Tax Talk

Hi all, I have a client who took out a large sum from a 401(k) as part of a divorce decree. The divorce was finalized by the end of 2025. The 1099-R is only in my client's name, and is being treated as an early withdrawal with the 10% penalty. The divorce decree states that certain portions of the 401(k) including nonvested stock was awarded to the ex, but the 1099-R doesn't reflect this at all.From what I've read, I believe both my client and his ex should have received 1099-Rs for their respective portions of the retirement distribution. Is the best way to go about this to request corrected 1099-Rs, or is there a way in ProConnect to show that the ex was an alternate payee under a QDRO? I appreciate any insight, thanks in advance!

Hello. I know that the USBP Agents are not covered under FLSA for overtime.  However they do have their own rules for overtime.  Has anyone confirmed if their overtime qualifies for no tax on overtime treatment?  Specifically their 50% supplemental pay. Thank you!

My client has 2 Form 1095-A's, one for the parent and a separate one for the child.  They are different policies.  Should all 3 columns (A, B, and C) be entered for both? Column B is the same on both forms but Columns A and C list different amounts.  If I enter the Column B for both policies, the result is substantially different than if Column B is entered only once.What is the correct process?

Hi, client has done a cost segregation study for a property rented for a few years now. On the federal side, the 5-15yr property is being bonus-depreciated. I understand the adjustment will be different than federal, because CA doesn't allow bonus depreciation. Any other things I should consider for CA that are different than federal?- Do I enter the adjustment on CA schedule E as other expense similar to federal or different wording?- Do I file form federal form 3115? with CA? note this shows the larger depreciation amount. Do I write in the smaller CA amount? Does FTB has its own form 3115? I couldn't find one.Thank you!

I have a divorced client with 2 children.  As per the divorce agreement, the father claims the oldest child every year and the mother claims the youngest.They have joint custody and the children stay with one parent for a week, then go to the other parent for the next week.  I know the rules for which one claims head of household, however, I was wondering since each one consistently claims one child, and since the number of days during the year the children are with each parent are nearly equal, is there a way both can claim head of household? Or do I need to stick to the # of days rule each year to see if my client claims HOH or single?

I have a S-Corp client who owned two personal vehicles and used them 100% for business in years prior to 2025. In August of 2025 they legally transferred ownership of both vehicles from personal to the business. Are they eligible for section 179 deduction for 2025?

In January, IRS announced this year’s standard mileage rate would be 72.5 cents per mile. That was when the average retail price of gasoline was $2.93 per gallon. They also lowered the medical mileage rate from 21 cents to 20.5 cents. One problem with having “one rate fits all, for the entire year” is that even if oil prices don’t change, the costs range widely across the country. The average price on the Gulf Coast last month was $2.40; on the West Coast, it was $3.68. I filled my tank on March 1 for $3.50 a gallon. Yesterday, the same station had raised its price to $4.15. At 25 mpg, that’s 2.6 cents more per mile. Yet the 72.5 cents per mile stays the same. Not a problem for my client the DoorDash driver; he delivers with an electric vehicle. Could IRS announce the rate at the end of the year, instead of the beginning? Not if employers keep using it to figure reimbursement for employee travel. Or could it be changed to a “dry” rate – the allowance for everything but gas, and you wou

I have read that a Plan administrator tracks an employee's tax basis in a Roth 401K.  Is it a good idea to enter the (AA) contributions into LC so that the taxpayer also has a record of contributions, which may be useful in case of a rollover to a Roth IRA?

How can I e-file a tax return when a non-resident alien does not have an ITIN with the letters NRA entered in the Social Security line on the information sheet? 

No text available

Anyone else having trouble with Form 8582?  More specifically, the unallowed carryover losses from 2024 are not correct when they transfer to 2025?The client I am working on used $25k of carryover losses in 2024.  Instead of the "initial" amount minus the $25k being carried over to the 2025 Form 8582, the initial amount is showing in Part IV, column C, therefore overstating the loss by $25k. 

Parent gets 1095-A with their information and grown independent child under Part ll " covered individuals". The parent said to allocate 100% to them and 0 to the grown child.  In Proseries I see at the bottom of the 1095-A data entry there is a place to allocate in a smart worksheet.  The problem is I can't get the program to allow me to enter the parents info in Part I.  It self feeds the tax clients information on the top.  If I leave the independent child information on top and list both under covered individuals the tax return rejects as not matching the IRS.  Help please

Client has about 25 pages of sales, with maybe 30  wash sales.  Am I able to just summarize the sales using the financial house  on a  8949 and not list each one individually. Thanks in advance for your help

Does a mailed-in 1040 have to include form 8948 if prepared by a non-paid preparer?

HelloClient decided to revoke S corp status back to Schedule C as disregarded entity Just to confirm if that is all we need: efile Final 1120 S for 2025 and Final K1 (discontinued operations as of 12/31/2025)efile 8832 form changing to disregarded entity and revocation letter will mail it by Mar 15th this yearanything else?thank you for your help 

HelloPlease advise how to record Loan Repayment to shareholder on the Balance Sheet in Proconnect?Is it ok to reduce cash balance at the end of the year for that amount and enter net amount?Loan Repayment was entered in Shareholder Info and flowed to 7203 where Debt Basis was adjusted accordinglythank you

I have a client that has spoken to a number of other troopers they also get to claim out comp time hours used which would be the state patrols comp and holiday credits that we earn, which are both in lieu of taking paid OT.I have researched and it shows as "No" they cannot but I am asking as others are more edicated on this then I am 

I am curious if we have any tax attorneys or any other tax preparers out there in this great big beautiful world of IRS insanity that has had the IRS ask the reason for your client signing a 2848.  I've been doing this for more years than I care to count, and I've never had them ask that.  I thought that was obvious - to deal with you Yahoos so they don't have to. The letter the client brought me states "For individual tax matters the taxpayer must give the specific reason the representative is authorized to sign the return.  Acceptable reasons include: Disease or injury, continuous absence from the US for a period of at least 60 days prior to the date required by law for the filing the return, specific permission is granted by the IRS for other good causes."  There's not even a spot on the 2848 to give a reason that I can see. - I use the old fashion paper form for my clients.  Am I missing something???

Does anyone have an idea why my clients return is being rejected for the 1095-A and I have the data entered in ProSeries? It says something doesn't match... Could i have gotten the policy number wrong or something else?? I allocated the clients amount to zero as she is on parents policy. 

Dear Client,It is nice that you think I want to know that you're about done with preparing your tax documents for me. However, I have plenty of work and I don't think about it.  It is nice that you know I will prepare your tax return. However, you are not my only client and I'm not twiddling my thumbs waiting for you.  It is nice that you think I care that much about the status of your tax documents and that you think I need updates about it every week. However, you are not the center of my universe.Thank you.

No text available

My older clients, meaning 80+, get confused. I give them paperwork and they don't know how to find information that I consider to be simple. Example: I sent an organizer to an 85-year-old but he is looking at the statements behind the 2024 1040 for the information he needs to provide for 2025.  For older clients, I think I need to review their information in person.  I want to do that. But my time is an issue. Cost too is a consideration. My policy until now is to charge $50 per trip for a home visit. That probably should be more.Tips? Experiences?

Good morning!For each of my three small partnerships, the partners are married (and there are no other partners), I advise electing out of CPAR. I advise them that without the election, the future partners would be responsible for a tax resulting from an audit in a prior year.  When I mention an audit, they get concerned.  I want them to understand CPAR so they are informed.  The partners are laypeople without much experience in tax issues.  They accept my advice.

I want to invest in a tax research service that is informative and reasonably priced. I would welcome suggestions. Also, I have always used the 1040 Quickfinder as well as the ones for Small Business and All States. I am considering investing in some of the others as well. I would be very interested to know which Quickfinders other tax professionals have found useful. Thank you!

Client gives me both a W-2 and a W-2C.  For inputting into ProSeries, do I need to enter both or can I just enter one which has the corrected amounts.My confusion is whether the IRS needs both to match documents.Thanks