Gail in Virginia

Thanks, Margaret. I was able to download the forms I need, and I am emailing the office with the questions that I have. The link to the site was most helpful!

What information does the client need to take to the local tax office to get the return done for free? Do they all do that? I have a client that has moved to Cochocton OH, and I have no idea how to do his city tax return. He picked up a city tax information sheet but no mention in that of due date (I assume same as federal from what it says about federal extension, but not sure) or of RITA or of any way to file electronically. Nor did he pick up any forms. I will try to go online this weekend for research, but this makes my head hurt to think about this and if he can just take a copy of his federal return to them and pay them money, I think that would be wonderful from my point of view.

I love the Why are you still standing here wine! That is my favorite so far.

I would be drunk as a lord!

She may have used banks that are located in both NZ and USA, and that had accounts that treated her as a US account holder that would not require reporting? Maybe she never had $10,000 in her name on one day while they were living in NZ, at least not in NZ accounts. I would look to see if there is currently any kind of amnesty program also.

Are all military pensions paid by DFAS? I have a client who receives a pension from OPM as a surviving spouse. Her husband was retired from the Navy after 20 years, and then worked at the VA. I would guess that this pension covers both periods of service, but how can I tell? And does it qualify for the Virginia exclusion?

I think technically if you amend a return before the due date, it is considered a superseded return rather than amended. Practically, you don't need to wait and it would look the same, from what I understand.

I love this! Thanks for sharing it!

Personally, I think the aid is correct because I don't think the members of the Guard are considered members of the United States Armed forces. They are part of the Virginia National Guard. And I think if they receive a pension it would be from a state agency and not DFAS. So I suspect that the state will not have any problem identifying those who are federally retired from those who are state retirees. But the devil is in the details, so who knows? If the department of taxation cannot answer the question, I don't see how they can program their computers to identify anyone who takes the deduction in error.

I think this benefit is specific to members of the US Armed Forces. Aren't the National Guard state forces? I have had a few retired service members, but not anyone from the Guard yet so I am not really sure.

I think this a fascinating discussion. Social security is not considered gross income for purposes of the qualifying relative tests if I remember correctly, so I am not sure whether it would count for this purpose or not. I would have expected that this particular rule was for spouses who lived together rather than those who had been apart for the entire year, unless the reason they were apart was something like a nursing home situation where the spouse could not sign the return because of a lack of competence. But I don't know.

In that case, the improvements were not previously used in trade or business, and would have to be depreciated based on the FMV, would they not? And would that FMV be determined by how much they increased or decreased the value of the house since, I assume, they are an integral part of the house and not stand alone improvements?

From what I recall, I would think the depreciable basis would be the lesser of the adjusted basis in the house (cost + improvements - previous depreciation) or the fair market value at the time placed in service. Not sure about the depreciable life. My guess would be that would also start over if FMV is less than adjusted basis.

And I read something the other day about someone who used the subscription service HP offers for ink, where they monitor your printer and send you ink when you need it. Apparently if you stop buying ink through them and get it elsewhere, they will also lock down your printer as being out of ink. At least, that is the gist of what I read - I do not speak from personal experience.

My experience with special needs adoptions have been that the children have some special need - emotional control issues, mental development issues, physical challenges. And in those cases, there was paperwork from the agency showing that this was a special needs adoption.

It was my understanding that a farmer had to FILE and PAY by March 1 to avoid the penalty for not making estimated tax payments. As long as two-thirds of the gross income is from farming, I think he or she would still be a farmer for this purpose, even if filing as an S-corporation, although I would be more confident if it were a partnership since I have had that situation. However, i think to use that exception to the penalty, the corporation return and the individual return would both have to be filed by March 1.

I totally agree with what Tom said here. If he pushes you into something you know is not correct this year, he will continue to push in the future.

That was interesting Judy. But now I wonder why you would NOT want to elect out.

I disagree, Terry, at least with respect to Virginia. In Virginia you could only get the rebate if you had 2021 taxes paid to Virginia. So basically, the state just increased everyone's refund of taxes paid by a flat amount. No different from any other state income tax refund except in how it was calculated, so why should it be treated any differently than a normal tax refund? And that is what that language does. Unless you itemized your deductions and received a tax benefit by reporting the amount that you paid in 2021 for Virginia income taxes as a deduction, there is no income to report on the refund received in 2022. If you did receive a tax benefit, then the refund you received of taxes that were deducted in 2021 and refunded in 2022 is reported on your 2022 tax return. Unlike most tax pronouncements, I find this one very logical.

I guess because they had to have a tax liability in 2021 to receive this payment, and the card from the state will show that it is a refund of 2021 taxes.

Any state refund is taxes you previously paid coming back into your pocket. The state is just treating this as an increase in your refund, and is sending out the usual statement for refunds including this amount. What is interesting is that the people who had a balance due in 2022, and paid it before this "refund" was issued are getting a card saying they got this amount as a refund for 2022. So I guess we put the entire balance they paid in as taxes paid in 2022, and then put this amount in as a refund on page 1 of the return rather than netting the amounts? To top it off, instead of the usual post card VA sends, they have printed the postcard form, perforations and all, on 8.5 x 11 paper, and are mailing it in an envelope so i am getting calls asking what this is like i needed something to do this time of year.

I guess I am not sure how that works with unclaimed property. Did they not sell whatever it was until after the decedent's death so that effectively the estate sold it? Or was it sold 10 years ago when the state received the property and they are just issuing the 1099B because they finally found out who the property belonged to so that they know who to issue the 1099B in the name of? It doesn't seem like you could move income to another year that way. This has been an interesting discussion.

I don't think so. I think it used to be allowed many, many years ago but I believe you need an EIN now. Although the fact that there are absolutely no taxes being reported makes me wonder....

Actually, I think as long as daughter did not provide more than half of her own support, she could possibly be a qualifying child. Sometimes I think filing status and dependency are among the most complicated questions we have to resolve to prepare a return. It is not just putting the numbers into the computer and letting it do all the work.

Not for head of household. You are reading correctly.