ETax847

Thanks for all the valuable insight.

I mailed a few tax documents back to the client via a sealed envelope, First Class Mail. The client received the mailing without its contents and a letter from the post office Rewrap unit say the mailing was damaged during processing. Has anyone ever had this happen? The client is freaking out and rightfully so.

I have a new client who was a PY Resident of Wisconsin and PY Resident of Cleveland, Ohio in 2022. Do PY residents of Cleveland, Ohio need to file a CCA return or is that only for full year residents of Cleveland, OH?

That explains it! Thanks everyone for your valuable insight. I was not aware of the change that happened under the bush administration regarding the tax treatment.

BTS, in proseries is the excluded income still subject to tax? In ATX, in the tax calculation it still is taxing that portion of income to some extent. Also, there is no credit allowed for Foreign Tax Paid. Any idea why?

I figured out what the issue was as I forgot to check a box. Now the foreign income flows through to the 1040 and is backed out from Form 2555, however, there is tax still being calculated on this income. If the foreign income is excluded, why is the foreign earned income still being taxed.

Client's spouse lived in Canada for the entire year and earned $45,000 US dollars for her work. When I am completing the Foreign Earned Income Schedule to exclude the income, the entire $45k is showing up on Line 8 "Other Income" as a negative amount. I would have expected this income to just be excluded not be a deduction. Any idea as to why this is being reported as it is on the 1040?

The house is in the husband's name so he is technically required to pay them. The wife shares the expense by paying 50% of the property taxes and 50% of the mortgage, but she pays her husband directly, and he pays the bills from his own bank account

They married couple are both clients, but will be filing their taxes separately. They were wondering how to split up their itemized deductions, 50/50 or is it deductible only to the individual whose bank account the payments came out of?

I have a client who will be filing as MFS for the 2022 Tax Year. He made the property tax and mortgage payments from his bank account in 2022. His wife paid for 1/2 of these expenses throughout the year. Are the each allowed to claim 1/2 of the prop taxes and mortgage interest, if the payments were made only from the husband's bank account?

https://www.kiplinger.com/taxes/irs-delays-new-form-1099-k-rules You are correct!!

Appreciate everyone taking time to respond to this. Glad to be having these discussions ahead of the craziness that is to come with tax season.

Prospective client will be receiving a 1099K from Stubhub for his ticket sales of his baseball season tickets over the past year. Is this income to be reported on Sch C or Sch D?

It's definitely interesting given that he devotes 2-4 hours a day in research for his sports bets. He is trying to make the argument it is no different than a part time job. He keeps records detailing his bets, has a separate bank account for this activity and has a profit motive.

Prospective client has made $20-40k in gambling income for the last 3 years. Prior to me, he has been claiming this income as self-employment income on his Sch C. He says he devotes 2-4 hrs a day to gambling on top of his regular W-2 job. Has anyone dealt with anyone who claims to be a "professional gambler"?

New client had AMT of $50k in 2021 due to exercising his ISO's. In 2021 he has not exercised any Incentive Stock Options and will not have any AMT. Is he eligible for the Credit for Prior Year Minimum Tax on his 2022 taxes? Where is the unused AMT credit and carryforward captured in ATX?

With costs for materials at an all time high, by what percentage will you be increasing your tax prep fees?

Client's uncle passed away recently. Client sold uncle's business via an installment sale to be paid out over 5 years. Does the client inherit his uncle's basis or does he get a step up in basis? I'm wondering what the tax treatment of these installment payments received by the client are.

I did it today. T he 2 FA is nice to see but the systems has some bugs to work out

Indiana no longer has a separate tax return for amending Tax Returns for 2021 and beyond. When amending an Indiana 2021 Tax Return, do you know where to include the tax liability previously paid with the original Indiana State Tax filing?

I bit the bullet and renewed.

My new atx rep is impossible to get a hold of. When I dial the sales line, I'm on hold for 60+ minutes. Anybody having much luck communicating with their rep?

What are they charging you this year?

I was notified that I have a new ATX Rep midway through Tax Season. I still have yet to receive my renewal notice. Not sure if I'm supposed to proactively reach out or continue waiting for my "early bird" deal.

On the K-1 it shows up as "Other Portfolio Income". Randall, what adjustment did you make on the K-1 or 1040 to have this flow through as retirement income?