Margaret CPA in OH

Taxpayer died suddenly after 'estate planning' to qualify for Medicaid. She sold all P&G stock and incurred a hefty CG bill. Daughter is executor. I filed the return and daughter paid about 1/3 with the filing but there are insufficient funds left for the balance of $2150. IRS offers OIC option on Notice CP14, installment agreement or delay collection. Of course daughter and brothers benefited from the stock sale proceeds but had to repay some of the Medicaid funds used for care. They are very reluctantly willing to pay the balance due. Any idea what an OIC costs to process? I've never had any clients in that position. They think it will save a lot of money, I'm not so sure. As executor, the daughter does have the obligation to pay from estate funds but that remains only about $1000 and the attorney has yet to present his bill, 5 months later. Ideas? And thanks!

Wise decision and I misread the capital account amounts. I was thinking the figures were in parens but not reading as negative. Now I see how the number increased! I should know better, duh! Better you doing this than me, for sure.

Sorry I can't help you with this as I purged my brain of partnership knowledge a few years ago after my last one left (whew!) I am puzzled, though, how the capital account can be higher at the eoy with a loss for the year. Is there a way you can add up the income for the years you have done to see whether it is enough to cover this loss? I'm sure someone still active and knowing about p'ships will chime in here soon. My husband also wants me to retire but I have just been shedding the business returns and not taking new clients so easing along that path. Without businesses, I am still (mostly) enjoying the work even with all the credits and more. But no virtual currency! I have already declined one possible new client. Won't do it. Good luck! And remember that amended returns are an option so long as you can honestly state that the returns are true to your knowledge, in my opinion.

There is also an election that can be made to pass through the gains to the beneficiaries. I was trustee for several trusts so made this election titled, 'Trustee makes a regular practice of distributing capital gains. Pursuant to Reg. 1.643 (A)(B), trustee is making a regular practice of distributing capital gains to the beneficiary as trust instrument permits.' So, as Lion noted, read the trust document and see whether it is permitted and whether the trustee has made a regular practice of distributing the cap gains.

Have you checked Pub. 970? I am looking also at QF Handbook. It shows awards 'given for outstanding educational..winner is selected without any action on his part, winner is not required to perform services, and he assigns the prize (my emphasis) to a government unit or tax-exempt charitable organization.. is not taxable. My bold is wondering if that means giving the prize over or noting that it was received from so not sure. In Pub. 970, it says ' a scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree as an eligible educational institution...... and only to the extent: *it doesn't exceed your qualified educational expenses; and more on page 5 which you should read. I can't imagine that there was no tuition although Box 1 may have been blank because it was not paid by outside funds. Have you seen the account transcript? I have had students with scholarships that, on the transcript, show as offsetting the tuition. It would seem to start there and, if determined to be tax-free, I don't see how it could be subject to Kiddie Tax because it wouldn't be unearned (or earned) income which is taxable interest, divs, cg, taxable ss and pension payments, certain trust distributions, unemployment comp. and tribal gaming revenues (from QF). Maybe someone else will chime in here but Pub. 970 is the place to start and clarify with client any conditions of the scholarship and get an account transcript. I'm guessing the student didn't see any of it but if some was distributed as living expenses, that could be another issue. Pub. 970 has a worksheet to determine what is excludable from gross income. How nice that they give you so much time to do this 2 months after the due date and what, two whole days before kid leaves country. /s I say rush job surcharge is in order!

2026 I've read in multiple places. However, they have done a security update recently for Win 7 which supposedly was out of maintenance some time ago. My computer guy suggests to not worry. I've read several articles including one that stated that a lot of 11 features are already in 10. Also, I don't want to be the test user with multiple fixes and updates for the next year or so that seems to happen with every new OS. I'm good with 10 Pro for a while yet.

You have some good questions here and made me think about my Aussie clients. They are both paid on salary so earn money when visiting in the US. I've never allocated foreign salary earned while in the US as the visits were in the range of a couple of weeks not months. Technically, though, I suppose the money was earned while in the US. I will look this up later, can't now. It would seem to me that both A and B income would be excluded by the 330 day rule but now I wonder if the 2 months income from A in the US would be different. I would think not, but not sure. I hope others chime in.

As answered to your FB post (I guess it was you), here is a link to several KB answers. See if one applies to you: https://support.cch.com/sfs#q=xml data failed schema validation ohio&t=All&sort=relevancy&f:@commonproduct=[ATX™]

Hello! I hope you are enjoying retirement and are happy that you have popped back in here. Sorry that I don't have the answers you need as I know zip about VA taxes. Just happy to see a familiar name! Come back often.

Don't feel too terrible, Catherine. You are in great company, those of us, The Unshielded. We have nothing to hide, probably, maybe.

They are not linked. All the information needed is on each return ( names, SSNs, etc.). It would be a surprise to see tax due given the exclusion of $11,580,000. None of my clients gift that much!

It won't automatically flow as it was remitted to OH, as I understand it. There is reciprocity but that just means that the OH employer withholds for and remits to IN. If the tax is withheld and remitted to OH, the taxpayer must pay IN and file a non-resident return with OH and include Form 2023 (I think) allocating all earnings to IN and await the refund. If the employer is really small, this is not required and even some larger employers will not do it but most do. Yes, a pain. The taxpayer must take it up with OH employer.

Next ATX Community gathering at Joan's!

KlfyhaM, I would definitely call the rep/sales folks for this. You may have better luck calling tech support first to see if you can get help restoring and, if not, get a case number to support your claim to not have to pay a second time. I do a handful of clients not in the 3 states I have in the 1040 package and would be, well, quite upset if I had to pay a second time for a PPR after a software crash. Fortunately I have never had a crash in over 20 years (jinxing myself?) but would be adamant about not paying twice for something not my fault. Good luck!

So, you submitted an amended return to the State without filing a regular return? No, the state received only the original state return. As mentioned, I hold the state returns until federal is accepted. I received information after filing the federal which warranted an amended federal return. After filing the amended federal return, the original state return was then filed. As an original state return had not been previously filed, it was not appropriate to file an amended state return.

FDNY, your humor is so appreciated! Fortunately I have suffered very little in all the years (since 1997), I have used ATX. Luck? Good computer? Few problem clients? Stars in alignment? No idea but, for me, it ain't broke so I'm not fixing it and meets my needs. I like how it works and, for me, the price is right. I did begin with CCH Pro something back in the mid-eighties when I first worked at a firm but that was filling out the sheets, sending away for coding and, well, ancient technology. Now this program is like my comfy, broken in slippers.

I had a situation whereby I had submitted the federal return and, as always, held the state return. In the interim, client provided additional information so I chose Amend return on the by now accepted federal return. Nothing actually changed on the state return so it was not amended. I submitted the 1040X and after acceptance, submitted the state return. Client has copies of everything as do I in pdf form. That was in February or so. I've heard nothing and do not expect to either.

Another option to consider, if you actually like ATX otherwise, is to downgrade to the 1040 package and just pay the PPR cost for the partnerships, about $35 each. I did that and have saved a lot of money while still keeping the program that I know. I get just 3 states and have clients in 7 states so pay for the extra states but, ummm, build it into their invoice. I bill by time and it does take time to add money to the account and download the extra state/form. My renewal for 1040 is $843, a far cry from the MAX cost.

Gail is correct. Interest and capital gains are not taxable to 501(c)(3) organizations. They are not considered business income unless directly related to unrelated (purpose of exemption) business.

I pay $9 monthly for Verifyle and consider it a really good investment. There are some quirky user issues with folks not so techy but most all still have managed quite well. I will keep it throughout the year although it's possible to stop and start. I want to have the capability year round.

Patti, thank you for posting such a heartfelt message. Many, probably most, of us here have similar feelings and experiences, even some losses. We try to support everyone in the good times but especially in the hard times. Even if you don't post often, feel free to always keep lurking and do chime in sometimes. Some of us have had the great opportunity to meet in person and loved it. Perhaps you will have that available to you somehow. If not, we are here, many of us year round. Keep in touch.

I'm so happy for you all. Especially since I will not have the opportunity to be a grandparent. Disappointing for sure, but my son's life is not under my direction any longer. So I get to vicariously love and appreciate all the little ones that come into my life near and far. Hoping to get back to MA next year so maybe I can meet you again and watch you be the best grandmother ever, Catherine. Feel free to send any pictures to me at any time via PM.

Congratulations to the whole family! She is a beauty and smart too! We know because both run in the family. Enjoy this precious love.

Ag? Since you seem happy it must be your happy place so enjoy!

Did the taxpayer file as single in 2019? Is the income high enough for 2020 to reduce the amount by half? It does seem odd assuming you followed the worksheet and input 0 received in both places. I had one like that but it worked just right.