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I'm efiling an Oregon Non-resident return and it's asking me for "ERO LICENSE NUMBER." 

What is this?

15 minutes ago, cbslee said:

Why is their health insurance so much? I am 74 and my wife is 71 and our combined insurance premiums, Medicare Part B, Medicare Supplement and Medicare Part D

 is about $8,000 per year. Even adding Dental and Vision coverage for both of us the total annual would still be less than $11,000

I was looking at the TOTAL adjustments before. Sorry. That was inflated for half of SE Tax. 

The SEHI total for both is $15,319. It includes Medicare, Medigap, Long term care, dental and Part D. 

13 minutes ago, cbslee said:

Why is their health insurance so much? I am 74 and my wife is 71 and our combined insurance premiums, Medicare Part B, Medicare Supplement and Medicare Part D

 is about $8,000 per year. Even adding Dental and Vision coverage for both of us the total annual would still be less than $11,000

that's a great question. I'm going to double check my figures right now..... 

I will be amending some returns for free, then. I don't know why this didn't click with me when she retired. Burnout. 

My client is 75 yr old self employed financial planner on Sch C. 

I have always taken the Self employed Health Insurance deduction for him.

While his wife was working, she was on the employer's plan. He was not. 

I think that when his 76 yr old wife retired several years ago, I should have ALSO taken her insurance expenses as SEHI adjustment.

Have I been short changing them? It's a large adjustment, like from $16k last year to $23k this year, if I include hers.

Government crippling itself, let alone the collateral damage done to tax pros.

Don't tell my employee..... shhhhhhh......

And, in order to reduce the taxable amount of the pension by $3000, he/she must have paid for the insurance directly from the pension. 

I better check on GA! 

https://www.taxact.com/support/657/2020/earned-income-credit-entering-combat-pay-for-calculation?hideLayout=False#:~:text=You can elect to include,each make your own election.

"You can elect to include your nontaxable combat pay in earned income for the EIC. If you make the election, you must include in earned income all nontaxable combat pay you received. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election."

No, he does not. 

I have never done this, BUT he might be able to include his combat pay in order to collect some refundable tax credits... like EIC. 

Her college tuition is from an accredited school here in the US. 

4 minutes ago, TexTaxToo said:

Under proposed rules, the tie-breaker rules will make a difference in who can claim head of household:

https://www.federalregister.gov/d/2017-01056/p-110

 

Sooooo in my case, where an unmarried couple have ONE child TOGETHER, only one can claim HOH. That is the case this year. 

Backing up the truck, if HIS daughter from another mother lived with them for over half the year, HE can claim HOH, AND under the tiebreaker rule, Mother of their baby cannot claim HOH because he COULD claim their baby for HOH, even though he doesn't. 

She is single. No HOH.

8 hours ago, Lion EA said:

He can claim HOH with his kid only if the kid lives with him more than half the year. He can claim the kid as a dependent on years his ex releases the dependency to him. His ex, if kid lives with her more nights, is always HOH, but sounds like she signs away the dependency every other year. By the way, it's only 50/50 during leap years, unless they wake up the kid halfway through the night to go to the other house!

Well, nobody's looking in the windows, and that was the original divorce agreement, and he claims they share her.

I know the rules, you know the rules.

It's the 2 HOHs under the same roof that make me go hmmmmm. But, they aren't married, have pretty close incomes, and as  roommates, they might share expenses under the same roof for their own children and both claim HOH. I would guess that's how they got away with it last year. 

It's the ageless, timeless discussion with no real answer. Like I said, nobody's looking in the window. 

I do know my son and his wife split my granddaughter like that. They live within a mile of each other and DO share custody.  I don't make them count nights. One gets her one year and one gets her the next. It's in their divorce, they purposefully live close so that it's easy to have her stay at either place, and she does.

On 4/12/2021 at 4:34 PM, Pacun said:

If EIC credit is involved and if he has enough itemized deductions, maybe the mother can file as single and claim the child. 

I see these choices:

Mother: Single which makes the father HH with a dependent
Mother: Single with one dependent which makes the father as single with no dependent. 

There's no EIC involved. I think my head was working with a "tie breaker" rule when I was thinking about incomes. He made about $12000 more than she did, $61k vs $49k.

Last year, they did DIY and she claimed the baby and HOH filing status. 

He also claimed HOH claiming his child from another mother whom he had the right to claim. They split custody 50/50. So, on his years to claim her, he gets it all. 

Two HOHs under the same roof. 

57 minutes ago, TAXMAN said:

Due to form changes, IRS changes, software changes, State changing mind every other day. I have about 50 in the hopper. I even had some today come in  wanting to know if I could get it done by 5PM. It has been a real PITA to get info this year.

I feel ya, TaxMan. VA has been absolutely BRUTAL. 

To carry on this conversation, my client received scholarships exceeding tuition paid by about $4000. HOWEVER, most of that was for a class abroad. I have the bursar report clearly showing her own money paying for tuition and fees exceeding $4000.

This is her 4th year of AOC. 

As long as I have documentation, I can still take the full AOC, correct?

7 hours ago, Abby Normal said:

Actually, I usually recommend "borrowing" it from the IRS both for lower interest rates and it doesn't show as a debt on his credit report.

I never thought of that. I just think of the IRS as the "worst lending institution in America." 

8 minutes ago, Abby Normal said:

Were the stocks sold before the divorce was final?

Good luck getting the ex to report her share.

Did the ex get any of the proceeds?

They were divorced. 

I just spoke to him. He took all the money and put it on a house. He knew he'd pay tax, but was blown away at the amount. I didn't even mention the ex because HE didn't mention her. So, he's taking the hit. 

"What do I do, I don't have $85k...." 

I would suggest you borrow it from anybody but the IRS. 

You can't fix stupid. But boy, the anticipation of telling him this and wondering if he was going to try to dish half off had my stomach hurting. 

Oh wait, I didn't eat... that's what had my stomach hurting.... 

INAD (I need a drink)

How do I handle this Sch D sale of stocks with a net gain of over $186k between ex husband and ex wife? 

His is the primary tax ID number on the account. 

They are listed as JT TEN on the statement. 

Am I able to split the "hit" on all this income? Right now, he owes over $72K to the feds and over $13k to the state. 

It's a new client (last year) and I'm already shaking over what will happen when he finds out. 

Am I able to use half as "nominee" income and take it off? If so, how is that accomplished?

4 hours ago, jasdlm said:

I am doing this right now (on the buyer side) in much the manner Catherine states.  Are you selling anything other than your client list?  (Building, equipment, software, etc.?)

No equipment or building involved. Just the client list.

3 hours ago, Randall said:

I'm probably a few years away.  How are you looking for a buyer?  I receive the mailings about this.  But I'm not looking for a bundle.  And I know my fees have been much lower than most people.  I was thinking of someone close, not big.  Maybe someone going out on their own.

I put it on my local EA group and had several calls. I'll address other groups after tax season is over. I want to be picky and try to find a good match so my clients will be happy about it. I've been working out of my home for over 20 years and have TOO MANY returns to be doing this anymore. I did talk to a woman who has a family run business, full office and family staff, and it might be a good fit. We will have a meeting after the season. 

59 minutes ago, Catherine said:

Most places sell for 90-110% of one year's gross receipts, frequently paid as 1/3 of receipts from transferred clients per year for three years (plus additional if you work for the new firm, hourly or whatever).  The idea being that clients are more likely to stay with the new firm if you are seen to still be involved, and you get paid more for clients that stay.

So, will it be considered an installment sale? I'm walking into this blind. 

I will be selling my business at the end of tax season. 

I would like to un-incorporate (S-Corp) and stop payroll by the end of June. Is that wise? I mean, is there any reason I should NOT do that? 

(I'll continue as a Sole Prop until I find a buyer, then I'll be employed by that business until I retire. That's the plan in my head.)

46 minutes ago, Yardley CPA said:

How exactly would you take it in and out?  + Other income  - Other Income  ??  And what would the explanation be?  

Yes, I'm not positive, but I believe my detail statements follow the returns. I would note it as a personal exchange. 

And these two LIVE TOGETHER UNDER THE SAME ROOF. 

ermagerd

I'd be like GIMME MY D@#* MONEY! 

17 minutes ago, ILLMAS said:

I believe paypal acts as a merchant service if you are a business, the other cash apps are more for personal use.

So, the IRS would likely not question this? 

Or, should I have it "in and out" and mark the detail as a personal transaction instead of ignoring it?