Lion EA

Returns took longer to prepare and longer to proofread and a lot longer to explain. So, I have more unhappy clients on extension than in the past. My two-year comparison was a great tool for proofreading, but I still had to know the flow of the new forms to answer client questions. You know that phone call you get three days later asking where's unemployment or something? And, I tried to use the comparison in working with clients, but they wanted to see things on the actual forms. I put the comparison first in their folders. I really did not increase my prices enough. I need to work on that as I prepare extensions and get it in place for next season. Usually I'm back to work full-time by 1 May or earlier and not out of town until July for Appalachia Service Project and August for hubby's family reunion. But, this year, two grandbabies are due in CT in June and PA in July and baby showers in both states, so I'll be out of town earlier and getting more calls asking when returns will be ready. I'm not enjoying work as much this year! Drop-offs were about a month earlier this year, so I was backlogged and staring at that stack of folders for a month longer than usual. I did get a stomach bug that was going around and then back spasms that had me on heavy-duty muscle relaxants for nearly a week and not fit to work. And, our shower door warped or something and refused to close, so had to deal with shopping and measuring and workmen. At least I had my hip replaced 5 November to give me plenty of time to heal up enough to sit for long hours, but I'm still driving to a neighboring town for physical therapy, helpful but a big use of time. The SALT cap is huge in expensive Fairfield County, CT, so lots of complaints from clients WHO WERE EXPECTING IT. And, CT changed laws for passthrough entities during 2018 for 2018, so clients were NOT expecting my calls for their PEs to make ES payments last June. Not my favorite tax season.

I just received CO and NJ late last night and yesterday afternoon. That's the end of them. Or, at least until I catch up on sleep and laundry and doctor appointments and...and get back to work preparing and e-filing all that I extended.

Your client can set up multiple ES payments via Direct Pay. You state may have something similar for him.

Yep, do like Medicare and base it on the prior year's tax return, or two years ago, or whatever it takes to have the returns in the system and be a known income instead of predicting next year. That girl with the wealthy boyfriend, she can't just drop marketplace insurance during the year when she weds. Has to drop it at the end of the year before the wedding to avoid paying back her APTC.

The AMT exemption amounts went up some, but the AMT thresholds went up dramatically. I don't think I had any yet, but my really high earners come in later in the year. And, some of the triggers, such as unreimbursed employee expenses, are gone.

I just sent a return that was on extension but is short and easy and I wasn't as tired as I thought so did one more. I have a ton of extensions accepted. But, I have some new CA clients that I don't know their info to e-file CA extensions, and at least one of them has owed CA the last couple years. Trying to reach them and prior, retired preparer who "gave" them to me. Hubby is out mailing our IL extension with a check (IL won't let NR do either of those electronically). Might throw in a load of laundry or might do very little after I work out the CA situation. I need to package up a bunch of folders to mail to remote clients; I let them stack up for the last week or so. Then it's a bunch of doctor appointments I postpone until after tax season and weekly PT for my replaced hip and payroll taxes and I'm a liturgical assistant on Easter so have readings to prepare. Maybe even get out to see my toddler granddaughter. But, back to work on those extensions, because sometime from Memorial Day to very early July we have two new grandbabies arriving, one in CT and one in PA; so obviously I'll take time off then. I hope to get most of the clients that are griping about being on extension prepared before the babies arrive.

I'm the Spouse and the Paid Preparer. Hubby gives me lots of dark chocolate to get me through tax season.

I'm thinking you get a lower interest rate if direct debit, but that's not really what you asked. Sorry, don't know your answer.

Remember that conversation we had about extensions? No? Well, I'll upload copies of your extensions next week to jog your memory.

I once had a client who was a broker with over 4400 trades, most of them wash sales. I charged him a bundle to create a spreadsheet to "move" each unallowed loss to the adjusted basis of the next purchase. After a couple years, his wife quit funding his trading. His only income was his own commissions, because he spent all his time on his own account.

He should ask his broker.

You add the unallowed loss on the sale of the stock to the basis of the stock purchased. You're kicking the can down the road.

I've used the Simplified Method when clients tell me they're going to sell the house soon. And, for my clients who can't track their home expenses, of course! But, mostly, Actual.

I've used it when states flow from the federal. I haven't used Sales Tax with states like NY and CA that decoupled. I have a high-income couple I'm working on where they get the same Schedule A with Sales Tax, so going with that on this one with only federal and CT returns and a huge charitable donation.

Yes, that 8453 goes via mail with a short list of documents you might send by mail. If everything is transmitted electronically, including attached .pdfs, then only the 8879.

My RMD is based on prior 31 December balance. My Medicare premiums are based on two/three (?) years ago.

Remind her to tell her lawyer about this and that hubby defaulted. It's going to be income on her P&L for the divorce papers, instead of a liability to repay. That's going to make things lopsided if the proceeds were used by hubby for his biz or whatever. She needs to be able to explain this better or it's going to hurt her financially in the divorce. Maybe after reviewing her documentation, you can help her lay out the timeline for her lawyer. Well, after 15 April, if possible.

Oops, you understood I meant ..if they'd filed MFS... Yes, breathe. And, think about it again when you're well rested. I'm sure we all missed something that could've meant less tax for a client. But, if we were correct and legal, then it's not a big deal. Think of all the ways to depreciate. Or, take state sales tax to not pay tax on the refund next year. I have partnerships that have crazy % that the partners do not know why except some lawyer told them when they set it up that it had to be 37%/63% or whatever for a HW partnership to save taxes! I'm not going to second guess what my clients did decades ago. Don't second-guess yourself right now. Study the situation in the off-season to see if you can learn from it and to see IF, and that's a big IF, you want to do anything with your client because of it.

Wash and wax? Cut and blow-dry?

I was not suggesting you pay anyone anything. I was just pointing out that the difference is less than $2K because they'd have paid for a second tax return if they'd filed MFJ. Did they ask about 2017? If not, please don't do anything until after the 15th and you've had a good sleep. Then, you can think more clearly about what you did or did not do in a prior year. We're all human and sleep-deprived and working against a deadline. Stay calm and carry on.

And, have a nice life!

$2K LESS the cost of two separate returns vs. one. I have my software set to ALWAYS churn out the MFJ vs. MFS comparison for federal. If it's close, I can look at the state(s) and look at joint items that could vary by % and ask questions. Don't know what I'd do about 2017 in your situation, though. Sorry.

Hey, Possi: Lots of those liquid tears drops things all day long. Refresh Plus lubricating eye drops. And DO give the evil eye to any complaining clients now. Hey, David: For those I know will owe, I use the 100/110% of last year's liability formula. For long-time clients, I can pretty much eyeball it. For those that do ES payments also, I make the extension payment a huge one that will cover April and June ES also, all to be reconciled when the return is prepared. If I've been the slow one, I do a more thorough computation. Did one last night for a complaining guy, just went through with round numbers against his 2017 summary with his 2018 documents and told him to pay $25,000 and $8,000. It's down from the year before (which is why I took the time and didn't do the 110%) so he'll pay it. I often look at how much paid with 2017 extensions and how 2017 turned out to calculate how much to pay with 2018, for those that don't vary much from year to year or I can see at a glance they're up or down. But, most e-filed extensions were done via "batch" and are zeros. Many of my clients followed me from Block more than a decade ago, so were not used to extensions. I have a lot of push-back. But, they know, and I remind them when they drop off or don't have all their documents. I want to work all year and earn more money. I don't want to turn down their referrals, but do need time to review with new clients. Extensions.

I efiled a ton of extensions today. More extensions than completed returns!. I still have a week to prepare returns for some of those, plus some returns in limbo awaiting signatures that will probably be efiled by next Monday. But, I took on some new clients, referrals, and I always put new clients on extension to have time to review prior year returns and ask lots of questions. That plus the government shutdown, new laws, a week lost to back spasms, and probably some things I don't even remember, mean I have efiled more extensions to date than returns. I'll be taking some time off through July with new babies arriving in two states in June, baby showers in two states, our 25th anniversary, family things. Then back to work through 15 October. I can earn more money all year than I can in three months, so I like extensions.

Why not non-resident if only there for school?