RitaB

This is so me. I remember last year hearing someone say that IRS would take a year to recover from a three week shut down. While I think that was "speaking evangelistically," as a pastor of mine used to say, it's pretty accurate for me in January. OK, it's BS for me, too, but if I get behind, my life is way worse than it needs to be.

My codes are there (the link you gave us) for 2014 - 2019. Is that about right? I've used ATX (or Saber) for 100 years or so. I was able to see 2013 install code by going to the Prior Year Download Center. I do have all my codes in my files, but it's nice to print this summary. Thanks, Abby!

Yeah, but don't give me too much credit because apparently that Publication only works with twins. There's so much conflicting information out there, and that's just from IRS. There was something the other day on FaceBook about CPE requirements the first year you're an EA. We were all quoting things from IRS but arguing nonetheless. I know we have to look at IRC, but so should they. It's enough to make you take a wine per diem.

I think I'd print Publication 5334 and tell them, "Sorry, no." Just kidding. Maybe. This is fascinating, and probably not at all what Congress had in mind by allowing a taxpayer to claim a younger sibling for EITC. Which is the always the problem for these things.

The twin brother is not younger than the spouse, so no. https://www.irs.gov/pub/irs-pdf/p5334.pdf

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.

I don't carry it.

That was beautiful.

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.

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

Dear Lord, just let them go back to the forms we know. Amen.

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.

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.

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.

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.

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...

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.

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.

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...

I would do the work around you suggested, entering the amount on Schedule C and then deducting it with an explanation on p. 2. Yes, of course, your client can ask the issuer to amend the 1099-K, and that would have been a really great thing to do seven months ago. I would do what is expedient for me, and call it a day, as my friend Abby says. Some would say just don't address it on the personal return, let the client get the letter, have a light stroke, (or get mad at you - they do that) and then charge client to explain to IRS what happened. I really can't charge enough to like fixing these things, and the "fix" is going to be saying exactly what you're saying now. Additionally, three weeks after you respond to the letter, the client is going to trot back in there with the letter that says, "We got [one of these six things] from you, and we need two months to let it lay around but we'll get back to you. That's your fault, too. /s

Evan, in June 2019, I had a client to FINALLY take withdrawals to cover RMDs for 2017 and 2018. (They blamed the custodian, but come on, I told you two years running you had to take RMDs, the custodian probably gave you paperwork you didn't read, etc.) I completed Part IX of 2018 Form 5329 and attached a statement to it when he made the withdrawals in June 2019 (the due dates for both RMDs were in 2018: 4/01/18 and 12/31/18), and he mailed the Form 5329 by itself. I don't know the answer to your question, but I'd go on about my business and complete the 2018 Form 1040 and deal with the waiver request when the RMD withdrawal occurs.

If you’ll look at Form 4506-T, I believe Line 8 indicates you can get Wage and Income Transcripts as far back as ten years.

I just had a neighbor that my former partner let go after preparing the 2009 return come to me because his kid needed 2017 filed for higher education purposes: I know I'm a mess, the EA who's been doing my return is mean, will you please help me? Yes, as a matter of fact, it's July, and I like to eat, wear clothes, and live indoors. Let's see if we can regroup. LOL. It went very well. A lot of times it works out.

In the spring I had three clients call me shocked at receiving the penalty for not making estimated payments. After I hound them for years to make payments, and nothing happens when they don't, as soon as I ease off, this is a priority for IRS. "Oh well, I'll make the estimated payments; I didn't know." Uh, yes. Yes, you did know. Sorry, that's not helpful; I just wanted to say it.

I was thinking last week, "If only they'd go back to the old Form 1040." Fingers crossed. I apologized to a client just a few minutes ago for the 2018 forms.