Lion EA

I forgot about CA's LLC tax!!! I'm a CT SMLLC filing a Schedule C, but have a few CA clients that moved there/inherited from a CA preparer. Do I have to register my SMLLC in CA if I never set foot in CA? Do I have to file a separate CA NR LLC return or just my CA NR personal return? Definitely doing this in the fall. Like cbslee, my returns were always after all my paying customers. Until the late night in October when our federal 1040 was rejected, because someone had used MY SSN. By the time I learned how to uncouple the states (CT & IL) it was after midnight. So, with printing/mailing federal and the states e-filing after midnight, I had some P&I. Now, I stop after all entity extensions mid-September and prepare AND e-file ours. Then return to the paying customers.

I had that in a past year, and it included a number buried in the error code, something like having a (1) or (2) to designate which dependent. Haven't seen it lately, thank goodness, so that's just my old memory trying to dredge up something I once saw!

We are "delivering" our product (tax returns) to CA residents; therefore, our fees for that are CA-sourced income and require us ourselves to file CA NR tax returns. Fun, huh?! Between CA and NY, I'm fed up. Going on extension myself, so I can break out my bookkeeping later.

I spent a decade at an HRB Premium office. When I left, I was determined to cost MORE than H&R Block, because I provide more personalized service than the average HRB office. I think I started out that way. But I also think I've been increasing my prices at a much slower rate than HRB over the years. With the costs of my software, IT guy (think WISP and other requirements), equipment replacements, paper/toner even going as paperless as I can, and my occasional helper, I'm increasing 10% this year to try to catch up. My goal continues to be more expensive than the chains but less expensive than the CPA firms that provide one-stop shopping with bookkeeping, payroll, retirement plans, and other financial services. PS: I'm in pricey Fairfield County, CT.

I don't think you're missing anything. I'm working on a gal who won at a casino in December, so is paying back all her 2022 premium tax credit. Annual, calendar year, tax year. Just computed how much of an Traditional IRA contribution could lower her income enough to limit her payback. In her case, if she doesn't have money to pay the tax, she definitely doesn't have money to lock up into an IRA. Presenting her the results today. It's her decision what to do next. Anybody out there know of something we need to know? I have a vague memory of something about -- if you honestly thought you qualified when you applied, there's some exception to the payback. In these two cases, the taxpayer actually did qualify when they applied. I have almost no clients in the marketplace, and probably only this gal receiving advanced premium tax credit, so I'm not very familiar with where to look for help.

Back when the K-2 and K-3 first came out and I was trying to explain to a client, a summer theater actress, but lapsed into a Dr. Seuss-like poem re K-2 and K-3... she emailed back: That's the difference between us - you think Dr. Seuss and I immediately go into dirty limerick mode. When deciding who next they should screw, The IRS knew what to do. They designed with some glee New K-2 and K-3 Nailing client and accountant, too!

Way, way more than $300. I start at $500 for new clients. And, I have a 10% price increase this year for existing clients.

(1) Trustee receives K-1 (1065) and CA state K-1 for the trust. (2) Trustee makes sure Form 1041 is prepared -- federal and state(s) and issues Forms K-1 (1041) to beneficiary (3) Individual reports income from K-1 (1041) on personal federal return and source state return and resident state return.

OK, If our lawmakers can't vote on a bill that we can understand...

You meant to say, "I'll call an office of one of the d--- state senators sponsoring the legislation." If our lawmakers can't write a bill so we can understand it...

So, my DIL is divorcing my son but still married in 2022. Most finances and living conditions have been agreed to, so PA will grant divorce during 2023. However, child custody, visitation, etc., have NOT been decided for their two daughters and will not be for some time yet, long after the divorce is final, per DIL. That includes who gets to claim how many dependents for 2022. DIL just sent me the girls' consolidated 1099s. If a child has less than $1,150 in interest, dividends, and gross proceeds, she does NOT have to file, is that correct? At $1,151 of unearned income, the child DOES have to file, correct? Kiddie Tax will be based on the tax information of the custodial parent or the parent who has the dependency deduction that year?

Yes, you amend the payroll reports to get ERC and amend the tax return to reduce that payroll deduction. If that payroll was reported on a PTE, then you also amend those Forms K-1 and the personal returns. Where did you read that the ERC is tax free? https://www.irs.gov/coronavirus/employee-retention-credit

I have only one S-corp client that also has a SEP, so each year I confuse myself all over again. It has a great bookkeeping firm that gives me great financials, so I should be able to prepare a great Form 1120-S. Please ease my confusion. 2022 P&L has the amount paid for 2021 SEP paid during 2022. 2022 BS has the 2022 SEP that's an Other Current Liabilities - SEP Funding Payable. When I prepare the 2022 1120-S (yes, it's on extension) do I use the actually paid 2021 SEP amount as a deduction on the Pension line? Or, do I use the to-be-paid 2022 SEP amount? If the latter, then how does the 1120-S BS differ from the financials BS to make the 1120-S balance? I don't know why this confuses me every single year or why my notes don't help me a year later. I even have an old printout from The Tax Book in this folder. Thank you for any help you can get through my thick skull. The BS is always my weak point with entity returns. I took a lot of accounting classes for my MBA in finance, but not as many as you CPAs took, and that was over 40 years ago. This is my only SEP for an S-corp (I do have a SEP for an 1165 that dissolved into a Sch C so will be a short year and also is on extension, so you may hear from me again in May!). Thank you.

I used ChatGPT to write my price increase letter and my firing letter this year. I was agonizing over writing them, procrastinating, writing in my head but not on paper, etc. I told ChatGPT what I wanted, and BOOM in seconds I had what I needed and could finally move on.

Remember to ask client if they have any other IRA accounts that might have deductible contributions in them, so you can allocate deductible vs nondeductible to the conversion. Your client might think that only this new contribution to a nondeductible account is being converted, even if he has previous deductible contributions to Traditional IRA accounts.

Did he bring you a magazine article?!

Haven't prepared any of my CA clients yet. I enter on the federal return on the same entry area as 1040 Sch A; it then appears on the CA 540 on Schedule CA(540) Part II line 19 Unreimbursed employee expenses, that's "Side" 5 per the form's page numbering along the bottom -- from a client's 2021 return.

Itemization on the CA return differs from Schedule A on the federal return. CA still allows unreimbursed employee expenses and other miscellaneous deductions. (In my software, I enter it as I would on Sch A with my software not using it on federal but including it on the CA return.)

Read the trust document.

You use either the foreign earned income exclusion OR the foreign tax credit. I don't use Proseries, but you might need to check a box or enter the earned income on a specific screen. Make sure you have her start and end dates entered. Form 2555 to Schedule 1 Line 8 to 1040 Line 8 as a negative number that effectively reduces her wages on line 1 that are a positive number. Make sure you have all the T and S and J designations correct.

My very old HP all-in-one will tell me (message on the screen) if I've inserted genuine HP ink or not when I replace a cartridge. However, it works the same either way. None of my HPs are newer models, so can't speak about what the new models do.

And, the realtor better report her earned income!

I always used HP which have lasted forever, real workhorses. But when I wanted a smaller, faster printer for tax returns only, just black toner and nothing fancy, my IT guy said he still loves HP for high end printers but now recommends Brother for more reasonably priced printers for us small tax offices. I've had the Brother HL-L2370DW since before Covid and am very happy with it. I can't remember the price, but maybe $199 or less here in pricey Fairfield County, CT.

My "kids" needed to cut down a lot of trees to make solar work, so they postponed. One of the large storms took out a lot of their trees, so they got bids again. Now they needed even fewer solar panels than their the original estimate to make the project work for them. A couple weekends with some rented and borrowed equipment gave them wood for their fireplaces and cleaned up their yard. Their house is nice and cozy now.

My biggest biz client received a letter he didn't pay his 943 last year. The thing is, he's not a farm! (Paychex files his Forms 941 and copies us on them.) Moreover, the report that was supposedly missing was for the year that had just ended and wouldn't be due for another month. No further communication from the IRS at all, no correction letter. At least Paychex knew those erroneous letters were circulating, so I could calm down my client. Yes, again, I do not think the IRS's right hand knows what its left hand is doing.