MsTabbyKats

Cruise ships charge you a daily service fee to cover the tips.  You can "take it off" your invoice but very few do that.  In addition...we generally tip more.

Heave to me....eating, casino, eating, casino....shopping for jewelry (and then coming home and having the same thing custom made at a fraction of the cost).

Truth be told....I live almost walking distance from the port...and the cruises are so inexpensive...it's easier and less work to spend a week on a ship than at home.

However...you're right.  It's NOT the way to see the world.

But...getting back to tax ....there were "cruises to nowhere"...which meant the ship left the port in the US....stayed in the ocean for a day....returned to the same port.  They just discontinued these because the foreign workers (which most are) had to work "outside the US"....and since these cruises didn't visit foreign ports....it violated the terms of their visas ( &tax issues).

interesting.....because I'm going on a cruise with them next month that stops in Boston and Portland, Maine.  I guess the American workers are technically off duty when in American ports.  May I ask what the occupation is?  I'm going to guess "entertainer" .......definitely not anything to do with food work or housekeeping, correct?

I'm not sure that this is a software problem...more like a state issue.

I use TaxAct...and for most states the authorization carries over from the Federal.  But there is at least one state (I don't remember which one) where it didn't carry over....and luckily I picked up on it when I eyeballed the return before e-filing.  This happened a few times...so it was either with a few states..or a state where I did multiple returns.

I got in the habit to make sure it's marked......

Interesting....

May I ask what cruiseline?

Some of them do have ports in the US...(not embarking...but just visiting for the day)....Port Canaveral, Boston, Bar Harbor, Hawaii...

They just stopped "cruises to nowhere" because the foreign employees need to work on a cruise that stops in a foreign port...not just leave NY and return to NY in 2 days.

As a fact...my "kind of friend" Monica worked for the UN for 40 years.  She told me that she was required to itemize....just as all the non-resident alien diplomats on diplomatic visas (filing 1040-NRs) are required to do.

Now....this is NYC...where if someone makes about $50,000 and is single...they exceed the standard deduction (she made a lot more).

I'm sure the guy I did a billion years ago also made over $50K.  I vaguely remember him giving me "a sheet of instructions".

That line might be interpreted to read as a reminder ...."Make sure you itemize in order to minimize your income" (because if people do their own tax returns they might overlook itemizing).

Good to know......

They are required to itemize because the IRS says so  

But...if you really want to know....click on the "latest tax circular" link

http://www.un.org/Depts/oppba/accounts/tax/faqs/faq03.htm

What or where is the blue line?

AFAIK....you can only use Form SE with a C or F.  (Which is why I suggested the C)

Well...TaxAct couldn't do this....maybe ATX can.

I'd do the uncollected tips........

Other idea.....wages on Line 7 and the income backed out on Line 21...with "see Schedule C..   Then on Schedule C ..... an explanation at the end (under "other expenses").

The only thing I know about UN employees is that they have to itemize.  I did one about a billion years ago.  But I have an acquaintance who worked for the UN...and she mentioned this within the past decade.

Is the client American?

if he's not (most cruise ship employees aren't)......his income isn't subject to FICA....and you'd file 1040-NR.

ITINs start with 9

It's exactly the same as if you hire someone....you're supposed to report the income (1099-Misc).

If the person has an SS# or ITIN#....you can issue the 1099-Misc......even if they don't live here because YOU are American and you are supposed to.   Somewhere along the line....the IRS will be looking for that income you reported on somebody's tax return.

If the worker doesn't have a number....or refuses to give it.....that's another story.

I'd just do a 1040-NR....end of story.  That way everybody is covered.

it's used because airbnb asks for it.   Airbnb is an American company....so the income is American.  The owner isn't renting it out directly.  The are using airbnb as an agent....and airbnb takes a fee.

if a number isn't  furnished...the income isn't reported.  If it is furnished...a 1099-K (for social security numbers).. ...or a 1042-S (for itin numbers) is issued.

I do lots of these....mostly for non-Americans ...and I've seen it reported (and not reported) all ways.

The bottom line is airbnb is American. It doesn't matter where the property is.

Just want to add....if the guy put the home on Craigslist...and rented it....it would NOT be American income.

Did airbnb issue a 1042-S or a 1099-K?  The question is really did he give them a SS number or ITIN number? Airbnb is an American company and they as for a number....and it's American income.

If he didn't have an office....I doubt he would ask if it could be deductible as office furniture/equipment.

Is the $638K income......as in "taxable".....or something that would be taxable only when distributions are taken.?

i'm seeing this money as "wealth".

Thanks!

About the current employer deducting the payment....just hoping this method existed. (After all current employer would be getting the money.)

He needs all the money he can get to make the payment to current employer....so splitting it between 2 years wouldn't be good.

The "credit method" seems good.

He has to pay back the entire previous bonus....plus a percentage of all prior bonuses....so there will be quite a bit of calculations.

I think my client is screwed....but maybe I'm wrong.

Client is well into the AMT zone.

If he leaves his current employer....he needs to pay back about $300K.

New employer will give him the $300K...but it's taxable...so client only walks out with $150K in his pocket.

He is planning to pay current employer with this $150K....plus $150 of his own...to total the $300K.

The $300K can be a Schedule A deduction...but since he pays AMT....the deduction will do nothing for him.

Does anybody disagree...or have other insight?

In addition....would the current employer deduct the $300K from his 2015 income...so..if his income is $400K for 2015...the W-2 would only be $100K. (I doubt it..since it's a penalty...but I wanted to ask anyway...just for some insight).

TIA

I'd send each one separately....about 3 weeks apart....so one gets posted before the next one arrives.

A few years back I sent 2 at the same time (same envelope) and there was some kind of carry-over (I forget exactly what)....and it was just too confusing for the IRS to figure out. 

I said "low"...but not rent control.  Rent stabilized...but I'm sure the landlord would love for them to move.

I believe they pay about $2000....apt above them is being renovated (tenant of about 50 years died) and will rent for about $5000!

The rule of thumb for NYC is if you have a low rent....they have to carry you out.

​Oh...this may have more to do with NYC tax...and people left the city...but employers still withheld for NYC.  Then you have to prove you live elsewhere.  I've had that happen.....

Clients don't know what they want.  Wife hates cold...and loves the heat...would move there today if possible. Husband hates heat...and hates change.  It may be a "let's hop on a plane tomorrow" situation.

Oh well...just letting them know the facts.

I've had tons of clients moving from NY to "somewhere else".  I never had a request from NY for the clients new state of residence tax return.

​Yeah...I did.

The rep didn't see anything about a letter...but said it was reviewed on 5/18...and he should get "something" (refund or letter) by 6/18.  And if not...I should call back and it would be expedited.

They rent in NYC...and won't give up the apt because the rent is "very good".

They are "testing the waters"....probably will go there full time.  It's all hypothetical right now.

OMG....seriously?

I do know how to use "where's my refund".  And when I checked there over a month ago it said he'd be getting a letter within 30 days and he'd have 30 days to respond.  Over 30 days later...it still had the same message.  But he still didn't get the letter.

I do hope this satisfies everyone.