Lion EA

I give price shoppers no time at all. The most I'll say is my fees start at $500 and go up from there. Or, $750, $1,000, or $2,500 depending on what he said before I stopped him (SE and does his own bookkeeping, for example). This year, I've told a couple to make extension payments on DirectPay and contact me after 15 July. Or, I've just said that I'm not taking new clients unless they are referred by one of my good clients. Tire kickers don't get more than 30 seconds of my time.

Some scholarships say they can be used for tuition only. Some do not. Some say they can be used for tuition &/or room & board. Some colleges disburse the excess over college costs to the students. Some return the excess to the organization that issued the scholarships, based on the requirements of the scholarships. One local HS gives out scholarships to a few graduating seniors each year that are supposed to be used for books. Yes, you have to ask your clients questions.

I don't know how you do the data entry in ATX, but it IS an option. You use $4,000 as "wages" with a literal that prints "SCH" or something similar. The student pays at his lower tax rate. Then the parents can take the AOC or whichever benefit is best. If you're not seeing a diagnostic suggesting it, run the numbers to see which way is most beneficial for the family as a whole.

It was an e-newsletter I receive via email from time to time; it was sent 7 July. The header, which was a separate box and wouldn't copy, had the logo with Wolters Kluwer CCH Software News. I use ProSystem fx, so maybe I get more communication... They encourage subscriptions: "If this email was forwarded to you, and you would like to subscribe to CCH Software News announcements, subscribe here." But I can't seem to copy the link under "here" without signing in. I guess I DO get more communication... I'll try to remember to share here when I get these e-newsletters.

CCH Software News - Individual, Partnership, Corporation, S Corporation, Fiduciary, Exempt Organizations (1040/1065/1120/1120S/1041/990) Deadline Information Dear CCH Customer: Please read the following carefully as it contains helpful information regarding the upcoming filing deadline. Customers who plan to submit returns or extensions for electronic filing should be aware of the deadlines below to ensure timely filing. CCH must process your returns or extensions before midnight (CDT) on Wednesday, July 15, 2020. However, due to the time involved in transmitting to the IRS during times of higher volume, we recommend that you release your returns for transmission no later than 9:00 PM CDT on Wednesday, July 15, 2020. Important: Linked state returns are not transmitted until the IRS acknowledgement is returned for the federal return. Because certain states no longer honor the vendor timestamp as the state transmission time, we further recommend that you release your state returns for transmission separately from the federal return, particularly if you are not going to be able to get the full return filed by 9:00 PM CDT. This allows the state return to transmit without the return of the federal acknowledgement. The easiest way to submit the state return separately from the federal return is to uncheck the federal return on the export window. Rejected Returns/Extensions If the IRS rejects any of your returns or extensions, you are given an additional amount of time to correct and resubmit as follows: Individual - A corrected return or extension must be resubmitted no later than midnight (CDT) on Monday, July 20, 2020, to be considered timely filed. Fiduciary, Corporation, and Exempt Organizations - A corrected extension must be submitted no later than midnight (CDT), five calendar days from the date of the original rejection. A corrected return must be retransmitted no later than midnight (CDT), 10 calendar days from the date of the original rejection to be considered timely filed. For Partnership returns, the following states do not conform to the IRS 10-day perfection period based on information received: Connecticut and Massachusetts rejected returns and extensions - These states allow five business days to resubmit rejected returns and extensions and obtain approval. Maryland and North Carolina rejected returns - These states allow five calendar days to resubmit rejected returns and obtain approval. New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Pennsylvania Form PA-20S/65 and Virginia rejected returns - These states have no defined perfection period. They must be filed and approved by the due date to be considered timely. Tennessee rejected returns and extensions - Tennessee does not have a defined perfection period. They must be filed and approved by the due date to be considered timely. For Corporation and S Corporation returns, the following states do not conform to the IRS 10-day perfection period based on information received: Alaska and Alaska Consolidated rejected returns - Alaska does not have a defined perfection period for rejected returns. They must be filed and approved by the due date to be considered timely. Connecticut and Massachusetts Composite rejected returns and extensions - These states allow five business days to resubmit rejected returns and extensions and obtain approval. Virginia and West Virginia rejected returns - These states do not have a defined perfection period for rejected returns. They must be filed and approved by the due date to be considered timely. Maryland, North Carolina, and Vermont rejected returns - These states allow five calendar days to resubmit rejected returns and obtain approval. New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Pennsylvania rejected returns - Pennsylvania Corporation Form RCT-101 and S Corporation Form PA-20S/65 have no perfection period for rejected returns. Returns must be filed and approved by the due date to be considered timely filed. Tennessee rejected returns and extensions - Tennessee does not have a defined perfection period. Returns must be filed and approved by the due date to be considered timely. For Exempt Organization returns, the following states do not conform to the IRS 10-day perfection period based on information received: New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Virginia rejected returns - Virginia does not have a defined perfection period for rejected returns. They must be filed and approved by the due date to be considered timely. Paper Returns If the IRS rejects any of your returns or extensions, the return does not fall into an e-file mandate, and you choose to file a paper return or extension, then the deadlines are as follows: Individual and Fiduciary - A paper return or extension must be filed by the latter of the following: the due date of the return or 10 calendar days after the date the electronic portion was rejected. For example, a return rejected on Wednesday, July 15, 2020, would be due Saturday, July 25, 2020, if filing by paper. Corporation - The paper return must be postmarked by the latter of the following: the due date of the return (including extensions) or 10 calendar days after the date the IRS last gave notification that the return was rejected. Sincerely, Wolters Kluwer Tax & Accounting, North America Did you know that you can view and pay your invoices and statements online? We’ve made it easier to view and pay your invoices and statements online. Learn more about My Account, ACH and EasyPay. Find answers in our Knowledge Base, or visit the Wolters Kluwer Tax & Accounting Community forums to connect with professionals like you. You can also Contact Us online.

It's taxable in both states. File a non-resident state return where he earned the fishing money for all earnings sourced to that state. File a resident state return with his worldwide income, but take a credit for taxes paid to the other state.

Vodka Slurpee, hold the Slurpee

I think we need a do-over for 2020.

I think NY is the most aggressive, along with CA maybe! That settles it. NY resident. No DC-sourced income. Wow, the only one in the family with only one state this year. 2018 he moved from NJ to NY and then entered law school; the rest of his family has CT, NY, UT, and CO. Dad's still missing a W-2 and one of the trusts is missing a consolidated 1099, but now I'm one step closer to completing returns for this family. Anyone disagree with NY resident with no DC-sourced income? Love you all. Stay well.

His W-2 is from Adobe in NY where he worked as a paid intern for the summer. His 2018 residency had been NY. NY is going to say he's still a resident, because he didn't "stick the landing," establish residency in any other state. He rented an apartment in DC for more than half the year -- in order to go to Georgetown law school. After graduation, he returned to his parents' home in CT and married. The virus hit, so he's not taken a job anyplace, but his prospects are in NY, perhaps back with Adobe. I know how aggressive NY is regarding its residents and know NY will want to tax him on all his 2019 passive income as a resident. His only earned income is NY-sourced. My question is -- how aggressive is DC? I don't have any practical experience with DC. Does DC think he's a resident because he was a grad student for more than half the year? Do students need to file PY DC returns? $34,000 W-2 from NY plus $3,100 D&I plus $28,000 CG, but $60,000 tuition. Using NY rates vs. DC rates, I'd rather have him a DC resident, but NY will still tax him on the $34,000 (and 1/3 of the investment income if a NY PY). If DC is as aggressive as NY, then for 2020 both states will be chasing him to say he didn't leave, especially if he's still at his parents' house and not his own residence! I want to do this right and be able to convince the son I'm doing it right (at least three lawyers in the family now). I know what NY says about a resident out of NY for college. I don't know if DC has tried to claim 30-year-old grad students as residents and if they've prevailed. What would you do if you know both NY and DC? What would you do working with the type of family that you know you need to justify how you prepared the returns? Pacun: he earned his law degree at Georgetown.

OK, information continues to dribble in for this whole family (two trusts, two grown sons, and parents, with everyone of them spending time in two or more states). Son remembered he has a W-2 from working in NY during the summer. He was in law school at Georgetown in the spring and fall. In 2018, he was a NY resident, and in 2020, he's a CT resident. NY considers you a resident until you establish residency in another state, and college is their very definition of temporary absence. Son let his NY apartment go, but his only earned income in 2019 was in NY (maybe commuted in from CT with his father or stayed with girlfriend/fiance in NY). He has a lot of investment income (old trust from his grandparents) so DC would tax about 9/12 of that if he's a PY or FY DC resident. But, I'm thinking he's really still a NY resident with a temporary absence for law school. Agree or disagree? It's a good thing these folks are really nice, because this year they're a mess!

IRS.gov Get Your Refund Status

Prayers for your mom and you and her whole medical team and your whole family. The next time someone else is with her, file all 80 extensions in one big batch to take 15 July off the table. If you complete 1 or 8 or 80, that's great. But, you don't have to complete any this month. Go talk to your mother &/or hold her hand.

Thank you, Pacun. That's helpful.

If taking the lesser of the three, and it's less than the HA, then the SE tax is lower than it could've been, too. The excess HA moves over to wages and is taxed for income tax purposes only and not for SE tax.

I've had a long day, so don't accept this as correct. I think son takes on dad's basis, just as in any gift. But, that's outside basis. And, does lower of basis or FMV come into play for outside basis? I'm too tired to think about inside basis!

This morning I would've left some school or church in central Appalachia in a van with another adult or college student plus five high school kids in a caravan with more than a dozen vans and meet up Sunday in CT with all 200+ people who just spent a week repairing homes. Appalachia Service Project is a relational ministry with a little home repair on the side! I miss it. My stepdaughter who brought me into ASP years ago with her next generation ASPer, son Everett:

You client doesn't have to support the kids. (Kid can't pay more than half his own support + divorced parents together have to pay more than half.) The kids have to stay with that parent more than half the nights of the calendar/tax year, or that parent has a signed 8332 from the custodial parent. If it's a new client, you'll ask for things that show the kids' address as your client's address: report cards, doctor bill, etc., and ask a lot of questions. Go through the Due Diligence form with them. If you're uncomfortable with any answer, ask more questions. Give your client a list of the documents the IRS will require if your client is audited and ask if he has them (you don't have to see them unless you are still uncertain) or can obtain them. Here's an example for CTC: https://www.irs.gov/pub/irs-pdf/f14815.pdf

And, if your client runs afoul of state law/divorce law, his ex could drag him back to court, he might owe damages to his ex due to breaking the divorce contract. What is it that you/your client needs to know? (It might be a legal issue and not a tax question.)

IRS/federal law trumps state law. The IRS doesn't think about what a state court says. The IRS has their own rules about who's a qualified dependent, who's a custodial parent. Period. That said, if the parents are agreeing, then the custodial parent can sign Form 8332 to allow the non-custodial parent to claim the child. But the custodial parent retains certain benefits, such as HOH.

Here it is 15 days away and I get a new state! Long-time client went to law school at Georgetown and lived in DC for spring and fall semesters, back to his NY apartment for the summer of 2019. (For 2020, graduated and married and is in CT for the time being, so his mailing address on his returns will be CT but did not reside nor work in CT during 2019.) Anything I need to know about a part-year DC return? Or would you file as PY? He was a 2018 resident of NY. Maybe a 2019 NY resident with NR DC? Still anything I should know about a NR DC return? Thanx for your thoughts.

Hey, Burke. I use Chrome but don't know any good training. And, TTB Forum works fine for me today. But, I do know MS had some updates that affected IE and added Edge to my computer. Perhaps such an update changed your IE settings or even replaced IE with Edge, making TTB Forum not work right. If you prefer IE, try poking around your settings in IE and in TTB to see if something changed. Good luck.

Depending on what your client is fussing about, eliminate her middle initial or use M instead of Maria. My clients usually calm down when I tell them the field is only so wide, and that the IRS uses only the first four letters of the last name anyway. My son is Robert F. Franciose III, and his name never fit in the boxes on standardized tests in school.

I've had a couple of clients (over the years, not this year) receive a refund when the return was clearly marked to apply to next year. The first time it happened, I even called Profx to see if something showed on the transmission that was different from what I see on my screen. I remember them both as being on extension and filing in the fall. And, the refunds came slowly. One client swore to me he didn't get a refund, but I pulled his transcript after he got a letter saying he'd underpaid the following year, and the transcript did show funds going back to him the next spring. The other received her refund after we'd already filed the next year. (She called me.) So, both took some time for us to figure out what they really owed and what I needed to carry forward in my software to have the year after the year after accurate.