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I recently lost a client over this issue, and I want to double check whether I’m in the right or not.
The client wanted to deduct money they sent overseas to family for financial support from their self-employed income having received 1099-NEC’s (they also received a few W-2’s). This would’ve been for Form 2106 / Schedule SE. The amount of money they sent (some of it went to their family members’ schooling, some just for their family’s living expenses) totaled around $42,000. Since I couldn’t think of a way that “expense” was an expense for their job, I didn’t feel comfortable adding that to their return. So they went with another tax preparer who would add it (incidentally, their AGI dropped from $116k to $26k when that amount is added in and the other tax preparer calculated their income). Our client mentioned that their new tax preparer didn’t include all of their W-2’s and 1099-NEC’s since some of them totaled less than $10k. Can someone clarify who is in the right here? If you need more information, I’m happy to provide. Thanks in advance!