Gail in Virginia

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.

Thanks all! Sounds like it is going to be close for this particular taxpayer, but no way to tell for sure.

Actually, one employee, or two or three. there isn't much difference in how much trouble the payroll is. If $1300 is their per pay period cost that is outrageous. On the other hand, if it is a weekly payroll 52 weeks per year, that is about what I would charge just to do the payrolls - $25 each, plus an additional charge at the end of the quarter for the VEC and 941 reports. And I don't think that my charges are high.

If income for single person is above $87,000 for 2018, then in 2020 the medicare premiums increase from $144.60 to $202.40 (as long as income is below $109,000.) Does anyone know if the income figure is indexed at all for inflation, and what the amount for 2019 income would be to generate the additional premium cost? I have a client that is over by $2600 this year. I am thinking that even if it is indexed, it won't be by that much.

I am just wondering if the market value of the property had dropped, if you would have to put it in to service at the lower FMV when the use changed again....... Hopefully, that is not the case.

The way that I read the article, the first Sch C would be eligible for QBi while the second sch C would be from an SSTB and would not be eligible if the income in total is above the thresholds. That was not really clearly stated in the article, but was implied when it referred to that income as SSTB income. This is just an article and not something that can be relied on even thought the source is reputable. I agree with CBSLEE - good luck!

Maybe in addition to the codes for thrift sale price, or consignment shop price, we need one for overstatement of value by taxpayer against advice of preparer. That wouldn't throw up any red flags, I'm sure. And then IRS could develop an algorithm for how high it has to be before they decide to audit. JK.

Just be sure they are AFTER tax contributions, and not before tax. Not always easy to tell from a pay stub, and taxpayers never seem to know the difference.

I agree with Rita. If the mom remained in the house, continued to pay the taxes and upkeep, then she had the "incidents of ownership" and has an implied life estate. IMO, they may be able to get the step up in basis. But, as always, it depends on the facts and circumstances.

I can't help, Catherine. I have one client, an NP Anesthetist, who does some of that but does it on a regular enough basis that we have always treated it as SE income. I would tend to agree with your thinking from a logical standpoint, but logic does not always have much to do with taxes. On the other hand, if he is an expert in this field I would suspect that it at least relates to the way he makes his living and could therefore be considered an extension of that and be the reason that IRS considers it subject to SE.

Lion, to get back on track. If the payments were considered reimbursement for travel expenses rather than payment for participation, then they are not taxable. If the participant in the study has a "rare" disease, then under the Ensuring Access to Clinical Trials act of 2015, they may not be taxable. I found this article that may help you to find further information: https://forteresearch.com/news/payments-to-research-subjects-what-is-taxable-income/

ProSeries will also split the returns.

Not a question I had ever considered. Thanks for the info!

I believe that INH-2010 refers to property from a person deceased in 2010 whose executor made the election to file form 8939 for the property. That is the form for the allocation of an increase in basis for property acquired from a decedent.

I don't know what, if anything, you can do at this point that won't make matters worse. I feel your pain! Maybe someone else will have a suggestion, or if anyone says something about the someone else on the list, I guess you could always blame it on two lists getting mixed up but I don't think you can take it back at this point.

Virginia starts with federal AGI, and makes any adjustments for items that they don't conform to. I am not aware of any wage adjustments that VA is currently not conforming with, so I don't think that I would be overly concerned with the W2 not matching federal and state amounts. ON the other hand, I would want to know what the amount is that caused the discrepancy. Usually health insurance reduces taxable income as well as ss/medicare. I see this pattern more ofter with simple plans, or 401(fkk), etc. Usually that is indicated on the W2 in box 12 but not always. Out local school system does not put the retirement contributions employees make in box 12, but they do deduct them from taxable wages.

I don't use ATX so I don't get that message. ProSeries seems to attach the 760C as a form, and not require it to be a PDF.

Sometimes with mutual funds the loads (either front or back) are such that you don't make any money if you cash out quickly, which it sounds like he did. But a good reminder to look out for that!

I think I am glad that Cathy asked so Elrod would post this picture! Nice finish to the day!

Some of my customers literally do no have a computer, and therefore have no email address. Some don't have cell phones either. I don't think that I have any that don't at least have a home telephone, but it is possible to survive without a screen. Obviously, if they don't have email i can't put it on there and I don't see how they can require people to have an email address.

I think that we all agree this is most likely an employee/employer situation, but that was not the question in the OP. At least, not as I read it. I think the question is whether or not these reps can take the QBI deduction since they are being giving a 1099 and treated as self employed. And while I would hesitate to prepare the return for the "employer" in this instance because I don't think he/she is obeying the law regarding employment taxes, etc., I would prepare a return for the people getting the 1099's and I would most likely take the QBI unless there is some other factor that would preclude it (income too high, SSTB, something else) because those employees do not really get to choose their status.

Do the "sales reps" work for other companies as well doing similar work? Then I would agree that they are in business. If they have an exclusive contract with the company in state A, they sound an awful lot like employees and should be getting a W2. What kind of expenses do they have in performing this work? IF they are accepting the 1099 MISC and filing a schedule C, I don't see why they would not qualify for QBI but I am not sure what the result would be if they were audited and IRS decided to reclassify them as employees.

I sent you a pm with what I use. Your E&O insurance carrier might have one that they prefer that you use. Or if you are a member of a state professional society, or a national one, they might have sample documents that you can use. I am not a lawyer, and I did not hire a lawyer to draft the form that I use, but instead adapted one that was in use by a medical client of mine.

Is this a 2019 return? I thought that Domestic Production Deduction was completely gone this year. But maybe i missed it in the list of extenders. Box 6 does to line 23 on form 8903. I believe that box 3 and box 7 in this case offset each other and don't need to be reported. But I am not certain of that. All this is based on the assumption you are preparing a farm return.