Possi

I'd say she inherited half, or 75k. Purchased $15k.$ I say $90k. Let's see if I'm right.

I employ my own self, I swore I would never fire me, and I have to pay VA Unemployment tax on myself, so I would say "yes." She is every bit an employee to you as I am to myself, as long as she is receiving a W2 from you. Their response to my absurd question about insuring myself was, "if you close your business, you can collect unemployment." It's not a lot of money, but filing is cumbersome. I make the bank do it for me. LOL I hate accounting, but I love taxes.

I use Carbonite, too. Their price is really high now. I pay it because I pay for service and peace of mind. But I don't have to like it.

I get tips all the time! "Get a haircut" "Lose some weight" "Exercise more" I write them off!

Was that his only income with no other employer offering insurance through employment? If so, then yes. He is self employed and gets the deduction.

I always start with the actual account detail from the school. I check it to see how much was paid by the taxpayer, how much with student loans, and how much was free. Use this to either equal (or justify) or exceed the 1098T box 1. I have been called on the mat too many times NOT to have that documentation in my file. To justify the 1099Q distribution, you can add the other deductible education expenses (which are allowed for that particular distribution) so that none of the earnings become taxable. There are much smarter pros here that will chime in with many more details, but I just thought I'd get it started.

Thanks for that validation.

Hey, y'all VA preparers... I know about the VA 529 plan tax deduction to the state of VA, but riddle me this, Batman... My client contributed $2k to a Coverdell ESA, and I do not believe VA offers a deduction for the Coverdell. I have googled and searched the VA website, and it takes me to the 529 plan every time. Am I correct that the Coverdell is a different animal, and none is deductible to VA?

LIBERATING, isn't it? I know @RitaB would be terrified! LOL I started doing that about 5 years ago, and wrapped it up 2 years ago. I have a very small office and no room for all the paper. It was so free-ing.

I don't think a dependent gets a check. No.

I had to hop on a different computer, so I had to create a different ID last night... But I'm still me. I gotta be me.

I'm sorry, I just saw this. No, the penalty waiver for VA is only from MAY 1 - JUNE 1.

I had a client's ex doing this, too. We never let it slide. I also included additional proof of dependency with my client's return. She eventually learned. I believe she was claiming EIC and the IRS nailed her for it. @cl2019, encourage the client to file early in the season.

If the child filed a tax return and claimed his/her own exemption, that return will need to be amended first. If another person claimed the child, a paper return needs to be filed. When this happens to me, I make sure to attach some proof of dependency in addition to the 8867.

When my clients do that, I don't remove the Sch E, but I stop all depreciation on the date they moved back. Taxwise won't attach it if there isn't income and expenses. I just have to be sure it's clear. That way, if they decide to sell, you'll have that record of depreciation for recapture. I'm sure others will chime in on this.

My clients moved to Hernando, MS and will be looking for a tax pro near them next year. Any takers? I do a lot of long distance clients, but they prefer a local and I honor that. Long distance clients are a real challenge so I'm encouraging the move.

You may not need to amend IF you originally included the MIP on the federal tax return. Virginia sent letters adjusting the MIP OFF the original VA return, so I pulled them aside to amend later. VA saw the error and reversed every one of mine, and I had about 6. So, check with your clients and see if they got letters disallowing it, and allowing it back.

I'm waiting to see what everyone else says because they are much smarter than I am. I always go 27.5 on HVAC and would not have even entertained the thought of anything else. You make me pause and study a little deeper everytime you ask a question *I think* I already know the answer to! LOL So, I say 27.5 and that's it, like you said, but wait... I'm sure there's more!

I think it is because of the new deadline. There isn't a penalty for late payment until June 1. They will charge interest but not penalty. On mine, I zeroed out the penalty, got rid of the form, and informed the client that they might get a love letter. If they do, send it to me before paying it so I can check it. VA has been in the dark ages all frikkin season.

Thank you, y'all! I had no idea what I was getting into with this check issued. What a rat's nest. But, I'll get it unraveled. I have FIRST sent an email for client to forward to accountant. He just might have it, and he very well MAY have issued this information to client. God Bless y'all on this Easter Day and always!

Are you saying I can add all of his K1 income for the years he was a member, and that becomes his basis? Or just this one year? It was a regular check. He as a W2 for about $85k. This pay doesn't appear to be from any regular payroll, though. Just a straight check.

I asked him if he loaned the business any money and he said no. He never even invested any money in the business. I just called him and we decided I would email him asking for any 1099B or 1099DIV that was issued for this distribution. He will forward that to the accountant. I'll also ask about basis. It was an ugly breakup and I get the feeling nobody is communicating with my (new) client. Before posting, I truly didn't even know what I needed from him since I knew he didn't advance any money.

He never received stock. I think this is a rinky dinky play of an S Corp. They had an argument, he wanted out, and they wrote him a check. Honestly.

New client has a K1 for an S Corp that he got out of last year. I have a pay stub that says "payout for 6% stock on book value as of today, 12-6-2019." There is no reference to a payout on the K1, nor is there a reference to basis he had other than 6% ownership. There is ordinary income of $2634 and a little interest income. So, since there seems to be no basis, and he has not loaned the business any money, would this be a LTCG on Sch D with zero basis?

Oh my gosh, I have been crazy trying to figure this out, but I finally did it. I sent an extension in for her with a $2 payment from the new account. Once that is ack'd, I'll send a tax return and get that $2 back into the new account. That should bring it full circle. THANK YOU again. My sister only gets about $1000/mo and her rent is over $700, so this will help her.