Christian

An individual has come in and has used Form 8829 for a number of years to deduct business use of her home. After review I find the newer simple method will produce the greater tax benefit. Can I use the simple system for her for 2024? 

A client has come in with three years of unfiled returns. These are for 2019, 2020, and 2021. it's quite clear she will owe tax for each and every year plus heaven knows whatever penalties and interest the Service will compute. I have no experience with filing unfiled prior year returns and have been trying to find some provision in law that can abate or lessen what I suspect is coming. Can any of you suggest anything I perhaps can do to help this person ? 

Thanks. I backup each client file when completed to to a thumb drive which is attached by a usb connection on the front of my pc so no problem there.  

I am going to delete ATX 2018 files from my computer which is running Windows 11. The last time I deleted an ATX file a problem arose as the removal tool did not remove client files. Trying to avoid this can someone advise how this deletion of the client files is done ? Hopefully this is not a complicated matter.

A client remarried in 2022. He and his new spouse filed mfs in 2023 as she wanted to file her own return for 2022. He called a day or two ago and will be bringing her info for 2019, 2020, and 2021 years for which she did not file a return. Apparently she had no filing requirement in 2018 and apparently thought she did not need to file going forward. My fist thought was "Good grief the penalties she is going to incur" so I have been reviewing any exception which may help her but don't seem to find one. As few of my clients ever incur a penalty I am submitting this post in an effort to avoid missing a possible exception I might have missed as I am sure she will have a no file penalty along with  whatever follows.

This applies to me as well.

I kept on and finally got the PTP and dividends deducted ( the 20%) but was restricted on my tax biz income.   

Finished all client returns and now bogged down in my own !!! For reasons I cannot fathom 199A dividends reported in my brokerage account Section 199A PTP income reported by two publicly traded partnerships are not flowing to Form 8995 as one would think they would. Anyone have a clue why this would be. Looks as if I failed to enter one or something.

Thanks very much.

My bad. He has filed an extension due October 15th. apparently for MFJ but they now want to file MFS before the deadline. Having filed the extension for MFJ are they now prohibited from using the MFS filing status even though neither has yet filed their returns ?

A client couple who live together want to change their filing status as indicated. I keep getting a rejection on efiling her return and on checking her info can find no entry errors. However, I did not check the Name change box. Could this be the problem?. Her name has not changed but of course she now appears in line 1 of the return with her husband in line 2 indicated of course as MFS status. Any info is appreciated.

I see what you mean. Thumb drive sets to my immediate left but you are correct a fire and it's kaput. In 41 years I have had two audits which amounted to a $54 dollar refund and an additional tax for a golf cart donated to his club which I told him would not fly.  I swear try as I might clients SIMPLY will not act on good advise. 

All my client info is on my computer and if I quit I am sure it will remain. I back each individual's account on to a small thumb drive and do not quite understand what this lady is saying.

Bingo Kathy the very number I was looking for. Please advise where you got that $ 4,700 income limit from. That was the number I recalled but was unable to pinpoint where I got it from. Which , of course, means he cannot be shown as a dependent. I am going to ask his parents to get a statement from his school clarifying whether or not he is considered by them to have been a full time student in 2023 as each institution can advise on that. If they certify he was then case closed. 

I think he has lost the student exemption by not meeting the requirements for being a full time student. His sole income is some $7,000 or so earned at Walmart in 2023. Since he cannot possibly cover half his support with that I will simply show him as an other dependent.

Well let me phrase it this way. Laying aside the student exemption. At what income level does a child 19 years of age and older living at home loose his or her dependent status for their parents ?

I was under the impression if they earned an amount greater than the exemption they could not be claimed. A client has a daughter living at home making $19,500 a year and taking courses at the local community college and is a part time student. She takes her classes by computer at home. I dropped her as a dependent for the last two years but she gets the Lifetime Learning Credit. That is not a large amount of money but would likely be greater than 1/2 of her expenses.

In reading the regs my understanding is to claim a student as a dependent he must be a full time student. In reading your reply I gather that this terminates the year the student becomes 24. The son earns too much money to be claimed as a dependent other than being a student so what we are looking at going forward is next year when he turns 23 will be the last one he can be claimed as a dependent unless his income should drop below a level at which he could be claimed on that basis ?

A client has a 22 year old son in college who is not graduating this year. When I asked when he was likely to graduate I was told it might be a few years ! What is the age limit to carry a supposed full time college student as a dependent or is there one. If not a parent could hold on to junior for an eternity. He has not yet got the BA he is studying for.

Like others in our community I have received my annual renewal notice and I too have wondered what is the rush? In looking around I find that some other providers are coming out with product that is cost competitive with ATX and has features from the perspective of a small time tax guy like me that bear close scrutiny such as unlimited efiles as opposed to ATX's upper limit of 75 and then they tack on an additional fee which becomes not insubstantial to your total cost. Now that the pressure is subsiding I am going to take a close look before pulling the renewal switch this year.      

Well that was my point. She is not a full time student. But SHE can get the AOC herself.

I neglected to mention she is NOT a full time student.

A former dependent now age 19 still lives at home but earns some $19,000 working in food service. She has reentered college and is shown as a half time student on the 1098-T she received. I am sure her parents paid her $2000 or so tuition but if I am not mistaken she will still qualifies for the AOC on her own. She is a degree candidate. Is this correct ? 

I have strained the muscles in the back of my neck. Of course, the loss was simply subtracted from other income on the 1040. This shortened tax season of eleven weeks as opposed to the former thirteen has been a strain and will oblige me to again reduce my client list again next season. 

A new client came in who has a small side business he operates. On his Form 8995 on line 16 he shows a small loss which can be carried forward according to the wording on the line. All of the clients I have with small side businesses rarely if ever post a loss. This client will post a profit for last year and in looking on Schedule C I find no line entry to post a retained loss from Form 8995. I assume I can simply place it among other expenses ?