MsTabbyKats

I divide the season into three segments. 1. Jan 15 to Feb 15.....the early filers....always in a rush 2. Feb 15 to Mar 15....they aren't in a rush...but want a timely return 3. Mar 15 to Apr 15....the ones who have put it off, the ones with complications, the last minute people Period 1....stressful...busy and coming off a long period of "not doing much" Period 2...relaxed...nobody is demanding their refund "yesterday" Period 3....stressful....but more "in step" with things...can handle it better....and plan to outsource if it becomes too much DH has a motto....."Work smart...not hard". Nothing is more important than your physical and mental health. ETA....however...I only do personal returns

It's e-filed already. He's was a grad student. I really wanted to know for future reference....I have a more complex one (movie producer) to do tomorrow.....with a lot of Schedule C income....and he travels a lot.

OP- Before you know it, we'll have the "March Lull". You'll have plenty of time to catch up. I used to let this get to me also...the last few years I've learned to put my needs first. But, yeah...I find this part of the season very stressful.

I am having a senior moment! On a Schedule C (client lives in GA...but did an internship in DC...Box 7 income)..... Can he take the lodging per diem? Or, just "Meals & incidentals". My research is very vague....and I 'm leaning towards just the meal portion of the per diem is allowable on a C. I don't think he needs the lodging...he may have stayed with someone...but I just want to know for my own knowledge.

I'd do a C for $700. Then, as an expense write off $700..as "employer misclassification....income included on W-2".

I hate to tell you this....but I like those screens. Yes, it takes a little longer...but I have more confidence that things are correct. I don't get the 9.99 charge. Are you clicking on "prepaid"? I used, thru TRX, Taxwise...and although it saved me 30 seconds...I prefer this. In addition I use the Q&A also...if I have a question. And on every state other than NY...I do the Q&A. What I like is that the program is written for the non-professional.....and does not assume you know everything....as other programs do.

Wow....I think some of you should take a break...relax. First of all...it's common for someone who started a thread to refer to it as "their thread". FWIW...I use Tax Act too....and I love it. I haven't had one problem or issue yet. And, when I read all these posts about "how to do this"...or "how to do that" on ATX...I thank "the tax gods" that my program is great. I hope that doesn't offend anyone. :)

It might be easier to ask the employer.

I'm confused or misunderstanding....but doesn't the name and SS number of the refund have to match the banking information?

You need to check Form 982....and see if the client qualifies for an exclusion. If not,,,the Box 2 amount is taxable on Line 21.

Very easy to explain.... This is a "tax free" benefit....you aren't paying tax. It's on the W-2 for informational purposes only. Since you don't pay tax.....you cannot deduct it, You can only deduct things from your taxable income that you have paid tax on.

I agree ....line 21....it's an award

The only real ramification is that: 1-The money mom thought was non-taxable is 2-They owe quite a bit Even with the dcb....they would owe quite a bit Of course they are ahead by not paying FICA .....but WE ALL KNOW....what it's like to deal with people who owe money....especially those expecting refunds.

I gave mom no advice....just that...as she stated...unless she could get that "elusive" highest refund possible....she could do it herself. I think, IMHO, that institutions may also report the income like this might be because the recipients aren't American, and couldn't care less about social security here..AND....some tax treaties exempt people from paying the SS here...because they are actually paying it in their home country. I'm certainly not going to tell probably the biggest cancer research center in the country what to do!

I'd tell the client that her 2012 return was bs....and not to be surprised if she gets an audit. Ask her if she wants to amend it, Don't bother about turning the preparer in. It's the responsibility of the IRS to catch this stuff....not yours.

Well....in the world of wage earners....yes, they are coming out ahead....and there is no problem. But research scholars are in a different world.....which is why I am so angry about "complex issues" not existing anymore. Considering their education and what the do.....they make peanuts. In private industry he'd make $250,000.....not $50,000. Anyway....mom was told that the $5000 isn't taxable .....and I told her it was and I couldn't "force" the program.

Ok....Dad is Not a grad student. Dad has a PhD....and is doing cancer research. Dad gets paid on a grant to do research....but he does more than just sit around and think. He has active duties with his research and running the lab. If I spoke to someone at IRS....at the complex issues dept that no longer exists....the agent would have probably told me to enter it as wages (without FICA ).......and to get a letter from his dept head.....outlining and explaining his duties....and that he reported to work daily...and runs the lab. It really is an "active income ".......unlike a Nobel Prize....which is a byproduct of the research. Dealing with "research scholars" from.....far off lands.....is not cut and dry...like an American on a W-2. Again....I am not taking an active role....or discussing with I R S.....because they owe money.....and it will be very hard for mom to understand why! If they were in the refund zone....I'd spend time trying to find an agent who deals with this stuff. There were a few that I used to call a lot....very knowledgeable......not just reading those lists of questions.

As I said...each institution has there own method of reporting. Generally...someone with a 1099-misc also has W-2 income....but this man doesn't. When mom sees she owes about $5000 (and not the biggest refund possible) she'll probably come running back......ugh

Sadly...if you cannot accommodate the client.....you lose the client. I stopped allowing (I work out of my home) people coming over at their convenience. Some were never to be seen again.

Tax Act If the client were possibly getting a refund, and the IRS were available...and I got a badge number.....I probably would have entered the 1099-misc as W-2. (Assuming the rep agreed). But Box 3 could be "any income".....and when all the forms get reconciled....some time in the future....it would generate some kind of nasty letter. The funny thing was I was able to get a credit by manually entering his income as wages without a problem on the 2441....but the lines had to flow for the be benefit to work.

Gail- I've seen this kind of income handled in various ways. Sometimes the institution will issue W-2s....but without FICA tax withheld. Sometimes, and very often, it's from a foreign source and not-taxable....but the recipient isn't aware....and preparers do a C...because they aren't aware. It has to do with treaties,,,.and can get very complicated. I've amended many returns for "my scholars" who we're paying taxes they didn't owe. In this case if he got the W-2 without FICA .....the dcb would have worked. But...it is a major research institution, and I doubt they would reissue based one what my "almost client" wanted.

Yes....I know all this. But, try to explain it to the wife....who wants the biggest refund possible .....but even with the dcb owes a few thousand! She already "explained to me blah blah....."........so I rejected the job. My point with this thread was if anyone else ever had a situation of knowledge of a situation where the income was reported in this manner...and the dcb was involved. In "the old days" I would have called the IRS to verify....but I'm not going to sit on hold for an hour....to be told what I thought....and then have the wife tell me I'm wrong anyway. Thanks everyone

On W-2.....use the EIN....without the dashes

My program is adding the $5000 back to the wife's W-2 because it seems that "other income" doesn't qualify as "working".....although he's probably finding a cure for cancer as I write this. The data entry is fine.

Btw...Mr Pencil....why do you assume I did something wrong?