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Please see the instructions for form 8889. Line 9 instructions say to include employer contributions AND those from the employee through a cafeteria plan. That information is on the W-2, box 12, code W. Line 1 is for the overall limitation for the year. Line 2 is for contributions made separately by the employee outside of payroll NOT on the W-2. Doesn't ATX carry the amount automatically from the W-2 and fill in the limitation automatically if it is a full year coverage and you simply indicate it is either self coverage or family coverage?

Are these revocable or irrevocable living trusts? I believe that living trusts can be irrevocable, but I've never personally had a client with one.

My federal acks are coming back within seconds. I send the e-file, click again to process it into "pending" and click again for the final "accepted" ack. I am curious as to what process changed at IRS or within our software to make this possible. Anyone else notice this? My DE state acks that used to take 24 hrs are back in ~ 2-3 hrs now too.

I haven't heard of this either. If there is excess sehi, it is usually because it exceeds the income from s.e. income, and then that excess goes into medical expenses on schedule A.

In case anyone else wants to see it: https://www.irs.gov/businesses/mef-filing-error-with-form-1065-schedule-k-1-line-20-code-zz#:~:text=The Partners Instructions to Schedule,of Box 20 the partner Q. I receive an error in Form 1065, Schedule K-1, Line 20, code ZZ, when I try to electronically file the partnership return. How can I fix the error? (added March 21, 2024) A. The Partners Instructions to Schedule K-1 of Form 1065 for 2023 provide that Code ZZ “Other” in Box 20 contains “Any other information you may need to file your return not shown elsewhere on Schedule K-1.” If a partner receives a 2023 Schedule K-1 from a partnership with information in Code ZZ of Box 20 the partner should follow the Partner’s Schedule K-1 instructions in reporting this information on their return. There was a programming error impacting e-filers of Form 1065 for 2023 that blocked e-filed partnership returns from using Code ZZ. The IRS encourages e-filers to extend the filing of their Form 1065 returns and defer until June 16, 2024, when we estimate that the Code ZZ issue will be fixed and Code ZZ can be properly e-filed in Box 20 of Schedules K and K-1. Page Last Reviewed or Updated: 21-Mar-2024

Wow

From your original post, here are the details: 1st home prchd before 12/16/17, debt $881,000, sold 8/30/23 2nd home purchd 4/28/23, 12/31/23 mortgage balance $2,248,000. Also paid points. Vacation home - No details. Original post said none is deductible. About the vacation home - What was the reason you originally said you knew its mortgage interest is nondeductible? Was that statement merely because there are 3 properties during 2023 or some other reason? When was it purchased, and did you take this mortgage into consideration in prior years for the mortgage interest limitation? It looks like the vacation home would qualify as the second home from 1/1-4/27/23 and again from 9/1 - 12/31/23. It's during the period of 4/28 up through the date first home was sold on 8/30 where you have overlap and the problem where taxpayer owned 3 properties and must choose only 2 properties that you can say are first and second homes. For whichever property is the "third" (not the principal or 2nd home), then that interest isn't going to be deductible.

No, you must calculate the average for each separately and then add the two averages together to arrive at the amount to enter on line 7 of the worksheet. You probably aren't using the interest method, so for each mortgage you would either have the average of beginning + ending divided by 2, OR if you have lender statements you would add each month's balance divided by the # of months that mortgage existed during the year. At least yours shouldn't be terribly complicated. I've had some that were refinanced, or mixed use where some of the balance was segregated out as n/d home equity debt where principal was applied first until that portion was repaid.

Pub 936 has easy to understand explanations and the worksheet you need to calculate the interest that is deductible. You'll need to use that since you have pre- and post- 12/16/17 debt over one million. You will need the average balances of EACH mortgage and the totals are used on the worksheet. The pub also has excellent examples for you to follow. There are 3 methods for calculating the averages, and you can choose which one works to your clients advantage, depending on the actual circumstances. Points are separate and aren't included on the worksheet's calculation, BUT they will be limited based on the percentage of nondeductible interest you arrive at using the worksheet, and that reduced amount is what you will include on Sch A.

I don't personally but Googled and found this Drake KB of states that accept the Federal extensions. It shows all types of returns. https://drakesoftware.com/Site/Browse/16498/States-That-Accept-Federal-Extension If you scroll to the bottom of that page, it has additional links for states' deadlines and states that will accept extensions via e-filing.

Cigarette smoke and couldn't wait to get them out of my office. The firm I worked for early in my career had a seafood market, and the stench from its papers was nauseating. The owners knew it too because they and the kids would shower and change clothes after work. AIr out as best you can, keep the docs sealed up and in a separate area until ready to work on them, and get the work done sooner than later. Maybe you could put a box of baking soda or some odor absorber/neutralizer in a bag with the papers.

I'm as confused as everyone else by this. This sounds more like a partnership with one partner selling to the other, and that this was incorrectly handled as two proprietorships. If not, how does your client explain the shared checking account?

You have an asset sale to report on the sale of the proprietorship to the new owner. Then, as Abby said, the withdrawals of cash by him do not create income. He is just taking his own money out. Has he officially closed the LLC down with the state or keeping that open for some reason? Why is he keeping the SMLLC bank account open? He could close that at any time without any tax effect.

I think it should still work. In the case I mentioned, the husband was listed first on the return as the taxpayer and the wife signed the returns. When you check that box and create the explanation, a statement is generated that goes with the return, and "see statement" will print just below the husband's signature line on pg 2 of the 1040. The 8879 doesn't have any indication, so I'd have the wife sign both lines and keep a copy of the statement with the 8879 in your file. If that makes you uncomfortable, you could switch the wife to the primary taxpayer and husband as spouse.

I don't work on these. Glad you found your answers.

I believe if injury or disease prevents one of a married couple filing MFJ, the spouse can sign the return. There is a checkbox that will allow you to attach the required dated explanation. In Drake, this is found on the Misc tab and then on the screen entitled MISC-Miscellaneous Codes/Notes. Look to the right side of the screen where you will see "Special Signatures". Check that box and click "SCH" to attach your explanation. I used this method for several years where husband suffered from several alzheimers and was in a facility, and the wife didn't have POA, and at that point husband lacked mental capacity to grant POA anyway.

I received an email with a pdf attachment this morning from "Department of Public" stating that the FTC has evidence that my SSN has been used in NM and TX for international wire transfers to blacklisted bank accounts. The sender's email addy is some gibberish through gmail. I never click links in email or open attachments, but unfortunately when I moved my phone out of the dog's way as he tried to jump on me, I touched close enough to it on the screen this this morning to open it.

Have you tried looking at that website's Help or FAQs?

I'm with Bulldog Tom and Lion. No matter the year being prepared, if it is current work it is charged at my current rates. If the clients are late because of procrastination or disorganization, then they are paying more for that because I raise rates each year, and if the work involves me working even more on it because of that disorganization, again a higher fee will be the result.

I also had trouble this week with a multi state return where I tried to split the returns and save the spouse's file. I saved it more than once and each time the program could not find the wife's split return. I finally rolled over last year's split return for the wife and entered all of her data separately again. I did not want to waste time with support. I've had issues with the program repeatedly crashing after using the tax planner and trying to go back to the current year actual return. Program simply closes, but it may have to do with me not calculating in the planner before trying to go back to the actual current file. I also had trouble with installation and communication with Drake's server. Every time I launched the program, MS Edge would open on top of it, and the Drake tech people couldn't explain why. Some helper file didn't install properly and also was an environmental issue with my computer and anti-virus or firewall, but it did not help for the basic support person to suggest I change my internet provider from Firefox to Chrome. I could NOT make her understand that my ISP was not the cause. Many calls later, I finally got to a person that could help.

RDP= registered domestic partner. If you want to know, you could Google RDP vs marriage.

Here is the excerpt from 2023 540NR instructions regarding filing status. Not sure what your issue with this is. Seems clear to me. Be sure to expand the quote box if the entire thing isn't visible. https://www.ftb.ca.gov/forms/2023/2023-540nr-booklet.html

Lion is correct. If no 1116 is filed, then there is no carryback or carryforward.

NQ deferred comp? Many times the year-end paystub has the details in the YTD figures used for the W-2.

I agree with Marilyn. Each category of component added to that residence has a limitation that shouldn't be exceeded for that item or category of items. Give it to one or the other. Obviously the exception to this would be if they are filing separately and costs are attributable to two homes.