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AbbiTheDog posted:I paid a grand total of $20k last year for it....grrrr...... Are you actually paying more than you would for CCH Prosystems? I sure hope it's worth it. I'm not surprised, really. Intuit has been raising prices substantially in the past few years. The only price program they haven't restructured lately is that on the QuickBooks program proper (they hosed with payroll subscription a year or two back). The only consolation is knowing that Intuit will decide to shoot themselves in the head again and that maybe, just maybe, good alternatives will become popular.
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Apr 22, 2011 04:31
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Bojanglesworth posted:My question is, what is the smartest way to set that all up so I see the most take home money, since It will technically be a completely different company that is paying my salary. Thanks! You will probably want to have the least take home pay. The separate company doesn't affect you at all for tax purposes compared to if your pay rise came out of the same company. The effective marginal tax rate on the final $6,000 of income will be higher than the rest of your pay so have extra withheld. How much you have withheld depends on your total taxable income, filing status, etc.
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May 4, 2011 01:02
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Bojanglesworth posted:OK, my current pay is $36,000 a year, plus the $6,000 raise I just received. I am currently claiming 4 federal and 2 state (Virginia.) I have a part time job making about $5,000 a year. I am married and we have a son who was born in 2010. My back of a cocktail napkin calculation says you need about $1,900 in federal withholdings. I don't know much about Virginia but I imagine it would be a bit less than that. So long as you have that much withheld in the year, it doesn't matter what paycheck it comes from.
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May 4, 2011 03:19
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Bojanglesworth posted:I ended up going with 3 federal and 2 State on my W2 today when I filled out paperwork. Hopefully this works out well. Why did you even bother asking for help, if you won't provide the right information necessary to help you, and then will completely ignore the response that you received?
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May 5, 2011 01:24
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Bojanglesworth posted:What other information do you want other than what I have already posted: It might be that you mentioned afterwards that you had another job... Bojanglesworth posted:Also, I technically have three jobs, the third one I have worked at since 2007 and I only make a couple hundred dollars per month (sometimes I will make about $1,000 but 90% of the time I make just a couple hundred,) is it screwing me by having three jobs even if I don't make a lot of money?
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May 5, 2011 02:45
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Bojanglesworth posted:Sorry, you don't have to be a dick about it though. I do absolutely nothing in this other job, I just get a paycheck so its not really at the front of my mind all the time. 1) That's not really an excuse (but in all honestly, where can I get a job where I do absolutely nothing but get a paycheck?) 2) You missed the other part of my post -- ironically, the part that complained about you completely ignoring the responses that you did get.
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May 5, 2011 03:02
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Just curious, who advised you to set up an LLC to 'take advantage of deductions and such' and what deductions and such are you anticipating taking advantage of under the LLC that you couldn't otherwise? If you bring up a Schedule E, you will get an idea of what types of expenses are deductible. Assuming that you didn't set up a LLC taxed as a partnership or corporation, you will use that schedule to calculate your net income or loss from the rental to flow through the rest of your income tax return.
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Jun 8, 2011 00:27
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TraderStav posted:Beautiful, either way, how does the rental income flow through on my taxes? Do I put the gross collected as my income and then toss the mortgage costs in the expenses, or just the difference in income? Look at the Schedule E. You can deduct interest but not principal.
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Jun 10, 2011 01:31
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furushotakeru posted:The funny thing is that he is looking specifically for a CPA even though none of the things he wants this adviser to do for him are covered on the CPA exam. Myself, I like to hire a licensed insurance broker to work on my car, and a DDS pumps my gas. You have to admit that the CPA designation has been well-marketed, especially compared to the EA designation.
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Jun 14, 2011 13:23
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poofactory posted:I read that the IRS conducts all of its random audits from the pool of taxpayers that file their returns by the 3/15 & 4/15 (1120 & 1040) deadlines but not from the group that files extensions. True or false? You figured it out. You cracked the code. Based on your history in these threads, I have to ask: do you apply any common sense or critical thinking skills in regard to tax law?
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Jun 25, 2011 22:41
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sklnd posted:I paper filed, W-2 was attached. Did you file as a full-year resident or a part-year resident?
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Jun 27, 2011 03:10
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HiddenReplaced posted:Anyone have an answer? In what state do you live? Also, Admiral101 mentioned that it is more complex than this, just with the specific deductions you both claim. Missing Donut fucked around with this message at 13:39 on Oct 23, 2011 |
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Oct 23, 2011 13:35
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HiddenReplaced posted:Georgia. Based on this you won't lose 10k by filing separately. I'm quite surprised that your wife's student loan will actually allow this, though. Double check that.
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Oct 24, 2011 23:48
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And don't forget to claim Alien. e: Anyone else remember the days that if a person claimed a huge amount on the W-4, it had to be sent to the IRS?
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Nov 29, 2011 03:32
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psydude posted:I just moved to Maryland from Virginia and am about to get rear end-raped by the excise tax on registering my car here. Can I claim this as a deduction on my return? How does Virginia calculate your registration fee? entris posted:ok CPA goons. If my client's Iraqi dinars magically increase in value and my client converts them back into U.S. dollars or otherwise uses them, where on the 1040 would my client report the Section 988 gain? My vote is Form 8886.
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Dec 17, 2011 04:09
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catman posted:perhaps I'm forgetting something. You may have forgotten the possibility that I wouldn't be 100% serious in my response to a non-serious hypothetical gain on a complete scam.
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Dec 18, 2011 15:40
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psydude posted:Virginia charged 3% of the sale value of the vehicle, plus (I believe) a flat fee. Maryland charges the difference between whatever tax you paid at the time of the sale and their own base sales tax on top of the registration and titling fees. I believe that would be potentially deductible as a sales tax deduction. I'm not 100% sure on that though. furushotakeru posted:Your wife calls you "Abbi"? Different folks, different strokes.
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Dec 22, 2011 02:04
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AbbiTheDog posted:NY and CA have become highly aggressive, some of the other states are gearing up as well (WA is starting to crack down a bit on us Oregon taxpayers). Wisconsin has started a project sending notices to taxpayers requesting them to self-audit their use tax for four years, calculate 18% annual interest, and sign under penalty of perjury. This year, we now have a checkbox to check to say that the taxpayer "certifies" no use tax due. It's not enough that the taxpayer signs the tax returns under penalty of perjury, it requires an additional certification. And this is in a state with relatively low sales and use taxes. seymore posted:Do you guys ever feel like we are slowly being turned into Tax Collectors by the various govermental agencies out there ? And that our clients are footing the bill ? Don't worry. Because our information reporting system of W-2s and 1099s contains so few errors, and the forms are designed well enough to provide all the necessary information for all concerned, Doug Shulman wants to move toward a real-time tax system based on information reporting which will make tax professionals obsolete! Until then, the IRS can use these wonderful information reports to do computer correspondence audits, where it's not even necessary to give the taxpayer (or his or her representative) a human being to talk to! And why would we need that? 1099s are always right. The future of this industry is in representation. And it's not representation any more, it's the art of beating your head against a brick wall. Learn to love it, or find something else to do with your life.
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Mar 5, 2012 04:24
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entris posted:I respectfully disagree - applying for an EIN does not affect the tax classification of an entity... That's true, but furushotakeru is simply giving the real-world situation. If you tell the IRS in the EIN application that it will be a partnership, and you file as a sole proprietorship, there will eventually be a letter from the IRS asking for the missing tax return.
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Jul 10, 2012 02:27
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AbbiTheDog posted:Been using it for about ten years. Since Intuit purchased the program, it has become more and more buggy. Crashes continually. Really odd programming errors (grabbing names and SSNs from one family and dropping it into another return's input for child care credits, for example). They've also just dumped their paperless program and told us to "just use our cloud support services." A forum of tax professionals I am a member of has had several people also dump Lacerte and they usually go to UltraTax as well. For the same reasons. I've worked with a person who used UltraTax and she couldn't say enough good things about it. Then again, the firm I'm at uses Drake, which sometimes feels like one step above a typewriter.
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Jul 28, 2014 18:39
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Was the IRS successful in their argument? Not that it's fun arguing against the Service...
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Aug 8, 2014 04:14
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baquerd posted:Generally, you'll want to use the "Two-Earners/Multiple Jobs Worksheet" to properly calculate withholding unless you are making under $50k together. For as good as the tables are, you're better off using a dartboard.
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Oct 15, 2014 18:16
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If memory serves me correctly, you should expect to include the rent as income and you may not claim any of the expenses against rental income. Your situation is nothing like having rented a room out, because you are renting out areas of the house that are still available for your personal use (like your bedroom), and are therefore nondeductible. No areas of your home have changed to that of a landlord-renter relationship. Your mortgage interest and property taxes would still be deductible as before as itemized deductions. You may instead wish to amend your cohabitation agreement to have your girlfriend pay things like food and utilities instead of "rent" unless local laws prevent cohabitation, etc.
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Nov 4, 2014 04:39
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clayburn posted:My wife received around ~$700 in short term disability this year. The premiums for this are paid entirely by her employer. Along with the check, we received a notice that Social Security and Medicare taxes were withheld from this income. It seems to me that this is taxable income that I will need to pay federal and state taxes on. You will see it on a W-2; it might be even included on the one from your employer.
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Jan 24, 2015 17:40
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SurgicalOntologist posted:Is this an unreasonable ask? It's not their first rodeo on the incorporation, so they should be able to give you a reasonable estimate on that. However, reviewing the contract with the first client could be very difficult to estimate. Assuming that you are dealing with an ethical group of lawyers (insert overused lawyer ethics joke here) you should be able to provide a fixed limit of billable hours to your engagement, where they would need your approval to proceed past your budget.
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Aug 23, 2016 04:34
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AbbiTheDog posted:when CPAs (or CPA firms) issue financial statements, we're required to do, at a minimum, a "compilation report." That is no longer true. SSARS 21 allows a non-compilation preparation engagement for CPAs.
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Oct 31, 2016 18:41
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AbbiTheDog posted:True, but the CPA is still required to do all of work they would do for a compilation, including disclosure reporting and departures that you're not going to book in the interim. It's not really a time saver from the CPAs standpoint, whereas if we just gave a QB copy to the client and they printed their own reports, we don't need to mess with that stuff. I agree that the SSARS 21 preparation engagement doesn't save a lot of time compared to a compilation, but it does save some time, especially multiplied by the number of engagements you perform. But based on your post, I think you're missing the bigger picture here. I haven't wasted my time on GAAP financials with notes in several years, because they're mostly irrelevant for SMEs. Almost all financial statements done at my previous employer (10ish-employee local CPA firm) were tax basis and management elected to omit disclosures. I'm currently a controller at a mid-sized manufacturing company, and I report directly to the owners, and while they care about a reliable concept of net income for comparison and analysis purposes, they really care about their tax bills, so everything is done on the tax basis. If I put notes together for them, I'll probably get blank stares in return. My solo practice only does tax basis, notes-omitted financials because that's the maximum that my clients care about. Let's face it, notes and GAAP are a pain in the rear end, clients normally don't want them, and increasingly banks don't care about them either. So why do them? If the client agrees, adjust next year's engagement letter, change the titles of the financial statements, and move on with life. And by all means do that before the new GAAP revenue recognition rules come into effect! I would suggest that you look at your checklists and workpaper documentation and give them a long, hard think. If you're doing a compilation, you're not doing a review, and therefore I don't believe you should be documenting materiality concerns of accrued wages and whatnot, especially on an interim basis. Really, you're doing review procedures on a compilation engagement, opening yourself up to litigation risk if you don't upgrade the entire engagement to a review and perform said review adequately. Does all this CPA stuff take time? Absolutely. But if I've dispensed with as much of the pointless stuff as possible, my checklists and engagement administration will be minimal, and my fees won't exceed the actual value of what I'm providing to the client.
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Nov 6, 2016 15:42
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slap me silly posted:Turbotax does two things for Roth IRAs: they make sure you don't exceed your maximum contribution, and they keep track of your basis over the years. It doesn't have any effect on your refund. If your income is low enough, a Roth IRA contribution can generate a Saver's credit (Form 8880)
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Jan 18, 2017 14:29
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AbbiTheDog posted:Not to be snarky, but are any other preparers here seeing audits? Last full office audit was five years ago for me, I think. Correspondence audits are up, as is the average time to resolve them.
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Mar 10, 2017 14:13
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KYOON GRIFFEY JR posted:IRA question for y'all. The bigger question is why you're thinking of filing separately in the first place. Since you're making at least $133k and she isn't anywhere near that, there would have to be something significant in your financial life to make MFS beneficial. Doubly so if you live in a community property state. For MFS, deductible IRAs are phased out at $10,000, same as Roth IRAs.
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Jul 10, 2017 13:29
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22 Eargesplitten posted:My work gives me $3,000 if I buy a green car. They really give $5,000 but withhold $2,000 for taxes. Would that withholding be partially FICA? Would the rest of it apply to my income tax? I ask because there's no way I'm hitting a 40% tax burden so I'm wanting to calculate if I could add another allowance for the rest of the year. Federal income tax withholding on bonuses for amounts that size is required to be 25%. Add FICA and state taxes and 40% isn't unreasonable. However, some payrolls aren't done right, so you should try to get a pay stub or compare YTD figures on your next pay stub to verify the withholding.
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Jul 12, 2017 13:34
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gvibes posted:How bad of an idea would it be to use turbotax with substantial K-1 income/estimated quarterly taxes/etc.? Usually, if you’re asking that question, it’s a sign that you don’t know enough about the tax law to use TurboTax. Is that actually the case? Out of curiosity, does anyone know how well TurboTax handles basis calculations?
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Jan 31, 2018 14:32
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AbbiTheDog posted:My software costs went up 70% this year alone, and I get hit with a $40 charge for every out-of-state return I run. Whoa, did you switch software or did you have a special lock-in deal that ended? That’s crazy otherwise.
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Feb 9, 2018 14:17
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AbbiTheDog posted:Ultratax. I switched a few years ago from Lacerte due to the massive cost increases and here we go again. It sounds like you got a special lock-in deal to change software which expired. I use UT and my costs will be up about 5% this year over last year, but I'm on the standard pricing. Generally speaking, UltraTax is cheaper than Lacerte, and Lacerte is cheaper than Prosystems. Exceptions apply, not available in all areas, must be 18 or older, do not use while operating heavy machinery, etc. black.lion posted:We switched to Drake this year it's inexpensive and p. good and people answer the phone very quickly I know Drake; I used it for about 8 or 9 years. If it's the right software for the practice, it's incredible value for money. If.
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Feb 10, 2018 22:11
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Blinky2099 posted:Box B (basis not reported to IRS): You have basis in these shares that the issuer does not know about. Plug in the correct basis and that will help.
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Mar 21, 2018 05:08
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Initio posted:Anyone hear of something like this before? I work as a consultant, so over the course of the year I’m working and earning income in multiple states. My employer gives me several W-2s, one for each state with the income I earned there respectively. The W-2 sounds correct. Illinois forms instructions are confusing and often wrong. Do a Schedule CR for each non-IL state and it should work just fine.
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Apr 27, 2018 13:33
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The Gardenator posted:Someone explain or link an explanation with examples on how to use the new Sec 199a when the Sch E Rental has a net loss. Can I use the Sec 199a worksheet to carryover the loss to the next year? Person is within the W2 income limit and person rents directly to renter without a third party acting as middleman. I’d go much more basic. Is this property actually a trade/business for 199A purposes in the first place?
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Feb 4, 2019 14:14
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In fairness to the other CPA, an expert in unique partnerships probably has little functional knowledge in payroll issues and even less in the specialized world of household employers. Maybe the CPA would have a network connection though?
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Jan 28, 2020 01:39
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Motronic posted:Maybe if they're in that specialized a business competency they're not the person to use for your personal household taxes and rather the person who gives relevant information to that other CPA who does personal household taxes for people with more than W2 income? The issue isn’t Schedule H, it’s the specifics of whether state copies of the W-2 need to be sent to Illinois if there isn’t any withholding on them. I assume the answer is yes, and that it wouldn’t hurt to send them if they’re not required, but it’s literally been six years since I touched an Illinois payroll so I don’t consider myself qualified to answer that question with any level of authority. And I’m not going to blame a partnership guru for not knowing it either.
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Jan 28, 2020 01:56
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Motronic posted:I haven't used the same person for business and personal because those are different specialties. If I used larger firms I'm sure a single FIRM could service both, but I wouldn't be dealing with the same individual. We’re in rough agreement. H110 was making it sound like the other CPA is not fit to be hired by the poster, which I took issue with. Depending on the larger firm you’re dealing with you might have the same person preparing the individual and business, believe it or not. The company I just left outsourced tax with a large regional (top 25 on size) and the same staffer prepared both the business and the owners’ individual returns. But that staffer definitely wouldn’t hypothetically be involved in payroll for many reasons.
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Jan 28, 2020 02:28
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