Lee B

My client just started this activity the beginning of last month so this will be for 2024. I am trying to get on top of this so they don't have any big surprises when I do next year's return. They went through the required DHS training and Certification last year so as far as I know it is foster care. I did go to the Oregon DHS website and read about the specific program they are working under. They found out about this program from their brother in law who works for DHS.

I have a client who is providing respite foster care (weekends only ) and receives $ 200 a day from the state of Oregon. To out it into perspective, our state has a big shortage of foster parents and is currently paying third party agencies $400 a day to house these kids in motels and hotels. As I understand it these payments are not reportable or taxable. TIA Lee

It's ironic since W 4V allows you to choose 7%, 10%, 12%. or 22% to be withheld from your monthly social security check. If you want taxes to be withheld from your RMD you get to choose a pecentage for both federal and state tax to be withheld.

How does that help, there is no W 4 provision to have a% withheld?

I do live payroll processing, so I do have access. The difficulty lies with 2 wage earner situations and situations with significant bonuses. Unless the client is willing to pay me a fee for a next year's tax projection,which very few will do, I just hand them the W 4s and point them to the instructions. I used to give clients some guesstimated advice, but ever since the TCJA went into effect that doesn't work very well and has backfired on me a few times.

It would seem to me that it's the taxpayer's responsibility to go online and verify that his contact and bank account information is correct.

II have tried The Tax Book's Web Library and wasn't impressed with their search Function, so I use their Print Edition.

According to the Tax Book, Guaranteed Payments are not included in QBI.

Margaret, I must say that you certainly come up with some unique tax scenarios

Form 1096 is only used when you paper file at least with the software I have used.

I would insist on copies of the prior years tax returns or take the LLC.

That's how I interpreted it when I posted that it meant "noncash" which doesn't match with the wire transfer scenario. This situation is like wrestling with pig, the pig enjoys it and you end up all muddy.

According to news articles, this bill is stalled in the Senate and if it comes to a vote it will be late this month or early next month.

I question whether a CBRF meets the definition of a facility whose expenses are deductible?

I deducted a similar $ amount each year my mother-in-law was in a memory care facility for advanced dementia.

Your client should ask for confirmation of the wire transfer. Perhaps the funds went to an old account of your client?

Has your client called the insurance company and asked why?

As far as the CTC you can go ahead and file. If the bill passes, the IRS will make any adjustments internally and issue any additional refunds due. Very similar to how unemployment compensation was handled several years ago.

I can envision a situation with 2 unmarried adults living together each with their own child sharing the rent and utilities 50/50 while each one pays for their own food, clothing,etc would be able to both file HOH.

Excerpts from Internal Revenue Code Section 72(t)(2)(F): "(8) Qualified first-time homebuyer distributions. For purposes of paragraph (2)(F) - (A) In general. The term "qualified first-time homebuyer distribution" means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual's spouse." "(C) Qualified acquisition costs. For purposes of this paragraph , the term "qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs. " "(iii) Date of acquisition. The term "date of acquisition" means the date- (I) on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or (II) on which construction or reconstruction of such a principal residence is commenced. "

You need to give more us more details because this scenario makes no sense.

Just curious, where were they married and which state issued the marriage license

ATX has had memory leaks ever since the program was rewritten with a shareware database called "Raven" back in 2011, sometimes referred to as the "2012 Debacle".

Perhaps the 1099 R is correct?

Why would you be worried about that? Drake is owned by an international private equity powerhouse with billions of dollars available.