Gail in Virginia

Terry, I read the post completely differently. I think what Steven was saying was that, after deducting scholarships and grants, the amount of tuition and fees was STILL $35,133. The 1099Q shows $9,300 which would reduce the amount paid out of non-scholarship, non-tax deferred funds to $25,833. Which would leave plenty of expenses for AOC.

I keep a can of Lysol and a large bottle of hand sanitizer at my desk at all times. The way my clients over-share sometimes seem communicable.

I will file returns as far back as a client can give me information to file. As far as e-filing prior years, none of us can e-file more than the current year and the two prior years if I am not mistaken because that is all the IRS is set up to accept. And as far as the client never having heard from the IRS - REALLY? Even if it was just computer generated letters that were never followed up on, I bet the letters were sent. Almost always, when the IRS grabs a refund from the current year for past due taxes, my clients have never been notified that they had past due taxes. This is the first they heard of it. Right. I know the post office occasionally loses mail, and surely the IRS occasionally misses one of these letters, BUT my money is on selective memory on the part of the client.

Sounds like it was never placed in service as rental property because he changed his mind before he made any effort to rent the property. As far as whether it is long or short term, I would say that depends on how fast he is able to sell the property. It would be a capital gain in any event.

ROFL

Did he have any wages paid? He might qualify for DPAD also.

Thanks, all! Turns out she did go to MO just to administer a test so they really do need to file as NR and pay the tax. Fortunately, VA is giving them credit for everything they paid in MO so it really doesn't hurt them except to pay me to do an extra state return. I can live with that.

I have a client who was a resident of VA for the entire year. At no time did they work IN Missouri. However, they were hired by a Missouri company to provide services which were performed in VA for which they received a W2. The W2 shows the entire amount of income as being both VA source and MO source income with taxes withheld for both states. When I complete the MO NR tax return, they are paying MO taxes on that income. Is that correct? According to the instructions, a non-resident with MO income of $600 or more would have a liability but this just doesn't seem like it should be considered MO source income since my client was never in MO. Since it was reported on the W2 that way, however, and tax was withheld I don't see much choice. Any opinions for what I should do? I can take the credit for tax paid in another state on the VA return, and will, if MO is going to keep most of the tax withheld like it is looking.

I totally agree with jasdlm. I hope you will come back, but whether or not you do, I wish you well.

I don't believe the sale information on the K-1 is reported to IRS - it is part of the supplemental statements. I have been reporting them using the 1099B information, marking the k-1 final, and following the instructions ProSeries included in the disposition section of the k-1 as follows: Note: If this is a full or partial disposition of a publicly traded partnership (PTP) or master limited partnership (MLP) that was reported to you on a Form 1099-B, enter a sales price of zero on line 5 and a basis of zero on line 7 below. Enter the 1099B transaction on Schedule D, checking the appropriate "Reported on 1099-B" box A or B.

But even though I don't want or need cookies, it is always nice to be appreciated and to know that SOME of our clients actually see us as people who are working as hard as we can for them!

I would ask some more questions. Did the mother pay taxes each year, but leave the royalties with the working capital of the oil well? And her death did not trigger income, but a payout? Or is this income to her accrued prior to her death but not paid until after her death? Maybe you have answers, and maybe it is all income for this year, but is it income for her final return or for the fiduciary return? Does this mean there is a capital investment that the estate can sell that would maybe result in a capital loss to offset the income? If somebody left me oil royalties, I would smile while I paid the taxes.

You are my hero, Rita! I have never had enough nerve to tell someone that, but I have often thought it! I love it!

Now I read it that the FAM users would get a discount TO $179 for the enhanced features. No telling what everyone else will pay for the features. Obviously, the release was not very clear.

I could easily do 9 or 10 a day if everyone would leave me alone. I don't become more productive because you call and ask if your return is done yet. Or want to talk about planning for next year. Or whether to fire your investment adviser. Couldn't some of those questions wait until after April 15? After all, I don't do anything once tax season is over, right? I think I am going to the mailbox.

I am hoping to get to church for the Maundy Thursday service tonight, but I may or may not at least partially because my nephew is coming from NC to spend a few days with me in VA. Full day of appointments tomorrow, but I WILL be in church on Sunday morning. I probably won't get up and go to the sunrise service, though, unless my son decides to come in this weekend and he wants to go. Then I am having lunch with a dear friend and her family for Easter, and I may or may not work after that. But Monday will be back in full swing. However, I am going to take to heart what you said about extensions. I have a feeling there will be more extensions this year than ever before.

Thanks, that looks like a good place to start.

I had a 1099 MISC today for rent and not only was the SSN masked for the first 5 digits, the company had masked their own ID number for the first 5 digits. I had to call and get their EIN to enter it for the program. The woman I talked to said "You must be using Turbo Tax." Yeah. Right.

I have a client that has moved to New Mexico as of 2015. He will be self-employed and we are trying to come up with appropriate estimates. He emailed me a copy of a New Mexico Department of Veterans' Services Tax Exemption Certificate of Eligibility. I glanced at the NM Department of Taxation website and did not see anything about this. Is there a preparer with experience with state taxes for New Mexico who could point me in the right direction to find out about this? And will it make any difference that they transposed letters in his last name? I appreciate any help.

I have a client that buys a Dome book where the left side of each page lists every check and deposit, and the right side gives you a place to total by the categories for the month, the year to date before this month, and the year to date after this month. At the end of the year, he has everything listed in one place and good totals to give me. Everything does not have to have a technological solution.

Truthfully, I am not sure why anyone would want to go into this business anymore. Maybe because I am tired, but I feel like I am expected to be an auditor for the IRS in addition to a trust financial adviser, marital counselor, psychologist, secretary, bookkeeper, insurance salesman, and oh yeah, tax preparer. All for about 10 - 15 dollars per hour. With no sleep. No home life. Okay, pity party is over. Back to work.

And Joan, when I am trying to figure out journal entries, I sometimes still draw t-accounts just to clarify my thinking. I agree that computers can be a "crutch" for people who don't really understand accounting or taxation. But I cannot imagine doing returns today without them - just having them to remind me about AMT is invaluable.

I mentioned the Simple - was not thinking about when it had to be set up. At this point, maybe IRA contributions? For him and her? it won't save on SE tax, but would help with income tax, provided they are not covered elsewhere and otherwise meet the income requirements.

I am not 100% sure about the SEP, but would a SIMPLE allow for the same kind of tax benefit? Increase wife's salary, have her defer it in the SIMPLE, and make an employer match. I don't think there is any requirement to have a profit to make a contribution to a SIMPLE. Of course, there would still be SS and Medicare tax on the portion that is salary deferral, but not on the match.