@aetris I know a thing or two about procrastinators. A number of my clients are doing just that thinking I am just sitting around waiting for their information and no one elses.
Do you want more work? I can send it right away! I am looking for my fourth person in maybe 10 years. Everyone keeps retiring on me.
Is there a way for me to enter a 940 form? Since it was switched to online only, I have completed the form and taken it to someone with a license to enter.
I also need to do a 1120. This year is straightforward. The business is closing permanently soon so will be a final return next year. Can the final return be done early, like in the next month or so, or have to wait until next year?
Thank you for sharing your experience and expertise. I have learned some things reading other questions.
@speediedelivery Sorry for the late delay in responding. Thread was hidden at end of all the mehathon items.
Not really looking for more work-kind of at the end of my career and only taking referrals from existing clients. Just want to share my expertise (or what is left of it after being a CPA for over 50 years) with my meh buddies who need help or questions answered.
Re the 940 form -that is the federal unemployment form you file once a year at the end of the year. Is that the form you meant or did you mean 941. Or did you forget to do and pay re a 940. I do payroll for a couple of my clients and mail in the 940 form-can give you the address if you tell me what state you live in.
Re: the 1120 you can file the 2025 form anytime you want-at the top of the form you just just have to put a beginning and ending dates in the places provided-ex January 1, 2025 to March 31, 2025 and mark final in the box provided.
That being said I can help you fill out the forms-just whisper the me the numbers for both and I will tell you where to put them.
I should have typed 990ez for non profits form. I did it and mailed it in for years. Now it is required to efile.
I was told the corp form 1120 was not something I could do myself. Something about a loss carryover that I didn’t want to make a mistake on. If I basically put this year’s numbers where last year went, it would work? Same with the state form (PA)?
I am not afraid to try it, especially since we are ending the corporation this year. I have never really looked at it, more happy it was done and put it in the file cabinet.
Your posts are appreciated. I have learned from reading other people’s posts. Some of them may apply to me later.
@speediedelivery Big difference between 940 and 990. Haven’t done a regular 990 (as opposed to an 990EZ) in probably almost 10 years so not up-to-date on filing requirements but surprised if only way you can file them is online.
RE loss carryover yeh you probably need a professional. Depending on the year in which the loss occurred you may have to carry the loss back before you can carry it forward. You may have to file a form 1139 then. If you only have to carry it forward then it really is a pretty simple thing to just stick it on the correct line.
Re the final return-filing the return is pretty simple-but you can’t just put any money that is left in the corp in your pocket and walk away. You have to record it as a dividend and give yourself a 1099-Div. As to any loans you may owe to corp and/or they may owe to you, if they are forgiven-may have to pick up as income and/or take as an expense both on the corp return and your own individual return.
Not sure about how to value things in regard to capital gains, incomes, donations and such.
Have bought several things from Meh that i want to donate to a non-profit charity for fund-raising. Will make up some numbers for examples. Tell me please if i am thinking correctly about these. Please address each numbered scenario separately to clear it up for me.
1.A. if i buy something for $100 and sell it for $300, i have to report $200 as income or capital gains? And pay tax on that amt? Correct?
1.B. if i then donate that $300 to charity, i can take that as a deduction from taxable income? (After paying the tax on the extra $200 gain?)
2. But if i donate that $100 item to charity and they auction it off for $300 (generous bid, because it’s for charity), how do i do that for tax? Suppose the item retails for $250 (MSRP) Do i get tax deduction for $100 that i paid (though item was worth much more) or for the $250 retail or for the $300 that apparently was the market value at that point in time? And does that also entail reporting the difference as income or capital gains on the increase?
Note that 1A and 1B taken together have the same net result to me financially as 2, unless taxes are handled differently!
Hope this is clear to you. But tax rules make my head hurt. i’d rather read a book explaining QED (quantum electro-dynamics)!
Thank you for your time on this question and for helping others wade through the quagmire of taxes.
Assuming you itemized deductions, contribution is made to a 501 c (3) organization and it is either under $500 (just give the amt-no detail required), over $ 500 (have to complete form 8283 or over 5,000 have to get it appraised.
1A. If you sell something for more than you paid for it then yes you have to pay ordinary gain on the sale. 300-100. No SE tax though if over $ 400 unless that is your regular business.
1A. The IRS doesn’t care where you got the money- $ 300 is $ 300 to them.
2. the IRS usually accepts various estimates of what you are deducting-FMV and thrift store value are the most widely used-most are less than what you paid given used items are usually what are donated and worth less than what you paid for them. Doesn’t make any difference what they sell it for except with donated cars. If your item is really worth more than you paid and you can justify the FMV then no reason not to deduct the higher amount-just be prepared to justify it if asked. And no you do not have to pay taxes on deducting an item items worth more than you paid for it.
@Felton10 OK, pretty much what i expected on 1A, B. My donations are all “New in Box”. Last sentence on 2 not what i expected though. Good to know. And thank you again.
(Hope you enjoy tax “season” more than i do. But you must, or you wouldn’t be doing it i guess. Bet you must be anticipating your retirement. Though you will still be doing taxes. Your own. Ha. )
@phendrick That being said, I would not recommend or take a deduction for any more than I paid for things at meh or any liquidator given the fact that the FMV is probably even less than what you paid for it. Would have a hard time arguing that its cost was its real worth as it was sold to them at a discount and then to you at an ever lower price. Probably not a significant amount anyway and if over $ 500 and you have to fill out an 8283 then I would definitely think about not doing that.
The only situation where you really get a break is if you donate appreciated stock or property, you get to deduct its current value and not have to pay capital gains on the increase in value over what you paid for either the aforementioned items.
Obviously at 78 am semi retired. When I moved down to Florida when I was 55, worked on my own clients and had a job part time with a CPA firm 3 days a week so basically full time. At 66 gave that up and just worked on my own clients-a lot more interesting then what other retired people I knew did like taking courses or volunteering. Plus kept my brain sharp (debatable if you ask my wife).
Plus I made more in my approx 2 months of work than most people my age made in a year working at Publix, Home Depot etc. Extra money never hurts.
Daughter-in-law has had leukemia for years. Married my son about 1.5 years ago. Last fall hospital attempted to sue son for outstanding medical bills from before marriage. They are young (bills are from when she was 17-21 years old) and I’m not, so I paid them (about $5k). Her mom then turned the bills in to insurance co and received about $2k, which she kept. I do their taxes as well as mine, so wondering if they can claim the medical payment minus what her mom received, even though not incurred last year.
@rm9116 Everyone unless you elect otherwise is on the cash basis when they do their indiv return which means that when the bill is paid-that is the year when you get to deduct it if you can for taxes. Makes no difference what year it was incurred even if ten year ago.
That being said there may be an issue if you paid it and they are deducting it on their taxes=assuming they itemized and meet the 7 1/2 limit for medical expenses.
@Felton10 thank you. After a truly dreadful income year, between that expense and other medical expenses, they reach the 7.5 threshold. I’ll see what difference it makes and let them decide.
@aetris@Felton10 I thought he meant he had contributed money and was asking if he was right that he couldn’t deduct that from taxes (eg from unearned income that he has to pay taxes on).
@aetris@Kidsandliz Since you can make a contribution to an IRA up until the April 15th date, I thought he was looking to make one and deduct it even though he didn’t have earned income.
Maybe not an indication of how quickly you can get connected to the IRS if you call them, but had to call for a client earlier this week (10 o’clock on Tuesday morning)
but no waiting and got connected to an agent immediately. It was the Practioners Priority Hotline though.
Hi @Felton10 Um - I made a mistake and accidentally overpaid by about $100. Are they pretty good about noticing and refunding the overpayment? It’s a little late for me to try to change it now, right?
@Kyeh How did you overpay them? You mean you either wrote them a ck or had them deduct from your checking more than you should have by $ 100?
They should catch that and show you have an overpayent.
@Felton10 It’s going to be deducted. The problem is, I made the mistake of claiming the “interest” on an IRA, forgetting that that’s not taxed until I withdraw it. So it’s on the return as interest on a bank account even though I didn’t have a statement for it. Will they be able to catch that? (Yes, I was dumb …)
@Felton10@Kyeh meh. I’ve had to file an amended return before for something wrong/the company adjusted the w2 on me cause I file as soon as I get it. When we were still mailing them in. Wasn’t a big deal.
If you e-filed with a free or otherwise federal tax program you should be able to see the response online, then go back in once it’s finalized and create a 1040x based on the original and make the small correction.
Just an SE, but I agree wait till it’s entirely through the system either way. It’s an old system and better to handle one input to completion at a time.
That being said…
realistictically. If they wanted for most of us they could just send a post card and say login/check here if you agree. They have all the info for those of us that aren’t that complicated.
A notable exception to that rule may be if you had an HSA. Since you can only put in the max every year. If you get hit by a bus, have to pay 10K, but you could choose to pay it out of pocket and leave money in the hsa to continue to grow tax free for a decade or 3…
HSA dont get taxed even by the social security flat tax if it is done by your employer because of your election. If you manually transfer it you get taxed on that which is weird.
But the point was if you decided to delay claiming the HSA cost in that case you need to make sure you have the receipts scanned/stored/backed up somewhere. Then you can take it out whenever you really need it and supply the documentation when withdrawing it. As long as it’s an expense AFTER you qualified for and started your HSA
This is of course not financial advice just. Kinda how I operate. Max the HSA, then the Roth IRA, then pitch what’s left at the 401K. And oh look a tornado
@Felton10@unksol Nice to see you back in the forum, sorry you’ve had “a day” - I assume that means not a great one. Same here, but not a big deal. I should go get some sleep. I hope you’re both escaping that awful weather I keep seeing on the news!
@Felton10@Kyeh more just in general… Things are things. I had my taxes done a month ago lol.
We’re having what feels like an oddly higher number of tornados. But that kinda happens sometimes. I think one knocked over some trees here and at my mom’s. But hadn’t had a warning for like 10 years.
Give us procrastinators just four more weeks…
Maybe 4 and a half.
@aetris I know a thing or two about procrastinators. A number of my clients are doing just that thinking I am just sitting around waiting for their information and no one elses.
Do you want more work? I can send it right away! I am looking for my fourth person in maybe 10 years. Everyone keeps retiring on me.
Is there a way for me to enter a 940 form? Since it was switched to online only, I have completed the form and taken it to someone with a license to enter.
I also need to do a 1120. This year is straightforward. The business is closing permanently soon so will be a final return next year. Can the final return be done early, like in the next month or so, or have to wait until next year?
Thank you for sharing your experience and expertise. I have learned some things reading other questions.
@speediedelivery Sorry for the late delay in responding. Thread was hidden at end of all the mehathon items.
Not really looking for more work-kind of at the end of my career and only taking referrals from existing clients. Just want to share my expertise (or what is left of it after being a CPA for over 50 years) with my meh buddies who need help or questions answered.
Re the 940 form -that is the federal unemployment form you file once a year at the end of the year. Is that the form you meant or did you mean 941. Or did you forget to do and pay re a 940. I do payroll for a couple of my clients and mail in the 940 form-can give you the address if you tell me what state you live in.
Re: the 1120 you can file the 2025 form anytime you want-at the top of the form you just just have to put a beginning and ending dates in the places provided-ex January 1, 2025 to March 31, 2025 and mark final in the box provided.
That being said I can help you fill out the forms-just whisper the me the numbers for both and I will tell you where to put them.
@Felton10 I was mostly kidding about the work
I should have typed 990ez for non profits form. I did it and mailed it in for years. Now it is required to efile.
I was told the corp form 1120 was not something I could do myself. Something about a loss carryover that I didn’t want to make a mistake on. If I basically put this year’s numbers where last year went, it would work? Same with the state form (PA)?
I am not afraid to try it, especially since we are ending the corporation this year. I have never really looked at it, more happy it was done and put it in the file cabinet.
Your posts are appreciated. I have learned from reading other people’s posts. Some of them may apply to me later.
@speediedelivery Big difference between 940 and 990. Haven’t done a regular 990 (as opposed to an 990EZ) in probably almost 10 years so not up-to-date on filing requirements but surprised if only way you can file them is online.
RE loss carryover yeh you probably need a professional. Depending on the year in which the loss occurred you may have to carry the loss back before you can carry it forward. You may have to file a form 1139 then. If you only have to carry it forward then it really is a pretty simple thing to just stick it on the correct line.
Re the final return-filing the return is pretty simple-but you can’t just put any money that is left in the corp in your pocket and walk away. You have to record it as a dividend and give yourself a 1099-Div. As to any loans you may owe to corp and/or they may owe to you, if they are forgiven-may have to pick up as income and/or take as an expense both on the corp return and your own individual return.
Happy to answer any more questions. Good Luck.
@Felton10 Definitely plan on a lawyer to close out corporation. It is owned by the nonprofit and I will need all ducks in a row for both.
Thank you for your input!
Not sure about how to value things in regard to capital gains, incomes, donations and such.
Have bought several things from Meh that i want to donate to a non-profit charity for fund-raising. Will make up some numbers for examples. Tell me please if i am thinking correctly about these. Please address each numbered scenario separately to clear it up for me.
1.A. if i buy something for $100 and sell it for $300, i have to report $200 as income or capital gains? And pay tax on that amt? Correct?
1.B. if i then donate that $300 to charity, i can take that as a deduction from taxable income? (After paying the tax on the extra $200 gain?)
2. But if i donate that $100 item to charity and they auction it off for $300 (generous bid, because it’s for charity), how do i do that for tax? Suppose the item retails for $250 (MSRP) Do i get tax deduction for $100 that i paid (though item was worth much more) or for the $250 retail or for the $300 that apparently was the market value at that point in time? And does that also entail reporting the difference as income or capital gains on the increase?
Note that 1A and 1B taken together have the same net result to me financially as 2, unless taxes are handled differently!
Hope this is clear to you. But tax rules make my head hurt. i’d rather read a book explaining QED (quantum electro-dynamics)!
Thank you for your time on this question and for helping others wade through the quagmire of taxes.
@phendrick
Assuming you itemized deductions, contribution is made to a 501 c (3) organization and it is either under $500 (just give the amt-no detail required), over $ 500 (have to complete form 8283 or over 5,000 have to get it appraised.
1A. If you sell something for more than you paid for it then yes you have to pay ordinary gain on the sale. 300-100. No SE tax though if over $ 400 unless that is your regular business.
1A. The IRS doesn’t care where you got the money- $ 300 is $ 300 to them.
2. the IRS usually accepts various estimates of what you are deducting-FMV and thrift store value are the most widely used-most are less than what you paid given used items are usually what are donated and worth less than what you paid for them. Doesn’t make any difference what they sell it for except with donated cars. If your item is really worth more than you paid and you can justify the FMV then no reason not to deduct the higher amount-just be prepared to justify it if asked. And no you do not have to pay taxes on deducting an item items worth more than you paid for it.
@Felton10 OK, pretty much what i expected on 1A, B. My donations are all “New in Box”. Last sentence on 2 not what i expected though. Good to know. And thank you again.
(Hope you enjoy tax “season” more than i do. But you must, or you wouldn’t be doing it i guess. Bet you must be anticipating your retirement. Though you will still be doing taxes. Your own. Ha. )
@phendrick That being said, I would not recommend or take a deduction for any more than I paid for things at meh or any liquidator given the fact that the FMV is probably even less than what you paid for it. Would have a hard time arguing that its cost was its real worth as it was sold to them at a discount and then to you at an ever lower price. Probably not a significant amount anyway and if over $ 500 and you have to fill out an 8283 then I would definitely think about not doing that.
The only situation where you really get a break is if you donate appreciated stock or property, you get to deduct its current value and not have to pay capital gains on the increase in value over what you paid for either the aforementioned items.
Obviously at 78 am semi retired. When I moved down to Florida when I was 55, worked on my own clients and had a job part time with a CPA firm 3 days a week so basically full time. At 66 gave that up and just worked on my own clients-a lot more interesting then what other retired people I knew did like taking courses or volunteering. Plus kept my brain sharp (debatable if you ask my wife).
Plus I made more in my approx 2 months of work than most people my age made in a year working at Publix, Home Depot etc. Extra money never hurts.
Daughter-in-law has had leukemia for years. Married my son about 1.5 years ago. Last fall hospital attempted to sue son for outstanding medical bills from before marriage. They are young (bills are from when she was 17-21 years old) and I’m not, so I paid them (about $5k). Her mom then turned the bills in to insurance co and received about $2k, which she kept. I do their taxes as well as mine, so wondering if they can claim the medical payment minus what her mom received, even though not incurred last year.
@rm9116 Everyone unless you elect otherwise is on the cash basis when they do their indiv return which means that when the bill is paid-that is the year when you get to deduct it if you can for taxes. Makes no difference what year it was incurred even if ten year ago.
That being said there may be an issue if you paid it and they are deducting it on their taxes=assuming they itemized and meet the 7 1/2 limit for medical expenses.
@Felton10 thank you. After a truly dreadful income year, between that expense and other medical expenses, they reach the 7.5 threshold. I’ll see what difference it makes and let them decide.
Still available for last minute questions-------
Too late to ask this but in the interests of tax education: so if I didn’t receive paycheck income last year I can’t deduct IRA contributions?
@aetris IRA contributions are based on earned income. Correct.
@aetris @Felton10 Wait. I thought you can’t even contribute to an IRA without earned income.
@aetris @Kidsandliz That is what I said.
@aetris @Felton10 I thought he meant he had contributed money and was asking if he was right that he couldn’t deduct that from taxes (eg from unearned income that he has to pay taxes on).
@aetris @Kidsandliz Since you can make a contribution to an IRA up until the April 15th date, I thought he was looking to make one and deduct it even though he didn’t have earned income.
@Felton10 @Kidsandliz THERE it is.
Maybe not an indication of how quickly you can get connected to the IRS if you call them, but had to call for a client earlier this week (10 o’clock on Tuesday morning)
but no waiting and got connected to an agent immediately. It was the Practioners Priority Hotline though.
Hi @Felton10 Um - I made a mistake and accidentally overpaid by about $100. Are they pretty good about noticing and refunding the overpayment? It’s a little late for me to try to change it now, right?
@Kyeh How did you overpay them? You mean you either wrote them a ck or had them deduct from your checking more than you should have by $ 100?
They should catch that and show you have an overpayent.
@Felton10 It’s going to be deducted. The problem is, I made the mistake of claiming the “interest” on an IRA, forgetting that that’s not taxed until I withdraw it. So it’s on the return as interest on a bank account even though I didn’t have a statement for it. Will they be able to catch that? (Yes, I was dumb …)
@Kyeh Probably not-if you want to correct it probably have to file a 1040X. Amended return
@Felton10 Oh, okay - do I need to do that right away?
@Kyeh within 3 years from the date of filing the return you are amending. Give them a chance to process the return first.
@Felton10 Okay, thanks! 🫶
I appreciate this - I was so peeved at myself.
@Felton10 @Kyeh meh. I’ve had to file an amended return before for something wrong/the company adjusted the w2 on me cause I file as soon as I get it. When we were still mailing them in. Wasn’t a big deal.
If you e-filed with a free or otherwise federal tax program you should be able to see the response online, then go back in once it’s finalized and create a 1040x based on the original and make the small correction.
Just an SE, but I agree wait till it’s entirely through the system either way. It’s an old system and better to handle one input to completion at a time.
That being said…
realistictically. If they wanted for most of us they could just send a post card and say login/check here if you agree. They have all the info for those of us that aren’t that complicated.
A notable exception to that rule may be if you had an HSA. Since you can only put in the max every year. If you get hit by a bus, have to pay 10K, but you could choose to pay it out of pocket and leave money in the hsa to continue to grow tax free for a decade or 3…
HSA dont get taxed even by the social security flat tax if it is done by your employer because of your election. If you manually transfer it you get taxed on that which is weird.
But the point was if you decided to delay claiming the HSA cost in that case you need to make sure you have the receipts scanned/stored/backed up somewhere. Then you can take it out whenever you really need it and supply the documentation when withdrawing it. As long as it’s an expense AFTER you qualified for and started your HSA
This is of course not financial advice just. Kinda how I operate. Max the HSA, then the Roth IRA, then pitch what’s left at the 401K. And oh look a tornado
@Felton10 @Kyeh and sorry. Had a day. Went… Near… topic. Simple answer 1040x or equivalent when the original clears like Felton said
@Felton10 @unksol Nice to see you back in the forum, sorry you’ve had “a day” - I assume that means not a great one. Same here, but not a big deal. I should go get some sleep. I hope you’re both escaping that awful weather I keep seeing on the news!
@Felton10 @Kyeh more just in general… Things are things. I had my taxes done a month ago lol.
We’re having what feels like an oddly higher number of tornados. But that kinda happens sometimes. I think one knocked over some trees here and at my mom’s. But hadn’t had a warning for like 10 years.
@Felton10 @unksol
I hope you stay safe!
Hi, are you still available/open to tax questions?
@edsa yes