Lion EA

Did he bring you a magazine article?!

Haven't prepared any of my CA clients yet. I enter on the federal return on the same entry area as 1040 Sch A; it then appears on the CA 540 on Schedule CA(540) Part II line 19 Unreimbursed employee expenses, that's "Side" 5 per the form's page numbering along the bottom -- from a client's 2021 return.

Itemization on the CA return differs from Schedule A on the federal return. CA still allows unreimbursed employee expenses and other miscellaneous deductions. (In my software, I enter it as I would on Sch A with my software not using it on federal but including it on the CA return.)

Read the trust document.

You use either the foreign earned income exclusion OR the foreign tax credit. I don't use Proseries, but you might need to check a box or enter the earned income on a specific screen. Make sure you have her start and end dates entered. Form 2555 to Schedule 1 Line 8 to 1040 Line 8 as a negative number that effectively reduces her wages on line 1 that are a positive number. Make sure you have all the T and S and J designations correct.

My very old HP all-in-one will tell me (message on the screen) if I've inserted genuine HP ink or not when I replace a cartridge. However, it works the same either way. None of my HPs are newer models, so can't speak about what the new models do.

And, the realtor better report her earned income!

I always used HP which have lasted forever, real workhorses. But when I wanted a smaller, faster printer for tax returns only, just black toner and nothing fancy, my IT guy said he still loves HP for high end printers but now recommends Brother for more reasonably priced printers for us small tax offices. I've had the Brother HL-L2370DW since before Covid and am very happy with it. I can't remember the price, but maybe $199 or less here in pricey Fairfield County, CT.

My "kids" needed to cut down a lot of trees to make solar work, so they postponed. One of the large storms took out a lot of their trees, so they got bids again. Now they needed even fewer solar panels than their the original estimate to make the project work for them. A couple weekends with some rented and borrowed equipment gave them wood for their fireplaces and cleaned up their yard. Their house is nice and cozy now.

My biggest biz client received a letter he didn't pay his 943 last year. The thing is, he's not a farm! (Paychex files his Forms 941 and copies us on them.) Moreover, the report that was supposedly missing was for the year that had just ended and wouldn't be due for another month. No further communication from the IRS at all, no correction letter. At least Paychex knew those erroneous letters were circulating, so I could calm down my client. Yes, again, I do not think the IRS's right hand knows what its left hand is doing.

This first CO client claims she got no 1099 for the $750. She didn't itemize, so a response will be simple of she gets an IRS letter. By the way, the CO check with stub had a cover letter that sends you to a web page that states, "No. The Colorado Cash Back refund is not taxable." As it's a Colorado.gov web site, they certainly should be qualified to answer for taxability on the CO return. I'm surprised they didn't give the standard, "Ask your tax preparer" answer for federal taxability. I do NOT believe the IRS's right hand knows what it's left hand is doing.

I see the IRS guidance re CO Cashback. Do we leave these state payments off the federal return entirely, or report them and them back them off/zero them out on another line? If the latter, where? From what I read from CO, they do NOT add it back on the CO return. (And, no subtracting, now that the IRS has spoken.) By the way, the next CO payment is happening via the 2022 tax return instead of the 2021 method via a check in the mail. I don't want to think about if we'll have to divide the next refund into income tax refund vs CO Cashback on their 2023 federal tax returns, etc.!

So, are you leaving the amounts off the returns entirely? Or, reporting them and them backing them out with a negative number? On what lines? The one I have right now is Colorado Cashback, but I have IL, CT, and NY upcoming.

Were any of the transactions contingent on any other transactions? Actual contract or implied contract? When Ann gave Bob $10,000, could he have moved to the Bahamas and never bought the lot? In other words, was it a gift with no strings attached? Then, you go through each step with your questions. One scenario has Ann filing a gift tax return for $17,000 and a $5,000 gain (less costs) on her 1040 plus Bob with a $10,000 basis. But, I can see all the other scenarios, also. Intent.

Colorado $750 to all individual taxpayers. Federal taxable? Other Income or...? Nontaxable? Are you entering it and then backing it out? Using what lines? CO taxable? My first of only two CO clients.

Or, he's her child that paid for more than half his own support. But it's late and I didn't sleep much last night, so don't listen to me!

I think keeping two siblings together can be a special need, but I'm not at all familiar with what type of paperwork is needed. It can increase the benefit, if I'm remembering correctly about keeping the sisters together, so do keep researching.

Reporting by the 3rd party processor, NOT by the recipient, is changing. I keep seeing headlines about not having to report amounts under $600, but no mention of WHO is in the headline. The headlines seem to imply (clickbait) that the taxpayer will not have to report on his tax return. The taxpayer is, and always was, required to report worldwide income from all sources in all amounts on his tax return.

You are required to have a signed Form 8879 before e-filing a return. You are required to keep the signed Form 8879 for the appropriate number of years. Sorry, I can't help with Oklahoma forms.

When to check ‘NO’ Normally, a taxpayer who merely owned digital assets during 2022 can check the "NO" box as long as they did not engage in any transactions involving digital assets during the year. They can also check the "NO" box if their activities were limited to one or more of the following: Holding digital assets in a wallet or account; Transferring digital assets from one wallet or account they own or control to another wallet or account they own or control; or Purchasing digital assets using U.S. or other real currency, including through electronic platforms such as PayPal and Venmo.

The business is still operating in State#1, right? Brick & mortar? Employees in that state? Do partners travel to State#1 to manage the business? Or employee manager in that state? Do partners perform business activities from their home or from any location in State#2?

Hey, Max, please give me your contact information if you're still interested. Via the private message in the upper right corner is fine.

From the Partnership instructions: A joint undertaking merely to share expenses isn't a partnership. Mere co-ownership of property that is maintained and leased or rented isn't a partnership. However, if the co-owners provide services to the tenants, a partnership exists.

Or, a jointly-owned rental building.

From the 2022 S Corporation Instructions for Schedules K-2 and K-3 (Form 1120-S): 2. Shareholder notification. With respect to an S corporation that satisfies criterion 1, shareholders receive a notification from the S corporation at the latest when the S corporation furnishes the Schedule K-1 to the shareholder. The notice can be provided as an attachment to the Schedule K-1. The notification must state that shareholders will not receive Schedule K-3 from the S corporation unless the shareholders request the schedule.