MsTabbyKats

DH had a business. Everything was a major mess. Not getting into the details....but I made him close that corporation and open a new one....with everything done conservatively and correctly.

Funny...because I've been using a magnifying glass this season. I thought it was just me....and I needed new glasses.

My post doc client's fellowship is taxable; he got a 1098-T with the amount makes as scholarship. The amount above tuition was taxable.

I had another that just had paystubs from an internship that I had to work from.

But you are allowed to reduce that by other expenses such as books, supplies etc that are related to your studies.....above and beyond the tuition.

Huh?  A college in Massachusetts is foreign source how?  (Admittedly to me they sometimes seem like they are from somewhere near the orbit of Neptune...)

Yes...foreign sources fund research..all the time.

My post docs all get funding from foreign sources....and none of it is taxable.

They don't get 1099-Misc or W-2s

For example....some of my Russians were funded by something from France.

I don't get into the politics of it.

Ask them if they do research.....

And don't forget "safety equipment".

I get this all the time.  It's  money from a foreign source and is not taxable.

The mantra...at least once a day.

The stock market was good.  Non-active traders...those with managed accounts etc....are unaware that their managed accounts have capital gains etc.  They just see the value going up.  And, I have to explain...over an over.  And I tell them they should be celebrating because they made money. (But they don't see it this way....since they didn't take possession of the cash.)

When they want to know how to avoid this in the future....I suggest investing in a long term CD...where they will be guaranteed .00000001%....and have a minimal tax liability.

Good thing I posted about my memory loss 

I don't think it's a matter of owning stock in the paper industry...since most people probably don't do paper print outs.

It's just to make it appear complicated.

The CPA who does my husband's business gives me "way too much paper" which I assume she does with everyone.  Psychologically...it justifies the price.

Me...I like it simple.

I got a new client yesterday...J-1 from Brazil.

She arrived here in April 2013....so I asked to see her W-2 etc...and last year's return.

She sent me a W-2...that is obviously correct for a non-resident alien, a 1099-Int from the IRS and a 2013 1040-A.

Well...I told her that 2013 was done incorrectly and I had "to think"

(Meaning that if I did a 2014 NR she could have a problem with 2013...and/or that if I submitted it "like last year"...and she applied for a Green Card...she could have a problem...and/or if I submitted like last year I could have a problem for being stupid).

So...I then said to her..."I see you got a 1099-INT from IRS.  That indicates to me that they were late in paying your refund".

She said...yes...there was a problem...and then when she called IRS to ask about her refund they made her send the W-2 to Austin (the land of the non-resident returns) and that they said being here the first year, she wasn't allowed to e-file (another non-resident thing).

To the point...for those of you who don't get involved in 1040-NRs....

The tax preparer submitted, by e-file a 1040-A for a return that had one W-2.

I would assume...it would sail through without any issues.

But, the IRS did pick up (I guess by her W-2...because FICA is not taken out) that she was a non-resident alien...and the return wasn't done correctly.

I was shocked...and feel more justified in my "warnings" to people about possible issues with IRS.

Also, with the 1099-B not having to be sent out to taxpayers until Feb 15th, 28th or even March 15th, you may have many times that the W-2 is in hand for A LONG time before we get the 1099-B with the stock sale.

 

Do not let the taxpayers desire to FILE NOW force your own hand.  Wait for the documents.

 

And I have seen W-2's with known options sales, and no code V...   So that 1099-B is coming, and its a time bomb.  (Here is looking at you Google...)

 

Rich

And this is exactly why I have a large pile "on hold"....(have 2 Google people on that pile)

I was thinking of just "plugging" a 1099-B with the V amount....to cover all bases.

I'm having a senor moment here 

W-2...code V....options included in Box 1

Should there be a corresponding 1099-B showing this amount? (So the Schedule D ends up a wash)

When I was preparing for the legendary RTRP exam...this came up in my studies.

It all goes to the person who owned the account.  Even if they were married...and she dies...he can't claim it.

Used to have hubby deposit for me; he's semi-retired and always has errands taking him into town.  (I live in the boonies; nearest town is 20 minutes one way in good weather.)  I had a client complain that I should charge less, because I hadn't cashed his check for a few days so must not need the money!  Now, I deposit immediately via the app.  Hubby's been depositing our personal checks that way, also; so he doesn't need to go into the bank any more.

You should be charging more because you don't have the time to go to the bank!

My banks don't use deposit tickets. Just feed the checks into the ATM.

Just signed up for it. I made DH go to the bank in the snow yesterday....and I felt guilty.

Yes...they do.

I've had people take their papers back....and come back to me a week later.

If they come back a year later...I raise the price.

Just want to add...the customer service at NYS tax dept is decent...so if you're confused, they can explain it better

First, I want to say thank you to this board.  I really appreciate all of the help. This is definitely the most helpful site I know.  I definitely can allocate on the 203B but my question is Ny entitled to this income because the job originated in NY?  My choice is allocate to CA for the days he is a CA resident or include both places and take a credit in CA to account for double taxation?  If I simply allocate to CA will NY fight us on that?

 

The small employer did stop withholding for NY once the TP moved to CA.   Unfortunately they did withhold for CA though.

Yes...NY will fight you...and they will win...and your clients will all get those letters.  It's just a stupid way to do things...and is based on a percentage.

They changed to this crazy system about a decade ago.  Whatever the NY tax ends up being...I would take a CA credit for tax paid to NY on that amount.  I don't know how your program works..and I haven't done one of these in a long time...but I remember doing a manual calculation.

This is always the case.  The NY instructions for preparing the W2 say that the NY income (as shown on the W2) must equal the federal income.  No allocation is allowed in preparing the W2.  All allocation must be done by the taxpayer on the IT-203.

To be more specific...you need to fill out the IT 203-B to do the allocation....and you also have to do something with the "days of residence" on the same form.

If the W-2 shows the NY income as the same as the box 1 income you have to allocate what per centage of the total of all W-2s is NY income. (Sorry...I missed it was all showing as ny income on the original post).

If the person is a part year NY resident....they only pay tax on that income earned during the period of residency. It doesn't matter where the employer is. Just like every other state......

It's more complex if a person is a non-resident and works in multiple states, including NY. That's when the entire income is reported. And then the NY per centage allocated.

I would enter the Box 5 amount and the withholding amount.  All of the transactions are on record at social security...and should be reflected on Box 5.

The problem with H&R is that they're, for the most part, inexperienced and they don't deal with repeat clientele.

In the above situation...the original preparer should be amending for free.  Maybe if someone feels it in the pocket...they might learn something.

Not the kids...not the parent's fault.  "The people" don't know about exemptions.  They come to us for those things.  A 30-something "software architect' who made about $250,000 last year just asked me "what are exemptions?" this morning.

It's the fault of the preparer.  He/she should have known to ask an 18 year old college student if her parents were claiming her.

Life is short....

Enjoy it now...before you're too old/sick

Sell....

I think next year will be worse...when we'll need to input all those medical insurance forms.