Lion EA

ProSystem fx. Have very few with ATC so don't get into payback much at all and very rare for SE, but I did have at least one last year. Thank goodness for software!

I had this a couple of years ago, so don't trust my memory. I think the plan owner gets the extra $1,000. If each owns their own plan, then two $1,000. If one family plan, then one $1,000. As I say, don't trust my memory, but definitely research!

This goes with my research materials, such as AnswerConnect. I think. Or, continuing education. Or, with dues & memberships. Or, something VERY usual & necessary for my biz. (I haven't done my own taxes yet, so don't remember. Not enough room in my head. This is overflow storage.) I read everything here and learn from everything here. Thank you, Eric. And, thank you, everyone.

My software will do the iterations and also the alternate method. It is circular and makes me dizzy just reviewing the worksheets!

The extenders bill is just sitting. It ain't happening in April. My crystal ball doesn't know about October. Let your client choose to extend or file/possibly amend. Won't help my clientele much, but the tuition deduction would. Most of mine want to file. I told them I will charge for amendments, so I guess they're not very hopeful.

I think the mom includes the son in her "household" for ACA whether or not she claims his dependency. But, I have few marketplace/Medicaid clients, so that's just something stuck in the back of my head of somewhere...

I have clients who make money dog-walking, babysitting for children/disabled/elderly/even pets on an occasional basis, handyman work for individuals/one-time-type work, and other paying gigs for individuals, seldom for businesses, and very seldom over $600 for a person. So, no 1099s expected or received. The clients report their income, some keeping better records than others. I report all income. I might suggest better recordkeeping &/or depositing it in their bank for a better paper trail. But, if I have no suspicions, I prepare their returns. Your client's work for a restaurant should've been on payroll or at least a 1099 for sporadic, casual labor. Urge her to talk with the restaurant this year. Explain to her what to say &/or print out some plain English explanations.

Can 529 be used for room & board? Saving tuition for scholarship and AOC?

It's called a QDRO. The QDRO splits the retirement fund into two parts per the lawyer's direction. The QDRO has no tax consequences. Any distributions after that would have tax consequences based on the usual laws, ages, etc.

And, if it was HIS income, why is it on HER Schedule C?

I have FileShare, a simple portal, free with my CCH SiteBuilder website. I also use CCH's eSign, and my clients have been liking it. CCH's eSign works for federal and all states EXCEPT NY (CCH is working on getting NY into the fold). I'm in CT and have a lot of NY commuters, NY residents, etc., so use FileShare for their returns and for clients who are used to FileShare and reluctant to try something new. But, eSign has been working for all my other clients. Have a couple in Singapore coming up soon. The eSign license is free; then you pay-per-use for verified signatures (like 8879) and a lesser fee for unverified (maybe engagement letter). It's been really fast.

Were the parents in two separate bedrooms, two separate households, for 2018? Both paying at least half for their household part of the house? You could probably make a case either way. Figure out the best scenario that fits reality for your client.

I wouldn't file. But, I would make a note in each client's file. Who knows when a divorce might make one of the "kids" want the money from parents back and you'll need to remember that they were legal gifts!

Each gift is less than the exclusion, so I say no. Unless only one parent gave, so you have to file to show gift splitting. No gifts to foreign person or from, right?

No, but I don't need them quitting their jobs and moving back in with me!

I put it on the return. Quick and easy.

Agree, but only relevant if the parents doing the gifting are your clients. Or there are any international issues.

She is a teacher in her day job, and she does this every year for the same company. She gets paid; she's not volunteering her time.

Schedule C. Or line 21 WITH SE.

But, you also have the ownership of capital percentage. Is that still 50%/50% or did one partner buy out the other's capital ownership? The profit percentage does not have to be the same as the capital percentage.

For tax purposes, if Mom meets the other requirements for HOH and the child lives with her more than half the year (counting nights), then she still is HOH even for the years she signs the dependency over to her ex. Dad cannot be HOH unless he has another child living with him. He can certainly be MFJ if he remarries. But, his filing status does not change Mom's filing status once they are divorced. Are you OK with which benefits Mom keeps as custodial (for IRS purposes) parent? And which benefits follow the dependency to Dad in years when Mom signs it over?

But, please don't tell that to my grown kids!

Is he still and undergrad at 24? Or, a graduate student?

Yeah, partners can still have capital at 50/50 or whatever but gain/loss at 100/0 or anything, as Catherine said. Maybe not enough to pay a guaranteed payment or one easing out of biz. I have a partnership where one has been inactive for a few years and just now has early-onset dementia, so they will probably redo their usual 50/50 after healthy spouse's GP to keep taxpayer's newly won disability.

And, you can't really match them up by number of shares, with some shares held back to pay taxes, the splits/mergers/whatnot that happened over time. It's a nightmare matching the paperwork for when received to paperwork for when sold.