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kathyc2

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Everything posted by kathyc2

  1. Definitely. Mine was wrong for 1986. Since I have all my tax returns, sent them a copy of W2 and it was quickly corrected. Have you gotten into the indexing factors and bend points? If so, you can easily create a spreadsheet to come up with a close estimate of what changes higher earnings will make.
  2. Neither do I. I got a good chuckle from that comment. Surgent has several. I think webinars led by Bob Lickwar are quite good. You can buy an unlimited package that is good for 12 months for $560.
  3. Like I said, if you choose to not talk about SS with clients, that's fine. However, telling someone that chooses differently to "stay in your lane" is quite rude in my opinion.
  4. He may be great, but I personally don't put much stock in people using scare tactics to drum up business. "Over 90% of recipients get less money than they are entitled to." LOL! Took me less than a minute to google that 10% wait until age 70. Are 90% of people wrong by starting benefits before 70? Nope. Like I said, it's about maximizing wealth, not SS benefits. Do I think the gov't can handle my money better than me? Again, nope. None of us knows when we will die nor do we know what Congress will do when the Trust Fund is depleted. It's estimated that around 70% of benefits could be paid by current tax inflows. I wouldn't be all that surprised if high income/high retirement account people have their benefits reduced in the future. Just like defer, defer, defer mantra for retirement accounts isn't always the correct answer, neither is deferring SS as long as possible the correct answer for a lot of people. I am curious about a couple of things. Does he have a list of the 567 filing options? And how much does he charge to advise on SS benefits?
  5. The goal should not be maximizing SS benefits, but rather maximizing wealth. Simple scenario: Benefits at age 67 are 25K. I'm assuming a 2.5% annual COLA. Waiting until age 70 and the combo of 8% a year bump and COLA and first year benefits are 33,914. If the person lives past age 80, they will receive more in benefits by not claiming until 70. If they die before 80 they will have received less benefits. By age 90, the projected benefit total is 809K for starting at 67 and 922K by starting at age 70. Looking only at the benefits, it looks like it's better to delay, correct? Instead, how about starting at 67 and investing the benefits for the first 3 years? I used 80% of benefits at account for any tax on amount to invest and used an annual return rate of 7%. Compounding the returns and the amount in this account is 272K at age 90. The non invested SS benefit amount is 732K, for a total of 1,004K. In this case, you end up with 82K more, plus the 272K can be passed on to heirs. Now, which one sound better?
  6. Wow! Nothing wrong with us increasing knowledge on issues such as how SS works. Many times I've been able to inform clients on items they aren't aware of. Of course I always say "this is my understanding" and encourage them to contact SS for verification. If preparers don't want to get involved in such issues as SS, that's fine. On the flip, if preparers want to educate themselves and share the knowledge with clients, that is also fine. To each their own. My "lane" is trying to help clients that aren't well versed on various financial matter to the best of my ability.
  7. I'm a non LLC Sole Proprietor. I have a personal EIN to keep my SSN from floating around. None of the 1099's I receive from business clients using EIN have ever shown on my Wage and Income Transcript.
  8. I think the SSA.gov has a lot of good information if you know what you're looking for. The Tax Book has a SS/Medicare book, or it's included in their Tax Library. I know I've done webinars in the past, likely either Surgent or Checkpoint. In a nutshell, benefits are based on highest 35 inflation adjusted earning years. There is software that you can buy to calculate this, or if you are an Excel person, you can calculate it yourself. One word of caution. When you get the statement from projected benefits from SSA, they assume you are working at the same level as past year until you collect benefits. This can be misleading for people especially for people who want to retire now but want to wait to take benefits until later.
  9. MO K1 equivalent shows composite source income of 1,854 and non resident tax of 98. When I run it through software it shows MO tax as 114. Is it correct that since it's a composite I can choose to not file MO return and accept the 98 paid in as state obligation fulfilled?
  10. I'm totally confused and hoping someone can help explain. Non MN resident KPI has the following: 4. 4820 36. 62 37. 5202 41. 10 42. 50 46. 2 49. .08937 50. 9162 51. 902 Line 4 is what really has me confused. Client was not a member until 2022. Instructions for that line indicate it's for 2021 or prior bonus depreciation? Client 2022 total share of bonus depr is 4,111 so with allocation I calculate MN portion to be 431 (4111 x 8.974%) Also, how do they get to 9,162 for line 50? If I take the 80% of 4,820 + 62 +5202 I come up with 9,120 not 9,162.
  11. That makes sense. I got thrown off with line 32 of 540NR labeled "California adjusted gross income" and the instructions using the same "California adjusted gross income" label for filing threshold. Thanks for the clarification.
  12. Not sure if this is the issue with your client, but 1099's that have an EIN instead of a SSN don't show up on the IRS info site.
  13. I have a client that became a member of a LLC that has income in 15 plus states. Then he recommended me to two more people in the LLC. Not sure what I signed myself up for! First question is CA. Non resident and K1 shows 1,428 income with 100 withholding on 592B. This is less than the 9.3% in 568 instructions. When I run it through software, it shows a balance due of 40. So, based on this I would think I need to file. However, the total CA source income is significantly below the threshold in 540NR, so I would say no to filing. Any CA preparers want to set me straight?
  14. I have a client that will be inheriting farm land with a pivot irrigation system. They are planning on keeping and renting out the farm land. Some quick research shows that land with the irrigation is valued at about 4 times more than non-irrigated. There are no buildings on the land, so only item for depreciation would be irrigation. I'm thinking the irrigation value could be deprecated over 15 years? Would the valuation when they get it need to show the breakdown between just the land and the irrigation system? Would it make a difference if the rent is cash rent or shared revenue/expense rent for the depreciation?
  15. You should be able to just amend her MFS to MFJ adding his items as the adjustment. You don't have to file him as MFS first.
  16. Since the child lived with both parents, he/she is a qualifying of both parents. The HOH, CTC, and EIC can not be split between the parents. All benefits need to go with either Mother or Father. It doesn't need to be the one with higher income as long as they agree. See Rule 9 in Pub 596 for more detail.
  17. For the most part, I've always been happy with interactions with IRS employees. I find them much more helpful than companies that send your calls to India. I hung up on a call to Comcast recently as the language barrier was too much for them to even understand what I was asking.
  18. If filing as non or part year resident, it still goes on Sch F. If resident it goes on Sch 5.
  19. Wow! I've been fortunate then as the one that died was from 2010 and the one that is now secondary is from 2016.
  20. An old monitor that had been my secondary one bit the dust. I bought a new one (3440 x 1440) and am amazed as to how much crisper everything is. The previous main monitor that is now secondary is 1928x1080. If anyone else has aging eyes and an older monitor, it may be a good investment to take advantage of the newer technology.
  21. The site this article is on is in the business of selling reports for reasonable salary. I'm guessing there is more to the story than what was in the article. But fear sells......
  22. If they personally used the property for the greater of 14 days or 10% of days rented, expenses are limited. See Pub 527.
  23. Here's the full article: https://www.ft.com/content/e8dc2264-6b8d-4ed5-8bbd-e4a67e7d1e46 "The pipeline of new candidates has thinned because university accounting courses have become less popular in the US. Graduates’ starting salaries can also be at least one-fifth higher in finance or technology, and those careers may not require such an expensive professional qualification. “With the length of time it takes to become a partner, the length of time it takes to achieve financial success, the financial model of CPA firms is archaic,” said Alan Whitman, who ran the accounting firm Baker Tilly for seven years until March." Add in the extra year of college needed, long hours and gruntwork for newbies at large firms, perception of boring, etc.
  24. 72(t)(2) clearly states: made on or after the date on which the employee attains age 59½ Since it was a 401K penalty can be avoided if separated from service at time of withdrawal.
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