RitaB

12 hours ago, SaraEA said:

...Think about whom that is going to help.....

Hopefully everybody who owns 1319.621 admiral shares of Vanguard REIT Index. 

46 minutes ago, BulldogTom said:

I am glad I am not in Tennessee right now.   I declare a "hug free zone" on this board for the next 3 hours.

Tom
Modesto, CA

Hahahahaha my buddy Abby knows I'm playing.   I do love you all immensely.   ((((Real nice hugs only)))

3 hours ago, Abby Normal said:

The refundable portion only increased by $300 over previous law. The real people getting screwed are those who were in the 28% bracket but are now in the 32% bracket, with high SALT and high investment fees or employee business expenses. I have a pilot whose taxable income is going to increase by around 30k, due to losing deductions and personal exemptions.

I think it's $400. 

And your guy outta gripe at his state and locals about the high taxes.  And the broker for the high fees.  And the employer for making the poor guy pay out of pocket for work stuff.  Or is it mostly meals?  (I have never really understood why people eating out of town get a break when I don't.  I can't leave work and drive home to get food.  A girl's gotta eat, and they can pick dollar menu, too.) 

I do hate the exemption amount going to zero.  Really hate it.

17 minutes ago, Abby Normal said:

The refundable portion only increased by $300 over previous law. The real people getting screwed are those who were in the 28% bracket but are now in the 32% bracket, with high SALT and high investment fees or employee business expenses. I have a pilot whose taxable income is going to increase by around 30k, due to losing deductions and personal exemptions.

I personally think 20% is high enough.  For anybody.   Seriously, I do. 

38 minutes ago, BulldogTom said:

...This is no different than the last minute changes to the refundable portion of the Child Tax Credit. 

Refundable Child Tax Credit.  My first thought was, "Hmmmm.  They managed to cut taxes on people who don't pay [income] taxes." 

I ain't gonna tell y'all what I think about refundable credits.   I'm too busy working up in here.

2 hours ago, Abby Normal said:

I don't get it. They're pretending like we get a 4,150 personal exemption on our taxes, just as a way for people to have less withholding? Maybe I do get it, but it seems illogical.

I'd be much happier if they just let us enter a flat % that we wanted withheld. When clients call up they ask what % their withholding should be and I tell them. Then they ask how they go about achieving that, and I ask if they have a friend in their payroll department. If not, I send them to paycheckcity.com.

I think they're pretending that the Standard Deduction almost doubled and most people take the Standard Deduction.  And the people with dependents get $500 to $1,000 more in credits, in general.  Then figuring what the reduced tax amount would be on average.  That's what I think.

Honestly, I'd have to rip out my phone if all my clients needed to know what % to have withheld.  Then they'd be mad at me at filing time because they got small refunds.  Unless I want to have the whole conversation about how much do you want them to keep all year?  I'm good with leaving things alone right now as far as W-4s are concerned. 

3 hours ago, ILLMAS said:

...Houses are bought through an LLC that files an 1120S, owner gets a K-1.

7.  TP does not draw a salary, takes a distribution occasionally.

... If this person was an investor no doubt they would be paying capital gains, or if they were reporting it on a Sch C then they would be subject to SE tax.  However, by putting it a on a 1120S it seems they can avoid paying SE tax, but if it's determine this person is a flipper, can one make the K-1's income subject to SE tax?

I agree he's flipping properties.  If I understand, and "owner" and "TP" are one and the same, and he's also a shareholder, the S-Corp has to pay him reasonable wages for what he's doing.  If he's the only shareholder, I would think that would be all or most of the profits.  I realize that S-Corps are commonly used to avoid SE tax, and many are more aggressive than me about avoiding SE tax, but my Social Security checks will be bigger than theirs.

1 hour ago, Lion EA said:

And, that $500 is indexed for inflation.  Is it actually $515 or so now? 

No, it's $500, for tax years starting after 12/31/17.  Yippee, starts next year.

3 hours ago, Edsel said:

We've come a long way from finding a Missouri member who knows something about withholding.

I know, and isn't it great that we can have a little fun while simultaneously keeping your very unique question on Page 1 so all the Missouri payroll tax experts have a better chance to see it?!  Can't beat us at multi-tasking! 

56 minutes ago, Medlin Software said:

The 2018 federal WH calculations will be not require a new W4.

That seems like the most logical thing to me.   Good.

12 hours ago, Catherine said:

I still think Edsel can get his answer using the brute-force and inelegant iterative method.

This is my personal motto.  And my other motto is hug them to measure for the grave in the back yard.  My version of arbitrary constant of integration.

2 hours ago, BulldogTom said:

I did not even know what "iterative" meant until 2 years ago when I had to calculate the SE HI Deduction for a Sch. C client with the advanced premium credit.   Now I hate that word.  Pairing it with "inelegant" is perfect.

Tom
Modesto, CA

40 minutes ago, Catherine said:

Now all we need is a differential equation solution to the SEHI with premium tax credits!  Know anyone with an advanced degree in math?  @RitaB perhaps?  

No advanced degree in Math, but I’ll never forget Tom’s post on that problem. Every time I have to do that iterative calculation, I just search for “oh shit” in the ACA forum.   Yes, inelegant is the perfect word.    

49 minutes ago, NECPA in NEBRASKA said:

This kind of stuff amazes me. I don't know how people think that they can or should get by with this stuff. I would never be able to sleep if I had knowingly done anything like that.

Seriously.  If I left $13 in interest off my return, they'd put my in the cross bar motel.

20 minutes ago, ILLMAS said:

Jaw drop emoji

10 minutes ago, Abby Normal said:

Crying.  Team work makes the dream work. 

Wow, I am always surprised that I am surprised.  What an article.

And, oh my goodness, at the DIY stuff we all see.  Not to hijack your thread, Terry, but recently I was asked to amend a self-prepared return done by a taxpayer that bills by the 1/10th of an hour.  (And that's all I'll say about that.)  She wanted a dependent removed.

When I looked at the enormous return, she had a $38,000 loss on line 17 for five passive rentals, four of which had zero gross income.  She omitted AMT.   She had a sale of commercial property, and a 50,000 loss on a retail business.  I don't have a clue if anything on Sch C, 4797, Sch D is correct, but I know that the rental loss and missed AMT jumped off the page at me.  She owes IRS at least $46,000.

I told her I'd have to amend everything or nothing.  She was going to think about it, and surprise, she decided she could do it herself.  I doubt she does anything, but if she amends that thing to only take off the dependent, will IRS catch any of this?  Surely they will.  But I don't know.

18 hours ago, Terry D said:

Rita, I do itemize now and will probably not be able to in 2018. Sorry if I wasn't clear. Yes, I get the 20% which maybe my only saving grace. I will, however, reap the benefits by 2021. I plan on retiring from my teaching job by then and will live on SS, pension and business. Oh yeah, I'll get the higher standard deduction then too. Have been thinking about moving to the beach for our golden years and keeping a place here that has living quarters attached to an office for tax season. All sounds nice but time will tell.

Thanks for clarifying, Terry.  I also itemize now, even as HOH, but I'll lose my last dependent in 2018 (she's graduating with a Doctorate in Physical Therapy thank God on many fronts), so the 20% deduction will be a lifesaver when I move to Single brackets.  So glad it's a deduction for income tax purposes only.  I don't mind paying SE tax (well I do who am I kidding), but I look at that one as a pension investment.  LOL.

1 hour ago, Abby Normal said:

Yes, and I read on Forbes that Sch Es get it too, but I haven't been able to corroborate.

My little voice tells me they didn't mean for passive income to get that deduction.  But my little voice has been wrong a few times.

14 hours ago, Janitor Bob said:

Can I currently transmit Tax year 2015 electronically?  I transmitted and receive a reject from EFC stating submission year is 2016 and should be 2018?

10 hours ago, Jack from Ohio said:

When the IRS opens up e-file in a couple of weeks, you will be able to efile 2017, 2016, & 2015.  Not until then.

Remember, ATX charges $5 each for efiled prior year returns.

And when e-file opens, I think I've had to first get a rejection for prior year returns and then recreate the e-file to get the year to change.  I don't know if this is still the necessary process or not.  Or if it was never the necessary process but I just didn't know what was happening. 

13 hours ago, Slippery Pencil said:

Just received a package from Wolters Kluwer containing ATX install codes, 2018 US Master Tax Guide, 2017 State Tax Handbook, & 2016 TheTaxBook.

The ATX website states TheTaxBook Deluxe & CCH All States Tax Handbook are included in the MAX program.  I've never received these in the past.  Did they neglect to send them to me in past years or are they including completely unnecessary and unwanted items this year to justify the $200 price increase? 

Is including the previous years version some sort of bait & switch or will they send the current version?

I received the 2016 TheTaxBook (and the other two books you mentioned) when I renewed a few weeks ago and then the 2017 TheTaxBook on Saturday, I think, also as part of ATX MAX purchase.  I believe this is the first time I've gotten TheTaxBook thru ATX. 

9 hours ago, Terry D said:

On another note, if you're like me, married with an empty nest, and right at the so called middle class limits, not being able to itemize and with the loss of the personal exemptions will no doubt have a negative effect for 2018.

I think you’re going to be pleasantly surprised, Terry. Unless you mean you’ll no longer be able to itemize in 2018  I read it to mean you don’t itemize now   I’m still on the first cup of coffee.

And if your business is a pass thru, don’t forget about the 20% deduction there  

I think the great majority of my clients will pay less tax with the new law. They are “all over the place” when completing W-4s, however, so the bottom line on tax returns may be weird, but that can be explained by comparing with corresponding other lines from the 2017 return. 

3 hours ago, jklcpa said:

It's going to be interesting to see how well the W-4 choices applied to the new withholding tables relates to reality and the tax planning that we do.  

Shoot, my clients are all over the place whether the law changes or not.  It's terrifying.

"Hey, Rita, how do I fill out this W-2 thingy again?  I'm up to about eight and a half here on this worksheet blah, blah, blah..." 

Me:  Drive over here and I'll have a thingy ready for you.  Don't trouble yourself [for the love of God don't].

3 hours ago, TAXMAN said:

Looking at tax only:

2017 MFJ 70K AGI 5 EXEMPTIONS STANDARD DEDUCTION TAX =4625 (AGI WAGES ONLY)

2018 MFJ 70K AGI 5 EXEMPTIONS STANDARD DEDUCTION TAX=5139 (AGI WAGES ONLY)

Just trying to get a grip on this

Yes, looking at tax only, this is correct.  Tax is $514 more.

But if I understand correctly, if the three dependents are under 17, the credits will be $3,000 more.  ($6,000 instead of $3,000).   If the three dependents are over 17, the credits will be $1,500 more.  ($1,500 instead of zero.)  Don't think the Family Tax Credit is refundable, but I think your client is better off in 2018 either way. 

12 hours ago, grmy2h said:

@TAXMAN   I used Passkey Books and their online subscription. We have an IRS Exam Study Group here: https://www.facebook.com/groups/142932752497488/ or search "IRS Exam Study Group" on Facebook if interested.

I took part 2 first, then 1, then 3 but part 2 had questions from part 1 and part 3 had questions from 1 and 2. This was 2016.

This year group members have been reporting lots of questions on basis, farming and estates.

TAXMAN, I went thru the process in 2016 with my buddy Debbie.  I took the tests in order and feel like that's probably best.  I read TheTaxBook to prepare for Part I, and it was perfect.  I used the Passkey books for Parts 2 and 3.  Ordered them on Amazon.  Very reasonable.  Each study guide has sample tests and there is also a book with six "big" sample tests, two for each part.  I also joined the FaceBook group, thanks to Debbie.  

I started by reading all the stuff I could find online.  Here are links to places that really helped me.  Best wishes, you'll be glad you did it!

https://www.irs.gov/tax-professionals/enrolled-agents

https://www.prometric.com/en-us/clients/SEE/Pages/landing.aspx    

http://www.nsacct.org/blogs/nsa-admin/2016/06/14/24-tips-for-passing-the-enrolled-agent-exam-part-1

http://www.nsacct.org/blogs/nsa-admin/2016/06/20/24-tips-for-passing-ea-exam-part-2

19 hours ago, BulldogTom said:

Does that come directly from the redneck dictionary?

I have to share this with All Y'all...I have become addicted to the show "Moonshiners".   It is amazing to me that a show, set in America, produced by an American company, with Americans speaking english, requires english subtitles.  There are times on that show that I would not know what is going on if the subtitles were not there.

Rita, are those your clients?

Tom
Modesto, CA

18 hours ago, TAXMAN said:

hey you know if its illegal how come they ain't been caught yet?

Maybe they have a good tax gal, y'all.

15 hours ago, Abby Normal said:

U stands for urban, which probably has lower prices than the boonies. Paging /user/RitaB.

Sorry, can't help with this as I only shop in the boonies.  I will say this:  Yesterday at Walmart, my cheese about slid off my cracker waiting on people to pick a lane and /or stop discussing the pros and cons of a grocery item.  Please.  This is America, drive on the right.   Couples standing around arguing, stand around arguing on the right.  You can't have both lanes.  I was kinda mad, but it's Christmas.