Margaret CPA in OH

I am not familiar with a SSN as a Payer's PTIN. A PTIN is a preparer's number issued by IRS beginning with a P followed by 8 digits. Maybe I don't understand your question.

Those clients are now ex-clients. I am not interested in this new and exciting area of tax. Feel free to offer your services and I will be happy to make referrals.

One of my clients never received her PIN by mail but I helped her set up her own account. She was able to receive it through that method so we could file her return.

I don't know about 'normal' but understand your feeling. I just completed the return for a client who sold off all her stock and withdrew all her IRA funds, etc. to become eligible for Medicaid. The cash went to the daughter and son, of course. But the client died in March unexpectedly and now the estate owes several thousand dollars. Daughter and attorney of course state that there is no money in the estate to pay the tax. I know its legal but.....

I certainly won't chew you out and am interested in learned responses. Neurosurgeon client decided early 2020 to form LLC for 'real estate investment and creative services.' She has now a rental property and lots of other 'business' expenses not really related to the rental but no business activity. How does an LLC have both Sch. C and Sch. E? Is your client an LLC or just sole prop.?

In my engagement letter, I stipulate a deadline by which time all, and I mean ALL, data must be received in order to timely file. If this isn't met, I caution that I may extend their returns at my discretion. It depends on my workload and how I feel. If I do extend, well, that costs extra, but I don't charge extra for preparing the return. I bill time. As it happens, many of the late comers tend to email and drip documents in bit by bit. Sooooo, every email I read and respond to and every document I address, well, I'm billing time. At my age and situation, I will not go to extraordinary lengths to complete a return when my conditions are not met. I'm fortunate with the majority of my clients and not afraid to lose one that doesn't play well with me. YMMV

Ummm, I'm now with Judy on this having seen the way to go through Line 2 on SE. I tried it on a return and it flows just right. 7.65% is the reduction for the SE tax calculation so comes off Sch. 1 Line 14. It works and thanks again to Judy for ferreting this out. If this ever arises in my practice, I would not use Sch. C. I would follow exactly what works on Sch. SE. Good exercise!

So sorry you aren't feeling so great. And yet isn't it interesting how some of these things just bug us and we can't let go. ATX does have a jump from Line 2 for adjustments up or down and blank spaces where one could input, I don't know, embassy wages or something more erudite. Than it does actually discount by 7.65% for the tax and half goes to Sch. 1 II line 14 as it all should. Once again, Judy comes through, even in her discomfort, to lead us to the right path. Thanks as always, Judy! Now feel better soon. I know I am delighted to have learned so much from this exercise!

As the form specifically addressed this situation and had a space for the code, it was easy enough to type it in. All good.

Right, I read that but it was the 'making the software do this' that tripped me up. And even then, if hand preparing, which line does one fudge and answer less than truthfully? Again, happy I am not faced with this. There should be easier accommodations for such situations especially given Pacun's litany of the number of possible employees/not self employed required to file SE in this situation. Good luck with your solution, FDNY!

I had the time, belt and suspenders, figured it wouldn't hurt, etc. I just hope it doesn't take years for this to be resolved but now out of my hands.

Judy, thanks for the links but I didn't see specific ways to address compensation on a W-2. Which leads to Pacun's statement to report on Sch. C. However, unless the W-2 shows statutory employee and can be listed/input as such on Sch. C, I don't see this as a solution, at least using software that has restrictions. I'm glad this isn't my client and problem but always good to learn about different wrinkles in our tax and reporting system.

Did that, good idea.

Well, he isn't self employed but he is required to file Form SE and has to pay both halves of the SE tax so I would argue that it is correct to deduct half from his taxable income. In my opinion, the math works more fairly but it is your client and you and client sign the return. It's a weird one for sure.

Well, I guess so long as the employee is aware and you can override where needed, it must be acceptable. I suppose the embassy is a special employer in this sense. Perhaps you should counsel this client about making estimated payments. I do see where there is an additional 'allowance' included to mostly cover the employer's portion even if taxable. At least it is something. And by deducting half of the se on the return, that's about the same as being taxed on the full amount of salary/wages but having 7.65% withheld. So just paying some tax on the extra amount included for employer FICA isn't too bad. I will assume employee is well enough paid to accommodate this extra effort and gets a portion of tea and crumpets daily.

Sorry, I don't have an answer but do have a question. By 'tax ID#' do you mean Employer Identification Number ? If so, I am curious how that could be as, to obtain one, I thought, by definition, one became an employer and responsible for withholding taxes and remitting appropriately. This is weird and seems unfair somehow. You mention second year client - what did you do last year?

Do you mean a print of the reject? I have listed on the form the code R0000-507-01 and have advised the clients to include documentation from the agency substantiating foster position. I also will advise to mark each page "ATTACHMENT TO 2020 FORM 1040" and list taxpayer's SSN. I have a stamp I could use but they are distanced clients and have the documentation.

Never mind, I was using the wrong search terms. Found it, 8948.

I've forgotten the form to include. This client has 3 foster children and, no surprise, SSN's of two already used. So they want to paper file knowing the time delay. But I seem to recall I have to add some form to explain. Or not?

Matthew in the PNW, we all hear you! I've been postponing retirement for some time, even completely shed all business returns a few years ago. But so much now affects even my individuals, all long time folks, that it is increasingly frustrating. Lucky I don't have to consider another career move, just have to stop. Best of luck to you in whatever you choose to do. Peace of mind is really valuable!

Congratulations to your son, Medlin Software, and his parents!

I guess I am happy for you that your solution worked but wondering how, if daughter was, in fact, court-appointed representative you could mark C that she was not and then send in the court appointment. Curious...

Please share the final solution - inquiring minds want to know!

The one I efiled in February was just like mwrightea. I think the problem is the OP stated way back in the beginning that the daughter was a court appointed rep. If that is the fact, then it seems one must follow whatever the rules are. Don't complete Part II and attach the certificate. Out of curiosity, I looked at the instructions. It seems odd the for Line B, that should be checked only if claiming a refund for decedent on Form 1040X or Form 843. So maybe add Form 843? The instructions seem to support this.

Curious - how can client own rental property personally and pay the mortgage personally yet the rental income be reported on a partnership return? If the partnership gets the income, why does the client own the property and pay the mortgage? If the owns the property and pays the mortgage, why does the partnership receive the income?