exemption is restricted to contributions.  It seems a bit confusing to have exceptions but not for earnings, too.  I did not look at IRC Sec. 408A(d), the reference given in Quickfinders.

Thanks. They do reflect strongly my beliefs.

Interesting to learn the differences among the states for ethics requirements.  Are Ohioans more ethical, as in, we don't need no stinkin' ethics or at least not so often Given some of the challenges by some clients, it probably is not so bad to be reminded with some frequency.  Not to say some clients are unethical... /s

We only need 3 hours every 3 years, not 4.  But those can be intense hours depending on the instructor.  Well, when it is/was live instruction and the leader put you on the spot, made you think.  The online course is less intimidating but the answers still point to being honest and, well ethical.

I don't remember the date but I tried to renew last week while I was thinking about.  Not an option.  I put it on my calendar to try today but the system says it's down for maintenance.  Maybe Nov. 1 is the date.  On my calendar for then.

I have a second drive in the box, an external drive in a safe (yes, consumer priced but rated fire proof and easily accessible for me to grab and run) and BackBlaze continuous cloud back up.  That's what I do and hope it's enough for 3 more years.  There are limits for us all both technologically and price wise. 

Congratulations, Joel, and do continue to drop in.  Words of wisdom and advice from experience are always welcome and needed.

I am just sending in for my 3 year license renewal then calling it.  I'll be 79 then and probably more than ready.  If I get desperate, there is always VITA!  We also want to move within a couple of years (missed the boom this year, alas) so that will save changing addresses.  I imagine many of your clients tried to dissuade you as mine have.  I better start preparing them hoping they don't leave too soon!

Enjoy a 'tax free' season next year

Catherine, I'm happy that you are doing good self care.  I'm trying after bringing home a Covid souvenir from a month of travel.  Paxlovid did great, allowed me to walk a half marathon last Saturday but tested positive Sunday for the rebound. Still weakly positive yesterday.  I didn't even have time to get booster or a flu shot as they became available while we were still traveling. 

I'm happy I am only beginning prep for next season and actually have no client work at all now. Just wanting my life back and to feel good again. 

My Church and Clergy Tax Guide resource states that, if paid $600 or more, a non-employee must receive a 1099-NEC (used to be 1099-MISC).  I haven't looked to see the instructions for the 1099-NEC if there is a way to indicate HA as there is in Box 14 on a W-2.  All minister returns I've done and W-2's prepared for ministers when I managed the church payroll for several years, showed wages in Box 1 and HA.  Most had FWH and SWH for their convenience but, of course, filed as self-employed and paid SE tax on both wages and HA.

Whew!  Take a few deep breaths, look at some beautiful fall leaves, and remember to care for yourself and family first.  No client is worth this level of angst, in my opinion.

I am renewing my license for 3 more years then retiring.  I believe my client base of nearly all over 50's will want to continue with a person but agree that the under 40's would rather deal with a screen, especially a phone app.  There is a limit as to how much I want to manage on such a tiny screen.

Baby goats are about the cutest critters to watch, I think.  A friend raises them and posts videos from time to time; always entertaining.  How do they jump so much?  Thanks for the smiles today!

Hmm, I recall it working for my amended returns.  Maybe try to delete, save and close, open and add back?

13 hours ago, Lion EA said:

Do they own a house jointly? Or live in a house together and pay RE taxes and mortgage interest from joint funds? Anything at all that can be shifted to whichever needs it the most? Otherwise, book a tax planning consultation and charge for it !!

Just keep in mind that, if filing separately, both must either take the standard deduction or both must itemize.  With the high standard deduction now, itemizing even splitting, can be less advantageous than in earlier years.  So take a look also at state and local taxes - more than $10,000? - and charitable deductions. 

The MFJ vs MFS form shows immediately the difference in tax liability, joint vs separate.  For Ohio, it also shows the difference for the state and for the combined liabilities.  Because OH begins with AGI and limits deductions and has other differences, it is possible to owe IRS but receive much larger, offsetting refunds from the state.  Your situation may vary considerably.  Just be sure to note the liability difference, not whether tax is owed or refunded.  That depends on how much tax was withheld, of course. 

To date, even with 'warring' couples, none have chosen to pay more tax overall just because the withholdings were not aligned.  A fairly recently married couple, older, was very surprised at the significant difference it made as a household liability.  Neither had been previously married and wanted to keep everything separate until it would have cost them, combined, over $1000.

1 hour ago, Christian said:

Thanks Margaret this will greatly facilitate my work. Much appreciated and lucky me the spouse has only her W-2 the rest is his.

Remember to change Filer and Spouse appropriately (correct SSN's, birthdates, etc.) and be sure to run the check return.  It likely will turn up a few reminders to check.  At least the bottom line should be easy to determine.

No automatic magic.  I duplicate the return, label as Filer, delete spouse info, change whatever is needed (anything marked as J, for example), then do the same for a duplicate return for spouse.  I always print first the form MFJ vs MFS to confirm all data is where it belongs and the bottom line is correct.  Be sure to note those items which are limited or no allowed for FS, only for joint.  It takes a bit of time but less than entering everything from scratch.  It does go quicker if you have correctly entered anything that was just F or just S and remember to split those J items, if appropriate.  I have done many of these and am grateful for this feature.

This does sound so painful and sad.  I have personally not had any issues in my family with the elders passing as there was nothing to fight over.  However, I was trustee and executor for wealthy clients.  The trust attorney was very astute in setting up the complicated structure, making the grands wait for 5 years before principal distribution.  That cooled some heels among them but there was antagonism towards me as trustee. 

When questions or complaints arose, I simply pointed to the trust a copy of which they had before death.  There was also a private letter for some property distributions with one item creating an issue - so I donated it.

As Lion said, breathe, hang in there, do what is right, vent here, and know you have done your best to care for your mother and abide by her wishes.

I have had a client with 3 states a few years ago and don't recall this as an issue.  For now, could you duplicate the return, delete one of the other states leaving OH and see if the OH letter appears?  Or check the KB to see if there is a limitation maybe.  It doesn't seem as if there should be just because of multiple states.  Do you have checked to combine federal and state letters?  If so, there may be a limitation with that. 

If they are fostering the child (as it seems) and the child has lived with them for more than half the year - well, see all the requirements for a foster child to be claimed as a dependent.  If a dependent, they are also qualifying for CTC, etc.  One of my clients have fostered children many times over the years but always met the half year or more time until 2021.  Alas, they had 4 children for 4 months so missed out big time for dependency exemption.

I don't know how the time in foster home relates to adoption.  My client did adopt one of the children several years ago.

You stated that the funds were gone from the checking account.  If cash was credited, where is the debit?  It should be an asset, right?  I'm not clear how the asset could be on a depreciation schedule only.  What software is being used?  Of course the depreciation is an expense debit and crediting the asset.  I must be missing something here as it seems basic accounting, you know, T squares (I'm old school ).

I haven't done business returns for a while but why wouldn't the truck be on the BS as an asset?  Depreciation or expensing of the asset begins when placed in service but it is still an asset currently, just not yet depreciable.  I should think.

This client originally got the one for 2020 online so I assume she is capable of getting the new one as well.  I referred her to the link provided above, reminded her to look at the document she sent for 2020 and url to refresh her memory but haven't yet received the reply.  I'm sure she is capable, just waiting.

Then again, she sent a K-1 to a partnership for an LLC she and husband set up because friends advised them to do so.  The K-1 indicated that the LLC was a disregarded entity but the IRS EIN generated indicated a 1065 was required to be filed.  Of course she had no idea why I told her that she had to get K-1's for herself and husband, explained that a 1065 was needed but I couldn't prepare it as I had zero information.  I said they may well have a penalty assessed as it was long after due date for filing but first time abatement might work.  I'm not worried about affordability, just wondering how they could be so easily taken in by 'friends' to invest in an energy p'ship without getting more information.  Maybe she will ask next time.  Maybe not.  Most of my clients do ask before playing with financial situations but sometimes after the fact despite my suggestion to ask first.  I guess they prefer the 'better to beg forgiveness (maybe owe tax) than ask permission (or advice as to tax ramifications) method.'

So sorry for your loss with this aggravation compounding pain.  I do hope things will clear soon for you.

Hmm, not a stupid question, just stupid me!  I forgot that she had one for 2020 and, since this was dated March 13, 2021, and I filed March 23, that's it!  I will try without a PIN and see what happens.  If rejected again, I will ask if she has another for 2021.  She included it with her 2021 documents and I obviously didn't notice the date.  I have just one other client with a PIN but this is new for this client.  If no PIN gets rejected, I will let her know to try to retrieve the one for 2021, if needed.  She is a physician so busy but responsive.

Thanks, Judy!