Lion EA

The NJ credit is not about the VA loss offsetting the NJ gain. (If it's like CT, and it looks like that from the pages you posted above.) It's a credit to NJ tax to offset the VA tax he paid on the same income. But, he had a VA loss, he had NO VA income, so he did NOT pay VA tax on any income. Therefore, he has NO VA tax to offset his NJ tax. He's NOT paying tax on the same income twice. GLGACCT gave you a great explanation.

In CT, it already reduced his worldwide income, because CT starts with the Federal AGI that includes any losses. Like the old Ragu commercials: it's in there.

CT gives credit for taxes paid to another state on the same income that CT's taxing. If the other state has NO income, did NOT tax any income due to a loss, then there is NO credit on the CT return. CT, the home state, is NOT taxing that loss. Maybe NJ is similar. Start by reading the NJ instructions.

You file a final short-year 2020 partnership return, ending the last day of the partnership. Check the Initial and Final return boxes on Form 1065, and check the Final boxes on Forms K-1. Then the remaining no-longer-partner has a Schedule C for the remainder of 2020 and future years, as long as they remain a SMLLC or sole proprietor. Are you preparing the partnership returns for 2020? Or is one of the former partners your client for 2020 and 2021?

But when I compute that the return was correct, and my software computes the return the same way, but the IRS (or state) refunds a different amount or sends a balance due notice with NO explanation of how they arrived at their amounts, I do NOT want to say I made a mistake. I want the IRS to send an explanation the way they used to. They are NOT sending letters recently, just different refund amounts with no explanations or balance due notices with no explanations. I am only human and do make mistakes, but I want to learn from my mistakes, want to know what I did wrong. I do NOT want to admit to someone else's mistakes!

I do tell my client's that it's close enough for government work, those that I think will appreciate how broken our government is when it comes to taxes. But there are clients that demand to know why I "did something wrong."

But even if you were expecting $1,000 but received $600 and $400, and especially if you were expecting $1,000 but received 567.89 and $443.21 (or even $421.13) one or both of those checks might NOT be part of your refund. Maybe ID theft or a different year or a SSN typo at the IRS or... Granted, IF the interest is noted, that implies that it's somebody's refund. At the very least, the client will blame us for telling them the wrong refund amount.

If your client is still the LLC/partnership, then you continue to deal with the "tax" partner. But, I'd ask if the same partner is continuing in that position.

Only heard the stories. For CT, the phrase most often used is the Audit from H%!L.

Partners receive Form K-1, not Form 1099-NEC. This one might go on your to-fire list.

Yeah, our software companies need to close early enough that we get back all the federal AND STATE acknowledgments before 1040 MEF closes. I still have returns to prepare and e-file, and don't want to get stuck paper filing or waiting until January.

Know or should have know.

Post just enough pictures that we can enjoy them, but not so many that we get insanely jealous! Even though I'm already jealous sitting here preparing our own tax returns.

Rev Proc 2021-48 statement. But what's the difference in Section 3.01. 3.01, and 3.03? And, if 3.01, then (1) or (2) or (3)?!!!

I just bookmarked the site. Thank you!

Hmmm. Keep us posted, because I'm bound to have that issue eventually.

Been there; done that. Fun explaining the blood spray to the client. One of my allergies is leaf mold, so fall is a problem for me, too.

I would have clients order the smallest package from Staples or their preferred office supply store, or I'd order enough to cover all my clients. I've moved to online services now.

Worth. Geisler.

Take good care of yourself.

Oh, I uploaded the kid's stuff to his account on my portal. Mom picked up hers (card table in my garage for contactless pick-up). And, mom paid me the little bit I charge for both!!

When I lose power and internet, I have a whole-house generator to keep my OIH running. But there's nothing I can do until Optimum restores service &/or restrings their lines. During hurricanes and nor'easters, that's been as long as 11 days. We have one AT&T telephone line, also. But the last major storm had winds that ripped all the lines right out of our house (electric, Optimum, AND At&T). We had to wait for tree work here and around town, which doesn't begin until Eversource clears all the power lines, new telephone poles to arrive from WI or someplace in the midwest, Eversource and Optimum (and AT&T) to string lines, and finally for an electrician we had to hire to replace the specialty metal piece that was broken and twisted and connect the lines from where Optimum's (and AT&T's) responsibility ended and ours began. We had a dead powerline across our driveway, so our propane company wouldn't drive in to refill our propane tanks that power our generator. Couldn't blame them. But it took a LOT of calls to Eversource to unattach the line and move it off our driveway. I have a cloud back-up and an external drive back-up, but my programs and data reside on my desktop.

I was going to send "Your needs no longer fit our business model" on Tuesday, but they moved up the time frame on themselves!

Mom's latest to me: "Xxxx will state what was covered for 2021 tuition and what his tax burden is for the Yale income. He will sign. You fill in the numbers he provides. Thank you"