schirallicpa

My client moved to NYS in August 2015. Previously lived in TX - AH Texas, where the skies are not clouded with income tax laws all day....................Anyway - the date of death of his father was in March 2015. He received as beneficiary a couple of pensions, that are properly coded as "4". The question is - since the date of death was while he was still a resident of TX, can I allocate that income as TX income and not pay NYS tax on it?

it begs the question - why not just do your own Sec 125

I have a client that is looking at this program and has asked me to "research" it for him. Has anyone else looked at it? Looks like someone is trying to make money by marketing Sec 125 plans. http://www.vipcoatwork.biz/taxreduction.html

had this situation a couple years ago. yes- ATX handles well. Remember - the losses may still be suspended for a while, depending on income.

"The preparer who dealt with Schirallicpa's client likely chose a paper extension because a payment was being made and s/he didn't have the bank info to electronically pay (or the client didn't have the money in the account at the moment) " That was not the case - which makes it even more annoying. The client's info is on file with the preparer, and he's a large enough client that he would have the money in his account. Regardless of having to make a payment or not, the extension should have been filed electronically. This is our job - to take care of crap for clients. When I get my oil changed in my car, I expect the service station to perform the entire job for me, and I do not want to have to do anything but pay them. Same concept for us, we take care of this for them. I sent in a 1040-V with his payment, and am hopeful that the preparer does not wait til Oct 15 to get the return done.

Well, here' one way to get a new client. The previous tax preparer didn't file ext and pymt electronically, but instead gave the client the paper version at the last minute of April 18 and he put them in the wrong envelopes and mailed off. Well - NYS sent the check and voucher back. The previous preparer hasn't gotten the return done yet. He brought the voucher and check to me to mail back out again. So my question is, should I mail out the check with the now invalid extension, or should I print 1040-V and IT-201-V and mail out his payment with those, even though return not submitted yet? Just don't want things to get any more messed up for him.

Client is getting audited by NYS sales tax. He provides resale cert to vendor and does not pay sales tax on purchase of linens, rugs, etc. He then makes contracts with hospitals, restaurants, nursing homes, etc to provide and exchange linens and rugs. So, in essence, his customers are renting the products from week to week. He claims that the NYS auditor told him that he did not have to collect sales tax. And he somehow construes that this is because they are long term contracts. I think he has to collect and remit sales tax on almost all of his customers, except the govt offices that he does. Rent of tangible personal property in NYS is sales-taxed. And then he claims that the auditor is assessing tax on his purchases from vendors, not on his sales. I can't seem to find any logic in what he is telling me. Just wondered if there was any validity in his story, and if any one on the forum had any other thoughts.

I have a client that does linens and rugs for companies. Trying to figure out if sales taxable. He says no, and he says the auditor agreed with him. but told him he should pay tax on purchase of linens. I think he should collect on his sales.

wow - I guess I don't feel like such a dummy asking the question that I did after all the subsequent conversation regarding the situation. And I actually mis-spoke in the first post. The disabled brother is older. The younger brother lives with him and helps him out. The younger brother is 27. He earned 11500 during the year. I filed his return as single. I put the disabled child on the parents return. He had a very small income. But - if the disabled brother was younger, would the older brother be able to claim him for EIC??? I did not consider that when I did the return.

thank you. that is handy!!

I'd get a new EIN.

got it. thank you. And that qualifying relative thing just makes me more confused sometimes. Most of the time you just want to yell at these kids to go get a real job. But in this particular case the brother has elected to be care giver for younger brother. It's a sad situation. The boy got hurt in a vehicle accident on the way to work just months after graduating from college and landing a very good job. Just when all the moons and stars lined up and things were bright, he ended up in a wheelchair with limited mobility. It's a very close knit family. It brings tears to my eyes every year I prepare their returns.

If he's incorporated - yes. And they won't like that answer. Technically, if they have not filed for exempt status with IRS, they are not exempt and must file tax-paying return. I had one of these a few year ago, but income was very low and I convinced them to get the exemption status going so we could at least call it "applied for".

I think this is a case of what I want vs. what I know........... Boys (now in their 20's) live in their mom and dad's old house. M&D have moved. 1 of the boys is fully disabled and requires home care. M&D fully support him financially. (and social security.) M&D own house, pay taxes and utilities on house. Older brother lives with him and works part time making about $11000 in 2015. I believe the disabled son is still a dependent of M&D. I would like brother to also be dependent of M&D, but I think he has to file on his own. But I wanted to post this in case anyone had any other thoughts on it.

I'm glad you shared that. I visit some of our local schools each year and speak to either the business/acctg students or the economic students. I tell them a little about different jobs and careers they can pursue with accounting degrees, and then I talk to them about taxes. All the taxes that we pay - school, property, sales, income, etc, and we talk about what the money pays for. I will use some of the info from this article in my next "class" this spring. thanks!

ahhh....yess....it is cafe plan

No such item on the pull up for box 14. Box 12 D is 401K, but they have not changed her gross pay amount. Not sure what this is. (And neither does the client....)

I have never been so busy on the 15th! I'm usually at the grocery store by now.

http://goingloudstudios.com/games/zombie-accountant/

I hope he's reporting that $2 income and paying tax on it. Not too many deductions on that one.

It makes sense to me. Tighten the withholding so that tax withheld is what it should be, and be done with it. It would save such a hassle for so many people, and would effectively get rid of the snake-oil tax preparers such as HRB

I only had that happen a couple of times this year, but in the last couple of weeks. Earlier in the year, no problem. I wondered as well

Because I'm getting really tired of opening envelopes. Really? People don't even look at their W2? I wish I were so trusting and simple.

well - if they are only W2 people, and have refunds, the IRS is happy to keep their money. Maybe the IRS thought they were getting a little tight on funds, and sent out notices to such non-filers to up their pot a little.

it's like the fox telling you to close the barn door.............