|
AbbiTheDog posted:Don't fret, I've seen CPAs shovel out crap work as well. Problem with H&R is it's so drat hit or miss. Some of the preparers nail it, but frankly a lot of them fail on anything more than a W-2 and a house. I agree, i have seen other cpas in my city do some downright fraudulent poo poo. I am just extra salty about HR block because I had a client a couple of days ago flip their poo poo at me when I told them we needed to amend 13, 14, 15 to take off the portion of medical expenses that were reimbursed by ltc payments and it was going to cost them 25k in tax and penalties and interest.
|
#
?
Mar 31, 2017 03:10
|
|
|
|
| # ? May 29, 2024 17:08 |
|
|
Lord of Garbagemen posted:I agree, i have seen other cpas in my city do some downright fraudulent poo poo. I am just extra salty about HR block because I had a client a couple of days ago flip their poo poo at me when I told them we needed to amend 13, 14, 15 to take off the portion of medical expenses that were reimbursed by ltc payments and it was going to cost them 25k in tax and penalties and interest. It's not your job to force a taxpayer to amend back returns, it's your ethical responsibility to bring it up and document their response. "gently caress off wanker" is probably not a quote you want in your workpapers though.
|
|
#
?
Mar 31, 2017 15:42
|
|
|
AbbiTheDog posted:It's not your job to force a taxpayer to amend back returns, it's your ethical responsibility to bring it up and document their response. "gently caress off wanker" is probably not a quote you want in your workpapers though. I know that , but now they have some hosed up expectation that because Mouth Breather at HR Block has done it this way for 5 years and they have never gotten audited (lol), that I must be doing it wrong because now they owe. My reputation suffers in the community because potential client will go around saying to other people that "don't go to this guy, he will make you pay, go to HR Block they will get you big refunds".
|
|
#
?
Mar 31, 2017 16:41
|
|
|
Lord of Garbagemen posted:I know that , but now they have some hosed up expectation that because Mouth Breather at HR Block has done it this way for 5 years and they have never gotten audited (lol), that I must be doing it wrong because now they owe. My reputation suffers in the community because potential client will go around saying to other people that "don't go to this guy, he will make you pay, go to HR Block they will get you big refunds". Better the reputation you'll toe the line than the one that you'll "dirty up the returns." Besides, once you let clients like that in, they refer similar kinds of clients, and soon your practice is filled with tax cheats. Not the kind of practice you want to have.
|
|
#
?
Mar 31, 2017 18:55
|
|
|
My new employer withheld taxes for the wrong state for my first couple of paychecks last year. My tax form for that state pretty much just says I had zero in state income so it should all be refunded. This seems easy to abuse (commit tax fraud) so do the states ever argue it? Or would they only care if I tried to get a major amount of withholding reversed?
|
|
#
?
Mar 31, 2017 20:34
|
|
|
smackfu posted:My new employer withheld taxes for the wrong state for my first couple of paychecks last year. My tax form for that state pretty much just says I had zero in state income so it should all be refunded. This seems easy to abuse (commit tax fraud) so do the states ever argue it? Or would they only care if I tried to get a major amount of withholding reversed? They argue it. It is the nature of the massive gently caress up I had to deal with 2 years back.
|
|
#
?
Mar 31, 2017 21:26
|
|
|
So I had a low priority question. What generally happens if you've hit the FICA cap and then change jobs mid year? Do you just get FICA withheld again and then get a big refund at tax time?
|
|
#
?
Mar 31, 2017 23:46
|
|
|
ohgodwhat posted:So I had a low priority question. What generally happens if you've hit the FICA cap and then change jobs mid year? Do you just get FICA withheld again and then get a big refund at tax time? Yes. You get an excess FICA credit on page 2 of your 1040. Your second employer gets screwed over, though. SSA keeps that money from the employer side.
|
|
#
?
Apr 1, 2017 00:09
|
|
|
Mouse Cadet posted:A family member is employed full time but on the weekends did some focus groups/online surveys and made about $1,000 in cash/giftcards. About $800 was through one company, the rest from several others. He was not issued any tax forms. Can he put the total on line 21 on the 1040 - "other income" and note it as focus groups/surveys? Anyone?
|
|
#
?
Apr 1, 2017 13:19
|
|
|
Any Oregoons know about this Working Family Household and Dependent Care Credit? Is there a cap on it? The pub says its refundable and my tax software seems to be saying it's absurdly generous. Which seems unusual for the state of Oregon.
|
|
#
?
Apr 1, 2017 15:51
|
|
|
sullat posted:Any Oregoons know about this Working Family Household and Dependent Care Credit? Is there a cap on it? The pub says its refundable and my tax software seems to be saying it's absurdly generous. Which seems unusual for the state of Oregon. It's a pile of lies. It is generous, but almost every time the state will not pay it out and demand records/proof/receipts before they will pay it, so watch your mail for the letter from the state. If you paid cash for childcare, or don't have the cleared checks, or your babysitter moved and you can't get an invoice from them, you're toast. Also note Oregon does *not* send any notices certified, and only gives you 30 days from the date of the letter to respond before the state declares themselves the automatic "winner." If you're on vacation or your mail gets lost/stolen/you move and it's not forwarded in time, you're doing to lose. So watch your bank account, and if the deposit is not what you listed on Form 40, check your mail and start gathering paperwork. We've gotten rid of our clients with that credit due to this, *and* due to the fact that if the state changes this credit for any reason, they are going after the CPAs and not the taxpayers for the difference. Long story short - don't budget on spending this money until it actually arrives in your account.
|
|
#
?
Apr 1, 2017 16:44
|
|
|
AbbiTheDog posted:It's a pile of lies. It is generous, but almost every time the state will not pay it out and demand records/proof/receipts before they will pay it, so watch your mail for the letter from the state. If you paid cash for childcare, or don't have the cleared checks, or your babysitter moved and you can't get an invoice from them, you're toast. This is the first year they've had it, right? So quick to deny it. Well, I'm getting invoices from the daycares, although I suppose I will need to also show that the invoices were paid, not just charged. Thanks, I will keep an eye out on how it goes.
|
|
#
?
Apr 1, 2017 16:54
|
|
|
sullat posted:This is the first year they've had it, right? So quick to deny it. Well, I'm getting invoices from the daycares, although I suppose I will need to also show that the invoices were paid, not just charged. Thanks, I will keep an eye out on how it goes. It's been around forever, but they expanded it (in theory). When we did have it for our clients, it usually was around $200 - $300, so they said "gently caress it" and didn't bother to mail the state what they wanted. We had one gal who self-prepared and the credit was $2,000+ and the state wasn't accepting her mailing as being timely, even though she had numerous correspondence with the auditor and explained as a working single mother how she couldn't take time off to meet with a CPA/attorney (much less afford to pay one) to help her with the case. I stepped in to help a bit since she was related to one of my other clients.
|
|
#
?
Apr 1, 2017 17:16
|
|
|
If you rent part of your home are you capped at deducting the rent you charged for the rental? For example (just made up convenient numbers), if you rent 25% of a home that has $20,000 in annual expenses for $3,000 over the year, can you deduct $5,000 or $3,000 (ignoring depreciation and whatnot)? Was asked earlier for something someone is planning on doing this year, wondering if there is a simple answer before I go poke around reading.
|
|
#
?
Apr 2, 2017 23:15
|
|
|
You can deduct more than the income, but the loss isn't deductible. It will be carried forward until next year as a passive loss. Look up passive activities, and passive loss carryforward
|
|
#
?
Apr 3, 2017 06:47
|
|
|
Nifty posted:You can deduct more than the income, but the loss isn't deductible. It will be carried forward until next year as a passive loss. Look up passive activities, and passive loss carryforward Thanks. Seems like it either is a wash, covers profits if you later go full rental, or harvests those losses when you sell the property. Will plug in some actual numbers to see how it translates to reality.
|
|
#
?
Apr 3, 2017 15:49
|
|
|
Nifty posted:You can deduct more than the income, but the loss isn't deductible. It will be carried forward until next year as a passive loss. Look up passive activities, and passive loss carryforward Residential rentals have an exclusion based on AGI.
|
|
#
?
Apr 3, 2017 17:30
|
|
|
AbbiTheDog posted:Residential rentals have an exclusion based on AGI. ahem, modified agi. you add back alot of stuff.
|
|
#
?
Apr 4, 2017 00:38
|
|
|
AbbiTheDog posted:Don't fret, I've seen CPAs shovel out crap work as well. Problem with H&R is it's so drat hit or miss. Some of the preparers nail it, but frankly a lot of them fail on anything more than a W-2 and a house. Hate to say it but that's kind of tax preparation in general from my couple of years of it so far. I think the sleazy bad kind give off the same warning signs as any other bad business but evaluating competence is tricky when you don't know a thing about taxes. God knows I would tend to suggest to the average person once you find a preparer who's good that you should stick to them like glue, otherwise you're stuck crossing your fingers with Preparer Roulette again. I know we try to bust our butts to ensure none of the newbies get stuck with somebody's difficult return, but God knows (speaking as still a relative newbie) it's amazing how often you get a crazy walk in situation or that "simple" client you handed the new preparer pulls out some crazy rear end form that preparer has never seen before. Hell even with three years of experience including off-season work I'm still getting suddenly bludgeoned with surprise situations, even if I often know enough to guess the right answer straight off now. And even the sharpest preparers make mistakes given all the work I do troubleshooting other returns. I just take exception to the idea screwing up is company or even big business specific given it seems drat near universal to each me. The newbies do it, the experts do it, the CPAs and company people do it, and for drat sure the states and IRS do it. About all I can do is try to make sure I don't do it  .Mouse Cadet posted:Anyone? Sorry, must have missed that one. Sounds irregular enough I'm not sure it needs to be reported as self employment to me, so my gut feeling is line 21 other income labeled as "survey income" should work OK. Depends on how routinely he does it though, the "is this contract work or is it other income?" line is a pain to judge sometimes.
|
|
#
?
Apr 4, 2017 03:09
|
|
|
nvm
BeanpolePeckerwood fucked around with this message at 00:36 on Apr 5, 2017 |
|
#
?
Apr 4, 2017 22:17
|
|
|
I have a question regarding long term capital gains from the sale of a property. I'll try to provide all of the details possible (some maybe completely unnecessary). Long story short, my father who lives in Michigan sold his business (located in Ohio) and retired. Sold along with the business was an office property located in Michigan owned by a partnership (which used the Ohio business address until it was sold last year, now my father's home Michigan address) I am a part of, along with my brother and father. The office property is the long term capital gain in question. I live in Ohio. The accountant for my father's business was under the impression that my brother and I would need to pay taxes on the capital gains in Michigan and had Michigan taxes withheld for the capital gain. My brother had his taxes prepared by an accountant this year and according to her, he did not need to pay capital gains in Michigan (he is also an Ohio resident). I'm a lazy bum, so I'm just working on mine now. The question is: is she correct? (Perhaps due to my state of residence.) Or is she wrong and the other accountant is right? It's kind of confusing when two accountants are giving two completely different answers.
|
|
#
?
Apr 5, 2017 04:06
|
|
|
GI_Clutch posted:I have a question regarding long term capital gains from the sale of a property. I'll try to provide all of the details possible (some maybe completely unnecessary). Depends on the structure of the deals. Were these asset sales or stock/interest sales? If the actual office property was sold (which I'm assuming is the case) as opposed to the partnership interest, you'll generally find that, at minimum, a portion of the gain will be taxable where the property is located. In that case I would agree with your father's accountant. Was the gain reported on your father's K-1? With that said, I don't have all the details.
|
|
#
?
Apr 5, 2017 12:12
|
|
|
Good morning. I am currently filling out a new W4 since I am recently married. I'm on line 9 of the two-earner's worksheet where it asks you to divide by pay periods remaining. Since I've already paid 3 months of taxes at the single rate as of today, should should I just divide that number by the full year (25) or do the actual remaining pay periods in the year (18), which seems like would be overpaying?
|
|
#
?
Apr 5, 2017 12:18
|
|
|
Admiral101 posted:Depends on the structure of the deals. Were these asset sales or stock/interest sales? It was a sale of the asset. Tunes are changing this morning. My brother says his stuff isn't final and that he probably misrepresented everything to me. So I'm pretty sure it is taxable (thankfully checks were cut earlier in the year to pay it). At least I'll be getting back the estimated payments I made to Ohio due to reciprocity.
|
|
#
?
Apr 5, 2017 14:37
|
|
|
GI_Clutch posted:It was a sale of the asset. Tunes are changing this morning. My brother says his stuff isn't final and that he probably misrepresented everything to me. So I'm pretty sure it is taxable (thankfully checks were cut earlier in the year to pay it). At least I'll be getting back the estimated payments I made to Ohio due to reciprocity. When you have an LLC/partnership sale, you look to the underlying assets for the tax treatment. For real estate, you pay taxes where the property is physically located (appears to be Michigan in this case). Ohio will tax you on your "worldwide" income as well. This leaves you in a bit of a crunch, but the states have worked it all out. Depending on your state, one of the states will give you a "multistate tax credit" for income taxed to another state, leaving you with zero (or little) taxes due in one state, and a bunch owed to the other. Your software *should* handle all of this if you input it correctly. You will need to file two different state returns this year. The pass-through entity does have the option to pay the state tax for nonresident members at the 1065 level (nonresident composite withholding), but that doesn't sound like it was done.
|
|
#
?
Apr 5, 2017 15:54
|
|
|
Yeah, I thought it would be taxed in MI since that's where the property was located, but my brother's info was confusing me. My father verified with his accountant who is handling all of his stuff including the sale of his propane business and she confirmed it is taxable in Michigan so the taxes withheld are good. I ended up with an $86 refund from Michigan and got most of the estimated taxes I paid to Ohio back due to the reciprocal agreement between the states. I'm just happy this is the last return where I have to deal with K-1s or filing Michigan returns. It's amazing how many more forms you need to fill out as a non-resident when that income is only the tiniest portion of your total income (talking pre-sale years here).
|
|
#
?
Apr 5, 2017 17:18
|
|
|
GI_Clutch posted:Yeah, I thought it would be taxed in MI since that's where the property was located, but my brother's info was confusing me. My father verified with his accountant who is handling all of his stuff including the sale of his propane business and she confirmed it is taxable in Michigan so the taxes withheld are good. I ended up with an $86 refund from Michigan and got most of the estimated taxes I paid to Ohio back due to the reciprocal agreement between the states. I'm just happy this is the last return where I have to deal with K-1s or filing Michigan returns. It's amazing how many more forms you need to fill out as a non-resident when that income is only the tiniest portion of your total income (talking pre-sale years here). Who informed you about the reciprocity agreement between OH/MI? 99% of the time those agreements only apply to W-2/wages. Business operations would not be covered under such agreements. The gain will be taxed in both states, but you'll be getting a state tax credit in OH for the taxes paid to MI. I'm not sure how that will shake out on your tax return but it may or may not actually be dollar for dollar.
|
|
#
?
Apr 6, 2017 00:40
|
|
|
Admiral101 posted:Who informed you about the reciprocity agreement between OH/MI? Sorry, worded poorly, but that's what I meant. I've always plugged it in, gotten the credit, etc. over the years. I'm not simply pretending the income didn't exist on my Ohio return. Ohio's calculation is based on the amount of your AGI that was taxed by another state, not just your wages.
|
|
#
?
Apr 6, 2017 01:22
|
|
|
Quick question: if a small business owner is using the wifi at McDonalds for business purposes, can they deduct the cost of meals as a business expense? e: To clarify, this is not a joke, this is seriously something my dad is trying to do. Should I tell him he's a dumbass? e2: Gave up, added every expense that looked valid, handed him back his bank statements and vehicle registration stuff, then told him to file an amended return when he digs up the receipts for actual business expenses and the vast majority of his inventory purchases that were nowhere to be found in all the papers I went through. super sweet best pal fucked around with this message at 06:25 on Apr 6, 2017 |
|
#
?
Apr 6, 2017 03:56
|
|
|
super sweet best pal posted:Quick question: if a small business owner is using the wifi at McDonalds for business purposes, can they deduct the cost of meals as a business expense? Not a tax pro, but your dad most certainly shouldn't be eating at McDonalds enough to make this a serious deduction.
|
|
#
?
Apr 6, 2017 13:23
|
|
|
super sweet best pal posted:Quick question: if a small business owner is using the wifi at McDonalds for business purposes, can they deduct the cost of meals as a business expense? Short answer: No. Long answer: NNNNOOOOOOOOOOOOOOOOOOOOOOOO
|
|
#
?
Apr 6, 2017 15:54
|
|
|
I have a question re how to respond to an IRS notice. It's a 12C notice asking for a 1095-a and 8962. I received an incorrect 1095-a that healthcare.gov has just now started an investigation of, with the wrinkle being that I've already filed and paid tax for 2016, and if I include the incorrect 1095-a in Turbotax I owe a little extra money. The thing is, the 12C notice specifically says not to file a 1040X, and just to send the extra forms to them, but I'm worried that my temporarily owing extra tax means that I'll end up having to send a 1040X anyway. Does anyone have experience with this annoying edge case?
|
|
#
?
Apr 6, 2017 21:19
|
|
|
E: Taxes submitted, problem solved. Or I'll be audited. Either way!
Saladman fucked around with this message at 10:27 on Apr 8, 2017 |
|
#
?
Apr 6, 2017 21:48
|
|
|
babydonthurtme posted:I have a question re how to respond to an IRS notice. It's a 12C notice asking for a 1095-a and 8962. I received an incorrect 1095-a that healthcare.gov has just now started an investigation of, with the wrinkle being that I've already filed and paid tax for 2016, and if I include the incorrect 1095-a in Turbotax I owe a little extra money. The thing is, the 12C notice specifically says not to file a 1040X, and just to send the extra forms to them, but I'm worried that my temporarily owing extra tax means that I'll end up having to send a 1040X anyway. Does anyone have experience with this annoying edge case? Do you have the correct 1095a data yet? Wait to get that before sending in the 1095a and 8962. If you need more time, fax the 12c letter in asking for more time. Don't file a 1040x.
|
|
#
?
Apr 7, 2017 16:03
|
|
|
sullat posted:Do you have the correct 1095a data yet? Wait to get that before sending in the 1095a and 8962. If you need more time, fax the 12c letter in asking for more time. Don't file a 1040x.
|
|
#
?
Apr 7, 2017 17:30
|
|
|
babydonthurtme posted:My main problem here is that I already filed my return for 2016. Can I still ask for an extension if that is the case? Yes, if you reach out and call the number on the notice and ask for extra time to get it corrected they will do that for you. DOCUMENT the ID# of the agent that helps you and what they tell you. Might even use your phone to record the call in case you need proof.
|
|
#
?
Apr 7, 2017 17:53
|
|
|
AbbiTheDog posted:Yes, if you reach out and call the number on the notice and ask for extra time to get it corrected they will do that for you. DOCUMENT the ID# of the agent that helps you and what they tell you. Might even use your phone to record the call in case you need proof. Huh, I didn't know that was an option at all. Well, we'll definitely take advantage of it now. Healthcare.gov just called me to say that I did indeed have insurance for that one month last year, or at least Aetna is saying I did even though I didn't pay a premium and they've yet to demand that I do. Anyway we at least now know how exactly how much extra to pay. Now we just have to ask for an extension, wait for the correct 1095a to be mailed/to appear on the website, and then send in the forms the IRS asked for.
|
|
#
?
Apr 7, 2017 18:14
|
|
|
babydonthurtme posted:Huh, I didn't know that was an option at all. Well, we'll definitely take advantage of it now. Healthcare.gov just called me to say that I did indeed have insurance for that one month last year, or at least Aetna is saying I did even though I didn't pay a premium and they've yet to demand that I do. My clients have had an awful time getting incorrect 1095-A forms corrected. We just give up and file based on the form issued, since that's what the IRS is going to use. If a corrected one shows up, we amend later.
|
|
#
?
Apr 7, 2017 18:35
|
|
|
AbbiTheDog posted:My clients have had an awful time getting incorrect 1095-A forms corrected. We just give up and file based on the form issued, since that's what the IRS is going to use. If a corrected one shows up, we amend later. One last question, close reading of the 4868 instructions + stuff I read on the IRS Direct Pay website seems to say that you don't have to file a paper form if you've paid through Direct Pay and selected 'extension' as the reason. Is this for real? Will that plus a faxed reply to the 12c letter sort everything out for now while I wait for the corrected 1095-A to show up?
|
|
#
?
Apr 7, 2017 19:19
|
|
|
|
| # ? May 29, 2024 17:08 |
|
|
I have an IRA contribution question: I fall within the range of the IRA deductibility phase-out (98-118,000 MFJ), but well under the limits for Roth contributions. I understand that I am entitled to a partial IRA deduction calculated by some means. Let's say I do the math and come up with a partial deduction of 2500 out of the 5500 limit - does this mean that I can contribute 2500 to a Traditional IRA and 3000 to a Roth IRA, and have the 2500 Traditional contribution be fully deductible? The language confuses me because "partial deduction" to me implies that only a portion of your contribution is deductible - like 20% is deductible of your contribution up to 5500. But in reality, your contribution is fully deductible, up to a portion of the contribution limit.
|
|
#
?
Apr 7, 2017 22:19
|
|
