Catherine

I have a 1099-R for a 2024 distribution, which shows a distribution amount in Box 1, same amount in Box 2, and a "taxable amount not determined" in Box 2a. At the bottom of the form, it also states: "$X of the above distribution was a direct distribution to charity under IRC Section 408 (d) (8)." My guess is that I deduct the direct charitable contribution from the Box 2 taxable amount (and state distribution amount), yes? I have never seen this before; what I have seen is direct charity not being listed at all and not included in any of the distribution boxes. A new thing in general, or just these people (TIAA) and this account in particular?

Congratulations!!!

Eric Green has been doing just about daily short updates on the IRS situation. Here's the youtube channel. https://www.youtube.com/@TaxRepNetwork

While I understand the desire to be DONE on April 15th, I also don't want to work myself to the bone three months of the year. I use extensions extensively (intended doubling up) and work steadily while still taking Sundays off all season. Do what works for you, but remember that extensions are your very good friend. I'd rather put a client on extension and do the returns correctly the first time, than rush to finish and find an error - or get a corrected consolidated 1099 - months later that makes an amended return required.

Paging @Lion EA as I know she does a bunch of NY returns.

Lawyer up, fast. Him especially and he should start gathering information but not talk to any IRS agent (other than to say "my attorney will be speaking with you") from here on out. But she needs to, as well, as they may want to see what she knew. You probably don't need an attorney instantly, unless she has discussed this with you other than this morning in a panic as to who to talk to. Green & Sklarz in Connecticut have an excellent reputation; try them.

Glad to be of assistance!

I am probably over-thinking this. Elderly couple died in 2023; he in mid-year, she just before the end of December. No trouble with 2023; it was too late in the year for anything to go anywhere but personal. There were EINs set up for her irrevocable trust and for her estate. Not for his; it all went to her as surviving spouse. She inherited everything from him when he passed. She also had a will that directed everything owned be poured-over into her irrevocable trust as soon as she passed on. However, as various monies came in, some had checks made out to her, some to him, some to the estate, and some to the trust - which eventually, but not initially, sucked it all in. What I'm thinking is that everything that came in for her, or him, or the estate, gets reported on a 1041 for the estate, and only things that came in specifically for the trust get reported on a 1041 for the trust. If only to prevent letters in July of 2026, asking for tax on unreported income received by the estate. Anyone want to tell me what I've got 100% wrong? I'm listening.

remember, @Eric gave us this one some years ago.

On t he theme of SALY - the Ceiling Numbers?

Magic 8-Ball says "Answer Hazy; Ask Again Later."

As long as they will all play in the Audit-torium!

As to the original point, I categorically refuse to accept any file that is not a PDF. You want to send it from your phone? Get CamScanner or something similar, upload to the portal. Just keep dumping it back on the client until they get a clue - or drop off paper.

They have "improved the user interface" to the point of uselessness, in other words.

Same goes for CPA, and even MD. Knowledge does not equal alphabet salad after one's name, and alphabet salad does not equal knowledge.

Okay, thank you @Lee B. Maybe Form 1116 foreign tax credit, assuming the client paid tax in the source country.

Happy Birthday, @BulldogTom!

And you get work that is worth about $5/hr, for the most part.

Taxpayer received a small amount of income from former employer from when t/p was resident in a foreign country. Money was earned there, while t/p qualified for foreign earned income exclusion. However, the funds were not paid out until over a year later (there was a class-action back-pay suit of some kind). How does this get reported? It should qualify for FEIE because it was earned while t/p fully qualified for that (and in that year was well under the limitations of excludable income). But the payout was well over a year after returning to the US. I can't figure out how to report this correctly and get the exclusion not to throw error messages (Drake, so not asking about those). Or do we just give up and be glad it was eventually paid out? It's less than $1,000 in total.

1. Tell them to check prior year returns, and count how many years the credit was claimed. You're not mommy or daddy, you owe them nothing. Especially how to circumvent paying you for a service while still getting service answers! 2. You can't force them to pay, nor withhold their documents - you can only withhold your work. I'd demand payment in full before I spend five minutes talking to them, unless they have a good reason for going dark. Like, away on vacation, illness in family, or similar. 2a. This year for the first time I'm demanding pre-payment at last year's rate plus 5% from all clients, with adjustments for new complications or easier returns at completion. Spent way too long chasing just a handful of people last year (one lady stalled for seven months). At my billing rate it meant I did some of those returns for free (billable time lost chasing). Figured I'd have tons of pushback, and there has been none whatsoever. New clients must pay in full before they get any e-file signature form put in front of them. Cash, check, credit card, PayPal, I don't care - as long I I don't have to chase them later.

Reading that all of a sudden I feel like a youngster at 66.

Reminds me of the old tale of the farmer who won $1M in the lottery. Asked what he was going to do now, his reply was "Keep farming until it's all gone." God bless them all, because without them we would not eat.

At least you are confused at a Higher Level, and about More Important Items!

Those look sweet. I think I have monitor envy.

You can download Medlin and try it out fully as regards what your workload would be - all you can't do is print, without paying them. For the tiny price, you could even spring for it and give a shot. I've used it for years and it's fabulous.