jasdlm

I think that's really strange, because usually if there's a FTHB credit and a 5405 required, the efile will reject (in my experience ... having clients who didn't tell me they took said credit and needed to pay it back).

Patti, I like you.

I agree, but should I have her pay in as if it is SE income (how can it not be?). Really ... am I missing something? I feel really stupid right now. About this time of year, I usually start thinking I'm not qualified to do this. Does anyone else have those types of thoughts when something like this floats across your desk? Maybe I'm not qualified to do this ...

Client joined a new firm. They call her a 'non-equity' partner. Received a K1 for $500k in 'ordinary income' and $800 in 'guaranteed payments'. Limited partner box is checked. Box 14, Self employment income, is the $800. However, there's a 401(k) deduction of $35,000. I feel like I'm crazy ... the $500k is, of course, SE income, but I have to report the K1 incorrectly (change box 14 to $500k plus $800) in order to get the SE to calculate since she's a limited partner. Owes much more money that way, even though the 401(k) doesn't flow through unless there's SE income. What am I missing?

I'm getting old and spicy, and now, when people tell me something preposterous (or give me some crazy tax rule they 'know'), I look them straight in the eye and say, 'Did your hairdresser tell you that'? Stops them cold. Literally. You should try it. They look at me dumbfounded for a minute, then they usually chuckle, and then they remember that it's a 'fantasy tax scenario', and we never speak of it again. You have to be over 50 to pull this off, but I've now made the cut, and I use it every time.

Agreed. This sort of reminds me of when clients sell a depreciated asset and bring you all the costs from the first purchase on assuming they're all a deduction against the sale and not realizing they've already taken those deductions. They just don't understand how it works.

Thanks so much to both of you! Non-resident state is PA.

Client is 85% owner in a firm in another state. Works remotely and never visits the State. S Corp. W2 income on resident state, K1 loss (in this case) on Non-Resident state because that's technically the situs of the firm. The question: Client has a distribution in excess of basis of $30k. (Has been going on for several years - I know, I know). I think the income is resident state income, and that's the way the prior preparer handled it, but now I'm questioning myself. ATX flowed through to NR state because it came from the K1 entry, but I'm not certain that means anything. I'm sending myself in circles on this. Ridiculous. Apologies for asking a question I should know the answer to.

When I first started practicing, a client (new to me then) got audited and his long-horn steer ranching business was determined to be a hobby (which it was, but ...). They're serious about that! (Or they used to be).

It's really crazy. I think we need to have a giant round table session (at Rita's burial ground ;)), or maybe a giant zoom call) just to discuss practice management. I've been working 90 to 100 hours a week since the first week of February, and I literally am getting too old for this. I feel like I can hardly push myself through this final week. I have good staff, but it's still just too much. I think others work faster than I do, and I need to learn efficiency steps. Last year I did 730 returns including extensions. This year, I'm at 525 so far and working as fast as I can. Client documents are delayed, and everyone just needs to talk to me for '5 minutes'. I feel like such a loser when I put someone on extension whose information was turned in during March. I set my deadline at March 7th for a guarantee of no extension, and I have passed that 'check-in' date, but people are still really good at making me feel bad, anyway. Thanks for listening. Yes, I like cheese with my whine. I do think some sort of 'trading trade secrets' meeting would be amazing. I'd host you all in Kansas ... you probably don't want to come in August, though ;).

I don't know what software you're using, but it might be that there are boxes at the top of the K1 entry screen that need to be checked to create an accurate flow. (Like the passive income box)

100% agree. Every corporate/partnership I do goes with Schedule L.

You rock, Abby! Thanks so much! Believe it or not, I spent about 10 minutes on google but couldn't come up with it :(.

Does anyone have this? Client received a death benefit. 1099R didn't make it in the mail, but I have a copy of the check. Thanks.

Announced at the end of the day on the deadline day AFTER I had already made all my clients file. I feel like a loser :(. I found out other colleagues here were telling their clients not to file.

I'm with you, Kathy. I go through the return I've just prepared against the previous year's return; check line by line and then check blank 'records' (i.e. Schwab DIV that I had last year that I don't have this year). I think it saves me tons of time in the long run, and I think clients are appreciative.

This is the experience I have had. 'You don't need it' or 'You can print it off the internet'. I have so many clients scouring the internet for their 'voucher' to print off. Ridiculous.

Can you add $4,000 to taxable income (Schedule 1) of student return and then take AOC?

For 1099-G Tax Refund: 85-0478248 For Department of Workforce Solutions: 85-6000057

Client rolled over her MPPP from a former employer into an IRA. Did not roll to a ROTH. 1099R shows about 20% of the total that was rolled over as taxable. I've never seen this before. No distribution was taken, and there was no ROTH conversion. I'm racking my brain and googling like mad. I can't figure out what this taxable amount could be. Client has no idea. I've asked for statements, but I'm trying to figure out what it possibly could be. The last year-end statement before the rollover simply shows the total amount invested in a lifecycle type fund. Thanks for any ideas! I'm feeling like I have a hitch in my brain and should be able to figure this out.

Maybe we're using different software. My understanding is that there was no APTC claimed, so no requirement to file an 8962/reconciliation. Sorry. According to Healthcare.gov: If you paid full price and are sure you don't qualify for the premium tax credit. You don't have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes.

I've had this happen. After I try a few times, it let's me reset the password. I think it might happen when the password expires. I hope it works for you.

Delete the 8962

An electronic buzzer that shocks clients if they are toodling along doing their own bookkeeping and they make a prior year change. Yes, one can lock them out, but that's not always as fool-proof as it sounds. Oh, and tax documents without bits of dried food on them ... that would be another one of my wishes.

One time many years ago when I first started practicing, a client owed $1 to the State. The State had a rule then that they wouldn't refund less than $5 but if you owed $1, you had to pay. I had the client tape 4 quarters to the return and paper file. I look back on it now, and it was really silly of me (and probably stupid), but at the time, I remember thinking it was hilarious. Ah ... our younger selves ...