Lion EA

Child Care Credit, is what I think Max was asking about. Or Child & Dependent Care Credit.

I have always included the comparison, but a couple of pages in. This year, the comparison was at the front of every client copy, right after the cover sheet.

Huh. Is that new? I have clients that are divorced moms who claim the child every other year. They are always HOH and CCC and e-file. None of my clients come in very early. Maybe the dads have been even later! That would be a good reason to urge clients to come in earlier...

But, the child will NOT be a Dependent on two returns.

Only the custodial parent claims the child/dependent care credit to enable her to work or look for work. In your scenario, she will NOT be claiming the child as a dependent. So, she can e-file even though her ex-husband claims that child as a dependent with Form 8332.

I know nothing about timber tax, but preparers have told me the following is a good site: https://www.timbertax.org/

But, autumn is beautiful in Starlight, PA.

Thank you. I've had clients in the Philly area and Harrisburg and in the mountains/Delaware River of Starlight, PA. But, not enough to feel confident about crazy PA local taxes. She was in her home for decades, went into an assisted living situation in 2016, sold the house in 2017, and now in 2019 is in a memory care unit. I'm filing 2017 and 2018 now. A hotshot Pittsburgh CPA filed 2016 and prior years, but her adult son and wife haven't been happy with his lack of attention. And, unfiled 2017 return. I need to make sure that I screw up LESS than he did !! She's going to be fine. House sold for WAY under $250,000. All other income is retirement income. Unfortunately, since she wasn't being helped much during 2017 and 2018, she wasn't making ES payments to the IRS. And, none so far in 2019. So, the balances due and a catch-up 2019 ES payment for the IRS will be a bit of a shock for her son/wife. But, they're my clients and related to my stepdaughter, and they like me! We'll get 2020 under control. Thank you FDNY. I love this board. Everybody knows something; everybody can help somebody at sometime!

Elderly lady in assisted living, now in memory care unit in Pittsburgh, is mother of a current client (not a PA resident, in fact living/working in Singapore for a few years). Son & wife asked me to prepare mother's 2017 and 2018 returns (2018 extension was filed). In 2017, she sold her primary residence. Other than that sale, she has only IRA distributions, pension distributions, and social security benefits. Are there any local tax filings for a PA resident with a Pittsburgh address and without any earned income?

Is the daughter qualified as disabled? If so, then age does not matter. Does she then meet the requirements to be a Qualified Child (and not have to be a Qualified Relative)? If so, the only income limitation is does daughter pay more than half her own support. I'm not sure, but that's the path I'd investigate.

Start by reading the trust document.

I used AAA last time, too. However, since then AAA has stopped renewing driver's licenses in all but about six CT offices. None in Fairfield County.

Aww! Congratulations. What a beautiful day for your family.

I think several entities have been eligible for amendment e-filing. NY individual resident and non-resident amendments can be e-filed for current and past two years (2016-2018).

Oops, I wasn't watching replies! So glad your client helped simply the situation.

Wow. How about gift to son? You get paid for a gift tax return. Then, maybe, you can get the son to work with you. Give to corporation in exchange for some stock? Right now you have son/employee borrowing dad's truck to drive on corporation business. I don't think anybody/entity gets any deductions.

I liked the old schedule. I'd send them out. Then get the calls about I Moved, Changed My Name When I Got Married or... But, still had time to correct the government file before sending. But I see their point. And, I hated those teeny, tiny verification codes that are only on one copy, so I miss them or the client didn't even give me the copy with the code. Good riddance.

Student was a paid intern in the legal department of a commercial properties firm in Greenwich, CT. Had to buy dress shoes, belt, pants; and no, I did not deduct those. Very definitely not a not-for-profit. But, hey, he's getting a Yale education and almost $5,000 per summer job for less than $730 in taxes. A great deal. But, he's a great kid of a hardworking single mom violin teacher/yoga teacher. And, he volunteered with VITA, so why he forgot to prepare his own tax return... I like his mom, but I'm charging for this kid's return.

I think a parent can hire his/her child with FICA exemption and age restrictions, including a husband-wife only partnership. But, not an S- or C-corporation, even if parent is only shareholder.

Will it really be 100% biz usage? If not, and corporation owns truck, corp has to add personal use to W-2. Sounds like your client wouldn't be bothered with that, either. How about an accountable expense plan for biz mileage reimbursement?

Thank you. I have it flowing to "wages" with SCH next to it. With the standard deduction, it does wipe out income tax. Unfortunately, the student's summer internship was reported on a 1099-MISC, so SE tax.

Scholarships in excess of tuition are taxable for income tax purposes. Does the excess trigger Social Security & Medicare taxes?

If it is more advantageous to file MFJ, amend his return from MFS to MFJ to include her. You do NOT have to file her MFS first and then amend.

I think you include the basis computation when losses, distributions, &/or sales. Distributions might be distributions in excess of basis, but how would you indicate whether the distribution was not in excess unless you showed the basis computation?

Thank you, all. With that in mind, I stupidly accepted two new trusts that I haven't filed before! They're for family members of current clients. I have to learn to say no! It's not like I don't have a stack of personal returns to prepare, our own included...