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JohnH

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  • State
    NC
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    Male

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  1. Sounds like the son knows more about taxes than you do. I'd give the info back to him with a suggestion that he employ his expertise and prepare the return himself.
  2. But you still provided a service. They learned what to say and what not to reveal to the next accountant they interview.
  3. I think you nailed it. Thanks to everyone for the insights, especially at this time of year.
  4. That's the easy part. No need for an amended W2. The taxpayer reports the entire income on the NC return since that's their state of residence. Then they claim a credit on the NC return for taxes paid to MA on the MA income. (The credit is limited to the lesser of the amount actually paid to the other state OR the amount of NC tax attributable to the income reported to the other state, calculated at the NC rate.) NC provides a schedule designed specifically for this calculation. The more difficult part relates to what happens if the employer isn't pleased that the taxpayer opened this can of worms, as Medlin pointed out. That's probably my greatest concern in this entire matter. I'm thinking of declining the work based on that consideration alone. Thanks for the cites, Lion. That's very helpful, and I will probably call MA if I decide to do the work.
  5. I'm inclined to follow the W2, but there is a potential glitch. The taxpayer is ultimately responsible for filing a correct return even if the employer makes a withholding mistake. If MA does have a filing requirement for non-residents, the SOL never begins to run for an unfilled return. If MA discovered the filing requirement in the future, they could compel a return to be filed, which would likely include penalties & interest for a late-filed return. If at that time the NC SOL had expired, then the taxpayer would have no opportunity to amend the NC return and claim a tax credit on the NC return for all or part of the tax paid to MA. Chances are that would never happen, but if it did, it could be costly. I'm still researching, and while the situation with remote workers isn't all that unusual, I haven't yet found any definite guidance. (MA did have some interim rules during COVID, and the taxpayer met an exception of sorts, but those rules have expired. I think that is the exception Medlin referred to in the previous post)
  6. All wages and w/h are allocated to NC.
  7. Taxpayer is a resident of NC,, working remote for a company with its HQ in Massachusetts. The employee occasionally travels to the MA office for meetings, etc. Total number of days in MA were about 26 in 2023. Many trips included overnight stays in MA, if that matters. Employer only withheld NC income tax per the W-2. I haven't yet found clear guidance on this, but can anyone tell me if MA is going to want to tax the MA portion of earnings as a Non-resident?
  8. I'm shameless about this eyesight business. I alternate between taking my glasses off to look at someone sitting across the desk, putting them on to look at the computer screen or read a document, and grabbing one of several magnifying glasses lying around when the text on a document is too small. I'm thinking about mounting a magnifier on a swing arm on my desk so I can keep both hands free.
  9. If the payments cleared before the due date of the return, there will not be any Federal penalty or interest. Not sure about how your state operates. However, if the return is ever audited and an assessment is made, a FTF penalty would be added to the assessment.
  10. Maybe the best thing will be that he doesn't pay you and is so embarrassed that he is ashamed to contact you again. I've had a couple of situations like that over the years, and decided that never hearing from them any more was worth the value of the unpaid bill.
  11. JohnH

    Tax Refund

    Some people like to learn from other peoples' mistakes. Others learn from their own mistakes. I seem to be different. I often learn from my own mistakes... by repeating them.
  12. JohnH

    Tax Refund

    Is the exact amount really important? As long as the client receives more than the refund claimed on the return, and the excess is reasonably close to the amount expected when interest is added, I tell them to deposit the check. I don't understand why some checks will show the interest in a small notation on the lower-left while other checks don't, but it isn't worth the trouble to inquire.
  13. Don’t you know you’ve won the China Lottery and you’re a multi-millionaire? All you need to do is send them $495 and your bank account info. It’s all legit - they just need to validate who you are.
  14. Client: "Anything you can do about these penalties?" You: "Sure, I can show you how they're calculated."
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