Gail in Virginia

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.

I have now learned that I will never prepare a CA tax return for anybody, unless they are willing to pay me an extra $1,000 or more just to cover the extra taxes and fees I may have to pay. Wow.

The payroll software can transmit the 1099 file just like a tax return, but there is a fee for e-filing though the software instead of being included in the price of the software. If I remember correctly - I have not transmitted any 1099s this year so far.

In my experience, which thankfully is limited, if the funeral home arranges for the minister/musicians, then they pay them. If the family/deceased has a relationship with the church as members or regular attendees, then the pastor and musicians may perform the services as part of their regular duties. The family may choose to gift the minister or other staff for their service. But around here, that typically does not run through either the funeral home or the church in those circumstances but is given directly to the people performing those services.

I stopped in the middle of reading this thread to send an email to a client telling them that I would not be able to do their return this year. Thank you for the timely reminder that some people are just not a good fit and the sooner we part ways the better for both of us!

Box 7 could be used if the fiduciary issued two separate 1099Rs, just like they issued separate checks. And if the check is payable to the charity, and clears the bank, I would think that is pretty indicative that it reached the charity. Banks have gotten pretty cautious about cashing checks for people that are not made out to people. At least they have around here.

My first ever accounting related job was hand addressing envelopes to the Commissioner of Revenue for Franklin County VA. When I graduated to putting the corrections in the CCH books, it was a relief!

Unfortunately, I can't quite work up an entire year ahead just in case. As an EA, IRS requires that I have at least 16 hours each year, and 72 in the three year cycle. But working some hours ahead is a great plan to be prepared.

I, too, really appreciate the information that I can get from the people on this board. Bur even more i appreciate the camaraderie I find here. I hope that everyone has a Merry Christmas, a Joyous New Year, and that this tax season will be smooth sailing for all of us!

The best part of the QCD for some of my clients is that it may result in less social security income being taxable.

I am thinking 15%. I did not raise prices for several years so I feel like I am behind. Besides, I really want to work less hard.

Sara, I don't know enough about this to have a real opinion. But funeral costs are never deductible, regardless of whether they are paid directly by the estate, reimbursed to a beneficiary, or reimbursed to a total stranger. Whereas business expenses may be deductible so I don't see why the fact that she is a beneficiary as well as executor would come in to play. However, if they are not deductible expenses to begin with, then if the estate cannot deduct them and the executor receives a fee, can she deduct them as an expense of earning that fee and get the benefit of the deduction that way?

I agree with both answers. If the client inherited an installment agreement, no step up in basis. If client inherited a business, they get the step up in basis before the installment agreement goes into effect.

Plus, with the perception that everyone else is doing such schemes and getting away with it, most taxpayers feel like they are just leveling the playing field and that it is only fair.