NECPA in NEBRASKA

UPS employee retired and sold all of his options turned into shares. I am confused by the 1099B and supplemental information. Part of the sale is covered and they show cost basis and long term gain on the 1099B as being reported to the IRS, the remainder shows no basis. On the supplemental information, it shows all of the detailed transactions beginning in 1996, the proceeds, cost or other basis gain/loss and ordinary income. It's the ordinary income that is confusing me, I have checked all of the W2s and there is no code V on any of them for the past 10 years. Every one of these is long term, but I can't tell if there was any income ever reported on his W2s. Should I just make an adjustment so that the ordinary income amount is treated as short term? I'm sorry for being so dense. Thanks!

I spent my morning texting and talking to my son who was sitting in airports on his way back from spring break in Panama City Beach. He started in at 5:30 and kept it up so that I only got an hour of sleep until I went and picked him up at the airport so that he could hightail it down to KS to see his gf. I'm not complaining, just really tired. My husband says I'm nuts and should tell him to leave me alone, but he's almost 21 and it won't be long until he won't bother with good old Mom as much. I think that life is too short to put everything else in front of family.

Rita, I have someone like that every year. New cars, kids wedding, premature distributions every year and cancellation of debt. I just do the returns, I'm not their Mommy.

Done! Thanks, Eric and everyone that has helped me so much!

Judy, I'm going ahead with my outside salesperson and using the de minimus election. He has a lot of expenses for supplies and office equipment. I may very well be wrong, but I'm tired of trying to figure this stuff out. I saw that the AICPA has designed a new letter to have client's sign that they were informed and allowed their tax preparer to use the simplified version and not the 3115. They are worried about law suits. I can't get it yet, because I only belong to my state society, not the AICPA anymore. I'm hoping that CNA will come out with a letter so that I can see it. I am so tired of having to study my butt off just to do what used to be a fairly straight forward return.

If they are non-cash, I enter them separately.

That's good for cash flow and your sanity.

I would think that you could ask for copies of returns, if they can be found, but I'm not sure that the entire file should be released. I'm just thinking about if there should be anything that came up after the preparer's death, someone might need to be able to look at those records. It's just off the top of my head, but it may be a legal question or question to their E & O insurance.

My step-daughter received one on her answering machine and she called them back. Fortunately, she doesn't think that she gave them any information. I can't believe that as much as I preach to my family members about fraudulent calls, emails, etc., that she would be so gullible. It's been all over the news and in the papers here. She's also one that let the "Microsoft" people into her computer after being warned many times. I guess this is why there are so many scammers.

You do not need to file an IA return unless there is IA withholding on the 1099R. It should be taxable where she lives.

How are you getting that many out so fast? I wish that I could. Even most of my simple ones, seem to have issues with the TPR and I am not going to do all of those 3115's or figure out the changes before 4/15. I'd never get the individual ones touched. It seems like no matter how many classes I take, I end up thinking I'm doing something wrong.

I work year round. I would love to get rid of my payroll clients, because I hate quarterlies. I won't take anyone on that needs live payroll now. I still do bookkeeping and am so far behind until after tax season.

You need more information on the Scholarships and Grants. They are more than the tuition paid, and would normally negate the credit unless, you can apply the scholarship to other non-tuition expenses and make the scholarship or grant taxable. It really helps to get the burser or cashier's statements, since the 1098-T is not very reliable in many cases. You also need to get qualifying books and supplies, because those are not generally included in the 1098-T.

I just read an article somewhere about how they can turn around and bite the family in the rear. They don't realize how much they can cost and it can really mess things up when they pass away. I think that I read it in our local paper. I only have one client that has done it and they did not ask me before they did. I worry that they will eat up all of the equity in the house before they die.

I'm still behind. I will have a lot of corporate and partnership extensions along with the personal returns.. I will extend the normal ones that file an extension every year. Anything that comes in after today is a crap shoot whether they are extended or not.

She called me yesterday. Her son had $5,600 in w-2 income, not under $3,950 as she had thought. The other guy goes to the court house every month to pick up a check for being shot. She doesn't even want to know about him being shot. I'm sure that she is sorry now that she even told me they were there. She does not know if his income is taxable. He has no address and changes burner phones every few weeks. I don't think that he would be living with me anymore, but what do I know?

Dear Client, it is not necessary to continue to ring the office doorbell every 10 seconds. I actually heard it, because it is very loud and rings on both floors of my house. I am sorry it I don't hurdle my huge desk, hang up the phone or get out of the bathroom in enough time to get to the door immediately. The closer it gets to April 15, the more little things tick me off.

Thanks, Judy. I have not heard anything back, so maybe she found out that they did have some income and she just did not know it. I already know more than I want to. Fortunately, they aren't my clients. If she has to pay the penalty, she will.

I guess I could have heard wrong from my classes, but I understood that no individual policies from the exchange were allowed from a corporation, especially if you are getting premium subsidiaries. I can't remember anything anymore.

One of my S Corps brought in their W-2s to amend for their health insurance and also brought in their 1095 from the exchange for their personal return. I told them to stop paying the health insurance out of the S Corp immediately. Now we have to check and make sure that our client's are not getting their insurance from the exchange. Mine were also getting premium credit. This is such a pain!

Nebraska did not expand Medicaid. Both of the boys have addiction problems, so I doubt that they have even applied for anything. It may have been unaffordable for her, since she could not get them on her employer's insurance.

Terry, I'm so confused on the S-Corp health insurance, that I won't even try to answer. There are way smarter people than me on here. The life insurance should be officer's life insurance and is not tax deductible. It should be a Schedule M-1 item.

I have not calculated the penalty yet. The return just came in today and I won't be working on it for awhile. I was just asking if they had to be insured. She had never even thought about taking them as dependents before today and sure as heck wasn't thinking about ever getting insurance for them.

She should be in the 15% bracket. The head of household will help her for sure. I fell terrible for her, because her son's drug problem started after his dad died and she is just a wreck. That's the biggest problem with knowing my client's so well and so long. I was drained after she left, because I've known them since her son was young through church and other activities.

Sad story. Husband died in 2011 and wife is struggling financially. She has health insurance through her employer, but would not be able to get it for her 32 year old son and his friend that live with her. They have both lived with her for 18 months. The friend has no income and her son has $2,400. I don't know if it's worth it for her to claim them as dependents. The return just came in today, so I have not gone through the penalty form yet. She just wants to know if she should even bother trying to claim them. I know that on their own, they qualify for exemptions. Thanks.