kcjenkins

4-H Club or FFA project. If an individual par­ticipates in a 4­H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Report the net income as “Other income” on line 21 of Form 1040. If necessary, attach a statement showing the gross income and expenses. The net income may not be subject to SE tax if the project is pri­marily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the spon­soring 4­H or FFA organization. Such a project is generally not considered a trade or business. I do not have a specific cite, but I have never treated these as subject to kiddie tax, which is on "unearned income". The kids earn the income by doing a great job of raising and caring for an animal, grooming and showing them. Lots of hard work involved before you win prizes or sell your animal. And, at least once, I had a client who's daughter made enough from her Heifer to need to file a return for it, and the parents were well above the minimum rate, but on their audit no questions were raised about kiddie tax in her return.

Rev. Proc. 2012-41 SECTION 3. 2013 ADJUSTED ITEMS .01 Unearned Income of Minor Children Taxed as if Parent’s Income (the “Kiddie Tax”). For taxable years beginning in 2013, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child’s return that is subject to the “kiddie tax,” is $1,000. This $1,000 amount is the same as the amount provided in § 63©(5)(A), as adjusted for inflation. The same $1,000 amount is used for purposes of § 1(g)(7) (that is, to determine whether a parent may elect to include a child’s gross income in the parent’s gross income and to calculate the “kiddie tax”). For example, one of the requirements for the parental election is that a child’s gross income is more than the amount referenced in § 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child’s gross income for 2013 must be more than $1,000 but less than $10,000.

That's right,a taxpayer can only have one principal place of business, because that's what "principle" means in this context. Actually, Pub 463 uses "main", rather than "principle", but it's the same thing, only one can be "main".

For such a minor change I'd just fix it this year and move on.

I really just don't see the problem. He's saving over 4K on payroll taxes by not getting a W2, so they are still coming out ahead.

Line 21 2 entries, first = 1099 second = Cost basis plus any deductible expenses, entered as a negative number.

And in her defense, I'd just add that many people just ASSUME if the preparer is a CPA it must be right, and if the refund is larger it's because, as a CPA, he knows things others don't. We all know the majority of t/p's do not actually look at their returns. What I find really strange is the handling of the check. Hard to believe a CPA would commit such a clear violation of the Cir 230 rules.

I miss Jerome and Betty Sue too.

1. "Depends on what it involves. Would you like an appointment to discuss it? Or you can email me a copy of last year's return, and a list of any changes in your circumstances, and I can then give you an estimate." 2. "I can't tell you until I know what is involved. Tell me about yourself." 3. "How much dirt's in a hole?" 1 when I'm busy, 2 when I have time to discuss it. 3 when I'm fed up or their tone of voice suggests they are only interested in price. Those are not worth the trouble.

We all have a few of those. A few you may be willing to lose. But you might try something that worked for me. As all you long-time members know, I'm very much of the Owl type, while Don was of the Lark type, so he got most all the early bird types. After his stroke, and I was doing it all, I had to retrain some of them, so what I did was to tell them, "I can see you at 2 pm Wed, or 3 pm Thur, or 10 am next Tues." I never made an appointment earlier than 10 am, but did not tell them that. The point was, given those options, many would choose to take the afternoon rather than wait. You could reverse the times, but use the same logic. Allow one day when you do take evening appointments, if you feel you can, but given that those may mean waiting, I'll bet you find that many will realize that they can, in fact, come by during the day after all. It's natural for everyone to ask for the time best for us, but we adapt when we need to.

How to protect your lunch in a shared office fridge:

I was wondering what happened to Chaz. Glad to hear he's ok.

Don't waste another minute on such a stupid person. And should he come back, don't forget to add a PITA fee to the bill.

That was a great printer, but consider how cheap a used HP a few steps up can be, but a LOT faster. I loved my HP 4100, but would not spend a dime on trying to expand it today. Huge improvements in newer models. ebay has lots of options.

Marco, JB is right. Husband should be totally gone, surviving spouse is now 'taxpayer', both on info page and on W-2 and any other forms, like interest dividends, etc.

YES, BUT JUST THINK, IF YOU CAN GET YOUR CLIENTS, EVEN JUST A SIGNIFICANT PERCENTAGE OF THEM, TO GET IT, YOU WILL NOT GET THOSE DARN CALLS FROM THEM.

LOL

I think you are right, Cat, delaying filing is the surest way to protect the refund, although if course he needs it now. But if the IRS takes it he never gets it back. So if the repayment is going well, waiting is sure a smart move.

Good advice. I'd say NO LETTER from him would be the safe choice. Let any communication come from his attorney, if he does not want to open himself to possible legal problems. The larger the amounts involved, of course, the more caution that should be used. But, speaking in general, when a corp goes under, they do not send stockholders anything, unless they file bankruptcy, in which case it's the trustee that sends a notice.

I'd say that any travel THAT WAS REIMBURSED would be deductible to offset the reimbursement, the rest would not be. Which I'm guessing is the trips requiring the overnight stays. The rule for an itinerant may apply here.

Washington, D.C. (February 4, 2014) By Michael Cohn The Internal Revenue Service has updated and improved its IRS2Go mobile app this tax season, adding new features including a way to track the status of a taxpayer’s tax refund. Version 4.0 of the app, which works on both Apple and Android devices, has been redesigned. It also provides new features for taxpayers and their preparers to access the latest information to help them in prepare their tax returns. The new refund status tracker feature offers a way to follow a completed tax return throughout the refund process. Taxpayers enter their Social Security number, which will be masked and encrypted for security purposes, then select their filing status and enter the amount of their anticipated refund for their 2013 tax return. Users can check their refund status 24 hours after the IRS acknowledges receipt of an e-filed return, or four weeks after mailing a paper return. The IRS cautioned that the tool is updated just once a day, usually overnight, so there is no reason to check more than once a day. The newest version of the free mobile app offers several ways for taxpayers to access other tools and up-to-date tax information, including the ability for users to request their tax account or tax return transcript from IRS2Go. The transcript will be delivered via U.S. Postal Service to their address of record. “The new version of IRS2Go provides taxpayers another way to quickly get information and help around the clock,” said IRS commissioner John Koskinen in a statement. “The IRS is focused on providing taxpayers with convenient self-service tools like IRS2Go, which provides details on everything from tax refunds to free tax assistance.” There have been approximately 3.5 million downloads of IRS2Go since its inception in 2011. iPhone and iPod Touch users can update or download the free IRS2Go application by visiting the iTunes App Store. Android users can visit Google Play to download the free IRS2Go app. Taxpayers can also use the app to locate the nearest walk-in sites where they can get free help preparing their taxes from volunteer tax preparers. The IRS Volunteer Income Tax Assistance and the Tax Counseling for the Elderly Programs offer free tax help for taxpayers who qualify. However, the IRS itself is no longer providing free tax prep services at its own walk-in Taxpayer Assistance Centers this tax season. Instead, the tool on IRS2Go will help taxpayers find the VITA site nearest to their home by entering their zip code and selecting a mileage range. By clicking on the directions button within the results, the maps application on the device will load with the address to help them navigate to the location. In addition to the IRS2Go app, taxpayers can interact with the IRS in other ways online by following the IRS on Twitter, @IRSnews or @IRSenEspanol , watch IRS videos on its YouTube channel, signing up for email updates, or by using the Contact Us feature. For more information on IRS2Go, products and services through social media channels and other media products, visit www.IRS.gov .

Go to Option, Preferences and then uncheck the box that says "resort to default setting upon startup"

I think OK is just somewhat of a PITA state. I had several OK clients and often found their forms a little unnecessarily complicated. Just had to live with it.

We should never stop learning. Of course, in our business, you can't, since they keep changing the rules.

Tabby, you are thinking about this wrong, I think. He's already getting a significant tax break on the FICA exemption, so to let it also shield the tax credit would be double-dipping.