Lion EA

Thank you very much, Jon. I just registered.

I want to know who's paying for lunch? And, what are we having? How many martinis? Should we cancel all of our afternoon appointments?

What's the "old" input method? Worksheet? Interview? I've been using Interview and am getting comfortable with it. I have a very, very part-time assistant who I pushed to worksheet, thinking it might be better for the data entry she does for me. I purchased last minute before tax season, so had no chance for any training or substantial practice. I intend to get some serious training this fall. Hope my assistant is available for some, also. Thank goodness the support at CCH has been absolutely amazing. Today I tried Chat to find out where to enter something on a CT-1120; she directed me to the right form, buried a couple of menus deep, in minutes. And, Michael, thank you for offering up your local expert; I'll keep you in mind.

Jon, I used ProSystem fx for the first time this tax season. Keep me posted if you discover a board. And, if you find yourself with free time on your hands and love to teach, I'm always in need of pearls of wisdom, tips, tricks, and work-arounds....

I haven't used ATX in over a year, but come here every day to read all the posts. That's one way I keep learning about taxes.

I've had great luck with Gateway. I like their color coded connections and their helpful people on the telephone. Necessary for an old lady like me. I need a teenager back in the house to deal with our computers. But, since they've grown up, I'm on the lookout for a friendly, local techie who'll answer the phone in the middle of the night during tax season.

We've been e-mailing back and forth for a week. We've been talking about AMT hitting working people like her ($2,000 of her taxes are AMT). I've been telling her what to change her withholding to. She's been asking about paying. So, I've been explaining why dipping into her IRA will cost her on 2008 taxes, pros and cons of borrowing from her 401(k), whether her charge cards give cash back, installment plans, how CT is less businesslike than the IRS, etc. I ran a projection for 2008 taxes -- she bought a house in February, changed jobs, receives bonuses, qualified for a 401(k) plan, dependent care benefits, and a flexible spending account for health premiums and expenses, and other changes. I even calculated the change in her alimony due to her income, per her divorce decree; and will run a separate computation when she obtains her ex's info. If she takes up any more time, I will raise her price to drive her elsewhere!

I don't like to bring up changing withholding for a single year event for many clients for all the reasons you're worrying about. But, if a client has questions or has shown a tendency to be on top of his situation and to follow my directions.... I have only a couple who actually increase their withholding when I tell them to, though. And, I have a lot of high earners that won't see a benefit this year or next year either. So, for most of my clientele, I won't be bringing up the subject.

Actually, I think I want to keep her. Last year she was a delight to work with. But, two years ago she had a nervous breakdown and was a nightmare that year, too. Anyway, she had $51,000 in alimony and some investment income without any withholding, so owes the IRS at least $12,000 and CT $4,000 in round numbers. Technically, that's only one ten thousand and a few more thousand, but I do get dramatic when stressed. And, her son had investment income, so kiddie tax comes into play taxing son at mom's rate....

Well, I was checking with a PREPARER from the state involved. I'll check the IL web site. But, sometimes the practicality is different than the law, so I like to check with a real person who's actually filed a PY or NR return as well as read about the procedure on the web or hear about it from a state worker instead of a preparer.

Just received an email from a client who made $135,000 and hasn't filed (owes tens of thousands and looking for more deductions!) asking why she didn't receive her $1,200 from the IRS !!! Well, it would've been $1,500 if she earned less than $75,000 but is $0 with her income and can't be calculated by the IRS until she files her return.... So, now it's my fault she's underwithheld AND missing her stimulus payment, too. I told her S-3 and CT-D, but she did S-9 and CT-B because that's what she thinks I told her. She'll go someplace else next year, no early stimulus, she'll have changed her W-2, and all will be well with the new preparer; neither she nor the preparer will understand why the poor outcome she had this year is NOT MY FAULT.

Amen

Joel, Can I e-file IL NR returns? I have farmland in Montgomery County, IL, so have an IL NR return in my own. When I was with that big green company, we could e-file only one state so e-filed CT and mailed in IL. Now that I can e-file multiple states, I'd just as soon e-file everything.

I'm not using ATX this year. But, since no one else is on this yet... Try using Internet Explorer instead of Firefox. I like Firefox, too; but it does not play well with all programs. There are some very computer savvy posters on this board who will give you lots of help, soon.

Hey, don't you all wish we could train our clients this well this fast?! Kerry's going to get info and come back to us before touching the money. I just love the ones who ask us first.

Agree with Gail. Get us some more info. If you're really strapped, you could take regular distributions to avoid the 10% but still pay income taxes on the amount taken each year -- not my recommendation since you'd have to keep taking the same amount even as your other income goes up and you don't need this extra source as much. You can probably leave it where it is if you like the investments available in that plan. But, the best solution for many who separate from employment is to roll over the retirement funds from that job to one at your new employer or into an IRA. Then you have more control over the funds. You'll want to use a trustee-to-trustee transfer to make a clean path. So, call CCH to find out your options and come back here with the info. And, check to see if your new employer accepts funds into its retirement plan, or even has a retirement plan. We want to hear from you BEFORE you do anything with the money, not after.

Welcome! I'm in CT and e-file a lot of NY returns with no extra paperwork. Haven't had a CA return lately. Used to paper file when one came along, but had read that I can now e-file CA as an out-of-state preparer with no extra paperwork as long as I don't step foot within CA to prepare returns nor advertise/solicit business within CA.

No. Looked this up recently for a client, for his lawyer, actually, who was going to do that. The lawyer even admitted he'd forgotten that fact and thanked me! An S-Corporation can be a member of an LLC, but an LLC cannot be a shareholder in an S-Corporation. Can be a shareholder in a C-Corporation. S-Corporation shareholders can be domestic individuals, and some trusts and estates, no foreigners, though.

Thank you everyone. You've all been very helpful. Yes, I do/did file extensions for everyone who might not get done. CT has a nasty 10% right off the bat for underpayment plus interest, etc. Ouch. So, I was trying to finish those that owe ahead of those that don't. But, peoples lives change; and it's not always clear from a quick estimate for extension purposes when we're already sleep-deprived in April. Oh well. If they're grouchy, they can go elsewhere next year. I have enough clients and have been getting more through referrals. So, I need to stop worrying. (One client even told me to take care of the cranky clients first; she'd be glad to wait for me!) Thank you again for sharing your thoughts on this issue.

Well, I'm still filing returns on extension. On extension due to my slow speed this first year on my own with new software. Extensions that I thought would be done in May and June, turning into July and August (I have an assistant doing some data entry, but she's been out for months with a teen with cancer surgery). Extensions for people who'd never filed extensions and were worried about penalties and interest. Some traditionally had refunds. But, not this year! The $33,000 in 2006 alimony was an increased $55,000 in 2007. Or, the ones that came in much too late -- about 20 in a five-day period in April -- to even estimate very close to if/what they might owe. Did round numbers estimate on one: looked like over 90% of liability was covered by withholding, but only federal was over 90%; state was only 89.3% These are high earners (most of my clients, and especially the ones late in getting their K-1s, brokerage statements, etc., to me), so that extra 0.7% cost hundreds in P&I. In the ones I'm preparing now that owe, the P&I is hundreds of dollars, even more than their tax prep fees. Do I offer to cut them a check? Free prep next year? I'll be paying out more than I'm taking in. The 89.3%-er was aghast over the telephone, but very nice when she came in to pick up. But, I won't have the same luck calming some others that owe. Any one else been in this position this late in the summer with people who don't usually file extensions but you talked them into it one year due to your circumstances?

Enjoy your new home! But, I don't have an answer for you. Thought trying to get into a new business but not succeeding is Schedule D, but haven't had anything like this for years so don't remember where to look.

I'm starting to get the clients who made waaaaay to much to qualify who are hearing all the news (designed to get the non-filers to file for the rebate saying they can get $300) thinking that anybody will get at least $300 so why aren't they getting anything...

I haven't worked with solo 401(k)s, so haven't researched the rules. But, for some other retirement plans, over contributions can stay in and be part of the following year's calculation; plus a penalty during the "over" years until the contribution is allowed. So, it's worth some research on your part to see if maybe he has a penalty for 2006 but it all got absorbed in 2007 with further penalties. Lay out what he contributed when and for which years for both his 401(k) and his SEP so you can see if 2006 is the only problem.

I'm Dollars & Sense, LLC at 73 Eleven O'Clock Road and have to monkey around until I get my name and address acceptable for different software packages, mail-order shopping/delivery, etc. Even MapQuest wants 11 OClock Rd to request directions but then gives directions using Eleven O'Clock Road. Oh, well.

I'm on the other side of the country, so won't be there in person. But, I'll be there in spirit. Have a wonderful time introducing your new digs to your public! The very best of luck to you, Julie.