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About RitaB

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    ATX Supreme Guru

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  1. RitaB


    I believe the Shared Responsibility Payment is zero for 2019, not gone. I am telling my clients there is a difference between setting the penalty at zero and the SRP being gone. I can see it being a positive number again, and guess who will get blamed when they have to pay a penalty again? "But you told me..." Yes, and I know you always listen to me and would have bought insurance if you had only known. Right. Nice try. /s I'm advising clients to research (call me) before they make decisions if the SRP is a factor in their decision making.
  2. That was beautiful.
  3. I handled an EIC/CTC audit for a grandmother a few years ago, and it went great. She was really the grandmother, and the kids really lived with her while the parents were incarcerated. She had been my client forever, and I had plenty of "proof" before I prepared the return. We got some more items together, and IRS was satisfied. I really hate refundable credits, but I felt very comfortable that she was entitled to the refund. I certainly would not go out on that limb otherwise, correct.
  4. The step child is still his step child, and the step grandchildren are still his step grandchildren: https://www.forbes.com/sites/peterjreilly/2014/06/23/step-kids-remain-step-kids-after-divorce/#82fc21271b04 A birth certificate just proves somebody was born. Your issue would be proving they lived with him for the proper amount of time. If you take this on (I might if he could convince me they did, and produce plenty of dated documents with their names, and his address - like school records, medical invoices, Forms 1095 B, etc.) here are two documents I'd read first: https://www.irs.gov/pub/irs-pdf/p596.pdf https://www.eitc.irs.gov/eitc/files/downloads/f886-h-eic.pdf
  5. Dear Lord, just let them go back to the forms we know. Amen.
  6. Three stacks here in the office; two are new clients, and I'm about finished with them. Four that I can think of who haven't dropped off, but I see on Facebook that two had nice vacations last week. I'm about finished with them, too, if you know what I mean. No, not firing them, just not going to care more than they do. When they wander in, I will thank them kindly and say I'll be in touch in the next few weeks.
  7. Oh, I thought you had already determined that he had a legitimate HA exclusion and were asking how to report it. No, tax topics are not binding. Yes, absolutely, if you're not sure he's entitled to an exclusion for HA, by all means determine that first. In addition to the points Margaret made, the payer had to designate the HA prior to paying it.
  8. Thank you as well, MacGyver, I've not had a Sch C clergy with housing allowance, but I would say entering the legitimate HA on Sch C would not be correct because that would reduce income for SE purposes. I know your client does not pay SE tax, but others do, so Sch C would not be the place. In thinking how to reduce income for income tax purposes only, my first thought is to enter the HA on what used to be Form 1040, Line 21. (I think it's on a Schedule for 2018 but still Line 21.) Others in this thread have dealt with this, and they'll know more than I do about this one.
  9. Rita

    Thank you so much for your insight in this post:


  10. Yes, the Form 1040 changes. I loved the ATX federal comparison of 2018 to 2017 since I found the 2018 form changes to be about the worst thing ever, and it was far easier for me to flip over to the comparison and explain things when I went over returns with clients. I printed the Form 1040 comparison for every return, and I thought it was a lifesaver. Nothing like seeing a figure in the middle of a full sheet of paper with print on half of it and wondering where the heck did that come from?? And what numbers got added together to get that number on the right? Also, a handful of my folks didn't have enough withholding (thankfully not many), and it helped show them they really got a tax cut; it's the liability that counts. Really hate the 2018 form changes so much I can't even tell you.
  11. RitaB


    It skeered me when I saw I got quoted again, Buddy. I thought I had started a big ole war in our family here. Nope, I'm not always right, but I've got three kids watching me, and I try not to confuse them. Best regards to you, too, my friend, and thank you. You are so much fun. Your kinds words and sense of humor mean a lot to me. Just tell your cabin-flippers their danged SS checks are gonna be slim, and Rita warned em. I ain't even mad when people shoot themselves in the foot. They'll be posting those memes on The Facebooks asking, "How come Congress expects me to live off $12,000?!" Cause you been swearing you do, bless your heart...
  12. RitaB


    We appear to use very different methods to decide upon positions on returns. I complete every return like it's my own. You probably do as well. Agree to disagree.
  13. RitaB


    Completely agree with these statements. I think there are very few gray areas; I actually study until areas are not gray to me. I think that's part of my job. I believe the activities of the clients in the examples in this thread show active participation in a trade or business and are subject to SE tax. They are rehabbing houses, just like my older son rehabs cars. It seems that clear cut to me. The article Max posted is excellent, and I might be a little too strict sometimes. I will just add that if you truly believe you have a tossup, and you're letting your client decide how to report a flip, you need to make sure he knows how Social Security benefits are figured.
  14. RitaB


    I tend to oversimplify taxes and overcomplicate everything else. If you buy an asset thinking you'll sell it when it appreciates without you working on it, you're an investor (Sch D). If you buy a house to fix up and you think your work (including the work you do to hire the other people who work) will lead to income, you're a dealer (Sch C). Yeah, I lose a few clients being like this, too. Not many, but I'm fine with it. The last one qualified for EITC whether I used Sch C or Sch D, but I hope she had an investment gain that knocked her right out of it the next time she fixed up a house, and the guy who amended my return lost sleep over it. What to do, what to do... Yeah, I know, he didn't, but still...
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