Gail in Virginia

It does raise some questions though. What happens to a couple that was MFJ in 2018, but has a restraining order now? I think they get one check made payable to both of them. The only thing I know for sure is I am not getting in the middle of that.

As it stands right now, I believe filing extensions is not out of line. Payment has been extended to July 15 for federal, and June 1 for Virginia but both have said the returns still need to be filed on time or extended. Since VA has automatic extension unless you owe I am not really sure what that means in terms of requiring return to be filed by May 1 even though taxes are net required to be paid until June 1. And if the April 15 estimate for the federal doesn't have to to be paid until July 15, but there is no change in the June 15 estimate due date, does this mean you pay estimate 2 before estimate 1? I hate changes done on the fly like this, and trying to get information that is coming out piecemeal with lots of speculation about proposed changes. And never sure if me or my staff is going to catch something and have to stay home. Argggh!

I am curious about the extra $500 per child. Is that based on children age 17 and under? Dependent child as defined for purposes of what used to be the dependent exemption, so that students under 24 qualify? Will they use the number of children claimed in 2018, even though they may have grown up and gotten off mom and dad's return by now? Or more children might have been added by now?

IF a home birth is an option for her, that is what I would do, especially now. Too many germs and sick people in hospitals!

Thanks, Catherine.

Thank you for your help, Max!

That looks like something that would have been handled at the closing since it has to be filed within 30 days of the transfer. So hopefully the attorney would have handled that. If not, it would have already been late when I got the information.

I have a client who sold a mobile home that had been lived in by various family members in New Hampshire. Client is a VA resident. I see that NH taxes interest and dividends but not wages. What about property sales? Are there any NH preparers (or NH Adjacent) who can help me out with this?

If the decedent did not sell the stock then there was no gain. The stock would be valued for estate purposes at the value on his date of death, and if there were any estate tax due that would be calculated at higher value. But the "gain" that he never recognized is not income in respect of a decedent. At least that is my understanding.

Thanks, John. Now we know where the toilet paper all went.

I like Rita's method if there is any question about which way is best. The worksheet can be a starting point, but most programs will only do that for the federal, and sometimes the state matters too.

I fell like i have been self-quarantined for the last month anyway, since there are never large crowds in my office, lol. Seriously, I am not upset about not shaking hands and hope that perhaps that change will stay even after the virus is contained - i have arthritis in my hands and some handshakes are downright painful! Mostly, I think right now we don't truly know (at least in the US) what the mortality rate is because we cannot identify everyone who has the illness. The area I am in has no confirmed cases in this end of the state. Might mean there are none, might mean the people who have it are young and healthy and don't know that they have it. I have always washed my hands, with soap, multiple times a day. I am trying to not touch my face but usually that is an unconscious thing so I don't know if I am succeeding. I don't feel a need to hoard supplies, and I am really too busy right now to need much. I will miss March madness, though!

Ever since this started, I have wondered if Chaz, Janitor Bob's friend that stands on the corner and drinks warm Corona, has anything to do with it. I don't know about drinking corona warm - does that cause disease?

And even if it was business related, how would the airline know that? Surely they don't think all the people who fly business class are flying on business trips?

IMO, yes. If the account was titled in the daughter's name, then the parents contributed to it when they set it up but the account and any earnings thereon had become the daughters and would be funds considered she provided for her own support. If the account was titled in the parents' name as guardians for the daughter, you might be able to argue that either way. This is not a researched and verified opinion, just a gut reaction.

I can only see this as taxable income if it were first deducted as an expense. So if this is a business trip that they paid for last year, and they are cash basis taxpayers who deducted it last year, then potentially it could be income if they get a refund this year. BUT I don't see it.

Life is full of trade-offs. Yes, they have to pay both halves of the SS and Medicare, and they are probably not covered for unemployment. On the other hand, they are probably paid a higher rate per hour than they would be if the employer had to provide benefits. If everybody is happy with the arrangement, who am I to rock the boat? I am bothered when whoever hired them doesn't explain this from the beginning but as long as everyone understands the rules of the game, I think it is reasonable even if not technically correct.

But for 2020 she has the intention to remain in FL, and has sold her home. I assume she has changed her voting registration (if not, she should), her driver's license and anything else she can think of to show her intent to become a FL resident. So hopefully this will be the last year she files a VA return.

My understanding from reading the IRS instructions is that as long as the check is payable to the charity, it can be sent to the client for delivery to the charity. But I agree with what has been said.

I think that is politician.

And maybe we are just paranoid. Hard to tell anymore.

Even though you are not in a disaster area (and since you are in DC I would beg to differ - I think that is a HUGE disaster) you can take out money to loan to a child, parent or other dependent for their disaster in another part of the country. I believe there is only a brief window of time that this is available, and that you are not forced to stop contributing to your 401(k) the way you ordinarily are if you take a hardship withdrawal. I don't know all of the details.

Many times, they don't realize they have been given a 1099S. It is just in with the huge packet of papers they received at closing and which they never looked at except to sign where the attorney pointed.

If it is inventory, wouldn't that make it ordinary income? Whereas investment property would qualify of capital gain treatment? Or maybe not. I don't know much this time of year.

The problem with the free services is that they assign the phone number. I am afraid if I change (or eliminate) my fax number, clients will find an old tax return or business card and fax something to me that will go God only knows where. Even if they have never before faxed anything to me at anytime.