NECPA in NEBRASKA

Yes, both of them did.

A client brought me in their W2-s early, because I have always amended them and put their health insurance in Box 1. I was going to add it to to their FICA taxable also, this time and change the 941 before it went out. Fortunately, she brought in a 1095 and I realized that this year, they bought it on the exchange and got an advance premium. That's totally a no-no with a corporation. I wish that their broker had not told them that it wasn't a problem. My question is, do I add it to their income as I was going to or take it as distributions. This is fixed now. I had already told them to stop the withdrawals from the business account after the DOL ruling, when I thought that the insurance was a normal individual policy. I hope that I don't run into a lot of messes like this later on. I am leaning towards the distributions. Thanks for any ideas.

Thanks for all of the great ideas for my hands. I've been using Working Hands, but it doesn't help my cuticles. I already use stress relief lotion and wall flowers. I'll try anything that might help my mood and I love the smell. You guys are the best!

This is how I print most of my returns. It's probably more steps than some would want, but it works for me so that I don't have letters with forms on the back. In the filing column, I print any signature forms, vouchers, the cover sheets, the client letter and anything else that I want on one page. I duplex the client copy without the letters, etc. and PDF my copy. I just had a banker and client call me last week, swearing that I didn't give him page 2 of the return. They claimed that they looked all over. It was all there, they just didn't look at the back side.

I have found a lot of dividend checks over the years. I only love to open the envelopes that have checks for me in them. I hate what the paper and envelopes do to my hands this time of year. I get such terrible hangnails and dry skin that no matter how much cream I put on them they still look terrible and the hangnails and paper cuts really hurt.

Judy, There should not be a problem with the state for not reporting. I want to see the 1099R before I tell her that it can wait. I can't really trust someone else to tell me if it's taxable or not. As for java, I love my Keurig! It isn't as good as fresh brewed, but I can have any flavor that I feel like almost immediately without extra calories. I am trying some teas now, since it's supposed to be better for you, but I still like coffee better.

She is fine with my additional fee. She is mad at the insurance guy that talked her into rolling it over and told her she wouldn't have to show anything on her taxes. I know that it's more money for me, but I have so much on my plate now, that ANY more work is more than I need. I have to go buy a new QuickBooks and install it, because my client swore that he didn't upgrade, but when I put in his flash drive, sure enough, it's a newer version.

She will absolutely get charged and she won't like it. Maybe next year she won't show up until it all comes in.

Why are people in such a hurry? This is why I try to get them to hold off until February. I just e-filed the return last night and get a call tonight at 10:09 that a rollover 1099R was in today's mail. I asked her if she was positive that she had everything and she definitely didn't have anything else. It won't make a difference in the tax return, but she will get a letter down the road. I'm tempted to just wait for the letter instead of amending.

Thanks, KC. I will include Eli in my prayers.

If he gets all of this money at one time for "personal services", I would say that it will be hard to not call it subject to self-employment tax. When I see this contract, I will talk it over with the client. Most people around here just spend down the money to qualify for Medicaid.

I will have to wait and see what my client shows up with. I will not do any work for either the estate or the spouse's taxes. My client will be reporting the income as long as I am doing the return.

Naveen, the 3115 will not be created automatically, if needed. This is a very complex form and needs a lot of studying. I have taken several classes on it and have determined that I am an idiot. I keep reading posts on various blogs, forums and emails and there are lots of different opinions on the 3115. I just sat through a webinar from my CNA liability insurance and their suggestion is to put most of your business returns that are affected on extension so that we can prepare the returns correctly. The IRS has not been very helpful yet and the ramifications of not filing the form(s) correctly or timely are very serious. My suggestion is look for webinars right away and start studying. I'm sorry, but for small preparers, this is terrible news. One of the webinars suggested farming out the work if we don't feel comfortable preparing it. That's not a very affordable option for me.

Old Jack, the attorney may have been implying it, but I wouldn't fall for it anyway. I know about it now. Tom, the attorney is drawing up a personal service contract to give away her money to her step-son so that she will qualify for Medicaid. He will not be providing any care, but will be hiring an agency to come in. Easytax, I don't know how this is really structured. It was less than five minutes to tell me that my client was going to get this money and maybe would need to do some deferred comp plan. It may be that he can deduct what is being paid out, but I will wait until it happens and see what this contract says. I have a lot of clients that have had parents need to spend down, but this is something that I have never seen.

They are spending it down. It was a quick conversation, because the attorney was writing up the contract and just wanted to tell me that the client was getting the money. He commented to me that there isn't really anybody checking this stuff, so a lot of people don's even file the 1099 Misc. The woman is living at home and needs someone to come in a few days a week. I'm not an attorney, so I was not about to make any comments except that it would be subject to tax for my client. I don't know where they found this attorney, but he says it's common practice. My client can't perform the duties, because she lives out of state. He just has to pay her bills, I guess.

A client called me because he is working on his father's estate. His attorney got on the phone and told me that my client is going to receive quite a bit of money to manage his father's wife's care so she qualifies for aid. They are writing up a personal service contract. I have never seen this before, but then I don't do estate work. It sounds like this will end up on Schedule C with no deductions. The attorney mentioned deferred comp plan. Has anyone run across this before? Thanks!

Naveen, I am so terribly sorry. I have not been in this situation, but could be at any time. You are correct, we are your extended family and I'm sure that we all would like to help you with your grief. I can't imagine your pain. I can only tell you how sorry I am and that you and your wife will be in my prayers.

I'm so glad that I posted last night. I got a lot of good ideas and chuckles. I don't feel like such a dipstick today. I do have a drop box that has helped a lot. It is a locking mailbox that is bolted to the house. I am going to try to train my hubby to put returns together and maybe do a few other things. Our city laws don't allow home offices with outside employees. It was really easier for him to put them together when everything was mailed. They were all pretty much alike.

I am thinking about three monitors for my next computer, which will probably be this year. I want to survive the next several months.

Thanks everyone. I do feel better and even laughed. Ron, thank you for your insight. I have tried to get my husband to check out groups online or even locally, but I am the one that follows the ICD and heart failure groups. There are good groups for caregivers, but they don't know taxes and I desperately need to talk to you guys more. Thanks again. I'm going to go hit the treadmill for a bit, since I'm trying to use that instead of candy for a boost. It takes longer to make me feel good, but at least I've lost weight.

I will be thinking of you and your family.

I am so tired of needing to stay home and work my rear off until at least May every year. I did take 3 days off in February two years ago and paid dearly for it. My son is going to San Juan, Puerto Rico tomorrow and I could have gone with him with his non-rev benefits. This is happening more and more often and it's really getting me down. Now that I can finally get on a plane and not be terrified, I have to stay here and be terrified of tax season. Now I know why so many of my friends have gotten out of this business and gotten office jobs. That's not much of an option for me at my age and my husband's health is an issue. I made the mistake of taking an hour and went to the store Friday and ran into a client that was amazed that I was out of my house. I almost cried. Thanks for listening to my whining. I don't have any local friends that are in the business anymore.

I am obviously an idiot. I don't understand anything that said. I have been unclear on most of this, due to conflicting information between classes that I've taken and reading posts on various preparer websites. I am going to have a ton of extensions while I try to pull my head out of somewhere.

I spent way too much time on hold for two days this week to let a client sit in my office and bother me. One day it was 1 hour 48 minutes and finally hung up; the next day it was 55 minutes before I got a human and then he said that I needed to write a letter, because it couldn't be handled over the phone. At least he put a nine week hold on the account so that I can get the letter answered before they assess anything else.

My own plan is not compliant. It was grandfathered in for 2014 and 2015, because my state dd not expand Medicaid. I'm just hoping that somehow I can continue to keep it. When I checked the exchange for a similar plan, it was over $400 more per month. I am perfectly happy with my plan and will be really angry if I have to drop to a bronze plan just to afford the premiums.