Lion EA

Congratulations & God Bless You!

You can't, at least not to the almighty IRS. Trace the payment. It's early days, as they say on my Brit Box mysteries.

I hired an IT guy to set me up with back-ups when he set up my new computer. Well worth the money. I got a recommendation from a small tax prep firm in my NYCTATP group back when we were live; he raved about the guy he'd used for 20 years. IT guy set me up with an external hard-drive plus cloud backup. I pay him a small retainer ($150/quarter) plus his hourly rate is low for any extra work for his retainer clients. He taught me how to maintain the system; I changed the time on one drive to 4 am because I work late, I upped the frequency during tax season, and I check to make sure the backup folders contain data and check the dates. But I still ask him to check on it during his monthly checks on my system. One less thing to worry about. I can do what I do best, and use him for what he does best. Ask around to find a local guy you trust.

And, chocolate, lots of dark chocolate!

I've upgraded to CBD tincture to keep me sane, calm, and focused. Auto-delivery.

The old charitable deduction for non-itemizers was above the line, so NY added back. The 2021 deduction is below the line, so NY doesn't need to adjust NY AGI for federal deduction, right? (I'm in CT, so my NY commuters and especially NY residents don't come in until later. I haven't played around in the NY return in my software yet.)

Or, Roth contributions, right? I'm well over 70.5, have started making QCDs to lower my taxable RMDs, paused my own contributions for a couple years now, but want to make 2021 and 2022 contributions to my Roth again. Or maybe to my SEP. I wasn't using my SEP when my very part-time employee became eligible but did NOT want a SEP. I no longer have employees, so I can again contribute to my SEP. I agree with Kathy, too many choices that are similar but each with different requirements. I have a partnership client with a SEP and a partnership client with a SIMPLE and an S-corp client with a SEP and an S-corp client with a SIMPLE, and they all have differences on how the employer reports them depending on both the type of plan and the type of entity. We need more uniformity on something as basic as retirement savings. (But we all know how "helpful" the uniform definition of a child is.)

One more quirky thing for us to research.

I used the 1st year NAEA discount to join and have remained with them ever since. I used to attend the CtSEA education events for both the education and the networking. Now, my main group is the NY/CT-ATP for education and networking, because its location is closer and I can network with both NY and CT preparers (I have NY commuters and NY residents in my CT practice, not just CT residents). However, I've benefited from the NAEA publications and e-newsletters so remained a member. During Covid, I made use of my NAEA member price to take webinars from the NYSSEA and VASEA and elsewhere at the lower member price. NAEA membership also offers you 25% off CCH CPELink education and CCH publications, UPS discounts, other benefits, and a couple FREE classes.

Thanx, Kathy.

Kathy, let me understand. I'm old, have different types of IRAs (Traditional, Roth, SEP, and Simple), and give to charities. I can make a QCD of $100,000. My RMD is maybe $25,000. I direct my broker to send $25,000 from my TIRA directly to my church and a handful of other charities. I will show NO income from my RMD on this year's tax return. But if I contribute $7,000 to my Traditional IRA this year and do the above, I will exclude only $18,000 from my income and show $7,000 taxable income from my RMD. What happens if I contribute $7,000 to my Roth IRA instead? Do I exclude the full $25,000 I had sent to charities from my Traditional IRA?

If the IRS is really trying to stop identity theft, then why wait 8 months to query my client? The IRS is hurting the people they say they're trying to help, those earning less in 2020 and 2021 due to Covid, by making them wait a year for their refunds which include all those credits they advertise so heavily.

Congratulations!

I had two clients with the identity verification letter this tax year, and I have a very small practice. One in CO got through via phone fairly quickly. The other was hung up on, struggled on the online site, was texting me out of desperation, even though she knew I was in a tax class. By the second day, she switched to her tablet instead of her cell (she's in her 40s, but her social group does everything on their phones instead of any other device) to continue calling on her cell while navigating the website on her tablet. On her tablet, the website accepted her ID info that it would not accept on her cell. I would say she was ready to tear her hair out, but she's my hairdresser (and I'm her tax preparer -- we try to stay in our lanes) and would never tear out her beautiful long blonde hair (she probably has extensions, that's one of her skilled services). She did say she was ready to throw her cell, even with its custom case. The CO couple did move to CO last year. The CT gal has had everything the same for years, home, job, everything except a bit less income during Covid.

If I make a hologram of myself/tax preparer for my Virtual Reality Office, I want to be young, skinny, and pretty, but still believable as a really smart EA. Maybe with glasses, like a sexy librarian type? In fact, I want my Virtual Reality Office to be neat, clean, and organized, things it has not been since the beginning of 2020. And, no Hubby walking in to show me something on his tablet.

A tie-breaker rule comes into play when two taxpayers claim the same child. When all the taxpayers agree on the child's dependency, there is no tie.

Here are a lot of links for you: https://www.irs.gov/forms-pubs/about-form-1041

Probably the same as part of your mortgage/Form 1098 on Form 8829 and part on Schedule A. Or, part of your Form 1099-NEC on Schedule C1 and part on Schedule C2, which I dealt with for a client last season. I would probably NOT use the Form 1099-G but instead put the appropriate amounts directly on Schedule F and Form 4835. Or, if you want to avoid IRS matching problems, put the whole amount on or link Form 1099-G to the form with the greater part of the total 1099-G, subtract the excess under Other Expenses (you can label it "reported on form XXXX"), and enter that lesser amount on the other form. Keep notes in case you have to respond to an IRS letter in a couple years. As long as you report the amounts where they belong, report the total from the 1099-G between the two forms, and are reporting where appropriate for business purposes (NOT to avoid SE tax, for instance), you'll be able to explain what happened if questioned.

I don't have both Schedule F and Form 4835, so maybe this isn't your whole answer. I do NOT enter Form 1099-G but just go straight to the 4835 and enter directly on the appropriate lines (last year was 3a and 3b). That doesn't help with your issue of some of the reporting belongs on F and some on 4835 and IRS matching of the 1099-G.

Got that same date on an IRS e-newsletter. so 24 January it is.

Just had a call from a client. E-filed 5/17/2021. Friday 1/7/2022 she got a letter to verify her identity. Over the weekend, she tried online, but it's unwieldy. Today she called and was hung up on. She retried online and was successful at verifying her identity, but site told her the IRS would release her refund in NINE weeks! By the way, she had no luck on her smart phone, but was able to complete the process on her tablet.

My office is a spare bedroom converted to an office. So, like you, not only do I never leave my office, I never leave my house. I tend to think of myself as the age I was when I dated and then married my current husband, so nor more than 47. I'm pretty sure there were no reruns with I was young. We didn't have a TV until I was in school. It was black & white, and we got about three channels in the Chicago area.

I don't think I've left my office in two years! (75)

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