Author Topic: any accountants out there that i can ask a question?  (Read 477811 times)

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #2440 on: May 04, 2023, 04:32:05 PM »
................

I recently updated my address for this years return but thereís no reason that this should affect my 2018 return Ö am I missing something ??
TIA
Maybe give your new address also?  Your account at the IRS may be updated even if the old return has the old address.
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Offline brotha123

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Re: any accountants out there that i can ask a question?
« Reply #2441 on: May 04, 2023, 04:39:42 PM »
Thank you.
Yes I checked the irs site and my address is updated, but the lady kept repeating I need your address from the 2018 return not your current address.

Offline Jack out of the box

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Re: any accountants out there that i can ask a question?
« Reply #2442 on: May 04, 2023, 05:32:39 PM »
Thank you.
Yes I checked the irs site and my address is updated, but the lady kept repeating I need your address from the 2018 return not your current address.
For ID verification they always want the address as listed on the tax return which was filed. I will just point out that it could be your 2018 refund has expired at this point. I have seen that happen in cases of delayed ID verification.

Offline brotha123

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Re: any accountants out there that i can ask a question?
« Reply #2443 on: May 04, 2023, 05:39:54 PM »
Thank you.
Iím ok not receiving the refund - I just canít figure out how to verify with them Iíve given them the address on my Ď18 return. Iím holding a hard copy and have looked through it but thereís no other adress on it.

Offline Jack out of the box

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Re: any accountants out there that i can ask a question?
« Reply #2444 on: May 05, 2023, 04:43:13 AM »
Thank you.
Iím ok not receiving the refund - I just canít figure out how to verify with them Iíve given them the address on my Ď18 return. Iím holding a hard copy and have looked through it but thereís no other adress on it.
That is a little odd. Is it possible that someone else did in fact file a fraudulent return in your name?

Offline brotha123

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Re: any accountants out there that i can ask a question?
« Reply #2445 on: May 05, 2023, 08:48:09 AM »
That is a little odd. Is it possible that someone else did in fact file a fraudulent return in your name?
Doesnít seem like it - but who knows

Offline Alexsei

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Re: any accountants out there that i can ask a question?
« Reply #2446 on: May 30, 2023, 03:01:36 PM »
How much petty cash is ok for a business to withdraw to have on hand for odds and ends?
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Offline BCL

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Re: any accountants out there that i can ask a question?
« Reply #2447 on: July 19, 2023, 03:18:12 PM »
How does a Dependent Care FSA work?
Do I need my employer to set it up?
Can I also claim Dependent Care Credit on the same money?
What is the time frame to set it up?

Thanks!

Offline yitzgar

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Re: any accountants out there that i can ask a question?
« Reply #2448 on: July 19, 2023, 03:26:14 PM »


Can I also claim Dependent Care Credit on the same money?

No

Offline BCL

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Re: any accountants out there that i can ask a question?
« Reply #2449 on: July 20, 2023, 12:21:17 PM »

No
So either I get reimbursed for $5000 of childcare expenses from the FSA and lower my taxable wages by that amount
or I get a tax credit of $1000 for those childcare expenses?

Offline king solomon

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Re: any accountants out there that i can ask a question?
« Reply #2450 on: August 16, 2023, 11:06:33 PM »
Is the only option for a childcare deduction to make a dcfsa? A couple years ago my wifeís employer wrote out checks directly to the babysitter that were pre tax. Did anyone ever hear of such an option? Work now says they only offer fsa.

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2451 on: August 16, 2023, 11:48:57 PM »
Is the only option for a childcare deduction to make a dcfsa? A couple years ago my wifeís employer wrote out checks directly to the babysitter that were pre tax. Did anyone ever hear of such an option? Work now says they only offer fsa.
Iím not sure about the employer paying direct, but the other option is getting a tax credit on your tax return which can be more or less than than an FSA.

Offline king solomon

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Re: any accountants out there that i can ask a question?
« Reply #2452 on: August 17, 2023, 06:50:30 AM »
Iím not sure about the employer paying direct, but the other option is getting a tax credit on your tax return which can be more or less than than an FSA.
I specifically want a deduction.

Offline Izzzy

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Re: any accountants out there that i can ask a question?
« Reply #2453 on: August 25, 2023, 02:16:48 PM »
I need to sell stocks in order to buy a house. I have some unrealized gains. If I realize the gains, I may lose my EIC, and it will make my income rise (regarding gov. programs). Can I transfer it to a UTMA account, sell it there and use the proceeds to purchase the house, as it is being used as a home for my children? Any help is appreciated..

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2454 on: August 25, 2023, 02:41:41 PM »
I need to sell stocks in order to buy a house. I have some unrealized gains. If I realize the gains, I may lose my EIC, and it will make my income rise (regarding gov. programs). Can I transfer it to a UTMA account, sell it there and use the proceeds to purchase the house, as it is being used as a home for my children? Any help is appreciated..
Besides the Gift Tax issue of a transfer over $17k
https://www.thebalancemoney.com/spending-childs-utma-money-illegal-358134#:~:text=Under%20the%20Uniform%20Transfers%20to,child%20at%20the%20appropriate%20age.&text=A%20UTMA%20custodian%20may%20be,and%20benefit%20of%20the%20minor.%22

As the account custodian, you owe a fiduciary duty to your child
In the United States, a child's money does not belong to the child's parents or guardians. Once the paperwork is in order, as a custodian of a UTMA you become a fiduciary or you owe a fiduciary duty to the beneficiary of that account.

"Fiduciary duty" means you can only use the money in their best interest. You must invest it in a manner consistent with the "prudent person rule." You also can't use the funds for necessary expenses such as food or shelter, because you are legally obligated to provide those as a parent.

"Once you've put someone in that fiduciary capacity, no they can't be paying if the child support obligations is theirs individually," Jason Haselkorn, an investment fraud attorney and Partner at Haselkorn & Thibaut told The Balance in an interview. "They can't be taking money that belongs to the beneficiary to pay a child support obligation because as a trustee and as a fiduciary you are basically pilfering the beneficiary's money even if the money is going towards the benefit of that beneficiary," he added.

This fiduciary obligation is also what makes it so hard to understand what is permissible and what is not because the law varies by state. "Now you're under that state's common law and each state has its own common law case law and principles that'll develop," said Haselkon.

Note
As part of the fiduciary obligation, you are also required to keep detailed accounting records, down to the penny, of every cash flow into or out of the account. If the child requests accounting records, even decades after it was first established (as is often the case when babies or young children are gifted stock), you'll be compelled by the courts to produce it (if you don't do so voluntarily).

Offline Izzzy

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Re: any accountants out there that i can ask a question?
« Reply #2455 on: August 25, 2023, 02:48:03 PM »
Besides the Gift Tax issue of a transfer over $17k
https://www.thebalancemoney.com/spending-childs-utma-money-illegal-358134#:~:text=Under%20the%20Uniform%20Transfers%20to,child%20at%20the%20appropriate%20age.&text=A%20UTMA%20custodian%20may%20be,and%20benefit%20of%20the%20minor.%22

As the account custodian, you owe a fiduciary duty to your child
In the United States, a child's money does not belong to the child's parents or guardians. Once the paperwork is in order, as a custodian of a UTMA you become a fiduciary or you owe a fiduciary duty to the beneficiary of that account.

"Fiduciary duty" means you can only use the money in their best interest. You must invest it in a manner consistent with the "prudent person rule." You also can't use the funds for necessary expenses such as food or shelter, because you are legally obligated to provide those as a parent.

"Once you've put someone in that fiduciary capacity, no they can't be paying if the child support obligations is theirs individually," Jason Haselkorn, an investment fraud attorney and Partner at Haselkorn & Thibaut told The Balance in an interview. "They can't be taking money that belongs to the beneficiary to pay a child support obligation because as a trustee and as a fiduciary you are basically pilfering the beneficiary's money even if the money is going towards the benefit of that beneficiary," he added.

This fiduciary obligation is also what makes it so hard to understand what is permissible and what is not because the law varies by state. "Now you're under that state's common law and each state has its own common law case law and principles that'll develop," said Haselkon.

Note
As part of the fiduciary obligation, you are also required to keep detailed accounting records, down to the penny, of every cash flow into or out of the account. If the child requests accounting records, even decades after it was first established (as is often the case when babies or young children are gifted stock), you'll be compelled by the courts to produce it (if you don't do so voluntarily).
Thank you! Very informative.

Offline iwlw2

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Re: any accountants out there that i can ask a question?
« Reply #2456 on: August 26, 2023, 10:03:09 PM »
I got a letter from the IRS tonight (MS) so can't do anything till Monday, but maybe someone can give me some info to explain this. My daughter (21yo) filed a return which had her owing some tax, but we later got the docs from the money she had spent towards college which we hadn't included. We filed an amended return (with no other changes than putting in the money that was spent towards college tuition) which according to TurboTax would now result in a $1778 refund. The IRS sent us a letter today (after a delay of 4.5 months for processing mind you) in which they said she now owes an additional $1778 (plus interest, which I can't understand either, the delay was completely due to their processing delays). Any idea why this is? I'm kind of hoping its just some kind of error where they put owed instead of refund (too coincidental that its the exact same amount), is that possible and what's my best way of dealing with this? TIA for any help!

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #2457 on: August 27, 2023, 06:46:30 PM »
I need to sell stocks in order to buy a house. I have some unrealized gains. If I realize the gains, I may lose my EIC, and it will make my income rise (regarding gov. programs). Can I transfer it to a UTMA account, sell it there and use the proceeds to purchase the house, as it is being used as a home for my children? Any help is appreciated..
are there instruments that allow you to borrow against it at decent terms, to use as "cash" for the DP?

Offline ah giten

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Re: any accountants out there that i can ask a question?
« Reply #2458 on: August 29, 2023, 11:53:42 PM »
Is there any free software that lets you import an excel sheet, and it will categorize each item?

I need to file taxes...

Offline Euclid

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any accountants out there that i can ask a question?
« Reply #2459 on: August 29, 2023, 11:56:10 PM »
Is there any free software that lets you import an excel sheet, and it will categorize each item?

I need to file taxes...
ChatGPT 4 code interpreter should be able to do this.

Not free though