Possi

thanks, Debbie. I was stopped in my tracks because she planted herself in a rental for the year. I appreciate the help.

Scholarship income

You got paid for your work before they picked it up. Grace wins!

New client lives in FL. She rented a temp place in DC because her reserves unit was called there. She has a W2 from House of Representatives with no state tax ID'd and no state tax withheld, as if it is FL income. It has always been treated as FL income. This, her first year with me, has her reserves W2 as DC income. What should I do? From what I read about this, the H of R income is taxed in her home state. But when I read the DC non-resident, it asks where she lived, and that was in her rental, while she was working.

FOREVER....

OMG that is so true! My clients have learned that April clients get extensions. I love extending. I can still make money, keep friends, and reduce my fatigue and errors! I don't even charge for extensions unless I have to pro-forma a return because they owe.

Riiiiiight.... thanks!

I didn't mean to sound flip up there! I was just kidding! I hope you took it that way~~ I thought same sex marriages could amend from SINGLE to MFJ in certain prior years. Married couples can only go from MFS to MFJ in the current year and before the current year deadline.

The current year, yes. But unless they are willing for one to have a sex change, they can't back up the truck for prior years.

Nope, not at all. It is chopped up and hidden cryptically within the tax software where no one could ever figure it out! I never, ever keep cc information, not like you are thinking. Sorry, I should have clarified that. edit: I hope I was really clear on that. I keep a few numbers here, a few numbers there, and it's very cryptic. I take security very seriously. These numbers are not kept in one place, they are never written down, and there is never a complete CC number ever in one spot.

Just put on the form that you have the otherwise useless 1095 forms. In triplicate. That's more proof than they need.

ISTG I cannot believe it! No, wait.... yes I do!

Use the 5329 to report the rollover amount, and the exclusion. I use TW, and we can link to that form from Line 59.

Simplify your lives! I hold a check until they call. Or I hold CC information, buried in the software so no one would know what it is, but me. But never let them walk out without paying or arranging payment. I keep a simple list of these clients and if I have to call anyone, they don't walk out the next year without paying. I bet last year I called 3 people out of 517. THREE. Would you leave the grocery store with your groceries without paying?

Too bad there isn't a sticker on the DUPLICATES. Or sticker for useless information!

Right... That sounds much better!

It's going to cause a problem all the way around. MFS will crosscheck to the wife's SS#, and the same address for both. All of that is secondary to the fact that it is wrong and needs to be amended.

EIC and Childcare both stay on the return where the child lived. Filing the 8332 with the NON-custodial parent gives that non-custodial parent the exemption and the Child Tax Credit only. Think of it as splitting the dependent/exemption into the "dependent and exemption" where the dependent is still where the child laid his head, the exemption and CTC goes to the other. Just an easy way to remember it.

I probably shouldn't chime in on this, but I will step out... When is it active, material participation and when is it passive? If there is a management company managing the rental, why is it not passive? http://www.thebestaddressintown.com/agents-blog/irs-material-participation-rules-active-participation-vs-material-participation.html IN PART; "There are several tests for active material participation. A taxpayer qualifies by meeting any one of the qualifications. A material participant must either contribute 500 hours per year to the business activity or substantially all of the participation for anyone involved in the business. Another way to qualify is by participating at least 100 hours during the year when this constitutes as much as any other participant in the activity."

I call my management companies for details on questionable figures. They usually don't mind giving me the details. One had "misc" listed with about $800 this year. I told them I don't report "misc" expenses, and I need to know what it is. They didn't mind at all.

If the IRS doesn't question charitable contributions on page 2 of a Sch C, I don't think they will be looking for SE tax on that little ol' 1099, right Rita? I'd blow it in there and not be concerned.

Why don't you want to raise your rates? Everything goes up, and your rates should, too. These extra forms need to be included. If you go up conservatively every year, you never have sticker shock.

Correct.

I use Carbonite.

Honestly, the IRS is so backwoods and idiotic they need to be shut down. I will never understand why anybody can get a refund based on absolutely nothing. They can't fix the system unless and until they have all the W2 and 1099 information in the system, filed and proven, before any tax returns are filed. Who pays on the promise that the tax return is true without any verification? Same thing with Medicare and Medicaid fraud. Prove the expense before they pay out. It is so discouraging. Especially to us, because we see it all.