jasdlm

My ATX software crashed today, and I lost 2 1/2 hours worth of work. The automatic backup, which I enabled, had last 'backed up' 3 hours prior, so it was of no use. What the Heck? Did I mention that I really don't care for this week?

It's even worse that the 15th falls on a Saturday. I have people telling me they are going to drop off their 'crap' tomorrow. Why do they think I want to give up a beautiful fall weekend to go through their pile of poo just so they can melt down on Monday and tell me they cannot possibly owe money. This is always followed by 'are you sure you haven't made a mistake'? I am not amused. I actually think I prefer 15 April to 15 October. Especially when it's 17 October. How do these people make it through their daily lives? I think I'll pat them on the shoulder and tell them I know someone who can give them a 'hug' and a nice, small piece of real estate. Get ready, Rita.

Thank goodness! I was feeling like a real slacker.

This has happened to me 4 times, but luckily, I've been able to resolve it each time. I've come to believe that it doesn't matter how careful I am. I don't allow my cards out of my sight; I don't allow my card number to be saved - it doesn't seem to matter. Catherine, I'm really sorry about the poisonous start to your day. I hope it gets better soon!

Wow! That's more than the total returns I do (approximately 400 including extensions). You are a rock star.

I thought most Ministers were common law employees, and thus their unreimbursed business expenses went on Schedule A subject to the 2% haircut like all other employees. I only have 1 minister who has any unreimbursed expenses. I wonder if I have been doing it incorrectly. https://www.irs.gov/taxtopics/tc417.html MAMalady and JJStephens are likely to be helpful here.

This sends me over the edge. I want to scream 'no kidding - I've never seen one before'. I'm training my clients to drop off and not meet with me. The later in the season, the more likely I am to be snarky about 'this is my W2'. Some of them just can't help themselves, however, and when I tell them to just drop off, they put a sticky note (W2, 1099, etc.) on every sheet. Aaargh! One guy this year printed an entire sheet of paper and paper clipped it to EACH item (i.e. 1 full sheet of paper that said 'my W2'). I mourn the tree that died for that folderal.

That's EXACTLY what I did!

I had a client who was quite upset with me one year for throwing away her envelopes. That was her 'filing system'.

I agree with the comment about taking them from the statement. Interesting: I have seen several partnerships (usually law firms) where a portion of the 401(k) was deducted on the partnership return and a portion on the personal. I've never really thought much about it since I did not prepare the partnership returns, but I have more than one client in more than one firm with k1s like this.

You are going to have to ask what portion of those items were deduction on the partnership return. Do you have a cover letter? Often, a portion (but not all) of the 401(k) deduction is taken on the partnership return, and the remainder needs to be taken on the individual's return. Do you know the amounts for each item? The firm has a Keough and a 401(k)? Not sure why life insurance would matter.

One more thing: payor issued a 1099-Misc with proceeds in Box 7 - how in the heck could that be?

Client is sole beneficiary of a Trust. Trust was beneficiary of a qualified plan. Trustee completed the 'wrong form' and withdrew the entire $900K in one tax year. Obviously, beneficiary paid a high price for this error. Beneficiary won $100k settlement in the case. I keep talking myself out of it being taxable (tax was already paid on the $900k), but then I analyze it again and decide that it is taxable because it is, in a sense, replacement of loss in value of property and does it exceed the value of her adjusted basis. Any thoughts? I can't find a publication on the IRS website that specifically refers to tax reimbursements. Thanks.

Repeat lies: 1) It's the same as last year. 2) That can't be right. I didn't make any money. 3) I use it 100% for business purposes.

Pacun, 3K is the max per child, but the $5K might be for more than one child. Best practice is to enter correct W2 information, correct expense information BY CHILD, and then double-check the calculation. I think I see what you are saying, but you are assuming 1 child. Also, I'm not sure why you would ever enter $3k if $5k was the actual expense, unless for some reason you were using some type of software that did not factor in the maximum per child. I think the best approach is to always go with the actual numbers and then double-check yourself against the tax rules to make sure the calculation is accurate.

*Singing to you, my friend!*

Sounds like they are trying to qualify Granny for Medicaid. She can't gift because that would be a fraudulent transaction subject to the 5 year (depending on the State you're in) look-back rule. Does grandson work for Granny? Are they asking you to prepare a W2? Sounds like you need quite a bit more information.

Thanks so much to both of you for responding! $320,000 CA source income. $2,500,000 Non-Resident, non-CA source income. $75,000 of the non-resident income is investment income; remainder is W2. All CA Source income is W2. Again, thanks so much! I really appreciate it. I know everyone has plenty to do without my problem.

Bump

"Nothing to see here. Move ahead." Jack, have you been watching South Park?

Yes, I'm using ATX. Would the 'option' you mention be in preferences? If I have it toggled on, it's an accident!

When I run MFS vs MFJ for CA, the tax comes out higher. The non-resident spouse has no CA income and doesn't (and hasn't) live in CA. The CA tax seems several thousand dollars higher than it should be for just the resident spouse income. Joan, KC, Tom, anybody . . . is there something I'm missing? Income for resident spouse is only W2 income plus a little interest. Standard Schedule A deductions. I have read the publication, and my clients have a pre-nup agreeing to keep property separate (not community property) - maybe I'm missing something in indicating this on the CA return? Thanks much for any help anyone can provide.

My efiles won't create if I don't have a phone number listed. I could not efile without a phone number if I wanted to. Weird that we all have different experiences.

Awesome! I just requested to 'join'. Thanks, Judy and Rita, and thanks Eric!

I got Clementines, Almonds, and Organic Tea from my clients today. I wonder if they're trying to tell me something.