Lion EA

Tell them you can calculate their taxable amount by subtracting their current basis that they must provide to you in a document from OPM. Their original letter when they started drawing those pensions probably has their total basis and the number of years to subtract it. Like most things, if the client doesn't have a document saying otherwise, the IRS says basis is zero. Or, send them to a free tax prep service!

I had a 1099-R like that years ago when I was at Block, and back when you could get a person on the phone. While the client was at my desk, we called the state and were told that she'd used up her basis years ago, and that it was all taxable per box 2. Someone else telling the client. Problem solved. Between government downsizing "customer" service and the pandemic, communication is slow to non-existent. Good luck.

Show/send them the article that talks about using up their basis in 20-30 years, because both of them are retired more than 30 years. Have them contact their issuer and loop you into the call or provide you with a statement of how much basis they have left. If they can't prove they have any basis, I would use zero. If they have their tax returns with Form 1099-R from about 2000, ask them to show you. You might see that at that time their Box 1 was higher than Box 2 by the amount in Box 5. If so, suggest they amend their returns for the years when Box 1 equaled Box 2.

If Oregon has a separate e-file signature form that the client will sign later, you could e-file the federal and hold the Oregon return for that later signature... (I'm in CT which accepts the federal 8879, so I have no choice; well, I do for NY that decouples for my commuter returns.)

Do taxpayer or spouse have a side gig? Not a lot you can do for a W-2 person after the year ends. If low enough for an deductible IRA, or can still add to their HSA, or the tiny $300 charitable. You can help them plan for 2021. Max out 401(k). Bunch deductions so they can itemize every other year.

I know! I can't even form coherent questions to that partner. Maybe after a glass of wine. Please extend the season to 15 July so I can afford a mental health day or two, or a week. Of course, that may not help my entities due in two weeks...

I'm ready to give everyone their documents back and retire! Thought I'd move on to another entity return for a while, even though I hate going back and forth between S-corporations and partnerships which are more different than they should be. So, I open a partnership and find on their P&L $31,614.14 in Reconciliation Discrepancies and $19,153 in Ask My Accountant and handwritten on the bottom is $1,700 Form 1099 !! Time for wine and laundry! I think I'll put all my entities on extension, including the S-corporation that this thread is about and who will certainly fire me because he always wants to file by 1 February! Rant over until tomorrow. Thanks for talking me through this.

But what are YOU doing? Do you have things labeled however your software suggests for non-resident state income AND deductions? Follow the MO instructions for what to add to MO source income and what NOT to add. Maybe use your Help key in that field to find what entries you need to make.

Yeah, if a colleague were the other preparer... I think I'll fess up earlier rather than later to client and as permission to speak with his 1040 preparer...

Current issue is not my son's partnership; so no payroll on his. In the case you site, you add $24K in wages and adjust $24K in SEHI. Seems a wash on your 1040. If I'd been preparing payroll for this client, his W-2 would've had the SEHI. But, another company did that, and his W-2 does not have SEHI included in Box 1. And, I'm having trouble wrapping my head around what to do/not do on the 1120-S. And, trying not to sound too stupid when I have to explain to the shareholder &/or to his 1040 CPA. All three of my grandkids were born early, including the two that were only six days apart.

Granddaughters are great !!

We'll never tell. I think I had the same issue decades ago at Block. I think we deducted the SEHI on the 1120-S as employee benefit instead of wages. Then nothing on the 1040. Mathematically that worked, because Block was preparing both 1120-S and 1040 and the 1040 preparer told me what to do/what not to do on the 1120-S and what he'd do on the 1040, because whoever did payroll for that client missed the SEHI addition. Is their a corresponding part to the M-1 adjustment, such as adding it to line 7 or whatever for officer wages? The bad part, is I'm NOT preparing the 1040. So, if M-1 is the way to make up for Paychex not including on the W-2 ('m an IC, but the company's bookkeeper should've reported to Paychex, but this year is crazy with no facetime among us). Then, I have to explain to the shareholder/employee &/or his 1040 preparer that even though there's no SEHI on his W-2 that he DOES get to deduct it on his 1040 because I adjusted on M-1, right? Or, does the math work to do nothing on the 1040 if the SEHI is deducted (as opposed to adjusted) on the 1120-S? I only prepare a handful of entities, and going back and forth between partnerships and s-corporations taxes my non-accountant brain with balance sheets and just where to report things on the two similar but different tax return types? I need to get rid of entity clients, but one is my own son's partnership!

What do the MO instructions say about out-of-state state taxes paid?

And, Other Income -- Nontaxable. Oops, you got that. I was submitting when your post popped up.

The S Corp paid the Health Insurance premiums.

Every year the bookkeeper gives me the health insurance paid for the H&W shareholder/employees. I tell them to report it to Paychex for H's W-2. This year with us all working from home and in different towns, we all forgot. Mathematically, it seems to be the same, right? Should've been on W-2, deducted as wages on 1120-S. Then income on joint 1040 but also an adjustment on 1040. For 2020 it's not on W-2, so does 1120-S still deduct it as employee benefit? And, then joint 1040 does NOT have extra income so will NOT have SEHI adjustment, right? Still same results on both 1120-S and 1040? I know the S-corp owner will NOT pay Paychex for correcting the W-2 and associated payroll reports. Do I have to do something like a distribution from the 1120-S? Thank you in advance for any help with this.

His personal residence NOT in MO? You'll have to read the MO instructions for what to add back. Do you add back ONLY MO taxes paid or worldwide taxes paid?

For 2020, $300 for MFJ and all other filing statuses, except MFS $150.

And, to keep it separate from tax stuff... I'm very sorry you lost your mother and very glad you spent time with her. Do what you have to do. And, keep us in the loop. We all care for you and your health and your well-being during this very strange time for grieving. Prayers.

I would welcome a 15 July deadline. It lets me work longer before I have to stop to prepare extensions.

I realize I live in an area that literally is called the Gold Coast, but I find it exceedingly rare for a recently graduated student to pay more than half his own support in his graduation year, even if he gets a Wall Street job, and especially if joining the military. Have the parents and child fill out the support worksheet, and keep a copy in your files for both sets of returns to have documentation for how the family files.

eServices for the preparer to use to view client data with a POA on file for the client.

Found AICPA charts called 2020-coronavirus-state-filing-relief and the 2021 version called coronavirus-state-filing-relief. They're big .pdf files with awkward formatting. You'll want the latest version, so do retrieve them from AICPA.org I'm guessing AICPA has similar charts specific to the states and TCJA like the above re The CARES Act, unless all state decoupling is summarized in the above charts.

I accepted the defaults. But you can go to your account in AssureSign.net and upload a logo and do a lot of customization. I just changed the colors from blue to green.

I think AICPA was keeping a list and updating it frequently. I'm not a member, so can't find a link now. I think it's outside their firewall. But I probably heard about it in a course who knows when!