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New client's prior tax preparer, who is a CPA, listed auto mileage as miscellaneous expense for the past 2 years and I have my suspicions as to why. This is not the proper category, as it should have been on the Car Expenses Worksheet. I need to put it in the proper category. Will this be a red flag to the IRS? Or was it ok to list as miscellaneous and I missed that instruction???
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The EA I used to work for did this all the time, he was old and tired and didnt want to fill out all the car info, he'd just say "its still deductible, doesn't matter where you put it" LOL
Doing things right shoudnt be a red flag.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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LOL! Thanks for the confirmation. 👍
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Back in the 60s, before Service Centers were built, returns were filed with each IRS District office and given a once-over on what was known as "Opening Day." (Early returns were looked at, as well.) You really think someone at IRS now looks at every return and says, "Hey, I don't remember Charlie claiming car expenses last year, what's up?"
Ha Ha Ha 😀
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That's nothing compared to this.. I have seen this more than once.. 1099-MISC for self employed person but instead of doing a Schedule C, this big box preparer but the figure (did not deduct any expenses) on the Other Income line on the front of the 1040 but still somehow managed to produce a Schedule SE.
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I don't have a problem with putting 1099-MISC income on Line 21 and filing a Schedule SE with the amount reported. We're not painting the Sistine Chapel here; we're trying to pay the correct amount of tax. As far as I know, no one has gone to Leavenworth for skipping a Schedule C (and not charging extra for it).
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@Jim-from-Ohio wrote:
That's nothing compared to this.. I have seen this more than once.. 1099-MISC for self employed person but instead of doing a Schedule C, this big box preparer but the figure (did not deduct any expenses) on the Other Income line on the front of the 1040 but still somehow managed to produce a Schedule SE.
Ive seen people ask how to make that happen, report on Other Income with a Sch SE...I couldnt find a way to do that easily with PS.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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looks like preparer was clueless when I see that on other income
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I make liberal use of the Override function, and I don't mind printing out a paper return. The "big box" companies have their own software, which incidentally must have been approved by IRS, and they have figured out some efficiencies. Although, it's more in their interest to pad the fee.
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"on the Other Income line on the front of the 1040 but still somehow managed to produce a Schedule SE"
We recently saw that on this forum, because the preparer wanted to get the Self-employed Health deduction, too, but wanted to avoid the Sched C, and wanted the SE.
Too bad we can't always get what we want...
Don't yell at us; we're volunteers
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Meanwhile, the ever-friendly IRS discontinued Schedule C-EZ, without announcing a reason.
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I've done this if it's a one time thing and no expenses. Lacerte lets you mark it as SE income.
The more I know the more I don’t know.