Lion EA

My RMD is based on prior 31 December balance. My Medicare premiums are based on two/three (?) years ago.

Remind her to tell her lawyer about this and that hubby defaulted. It's going to be income on her P&L for the divorce papers, instead of a liability to repay. That's going to make things lopsided if the proceeds were used by hubby for his biz or whatever. She needs to be able to explain this better or it's going to hurt her financially in the divorce. Maybe after reviewing her documentation, you can help her lay out the timeline for her lawyer. Well, after 15 April, if possible.

Oops, you understood I meant ..if they'd filed MFS... Yes, breathe. And, think about it again when you're well rested. I'm sure we all missed something that could've meant less tax for a client. But, if we were correct and legal, then it's not a big deal. Think of all the ways to depreciate. Or, take state sales tax to not pay tax on the refund next year. I have partnerships that have crazy % that the partners do not know why except some lawyer told them when they set it up that it had to be 37%/63% or whatever for a HW partnership to save taxes! I'm not going to second guess what my clients did decades ago. Don't second-guess yourself right now. Study the situation in the off-season to see if you can learn from it and to see IF, and that's a big IF, you want to do anything with your client because of it.

Wash and wax? Cut and blow-dry?

I was not suggesting you pay anyone anything. I was just pointing out that the difference is less than $2K because they'd have paid for a second tax return if they'd filed MFJ. Did they ask about 2017? If not, please don't do anything until after the 15th and you've had a good sleep. Then, you can think more clearly about what you did or did not do in a prior year. We're all human and sleep-deprived and working against a deadline. Stay calm and carry on.

And, have a nice life!

$2K LESS the cost of two separate returns vs. one. I have my software set to ALWAYS churn out the MFJ vs. MFS comparison for federal. If it's close, I can look at the state(s) and look at joint items that could vary by % and ask questions. Don't know what I'd do about 2017 in your situation, though. Sorry.

Hey, Possi: Lots of those liquid tears drops things all day long. Refresh Plus lubricating eye drops. And DO give the evil eye to any complaining clients now. Hey, David: For those I know will owe, I use the 100/110% of last year's liability formula. For long-time clients, I can pretty much eyeball it. For those that do ES payments also, I make the extension payment a huge one that will cover April and June ES also, all to be reconciled when the return is prepared. If I've been the slow one, I do a more thorough computation. Did one last night for a complaining guy, just went through with round numbers against his 2017 summary with his 2018 documents and told him to pay $25,000 and $8,000. It's down from the year before (which is why I took the time and didn't do the 110%) so he'll pay it. I often look at how much paid with 2017 extensions and how 2017 turned out to calculate how much to pay with 2018, for those that don't vary much from year to year or I can see at a glance they're up or down. But, most e-filed extensions were done via "batch" and are zeros. Many of my clients followed me from Block more than a decade ago, so were not used to extensions. I have a lot of push-back. But, they know, and I remind them when they drop off or don't have all their documents. I want to work all year and earn more money. I don't want to turn down their referrals, but do need time to review with new clients. Extensions.

I efiled a ton of extensions today. More extensions than completed returns!. I still have a week to prepare returns for some of those, plus some returns in limbo awaiting signatures that will probably be efiled by next Monday. But, I took on some new clients, referrals, and I always put new clients on extension to have time to review prior year returns and ask lots of questions. That plus the government shutdown, new laws, a week lost to back spasms, and probably some things I don't even remember, mean I have efiled more extensions to date than returns. I'll be taking some time off through July with new babies arriving in two states in June, baby showers in two states, our 25th anniversary, family things. Then back to work through 15 October. I can earn more money all year than I can in three months, so I like extensions.

Why not non-resident if only there for school?

ProSystem fx. Have very few with ATC so don't get into payback much at all and very rare for SE, but I did have at least one last year. Thank goodness for software!

I had this a couple of years ago, so don't trust my memory. I think the plan owner gets the extra $1,000. If each owns their own plan, then two $1,000. If one family plan, then one $1,000. As I say, don't trust my memory, but definitely research!

This goes with my research materials, such as AnswerConnect. I think. Or, continuing education. Or, with dues & memberships. Or, something VERY usual & necessary for my biz. (I haven't done my own taxes yet, so don't remember. Not enough room in my head. This is overflow storage.) I read everything here and learn from everything here. Thank you, Eric. And, thank you, everyone.

My software will do the iterations and also the alternate method. It is circular and makes me dizzy just reviewing the worksheets!

The extenders bill is just sitting. It ain't happening in April. My crystal ball doesn't know about October. Let your client choose to extend or file/possibly amend. Won't help my clientele much, but the tuition deduction would. Most of mine want to file. I told them I will charge for amendments, so I guess they're not very hopeful.

I think the mom includes the son in her "household" for ACA whether or not she claims his dependency. But, I have few marketplace/Medicaid clients, so that's just something stuck in the back of my head of somewhere...

I have clients who make money dog-walking, babysitting for children/disabled/elderly/even pets on an occasional basis, handyman work for individuals/one-time-type work, and other paying gigs for individuals, seldom for businesses, and very seldom over $600 for a person. So, no 1099s expected or received. The clients report their income, some keeping better records than others. I report all income. I might suggest better recordkeeping &/or depositing it in their bank for a better paper trail. But, if I have no suspicions, I prepare their returns. Your client's work for a restaurant should've been on payroll or at least a 1099 for sporadic, casual labor. Urge her to talk with the restaurant this year. Explain to her what to say &/or print out some plain English explanations.

Can 529 be used for room & board? Saving tuition for scholarship and AOC?

It's called a QDRO. The QDRO splits the retirement fund into two parts per the lawyer's direction. The QDRO has no tax consequences. Any distributions after that would have tax consequences based on the usual laws, ages, etc.

And, if it was HIS income, why is it on HER Schedule C?

I have FileShare, a simple portal, free with my CCH SiteBuilder website. I also use CCH's eSign, and my clients have been liking it. CCH's eSign works for federal and all states EXCEPT NY (CCH is working on getting NY into the fold). I'm in CT and have a lot of NY commuters, NY residents, etc., so use FileShare for their returns and for clients who are used to FileShare and reluctant to try something new. But, eSign has been working for all my other clients. Have a couple in Singapore coming up soon. The eSign license is free; then you pay-per-use for verified signatures (like 8879) and a lesser fee for unverified (maybe engagement letter). It's been really fast.

Were the parents in two separate bedrooms, two separate households, for 2018? Both paying at least half for their household part of the house? You could probably make a case either way. Figure out the best scenario that fits reality for your client.

I wouldn't file. But, I would make a note in each client's file. Who knows when a divorce might make one of the "kids" want the money from parents back and you'll need to remember that they were legal gifts!

Each gift is less than the exclusion, so I say no. Unless only one parent gave, so you have to file to show gift splitting. No gifts to foreign person or from, right?

No, but I don't need them quitting their jobs and moving back in with me!