kathyc2

Unless you indicated somewhere that excess will be removed by due date of return additional tax 6% shown on 5329. Since the full amount was deducted from W2, excess will be taxable on Sch 1 whether removed or not.

Is it to qualify for Medicaid? If so, you are exposing yourself to liability if you are involved in valuation.

I found one. Had been using binding101 but cfsbinds is considerably less.

Over age 55?

I use comb binding with window linen report covers. Price where I usually buy is over 50% more than when I replenished two years ago. Anyone with a good place to buy them?

No. If properly prepared the 2023 form would have a check mark in Box 7. It's just a timing issue not a taxable issue..

Client 1- I wouldn't help them prepare form, but would tell them number of years claimed. If you have concerns about confidentiality, email parent as to how many years claimed and they can pass it along. Client 2- Try a different contact method. If emailed, call. If called, email.

DIL is included in relatives that don't need to live with you. However, if she didn't it will likely be harder to meet the support test.

It depends. See Pub 501 for qualifications to be qualifying relative. https://www.irs.gov/publications/p501#en_US_2024_publink1000220939

Have client call IRS and request to move overpayment to estimated.

New client that had ACA plan 2023 with no advance credits. I don't know why in that case they don't list what the SLCSP is on the 1095A, but they don't. They were over 400% FPL, but with new formula that doesn't preclude credits. Looking up the SLCSP and putting in on 8962 resulted in over 4K credits on amended return! I know there are people here that don't deal much with ACA clients, so wanted to let them know it's available. I generally amend close to half the new clients from this preparer, so not surprised they missed it. Don't be a Jim!

While Traditional IRA is an adjustment item for AGI to MAGI, SEP is not. Nothing of the numbers you presented preclude Roth contributions. https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income

Maybe because your question is clear as mud? The combination of Traditional IRA's and Roth can not exceed 7,000 (8,000). Having a SEP, SIMPLE, etc does not affect Trad/Roth as long as earned income is sufficient to cover both and MAGI is low enough that phaseouts aren't in play.

Client has debt that has gone through courts and he has a wage garnishment. He was laid off from job recently and is asking if tax refund will be taken. I didn't think private companies could do that, but found the following on an attorney webpage when I googled it: "For instance, let’s say you owe a significant amount of money to a credit card company due to unpaid bills. If the company has exhausted other collection efforts, and you still haven’t settled the debt, they could seek legal action and obtain a court order to garnish your tax refunds as a means of recovering what is owed. It’s important to note that non-governmental entities must first bring a lawsuit against you and obtain a judgment from the court before they can initiate tax refund garnishment. This means they must go through the appropriate legal channels and provide evidence of their claim against you. Once they have a judgment, they can then proceed with requesting the IRS to intercept your tax refunds." Has anyone had a client refund garnished for CC debt?

Does this help? https://www.calt.iastate.edu/blogpost/gifting-commodities-instead-cash-often-reduces-taxes

There were some people gung ho on this last year. Curious how many actually did it and if experience was good, bad or neutral?

Vast majority of my investments are at American Funds including some in their MM fund. I just feel better having some locally that I can access in a minutes notice in the unlikely event such as a widespread and prolonged internet outage.

American Funds has one similar. The only problem is transfers take a day or two. I like having a few thousand immediately available at my CU. I've never had a situation where I needed to have funds available that quickly, but I like the security of having it there.

I'm sure that's true. I'm guessing the majority of those that can't have eaten out at least once in the past week. It goes back to wants vs needs: you need to eat, but it's a want to eat out.

Wow! My CU pays .05% for savings account. They have a MM account that is currently 3.3% but you need a minimum balance of 10K.

I look at that differently than you. If the money was sitting in a savings account, the interest earned would be minuscule. I suppose it may vary by institution, but with my CU, I can get to the full or partial amount in a CD at any time. Only lose out on some potential interest which wouldn't have been earned in a saving account anyway in the unlikely event of an emergency.

Remember a lot of people get rich and powerful by keeping the populace poor, stupid and angry.

The majority of those who have not is likely due to not knowing how to live below their means, follow a budget, knowing difference between wants and needs, or understand finances.

Unless those years have a balance due, there won't be penalties.

I think it makes more sense to look at what the effective tax rate may be during retirement. Like I previously stated, although in the 12% marginal rate, the effective rate if often 22.2% as it make more SS benefits taxable. Then if it pushes them to the actual 22% marginal rate, they lose the 0% LTGC rate. Add IRMAA surcharge and it becomes higher. If someone is already at 22% marginal and 85% SS taxed, there's not a lot that can be done. Unless someone has a true pension which is pretty rare other than gov't workers, it's rare that I see clients in that situation. I've never catered to high income clients, so I may look at this differently than those that do. I'd say 95% of my clients are in 22% or lower brackets.