Lion EA

I use CCH's FileShare that's included with my CCH SiteBuilder web site. NAEA and other professional organizations offer Verifyle included with membership. See what your tax software or web site or email or telephone provider might offer.

I don't see how NJ can sell their method on sole proprietorships. The CT law re PEs hasn't been challenged by the IRS -- yet. The CT law taxes PEs on their profits, requires electronic ES payments by PEs, and a couple of other provisions. It's only effect on federal personal returns is smaller pass-through profits so smaller federal taxes. (Not like NY's try at a charitable contribution, no quid pro quo on federal personal returns.) The credit happens on the CT personal returns. 2019 was only the second year, so we'll see how CT makes out.

Yes, it's a state tax paid by an entity, so the entity deducts the tax at the entity level. Partnerships and S-corporations only. Less entity profit to passthrough to personal returns; lower personal federal tax, supposedly to help make up for the SALT cap. Then that ever-shrinking percentage as a credit on personal CT returns. It was sold as a win-win for all. But, CT benefits the most. And, we tax preparers who have entity ES tax computations and CT tax credits and more forms with the entity returns and personal CT returns, more paperwork. A LOT of time explaining it to PEs during 2018 when the law was passed (in May or June?) and made retroactive to 1 January 2018, so everyone had missed one or two ES payments. I really need to raise my fees again this year!

Both CT and NY did the non-resident thing for a short time, and, of course, at the top rate. The newer CT tax on PEs is a deduction at the entity level on the federal return (taking it off the personal federal return where it would be of no use) at the top rate. But, it does pass through a percentage of the tax paid to the personal CT return. Of course, for 2019 the percentage is smaller than it was for 2018. And, it hits residents and non-residents alike. Generating more tax for CT and more paperwork for all, even though CT sold it as helping its taxpayers!

CT has been taxing pass-through entities for over a year now. The K-1s pass through the CT tax paid, and an ever-shrinking percentage is used by the partners &/or shareholders on their personal CT returns as a credit. A LOT of paperwork. And, I charge for it.

I saw ATX at the CCH User Conference "Connections" last October. Look for conferences in the very short off-season.

I think it's the federal and state Departments of Labor that you need to worry about. Check on their criteria for employee vs. IC. They seem to have the manpower to chase employers who mis-classify employees. I've heard labor audits referred to as "the audits from hell." Most states also have agreements with the feds to "cross report" their findings. Be careful what you advise.

I want to shrink my client base at my age and think that clients moving, passing away, and not itemizing will accomplish that. But, I remain wrong. Just had another client ask me if I can take on a new client, her fiance (they've been engaged forever, so it'll never end up one MFJ return). I continue to add at least as many as I lose. Family members. Clients opening businesses/separate entities. And, I like almost all of my clients, so I'm not looking at firing anyone this year. Maybe a couple of healthy price increases...

My brand new, professionally-set-up computer is fast and pretty and now shows that I'm an ATX Supreme Guru, have six black dots (which I take it are not at all like being black balled), a green Donors sign, 5,822 posts, and am in CT. Even better, I can see which states all of you are in, because I have clients from CT to CA and many states in between and may need your help from time to time. I'm a happy camper for many reasons. One of which is all of you helpful, happy folks who are my virtual water cooler tax experts. Happy New Year!

Back to trying to deal with divorced parents, getting personal financial information from their tax returns. I have grandparents who manage their grandchildren's investments; I don't even know the parents. It's so awkward asking questions about the parents' tax returns.

Strange things happened to some program or function or...almost every time MS updated. This may be one of those things. Unfortunately, one that didn't fix itself with the next update!

Strange it is. And, I used to see what Judy posted, for years. And, I've been using Chrome for years. One day it changed. I appreciated the extra space the posts now have, but do miss the State of the poster. If the state matters, I just check the profile. We'll see what my new IT guy can do with my new computer, OS, etc.

Done all that, many times. I first looked into it months ago when I noticed I didn't see the State for a poster where the state made a difference. I had to go to the profile to see that state. Tried everything you all advised back then, and everything my then IT guy advised. Now the Donor issue surfaced, and I see Donor only on profiles and not posts. I switched to IE and exited and cleared cache and rebooted and a few other things people suggested. But, I still see what I see and no more: jklcpa (with a picture) Posted Saturday at 04:32 PM I get a new computer, probably later this week (new IT guy setting it up this week) with Win10. A fresh start. I don't care if I see Donor or all the other stuff that takes up a lot of space. In fact, I want to save space for the posts and not most of the other ID-type lines. But, I do hope that the State returns when I log onto this community on my new computer, because the State is sometimes a helpful piece of information. Thanks for all the suggestions. I did try each and every one of them. Multiple times.

Jack, Pacun is asking about those that have donated to this forum in the past and have the designation of "Donor" that appears under their avatar. I have been donating every year, perhaps I deserve a Gold Star

Lion EA Posted 4 minutes ago Don't know how to make the picture show, but the above two lines is a COPY of the ONLY two lines that appear with my avatar, and then my post begins. In my view.

I'm on a desktop using Chrome and am logged in as Lion. I never questioned the "lean" look as it gave me the poster's name and the post and that's what I want. So, I didn't understand the fuss over donor labels. Now I do! (And, I'm getting a new Dell desktop with Win10 as early as next week.) PS When I click on a name, Pacun for instance, it takes me to his profile that includes his name, avatar, and a green donor label there.

Huh, all I see is Lion EA followed by Posted 1 hour ago. Same when I look at jklcpa's post above. I also don't see a state or how many posts. Just the avatar, "name," Posted 1 hour ago, and then the new post the person is making. No "donor" or "member" or any other information at all. Very lean and gets right to the new post. So, I didn't see what all the fuss was about. But, if "donor" or not shows all the time, I can understand why.

Ah, in my profile, of course. I was thinking under my avatar on each post or something more visible. Thanx, Pacun.

I don't see "donor" tags. On anyone. I donate, but not on any schedule. But, I don't see a tag below my name. I just see names and when posted. I don't care about tags. But, I would respond positively to a reminder to donate, sent annually or whenever funds are needed.

I think the Department of Labor, both federal and state, are chasing these monies, doing the leg work for the IRS to then hop on board. CYA. Put your advice to your clients in writing/email/something saveable with them signing/acknowledging they received your advice.

Happy, Health, and Prosperous New Year! Mine didn't start out healthy. We were visiting the grandkids from Christmas Day, and they were all sick. Of course, the whole family got sick. Our return home was delayed as first hubby and then I got sick. I always wanted to stay at The Inn for their New Year's Eve party, but I spent it in bed and in the bathroom for 36 hours. I could hear the music, though. And, hubby was well by then so ate and maybe drank but probably didn't dance. I seem to be taking longer to get over this "24-hour" stomach bug plus cold. I hope this is it for illnesses this year!

ProSystem fx is now part of WK's US Small Firms, or whatever the current name is, just like ATX; you can probably get a better price via them on fx. Or, just haggle with your fx rep or inside renewal rep. Haggle.

We are a rowdy group! But, I love you all.

It's not QBI until all the computations are done, just potential QBI until it's netted with other income and compared to the limitation of 1040 income. Nothing's lost. You didn't Qualify for it, thus the Q in QBI. Negative QBI does roll forward and reduces potential QBI in the next year. We get a new form for that. Whoopee, a new form! (Tongue firmly in cheek)

The IRS now has an downloadable Income Tax Withholding Assistant for Employers spreadsheet: https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-employers