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As I'm sure most of you have seen the state of Kentucky was granted a Federal disaster relief extension of time to file and pay until November 3rd, 2025. Should I also file a form 4868 for these folks? I don't want to file 4868's and then find out that the filing of a regular extension interferes with the penalty abatement on tax due granted under the disaster relief extension.

It is individual coverage

Anybody figured this one out yet? Have a client, age 66, with W2 showing $5700 for employer HSA contributions but ATX isn't calculating any tax on the excess contribution.

Kentucky is slower than molasses when it comes to debiting payments. I encourage as many of my clients as possible to utilize direct debit for payments, mostly because my confidence is the postal service is declining rapidly.

I have a client who started a new business with a friend in 2024. They opened a vendor mall where they rent spaces to local crafters and such. The two of them run the shop daily and all sales are run through the main register. My clients collect and remit all sales tax and then pay each vendor their net sale amount after sales tax on a monthly basis. They do not collect a commission on sales so their only income is the space rental fees. They also do not own the building they operate out of. Am I thinking correctly that this is a non-passive activity and that the income and expenses would be reported on page 1 of the 1065? What are your thoughts?

No. Only the lot was used to secure the mortgage.

Thanks. I will take a look at that code section. The lot is just protection to keep someone from building right on top of them.

Client purchased an unimproved lot that adjoins their principal residence property. Would the interest on the mortgage for the unimproved lot be deductible? My gut says no because there is no qualified home on the lot but then I think is it an "improvement" to the home? I know I'm probably overthinking it but what are your thoughts?

I had this form show up in one of my SE returns for the first time today as well. In my case, I had used the worksheet linked to Schedule 1, Line 17 to enter the amount of the premiums and then when I saved the return this form showed up. As I understand it from a quick google search, it is a new form for use in calculating the self-employed health insurance deduction and according to ATX should be attached as a pdf to the e-filed return. I haven't seen it in any of my non-SE returns....yet.

Whoever claims the dependent will claim the education credit regardless of who pays the tuition costs. You will just enter 2 1098T forms on the education expense worksheet.

You can also use the "Status" column in the return manager. Just type into the field a short description. For example, I use this column to indicate when "ready to pu", "done", "awaiting info", etc. You can type in whatever works for your office

I usually have a few stragglers every year. I always file them and (knock on wood) we've never seen any penalty notices related to the late filings.

This is the first year he has had employees.

943 is filed at the end of the year, not quarterly. They are H-2A agricultural employees.

I used it last year and renewed again this year. I had one client who received a letter from state taxing agency disallowing her charitable contributions, which were, in part, related to a large carryover from 2022 (I didn't use PP in 2022). The client also happened to be a good friend so I used her as a test case. Turned everything over to PP. They communicated directly with my client and sent me copies of all correspondence along the way so I was kept in the loop. It was a very positive experience and the matter was resolved in favor of my client. I did raise my fees by $20 last year to cover the cost. We explained the benefits to each of our clients at pickup and almost no one complained about the increase - only 2 or 3 out of about 700 clients.

You have to have an EIN for the Form 8809.

I have a client who has been in the US legally for many years and became a US citizen in December. He is a farmer and has agricultural employees. He tried to apply online for an EIN number once his citizenship was finalized but the application wouldn't go through. He called the IRS and they advised him to fax a completed SS4 and he should receive his EIN within 5-7 days. We have waited to file W2 forms hoping to receive the EIN letter but it still hasn't arrived. Deadline is upon us. Any idea how we should proceed? Can't file for an extension because no EIN. I can paper file and show "Applied For" in the EIN space but I don't have the red/white Copy A forms. Is that a problem? I haven't filed paper W2's for years so I don't know if I can use plain paper or not.

Thanks everyone. My client is Old Order Amish so no drivers license to change. The property was under contract prior to the time the physical move was made. It just did not close until after the move. The farm was actually split into two tracts when sold - one was unimproved farmland and the other was the sawmill and the house and lot. The house was built on the property after original acquisition in 2010 so figuring the exclusion for principal residence was not too difficult. I will talk to the client to see if residency in WI was fully established by the date the closing occurred or if there was still a lot of going back and forth at that point. Thanks for your input.

I have a client who moved from Kentucky to Wisconsin in mid-April of 2023. He sold his farm and sawmill business and all related equipment located in Kentucky in May of 2023? Which state do I report the gains from the sale of the farm and business property to?

I agree wholeheartedly. I haven't been here much this year because it's been a crazy season for me but I always know that this is a place I can turn for good sound advice and knowledge. Thank you to Eric and to all who participate here. You are all appreciated very much. That said, I made my donation today.

Are you using the clergy worksheets provided in ATX? I believe it's worksheet 3 that calculates the SE subject amount (salary, Sch C profit and housing allowance less expenses). I usually right click on the business expense line and create an itemized list there. Then everything from that worksheet flows directly to the Sch SE.

Thanks everyone

I have a client asking if donations to private family cemetery are deductible. The cemetery does have an EIN but to the client's knowledge has not filed a Form 1024 for recognition of tax exempt status. I've done some research but can't find a satisfactory answer. Does anyone here have any experience with this type of thing? Thanks in advance!

In my situation, they are going to issue a 1099-NEC for the total amount paid, showing both the salary portion AND the housing portion as non-employee comp.

My question relates to the proper way to report ministry income. My husband is a minister so I'm pretty well versed in tax returns for ministers. I have a new client who is a minister. His pay was properly allocated between salary and housing allowance. The church wants to give him a 1099NEC but the proper way to report the income is on a W2 so that the salary portion can be shown in Box 1 and the Housing Allowance portion can be shown in Box 14. My question is can the church furnish a W2 when they haven't filed any 941 returns during the year? The 941 forms would've been informational only because there was no federal income tax withholding and the wages weren't subject to social security or medicare withholding. Thoughts?