Lion EA

No is correct if you only bought cryptocurrency with fiat currency. https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions Q5. The 2020 Form 1040 asks whether at any time during 2020, I received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. During 2020, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. Must I answer yes to the Form 1040 question? (updated March 2, 2021) A5. No. If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.

Some quick help needed; please point me in the right direction. DIL has been having me upload returns to my portal for the last 10 days, supposedly needed for Medicaid. Yesterday she served my son with divorce papers and gave him until the end of the week to clear out of the house. I'm sure he has no idea where tax returns are. Partnership: DIL 51%, son 49%; DIL PR/partnership representative or whatever the new name is for TMP/tax matters partner. Can I give my son copies of the partnership IRS, NY, and PA returns without DIL's permission? Joint returns: can I give my son copies of their joint IRS, NY, and PA returns without DIL's permission? I've been preparing their tax returns FREE for years. What do I need to know now that they're divorcing? Obviously, they'll be MFS for 2022. I would prepare my son's MFS return but not DIL's, right? What about the partnership, IF she wants me to prepare the 2022 Form 1065. There are two granddaughters we haven't seen since last Christmas, because DIL told us that our son acts out when we visit. We'd like to support granddaughters. We don't want to upset DIL and make seeing our granddaughters impossible or unpleasant. I'm not getting any work done! Son is texting me, saying he's in a dark place. Of course, no way to find a lawyer until his day off Wednesday. Most lawyers in the boonies of PA are customers of the Inn owned by DIL's mother, so not likely to take on my son as a client. I have such a headache! Thanks all for letting me vent...

Hang in there, Darlene!

Thanks, Eric. Hubby mentioned it last night, but I'd forgotten. My old iPhone is updating now.

Decades ago at HRB's preseason training, they told us to think of something about ourselves to use to open with each client, something personal for a client to know us better but preferably something about our life as a tax preparer to lead into tax prep. I'd earned my EA that fall, so I had my opening: explaining what an EA is, the studying/classes and 2 solid days of tests, and how it benefits my clients. Since then, I would talk about the classes I took about new tax laws -- as opposed to talking about just the new tax laws. Or how enthusiastic an instructor I had was about how a new tax law can help me save my clients on their taxes. How what I learned can save clients money. A spin that talks about my education benefiting them. I try to do this. I also have not been increasing prices fast enough and have been thinking that a near-universal 10% increase is due for next season. I have too many complex, getting more complex, needy clients (most of whom are appreciative) and will not mind if some go elsewhere. Are you sending out communication prior to tax season?

See page 1 of the 1120-S instructions for your 3 options, and the Rev. Proc.: https://www.irs.gov/pub/irs-pdf/i1120s.pdf https://www.irs.gov/irb/2021-49_IRB#REV-PROC-2021-48

Make sure you communicate to your clients how your time, effort, and money spent on your education benefits them! They can't appreciate what they don't know. PS: I also like NATP, even though the state chapter events are a bit far for me to travel. But NATP has lots of webinars.

https://www.investopedia.com/terms/r/rule72t.asp https://smartasset.com/retirement/rule-of-55-vs-72t See Practice Tip! in the below for a one-time change for which he might qualify: https://www.lordabbett.com/en-us/financial-advisor/insights/retirement-planning/a-new-irs-rule-makes-early-ira-withdrawal-more-attractive.html

I'm told that AICPA has one, but I'm not a member. https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis https://irp.cdn-website.com/8c5b6e72/files/uploaded/1041420-Shareholder_Basis_in_SCorp_Worksheet.pdf https://www.pdffiller.com/jsfiller-desk17/?requestHash=f693d750d76e9b0b488bf6b3958c0cbc69cc97b62bb7cab71da1130440f16799&projectId=1086121206&loader=tips&replace_gtm=false#818b984f20c942c18f5ee47e0f564799 Check within your own software for a possible worksheet. CFS Tax Tools has one. You can use some of the Tools for free for a limited number of uses, but the whole package is not very expensive for what you get: https://taxtoolsworkshop.com/ Someone gave me this in 2014, so not sure how it holds up to current law: S Corp Basis.xlsx

Do they own a house jointly? Or live in a house together and pay RE taxes and mortgage interest from joint funds? Anything at all that can be shifted to whichever needs it the most? Otherwise, book a tax planning consultation and charge for it !!

With a $100,000 jump in income the higher MFS rates wiped out any potential savings that MFS might've saved due to credits the wife can claim with her lower income. But you don't know until you try. Did you look for any J deductions that were paid with J funds that could be allocated to the H if it lowers his taxable income/lowers the tax liability for the family as a whole?

Yardley: I think the OP is filing an original return and not amending. Christian: Here's a good article from the U of Illinois Tax School helpful for original returns as well as amended; it contains a couple links to additional materials... https://taxschool.illinois.edu/post/a-narrow-window-for-married-couples-to-enhance-tax-credits/

Paper filing, claiming the daughter, will work IF the daughter amends her return first. The current state of IRS processing paper returns might mean they will get letters. Prepare them for what documents they should start gathering. IF the daughter qualifies to claim herself, then e-filing the parents' returns without the daughter would be best. IF the parents/daughter are engaging you to amend the daughter's return, then you'll want to pull her transcript or have the daughter get it for you. IF the daughter is not open and cooperative, then warn the parents about potential IRS letters and to contact you.

The daughter DID file a return and claimed her own exemption, perhaps by using the EIP portal, but it happened and is in the IRS computer system. (Probably doesn't want her parents to know.) If the parents claim their daughter and try to e-file, it WILL be rejected for using an already filed SSN. Yes, the daughter should amend, but that is her decision. Amendments are taking weeks and months, so you may not be able to wait long enough to try to e-file the parents' return. And, it still might be rejected. Paper file the parents' return. Explain to them what documents to gather to prove their right to claim their daughter. https://www.eitc.irs.gov/eitc/files/downloads/f886-h-dep.pdf

1 modification to an approved method, and then continue that modification. Read my links, Ed Slott the IRA expert and Notice 2022-6, and read the info from cbslee.

So many opportunities to save our clients money lately with unemployment exclusions, refundable credits, etc.

Within the first five years of distributions? Why? Possible penalty dating back to first year! https://www.irahelp.com/slottreport/10-rules-know-about-72t It won't count as a modification if he makes a one-time change to a method that increases his distributions going forward: https://www.irs.gov/pub/irs-drop/n-22-06.pdf

You were a good daughter. Now you'll be able to put it all behind you with a clear conscience.

It did do a security update 8/17/2022. I'm nursing it through until the next version comes out.

Wait, wait. So the iPhone 6S is newer than my iPhone 6? And, I won't need the security update? Or, I DO need a security update due to recent activities, but my phone is too old to get it?

Ah, he probably gave me his iOS update from his tablet.

So my security update may still auto happen? How will I know? My phone is old enough that the iOS as a whole no longer updates, but I'm supposed to get security updates. (Waiting it out for the next iPhone version or end of tax season, whichever comes first.)

The only thing my iPhone6 is offering to update is Facebook, and it can't. I have Automatic Updates on. My iPhone 6 says iOS 12.5.5. Hubby's iPhone11 says 15.X.X. How do I get security updates for myiPhone6? The NYC news (either CBS or NBC) had the story last night to update your iPhones from iPhone6 on, so I went to update when I got up this morning. (We were watching from bed. Hubby's iPhone was charging on his end table, and he was using his iPad, so he updated both last night.)

Been working on that for the past few years since the IRS made a point of basis for losses, sales, distributions, whatever. One of the two does have a capital account now. Baby steps.