Lee B

Why is it a scam? Discharge of nonbusiness credit card debt is generally taxable income, except when the taxpayer was insolvent immediately prior to the discharge or filed bankruptcy. See Pub 4681

Because they intend to become citizens, this probably needs to be handled correctly. Consulting a knowledgeable immigration attorney may be desirable.

Yes, but since he already has a SIMPLE Plan established, he doesn't qualify for automatic approval using form 5305 - SEP. From Pub 560 - "When not to use Form 5305-SEP. You can't use Form 5305-SEP if any of the following apply . 1. You currently maintain any other qualified retirement plan other than another SEP. "

Well he can't make an employee contribution which would reduce his box 1 - W 2 income. However as Abby points out he could make the 2% non elective contribution assuming that had been elected prior to the end of the year.

Well that would allow him to make a 2 % non elective contribution. "You must deposit employees' salary reduction contributions to their SIMPLE IRAs within 30 days after the end of the month in which the amounts would otherwise have been payable to the employees in cash, according to IRS rules (IRC section 408(p)(5)(A)(i)). For self-employed persons with no common-law employees, the latest date for depositing salary reduction contributions for a calendar year is 30 days after the end of the year, or January 30th" Due to this rule, amending his payroll won't work either.

The way to reconstruct her income would require finding a list of her repeat customers, how much she usually charged them and how often she did housekeeping and when she stopped working.

That would only be helpful if she deposited all of the cash in her bank account before she spent anything. What would you do as far as expenses?

Who would authorize you to prepare the return? Unless the son will help you, there's nothing you can do.

Box 5 already has the amount in box 4 subtracted

I think we have beaten this topic o death. Let's put it to sleep.

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.