Lion EA

Partners receive Form K-1, not Form 1099-NEC. This one might go on your to-fire list.

Yeah, our software companies need to close early enough that we get back all the federal AND STATE acknowledgments before 1040 MEF closes. I still have returns to prepare and e-file, and don't want to get stuck paper filing or waiting until January.

Know or should have know.

Post just enough pictures that we can enjoy them, but not so many that we get insanely jealous! Even though I'm already jealous sitting here preparing our own tax returns.

Rev Proc 2021-48 statement. But what's the difference in Section 3.01. 3.01, and 3.03? And, if 3.01, then (1) or (2) or (3)?!!!

I just bookmarked the site. Thank you!

Hmmm. Keep us posted, because I'm bound to have that issue eventually.

Been there; done that. Fun explaining the blood spray to the client. One of my allergies is leaf mold, so fall is a problem for me, too.

I would have clients order the smallest package from Staples or their preferred office supply store, or I'd order enough to cover all my clients. I've moved to online services now.

Worth. Geisler.

Take good care of yourself.

Oh, I uploaded the kid's stuff to his account on my portal. Mom picked up hers (card table in my garage for contactless pick-up). And, mom paid me the little bit I charge for both!!

When I lose power and internet, I have a whole-house generator to keep my OIH running. But there's nothing I can do until Optimum restores service &/or restrings their lines. During hurricanes and nor'easters, that's been as long as 11 days. We have one AT&T telephone line, also. But the last major storm had winds that ripped all the lines right out of our house (electric, Optimum, AND At&T). We had to wait for tree work here and around town, which doesn't begin until Eversource clears all the power lines, new telephone poles to arrive from WI or someplace in the midwest, Eversource and Optimum (and AT&T) to string lines, and finally for an electrician we had to hire to replace the specialty metal piece that was broken and twisted and connect the lines from where Optimum's (and AT&T's) responsibility ended and ours began. We had a dead powerline across our driveway, so our propane company wouldn't drive in to refill our propane tanks that power our generator. Couldn't blame them. But it took a LOT of calls to Eversource to unattach the line and move it off our driveway. I have a cloud back-up and an external drive back-up, but my programs and data reside on my desktop.

I was going to send "Your needs no longer fit our business model" on Tuesday, but they moved up the time frame on themselves!

Mom's latest to me: "Xxxx will state what was covered for 2021 tuition and what his tax burden is for the Yale income. He will sign. You fill in the numbers he provides. Thank you"

I was awake most of last night !!

As far as I can tell from the documentation the client's mother provided me from Yale, Yale recorded the tuition paid in 2020 but recorded the scholarship -- which probably paid tuition plus room & board plus fees -- in 2021. I agree that the tuition should've remained outstanding until covered by the scholarship. However, if that happened, then I need to amend the student's 2020 returns. Mother wants to take the draft to a friend who promised to find a lower tax liability. I'm all for everyone paying their lowest legal tax liability. But the former student is over 18 and in the military and very definitely an adult. Also, not easily reachable at his current station in CA. I think I need a signed consent statement from my client for me to provide his return draft to his mother or to his mother's friend, right? And, mother wants it emailed; that was a hard NO from me. But I do have both mother and son on my portal which I've been using for the son. Also, eSign. So the son has two copies of his return that he can forward to anyone he wants! I told the mother to get the bursar's statement from Yale. And, highlighted the instructions on Form 1098-T where Yale explains in great detail how to access 2021 transactions online. Mother has done neither, but sent an email to Yale asking them a question. And, talked to her friend who knows how to reduce taxes. A recessed light is blinking which can trigger a migraine, so I have my overhead lights off. I'm not climbing up a ladder to change a bulb until Hubby returns from NYC to hold the ladder. And, a dozen clients are emailing me about their unfinished returns. Spending an entire morning just on explanations for this client and his mother (both sets of returns were done and explained a day ago) was time I should've spent on tax preparation for other clients. Thank you, everyone, for my rant. I needed to vent. Off to contact another couple of clients to tell them -- sorry, but November.

Yes, for 2020 we had tuition to subtract and expenses, such as books and a computer. For 2021, he had only $600 for books and a printer. Tuition for spring semester 2021 was paid in December 2020. Then he graduated in May 2021. No tuition reported by Yale for 2021. Mom nor son has any record of checks written, because 2021 tuition was covered -- per Yale -- in 2020. Form 1098-T contained a lot of details, but none that helped us. Mom is calling Yale on Thursday. 2021 tuition (reported in December 2020) was covered by the scholarship that was reported in 2021, so we're hoping for a loophole here. Son is now in the army, so a bit busy right now. (I still think the son is lucky!)

Am I understanding this correctly? Client graduated Yale in May 2021. Form 1098-T shows 0 Tuition and $33,949 in Scholarships/Grants. He also paid $600 for books/paper/printer. The $33,949 - 600 gets reported as wage income, ordinary income, subject to kiddie tax (Mom's tax rate is just 10%, luckily). Mom is arguing that tuition is over $28,000/semester + off-campus rent + internet. Yale says Tuition was accrued December 2020. Living expenses don't net against Tuition anyway. I think he's a lucky kid to walk away with a Yale diploma for less than $4,600 in taxes. Mom thinks her kid should be getting a refund and is telephoning me multiple times at 11:30 pm at night. Next year, everyone's rates are going up 10%.

I haven't seen it yet. It's usually mid-November-ish.

cbslee makes some good points. I'm learning on this thread.

Do the employees use their Flexible Spending Accounts to pay their Health Insurance Premiums? What's a TPA?

Had one today. He's over 59.5, worked for a private company, $$ in Boxes 1 and 11, so can exclude $20K which is more than enough this year. So glad this thread was here. You all saved me some time proofreading this return!

I'm still not sure. And, I had a client call this week that inherited her mother's IRA and asked me. She'll have to wait until after 17 October. I really can't remember everything that's passed over the last three tax seasons, especially which IRS regs are final. And, so little published since Covid, just FAQs!

That is huge, John. Thank you.