ETax847

Clients are MFJ and spouse passed away in early Jan. Surviving widow cannot find her husband's IRS PIN. When someone passes is their PIN still required or does it fall off due to their passing? Has anyone had to deal with this situation before?

Yesterday I get a call from my ATX rep asking me to renew today and that this was the best offer he could offer me if I renew right now. My renewal rate has jumped up substantially to where I told him I would consider all options before deciding. Has anyone else renewed this early or do you wait and end up with more favorable pricing?

For someone who is a schedule C with a Solo 401k, where does this person report the employee and employer contributions on the line 16, sch 1 worksheet?

How does one link the 1099-K to the other income line on Sch 1, Line 8z or is this a manual entry?

Prospective client incurred $4k in startup expenses for a new business that lasted 2 months. She did not make any money in this business. She landed a W-2 job and folded the business. Can her startup expenses be deducted on Sch C even though the business never earned a penny before folding?

I went with my gut feeling and did not take this prospective client on. The more questions I asked, the more skeptical I became.

A prospective client wants me to amend her 2022 Filing. I did not file the original 2022 tax return and when I asked for the source documents, she provided me with a handwritten K-1. Would anyone file a tax return off of a source document that was handwritten?

In 2021, Indiana state tax withheld from K-1's was reported on IN Sch F? Something seems to have changed for 2022 and I cannot find where it should be reported. Any help would be greatly appreciated.

Before the deadline, I had previously filed the client's Federal and WI tax returns. Just learned of IL income that needs to be included on an IL tax return. Can I add the IL state return to the original file or do i need to create a copy and add the IL tax return in and E-File it from the copy?

Is anyone renewing ATX this far out? I received an email today for the "best discount".

Kathy, do you know where I could find this online? Client was curious as to the source of this information.

Clients funded their HSA and FSA in 2022. Husband funded FSA for $2,500 and used the money for medical expenses and Wife funded her HSA in 2022. I've never come across this and I am not sure how to report this. Any insight?

I have a new client who is a resident of IL. He is a consultant and is W-2 shows in come for 4 states: IL, NY, CA, and MA. For CA and MA the W-2 shows a portion of the income that was earned in that state. For IL it shows 80% of the income being earned in IL and 100% of the income being attributed to NYC. Does anyone know how this is to be reported among the states?

Thanks for all the valuable insight.

I mailed a few tax documents back to the client via a sealed envelope, First Class Mail. The client received the mailing without its contents and a letter from the post office Rewrap unit say the mailing was damaged during processing. Has anyone ever had this happen? The client is freaking out and rightfully so.

I have a new client who was a PY Resident of Wisconsin and PY Resident of Cleveland, Ohio in 2022. Do PY residents of Cleveland, Ohio need to file a CCA return or is that only for full year residents of Cleveland, OH?

That explains it! Thanks everyone for your valuable insight. I was not aware of the change that happened under the bush administration regarding the tax treatment.

BTS, in proseries is the excluded income still subject to tax? In ATX, in the tax calculation it still is taxing that portion of income to some extent. Also, there is no credit allowed for Foreign Tax Paid. Any idea why?

I figured out what the issue was as I forgot to check a box. Now the foreign income flows through to the 1040 and is backed out from Form 2555, however, there is tax still being calculated on this income. If the foreign income is excluded, why is the foreign earned income still being taxed.

Client's spouse lived in Canada for the entire year and earned $45,000 US dollars for her work. When I am completing the Foreign Earned Income Schedule to exclude the income, the entire $45k is showing up on Line 8 "Other Income" as a negative amount. I would have expected this income to just be excluded not be a deduction. Any idea as to why this is being reported as it is on the 1040?

The house is in the husband's name so he is technically required to pay them. The wife shares the expense by paying 50% of the property taxes and 50% of the mortgage, but she pays her husband directly, and he pays the bills from his own bank account

They married couple are both clients, but will be filing their taxes separately. They were wondering how to split up their itemized deductions, 50/50 or is it deductible only to the individual whose bank account the payments came out of?

I have a client who will be filing as MFS for the 2022 Tax Year. He made the property tax and mortgage payments from his bank account in 2022. His wife paid for 1/2 of these expenses throughout the year. Are the each allowed to claim 1/2 of the prop taxes and mortgage interest, if the payments were made only from the husband's bank account?

https://www.kiplinger.com/taxes/irs-delays-new-form-1099-k-rules You are correct!!

Appreciate everyone taking time to respond to this. Glad to be having these discussions ahead of the craziness that is to come with tax season.