Gail in Virginia

I have also used the bank statements to determine the net social security, and then added back the standard amount for Medicare if I could be reasonably certain they had not had an income jump that caused their Medicare to be increased. Again, this only works if they have no federal withholding.

I had not set up either until I saw this thread today. I set up under login.gov in less than 5 minutes. As long as I don't forget yet another password I should be fine.

If you can't come up with any records at all regarding basis, then basis is -0-.

I am so sorry for your loss.

I thought they were required to keep a copy of the post mark. Guess not any more, especially if it is to their advantage not to.

I don't know, Tom. I thought that had to be done on a timely filed return which this is not. It should have been filed by September 15. Also, I thought that the automatic forgiveness was if the return was filed in time for the partners to file on time. Neither partner got an extension because they both filed based on their W2 rather than after the partnership return. I did point out that if they ever start another business, they might was to talk to a tax advisor before they begin instead of after they mess it up.

On my software, I attach it as a PDF attachment.

I plan to file the 1065 - I just questioned whether I would need to correct the mess they made by filing w2s on themselves first.

A couple of kids formed an LLC (all on their own, with no legal or tax advice except from their buddies) to do hardscaping in 2022. By the end of 2022 they had decided their wasn't enough profit in this to continue. I agreed to do the tax return for the partnership because they could not find anyone to do it. Once I got the information from them, i found out that they had issued themselves W2s, filed the payroll taxes and filed their own tax returns based on the w2 they got. I know this is wrong. if they had asked me before they did it, they would not have done it because they were the only employees and would not have needed to file withholding forms at all. But they did not ask, until well after the fact. Do I really need to do amended w2s to show 0 wages, do amended 941's to get the payroll taxes refunded and then correctly complete the K-1s or can I ignore it since the end result should be the same amount of taxes? I know they have to amend their personal returns once I get K1s prepared, but since this is the initial and final return I really don't want to get into any more amendments than I absolutely have to. Opinions please?

Christian, if I remember correctly being a half time student is not enough to claim dependency - the student must have been a full time student for at least some part of 5 months of the year. Not getting the degree would be irrelevant - you don't have to be a successful student, just a student.

If I remember correctly, IRS also uses the definition of tax home when determining whether you are temporarily in a location or permanently for purposes of determining if your living expenses are reportable as income if paid by the employer, or deductible if paid by the employee. Since employee business expenses are no longer deductible at all (at least until 2025, if then) then this is used very much but if i am not mistaken it is still a definition that applies to US citizens and might potentially have bearing on state residency for state income tax purposes.

Once a redhead, always a redhead. Hair color may fade, but the attitude remains!

You can file separately and then amend to joint, but you cannot file joint and then amend to separate. At least that is my memory of how this works.

ProSeries won't allow that either, so I am thinking this might be a requirement of the IRS' system.