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RitaB

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About RitaB

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    TN
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    Female

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  1. RitaB

    QBI

    The safe harbor is a way to qualify, but not meeting the safe harbor does not disqualify.
  2. RitaB

    1099-Misc

    Based on your post, I would, yes. I tend to go with "work" being subject to self-employment tax, even if it's a one-time event. I believe "other income" is, well, income from something other than work, like a prize or debt cancellation. Lots of tax pros better than me would never subject income to SE tax for a one-time activity, like that week of hanging vinyl siding for the general contractor, but this is not that. Shoot, the real experts think practically nothing is subject to SE tax, Schedule SE should be seen less frequently than a Unicom, and I should just hang it up. I would of course ask him to provide legitimate expenses. I assume he has some if he's not looking to make a profit. Or do you mean he would do this work even if not compensated? I guess my answer is the same, either way.
  3. Thanks to all of you for the comments. I am dragging. I know I am so very fortunate because I work alone, don't prepare returns with clients in front of me, and I've not missed a single day of work. Stopped working Saturdays a month early. But Holy Crow, I feel like I can't get anything done. I had five of my October PITA clients who became April PITA clients, and you know it's like pulling teeth to get them wrapped up. Bless their hearts; I don't know who ties their shoes for them. Add one million EIP calls and hey-my-return-was-filed-in-February-but-I've-not-received-my-refund calls. At least my folks are overwhelmingly pleasant, and I know some just want me to tell them we're gonna be fine. So thankful for the extension from April 15 to July 15. I sure needed it.
  4. On the problem with incorrect EIP payments and PPP disbursements, I don’t know that we can say IRS and SBA and lenders don’t share some blame. Probably enough to go around. And my payroll client whose business has been booming this whole time was encouraged by his tax pro buddy to apply for PPP funds. Yep, I’d say it’s not all Congress this go round.
  5. Since you and I cannot really do that and keep clients, you might try running an article or two for your client. I've found one that seems clear for this purpose: https://www.thepennyhoarder.com/taxes/child-coronavirus-stimulus/ Also, the number given in the letter IRS sent out, Notice 1444: 1-800-919-9835 I just got off the phone with a caller, who's not even a client, and I gave her that number. She was so appreciative and said, "Now I know why my brother brags on you all the time." So, her brother is a client. Yeah, I know, but I was glad I tried to help her.
  6. Greg (and MarkM from 2017), since the taxpayer took control of the funds, the issuer has no choice but to use Code 7 (or Code 1 if early withdrawal, as in MarkM's case). I believe you'll need to enter an explanation within the 1099-R entry. There's a tab down at the bottom named "Rollover Explanation." I had to use it twice on 2019 returns. I entered detailed information regarding dates and names of both investment companies involved. I also keep copies of the proof that my client deposited the funds within the 60 days, because I figure odds are good that they'll get a letter despite the explanation.
  7. Greg, since the client took control of the funds, the issuer has no choice but to use Code 7. I believe you'll need to enter an explanation within the 1099-R entry. There's a tab down at the bottom named "Rollover Explanation." I had to use it twice on 2019 returns. I entered detailed information regarding dates and names of both investment companies involved. I also keep copies of the proof that my client deposited the funds within the 60 days, because I figure odds are good that they'll get a letter despite the explanation.
  8. RitaB

    IRS NOTICE 2020-32

    I agree, this is absolutely an allowed double dip. Also, I have a minister whose family received APTC (100% of premiums for five paid by the taxpayers) and Retirement Savers Credit because 17,500 of his income was excluded as HA. I don't blame the pastor. He's a very nice guy, does not appear to hate paying Caesar the small [to me] amount he owes, is not impoverished, and his wife is able to stay home with the kids. This is the wrong thread, but we were on cricket mode, so I'll pile on.
  9. RitaB

    IRS NOTICE 2020-32

    This makes sense. I can only see two logical ways of dealing with the forgiven amounts (grant) designed to keep your employees tied to your business while receipts are down: 1) Include the grant as income and deduct the expenses paid by it. 2) Exclude the grant from income and don't deduct the expenses paid by it. Business is business. And, yes, if you received a grant while your gross receipts did not suffer as much as the grant amount, your net income is higher. And your tax bill is higher. Your business made money. Surely we can explain this just as we educate the ones who call asking if they should take a raise at work. If not, they can return the money to save the tax.
  10. "Experience is something you (and my clients) don't get until just after you need it." - Steven Wright
  11. Yes! The first one that called me after consulting the They Said I Heard Tax Club with the question about whether their return (refund) would be affected 2020 - Oh, my soul. I don't even remember how he asked the question now, but wow, I tried way too hard to answer it. He finally said, "I don't understand," to which I replied, "I know you don't."
  12. Phone rings yesterday. I pick up. I know, don't ask me why, but I did. What can I say? I don't have caller ID, and sometimes it's google, and I can just slam it back down. Retiree Caller: You know that stimulus payment? Me: (Thought Bubble: Just yes or no, Rita, yes or no.) Yes. RC: Is it taxable? Me: (TB: Don't adlib, Rita, yes or no.) No. RC: Is the interest [income it will earn in the bank CD I'm putting it in] taxable? Me: (TB: WTH do you think?? Are you kidding me right now?? Yes or no, yes or no, yes or no...focus...) Yes. God is working in my life, y'all.
  13. Ask her if the envelope has a box to check indicating that it was mailed to a deceased person, and checking the box instructs postal service to return to sender. Top of envelope, a little to the right of center.
  14. RitaB

    Client Farm

    He wanted to know how the audit lottery would go.
  15. RitaB

    Client Farm

    He's spending 50,000 because he enjoys what he's buying. Just like the guy with the swimming pool would still install it, and ask his tax pro after he filled it up. If only elements of personal pleasure was addressed by the nine factors...
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