Christian

You are in an affluent area likely. Average fee of $218.00 would terminate my business although I have myself raised fees.

After discussing their options they decided to go ahead and file MFS even though he will pay a larger tax. Most likely they will take my advice and file jointly next year. Her retaining her former name was not the issue so things worked out ok. Better than some outcomes I have run into over the years.

Thanks for the input. I'll discuss this possibility with them to see if they want to do that. Many thanks.

Now that they have filed separately can they file a 1040-X and change this down the road ?

Rarely ever do I file one of these. An older client remarried last year. She advised she wanted to file separately and retained her prior name electing not to use her new husband's last name. Her income was limited and as a result no tax was due and no payments refunded. She later called and requested I prepare her new husband's return which I am giving him today. To my surprise there is a distinction between a couple who live together using this filing status and those couples who at no time during the tax year live together. Both of these folks draw social security. As a result of the above noted distinction he will owe tax on 85% of his benefit which was not the case when he filed as a single man. I find this really surprising and have advised them to file jointly next year.

A former client died about two weeks after her return was efiled. The family closed her bank account on the return before the Service deposited her refund. The Service sent her administrator two forms 1310 to send in but no address as to where to send their copy. I am assuming that would be the mailing address for Virginia taxpayers. Is this correct ? Oddly enough the administrator received only the forms with no letter or instructions as where to send.

I am myself am amazed her bookkeeper did not advise mom about adding these expenses to the son's 1099-NEC. I rather suspect she is deducting those expenses as a corporate expense. I advised the son that she may very well be checked on the reporting of his employment status but that is all I am going to do other than add the expenses to his reported 1099-NEC figure.

Thanks for the input. In my admittedly limited experience I have never known the Department of Taxation to question a 1099-Misc or now 1099-NEC. I will contact this guy and request mom to add up and furnish all of the truck's expenses paid by her and add those to the 1099-NEC amount and deduct them as costs to him. I may simply send this guy to the local CPA as basically I am backing away from work which could potentially involve IRS scrutiny. His parents are divorced and dad may very well have paid for the truck as I feel the parents are trying to get him going in life since he left college before finishing.

A Happy 4th of July to all of you. A young guy who evidently left college went to work for his mother's company as an independent truck driver. He lives with mom and delivers what ever goods she ships. He acquired a 2013 Mack tractor trailer and drives overnight to make these. I need to set up his return for 2022 and in collecting his info received a 1099-NEC for some $60,000 plus. All well and good. He yesterday advised that her company pays all fuel and insurance expenses for operation of the vehicle. This was not included as income on the 1099-NEC. I can only imagine what the Service will make of a truck driver with no fuel or expense deductions on his return. Any input on this is appreciated as I am of he opinion these amounts should be shown on his 1099-NEC and added to any amount paid to him personally.

I got another reminder from Microsoft on upgrading to Windows 11. I decided to download it and it downloaded seamlessly and later upgraded itself. I don't know how long they will support Windows 11 but it will likely exceed my remaining time as a tax guy. And I now have no need to buy another computer hopefully.

So essentially you are advising to buy a new machine after Windows stops supporting Windows 10 for those of us who are not computer techies. I usually do this and keep the old machine using it for other purposes protected by PC Matic. My old one runs Windows 7 and has had no problems and will get canned by the current one I guess.

I am just about ready to go ahead and install Windows 11. Insofar as I know ATX users can now update their systems and ATX supposedly will run just fine using it. If any of you experienced problems using Windows 11 with ATX please note it in our blog although to date I don't recall seeing any. Many thanks.

I thank all who replied which confirm my understanding of the law.

A minister for whom I have worked for a time brought me her list of amounts given back to her church during the course of 2022 in tithes and other cash gifts. She asked if these were not expenses of her ministry deductible against her social security tax. These are personal expenses deductible on Schedule A and deductible if along with other Schedule A deductions exceed the standard deduction. I can find no change that alters this but if anyone knows if this is incorrect please advise.

I referenced box 20 and sure enough here is what I found in 20Z1 " Section 199A Publicly Traded Partnership (PTP) Income". This figure exactly matches the number in box 1 as ordinary business income which would appear now to be available for the deduction. The worst that could happen I guess is it would be disallowed.