kathyc2

Either they were paid late or if AGI over 75/150 110% was not paid.

https://rsmus.com/insights/tax-alerts/2025/irs-extends-tax-filing-deadline-for-taxpayers-in-tennessee.html

I downloaded the full bill from the house and skimmed through it. The 4,000 for over 65 as written is in additional to the higher standard deduction. It adds a new paragraph to 63(f) and doesn't replace it. Even those that itemize will receive the 4K deduction. Phase out starts at 75/150K. Interestingly, as currently written the 4K is the same for all filing statuses. The "no tax on tips" and "no tax on overtime" appear to be an after AGI deduction. Takes away the payback limit of APTC based on income . Nothing to extend the PTC for those over 400% FPL from IRA. Hopefully the Senate will correct that. If not, a couple in 60's but not eligible for MC with income of ~85K will go from paying ~7K to ~20-25K for insurance. Interest on auto includes such things as ATV, motorcycles, campers, trailers, etc. Residential energy credits go away after 2025. Requires states to collect fee of 100/250 when plating hybrid/electric vehicles. Lots of other items that are going to be a PITA. A lot of the items start for 2025 tax year. After they pass, IRS will need to issue procs, companies will need to learn what new info they need to provide, forms will need to be revised, software will need to be reprogrammed, etc. Uggh!

Whatever... Just go ahead and delete it then.

Those in 37% rate are limited to taxable income reduction from itemized at a 35% rate. Scored at ~1.5B per year. Also included is bringing back Pease, scored at ~18B per year.

https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/ Under the title of bill, you can download to Excel the "cost" of items.

It can be hard for legit farmers to show a profit. A lot of the hobby farms have a few acres and "someone" told them they can take the loss. Maybe they raise five cattle for beef in a year, butchering one for themselves. When I tell them I'm going to decrease feed, vet, etc by 20% they aren't happy.

MI and IN have reciprocity for wages for state income tax. However, IN also has a county tax that is not included in agreement. MI residents working in IN pay the county tax to IN and can then take a credit on MI return. I've yet to see DIY software handle this correctly. Even on professional software I need to manually enter it on MI return rather than having it flow from W2. IN and IL do not have an agreement. This is due to a large difference of IN residents working in IL (Chicago) than vice versa. I'm guessing the east coast states without reciprocity has to do with similar differences rather than where a football team plays. Craziest one I've seen without reciprocity is KS and MO. TP works for company that has locations in both KS and MO portions of Kansas City. W2 has wages and w/h for both states depending on which location she works at.

I decided to keep it very simple. This is what I came up with: "This tax season was rather hectic for me, especially toward the end. After reflecting, I realize that I need to reduce some of the workload to maintain my sanity. While I have enjoyed helping with your tax prep needs over the years, I think it’s best that you make other arrangements for next year. I wanted to let you know now so you have ample time to find another preparer." Thoughts?

My money is on the chainsaw gang who have shown time after time that attention to detail is not their forte.

My clients all know that I've been scaling back. No longer doing accounting work or corp returns. They also know that in the next several years I may be totally retired. Letter letting them go will in some way reference scaling back. The rating system is a reminder to me how to answer when they ask how much longer I'll be in business. One's will be told as long as I'm still mentally sharp. Others may get an answer of "a couple years" or "five or so years" depending on the degree I want to keep them. All have been told that unless it's because of immediate health reasons, I'll give them at least a years notice. I don't have an issue if they are long term clients. Most have been PITA entire time. Back when I actually needed the money I'd be much more tolerant then now when the income is nice but not needed. I make a note on Excel sheet whenever I add a new client as to how they came to me. Most clients have at least one or several others clients that are their family, friend or co-worker. I do think harder on those if I want to release or keep.

I went through my client list and gave everyone a 1 to 5 rating. 1's being clients that are a joy to work with, 2 and 3 room for improvement, 4's skating on thin ice but being given one more chance and 5's will be receiving an email to make other arrangements next year. 1's were over 50%, and 4-5 less than 10% but a source of excess frustration.

With all the poking and prodding going on in IRS systems, I'm afraid we may have another crash like 2018. Or even worse, they don't pick up the software generated withdrawal authorizations. I was planning on having everything submitted today but some clients can't seem to get their (*&^ together and get signed forms back.

Mine is clients that make multiple times my income but complain they can't make ends meet. When I ask if they make a budget for expenses they look at me like I'm a space alien. Of course they never have the money to make estimates or adjust W2 withholding like I suggest. Yet they think they have the money to buy an expensive new car, live in a McMansion and take extravagant trips. Two of them just this week that look large 401K distributions in 2024 with no state tax withheld and only enough FIT to cover 10% penalty. Another one with a rather large inheritance held in a trust as apparently parent realized they can't handle money. Supposedly, EJ told him he doesn't pay tax on inheritance. He can't understand me telling him he's not paying tax on the inheritance but on what it earns as shown on K1. Since they know they owe I never see them until April when my tolerance level is below zero.

Yes, it appears balance due will work. Duh!