Lion EA

Some time back, probably when the Anthem hack occurred, we put a freeze with the three credit agencies. I transmitted the state returns; waiting to see if they get accepted. Talking with tech support, this theft happened AFTER 15 April when I e-filed our extensions and 15 October 2015. When I know if I'll have to mail the states, I'll mail our federal. I filled out the Form 14039 and Form 8948 and copied my driver's license and Social Security card. Anything else I should include with the mailed return? Do I need a police report?

Thanx, everyone, for all your thoughts!

Don't I have to get the police reports, whatever that 5-digit form is, certify my identity at the nearest IRS office 50 miles away, etc., paperwork to attach to the federal before I can file on paper? Just starting to read through the to-do lists now. And, the states were never submitted. So, any late relief for CT and IL? I owe a bundle to CT, so that will be costly if late. For any of you that had some of these this year, if you have the Cliff Notes version, I would be ever grateful. My first identity theft, and it's me! Not sure if I'm relieved it's not a client who might blame me or more ticked off 'cause it's me and I can't just hand them a form and tell them to do it themselves. Hubby's former insurance was Anthem, so we were warned. And, a lot of the ID thefts in CT did have Anthem in common. Going to a week of tax classes in NV; hope my credit cards work...

Well, all three of my OWN returns were rejected, because my SSN was already used. I don't have time for this! Two more clients dropped off today. I want to find time to go to PA to hold my new granddaughter. Bummer.

Happy Days! I remember dancing with my son at his wedding.... Enjoy!

I was working until about 4 a.m. Put in a support request around 4 and started to close things down to go to bed. An email popped up from support acknowledging my question, and then another email popped up from support before I could close Outlook. They answered my question! (They have people working in all different time zones around the globe.) I reopened software and followed their instructions. So, I went to bed around 5 a.m. for a few hours with one less worry. Love ProSystem fx. Lost a couple of days in October, so running later than I'd scheduled. Granddaughter was conveniently due 1 November. But, daughter-in-law got gestational hypertension leading to preeclampsia and then HELLP (liver), so we went to visit for a couple of days between her hospital stays. Hugged them as they went off to doctor appointments (over the mountains and through the woods an hour away to Scranton) and came back to CT last Tuesday night. Wednesday morning my son called to say he was scrubbing up to go into the delivery room! C-section Wednesday 7 October resulted in Avery James Franciose at 8:47 a.m. at 18.25" and 5 lbs. 12 oz. Avery is perfect, but she is still jaundiced. Hari Beth is still recuperating; back for more bloodwork today. So, she's not up to visitors yet. Haven't held Avery yet. November!

OK, my tardy lady dropped off through my mail slot at noon! I have her hundreds of pages of investments from her broker all imported, so this package is small money but many, many little pieces, SSA, property taxes, lots of charities, and a couple more K-1s, etc. Not doing it today. She will be furious (and was a rec from another client). Not even opening her sack. Nothing from Singapore couple. Noon was my mental cut-off for even attempting either of those or any others that hadn't given me everything yet. Back to work on ours.

Yeah, I really have to train my clients better. One very unhappy lady will want to bring me the rest of her stuff tomorrow. (I'm finishing my own that I do after the paying customers and won't want to get out of my jammies.) I've offered her daily the pick-up services of my retired hubby who's running errands for me. I'm not going to do it on the 15th, even though I have everything I had already entered. It's huge and she owes and I want to really proofread well. And, the couple in Singapore that I realized two days ago were missing all the rental income/expenses for their NY home. They were new a year ago and cousins of my stepdaughter's fiance, so I really hate to tell them they're going to be late. But, I can't do this with foreign tax credit and NY rental and self-employment and be rushed when they're so new to me. And, I've spent two days arguing with someone who was my second to last to drop off that he can NOT come in today or tomorrow to work on his 2015 withholding, not even to sign 2014 returns (I uploaded his returns and his signature documents to FileShare on my website). And, I love the clients where I am in the midst of preparing their return and find W-2s from three states for their college kid that they didn't tell me I'm doing an extra return. Then find out the kid's 1099s aren't there because Grandpa in Chicago manages that account. And, then argue some more trying to explain why the kid owes $105 in SE tax for that project they did for a nonprofit even though they didn't earn enough to owe income tax. And, the guy who was grossly under-withheld, so warned him to get me the rest of his stuff early so we could see his balance due and stop the interest growing. Finally gets me his stuff and then spends a couple of days arguing to get him to accept his balance, even thought I dragged every deduction out of him that I could so his balance was a LOT less than anticipated. I have to train me, too. Not only am I a procrastinator. I need to pour through folders as they arrive to put in writing the missing items and questions right when I get the first documents. I'm not consistent. For instance, the couple in Singapore -- I just emailed her two days ago about the rental. The other lady I referred to above -- been emailing her all along and leaving phone messages. This was really a year for clients to have new twists, so I should start reviewing immediately to jump on the omissions. Back to work.

I like CCH's 1120S Express Answers. You can usually get it on sale in the off-season.

Her excess premium was $5,608 from $701/month (SLCSP $857/month). She didn't have her 1095-A until late, so I didn't see what was going on; and she used a different tax preparer last year when she signed up at the marketplace, so I didn't know she received PTC until her form arrived. She didn't have a HDHP, so didn't qualify for an HSA. An IRA wouldn't get her down to 400%. Most of her income was from a $43,612 IRA distribution. Also, escrow interest, state refund, pension loan/distribution upon leaving employment, and unemployment benefits. AGI $59,820. 400% poverty $45,960. The sad part is she worked for a financial services firm that advises clients on investments, insurance, etc. If I were writing a $5,608 check right now, I'm not sure I'd have $857 left to pay my premium, this month or for the next few months. I can see why people let their insurance lapse. I think people got false hope. How much will you earn in 2014? Well, she earned only $8,500, but she had income of nearly $60,000 because if she hadn't taken those withdrawals, she would've lost her house and car.

She went elsewhere for 2013, so just getting her off extension for 2014 and seeing her income and the 1095-A. (I don't think she had any advice when she took a $42,000 distribution from her IRA during 2014 to live off of.) She'd always been employed with health coverage. I think she wouldn't have bought insurance at all at full price. After all, with a low-end house in a city and not a nice suburb with about $24,000 mortgage payments and $8,000 property tax and heating oil and electricity and food and gasoline, she really doesn't have $7,000 left over for health insurance out of her $48,000 income. If I had to write a $7,000 check right now to the IRS, I'd have to cancel my health insurance going forward.

Thanx all. (I was thinking of tagging onto the health care section, but thought I might be hijacking a different type of question.)

So, her income is over 400% of the poverty level. (Don't know how anyone can live in Fairfield County, CT, on less than $45,960.) So, she pays back ALL of her PTC, right? She was employed at the beginning of 2014 and covered at work. Her Connecticare ran May-December. Is there a place to say she was covered January-April? If so, would that change anything? After getting hit with a $6,000 tax, does anyone renew their health insurance for the next year?!

No. But, I heard it was pretty good, so I might take it. It's free and it's online, so if it's not good, I'll just exit.

http://www.tax.ny.gov/tp/reg/tpreg.htm Read the NYS info on their site. From my poor memory, you have to register to efile NY returns, and you have to efile NY returns. If you prepare 10, you also pay $100; don't remember if it's 10 or more or if it's more than 10, but if you're preparing 1 only, it doesn't matter, you won't have to pay. But, you do have to register. You'll receive your NY number at the end of the registration process. If you get your EA, you do not have to fuss with NY, except maybe for bank products. (Thank you NYSEA for your work doing away with registration for EAs!) PS There is also an education requirement for the 10 or more (more than 10?) which you can satisfy online by taking the free NY course. You won't need it for 1 return, but I'm told by NY preparers that it's pretty good. I'm going to try to take it late this year or early next.

W-2. Schedule H. He can withhold employee FICA/Medicare. Or, pay all of it and add "her" half to her salary in Box 1. State version of 941, probably annually in January. NO 1099. Read latest issue of EA Journal.

Marilyn, have her do the examples/homework on paper forms, preferably before prepping on any software, to see and feel the flow. As you say, once she understands the tax principles, the software is just another tool.

Is the author referring to companion sitters as he would babysitters? Casual, sporatic, so special skills, no "care"? In CT, the DOL looks for W-2s for caregivers. But, lots of people issue 1099s or nothing at all. A few services handle the paperwork, but more and more of them give the client a sheet describing their reporting responsibilities. Someone not in a trade or business does not have to issue 1099s. I'm sure that's why more states are auditing the employee vs. IC issue and reclassifying workers as employees.

The HRB software is their own proprietary software, so differs from all others. People are often most comfortable on their first software. So, if you have been using ATX, then using Taxwise will be a new experience but shouldn't created much confusion back in your office with ATX. And, if your assistant is already knowledgeable in ATX, then using HRB's software during a course shouldn't make her less efficient back at your office with ATX. However, if going back and forth, I'm sure there will be some confusion, sometimes on autopilot reaching for a Save key in a different place or trying to go to a worksheet that's in the "other" software. I have trouble going from my keyboard to my laptop to a client's desktop where the "reach" is different to reach a function key or whatever.

At a biz client's site all day and tax class (NY/CT-ATP) tonight, so haven't done any more reading. So far reading about when and what a company has to report, but not learning about what the employee/preparer needs to do with the info. Happy that Catherine has run into this form! Going to get some sleep now.

Anyone have experience with Form 3921 Exercise of an Incentive Stock Option Under Section 422(b)? My first time seeing this form, so I'd appreciate any leads, direction. Thank you.

Her money manager is a family friend of her son, which doesn't necessarily mean much. But, her statements show publically-traded stocks that do show typical selling prices for the ones I know or notice. And, it's a tight-knit Jewish community, so I'm not going to try to butt in when I don't suspect anything and know her son watches over her account. She's been making great money for 25-50 years and more. It's her only income. Raised a son, bought a home in Fairfield County, donates to musical charities, travels, lives a good life, pays her taxes, covers her increasing medical expenses in her old age, etc. Her son was paying per trade at a discount brokerage, but moved over to his friend and pays percentage of his assets now.

Wow. I have people paying 2% and 2.5% on smallish accounts. My big investors are paying much less. I need to do some reading before next tax season so I can check management statements as they come in. Although, my client who's paying the most has huge returns all the time and has for years even when all my other clients had losses, so her manager is probably worth his fee.

And, I learned in school that we'd have clean solar energy and be on the metric system...

And, we're still working!