kathyc2

Maybe I'm reading something wrong here. I'm understanding it to be: GP's, son and baby lived together all year. Son had 9K earned income, while GP's income was significantly higher. GP's claimed baby for 2K CTC. Son is filing single and not claiming baby. If son claims baby he would have around 1K CTC as refundable and another 3K in EITC. While EITC and CTC can be split between parents, I don't think they can be split between GP and parent.

The Code W on W2 includes both employee pretax contributions through cafeteria plan and employer contributions. It doesn't matter the mix between employee/er. As the Box 1 W2 income is already reduced by the contribution, it shouldn't be entered anywhere else. IF the employee makes additional AFTER TAX contributions, that is entered on Line 2 of 8889. The max for 2024 is 9,300 if over age 55 and family coverage for full year. Something seems askew with what you are saying.

As well it should. Scumbag!

This is no longer a tax issue, it's a legal issue. She should also be talking with an attorney instead of you. Quite conceivable she could be interviewed by feds.

Ooops!

You said split instead of divorced. If divorce was not final by year end there are very limited circumstances where MFS can receive any credit.

If it's been the 21 days and client calls me about their refund, I'm going to tell them to make phone calls to their Rep and both Senators.

That is exactly where the liability would come from. If S/H runs out of money to pay for care, they can certainly look back to see if shares were properly valued.

Unless you indicated somewhere that excess will be removed by due date of return additional tax 6% shown on 5329. Since the full amount was deducted from W2, excess will be taxable on Sch 1 whether removed or not.

Is it to qualify for Medicaid? If so, you are exposing yourself to liability if you are involved in valuation.

I found one. Had been using binding101 but cfsbinds is considerably less.

Over age 55?

I use comb binding with window linen report covers. Price where I usually buy is over 50% more than when I replenished two years ago. Anyone with a good place to buy them?

No. If properly prepared the 2023 form would have a check mark in Box 7. It's just a timing issue not a taxable issue..

Client 1- I wouldn't help them prepare form, but would tell them number of years claimed. If you have concerns about confidentiality, email parent as to how many years claimed and they can pass it along. Client 2- Try a different contact method. If emailed, call. If called, email.

DIL is included in relatives that don't need to live with you. However, if she didn't it will likely be harder to meet the support test.

It depends. See Pub 501 for qualifications to be qualifying relative. https://www.irs.gov/publications/p501#en_US_2024_publink1000220939

Have client call IRS and request to move overpayment to estimated.

New client that had ACA plan 2023 with no advance credits. I don't know why in that case they don't list what the SLCSP is on the 1095A, but they don't. They were over 400% FPL, but with new formula that doesn't preclude credits. Looking up the SLCSP and putting in on 8962 resulted in over 4K credits on amended return! I know there are people here that don't deal much with ACA clients, so wanted to let them know it's available. I generally amend close to half the new clients from this preparer, so not surprised they missed it. Don't be a Jim!

While Traditional IRA is an adjustment item for AGI to MAGI, SEP is not. Nothing of the numbers you presented preclude Roth contributions. https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income

Maybe because your question is clear as mud? The combination of Traditional IRA's and Roth can not exceed 7,000 (8,000). Having a SEP, SIMPLE, etc does not affect Trad/Roth as long as earned income is sufficient to cover both and MAGI is low enough that phaseouts aren't in play.

Client has debt that has gone through courts and he has a wage garnishment. He was laid off from job recently and is asking if tax refund will be taken. I didn't think private companies could do that, but found the following on an attorney webpage when I googled it: "For instance, let’s say you owe a significant amount of money to a credit card company due to unpaid bills. If the company has exhausted other collection efforts, and you still haven’t settled the debt, they could seek legal action and obtain a court order to garnish your tax refunds as a means of recovering what is owed. It’s important to note that non-governmental entities must first bring a lawsuit against you and obtain a judgment from the court before they can initiate tax refund garnishment. This means they must go through the appropriate legal channels and provide evidence of their claim against you. Once they have a judgment, they can then proceed with requesting the IRS to intercept your tax refunds." Has anyone had a client refund garnished for CC debt?

Does this help? https://www.calt.iastate.edu/blogpost/gifting-commodities-instead-cash-often-reduces-taxes

There were some people gung ho on this last year. Curious how many actually did it and if experience was good, bad or neutral?

Vast majority of my investments are at American Funds including some in their MM fund. I just feel better having some locally that I can access in a minutes notice in the unlikely event such as a widespread and prolonged internet outage.