Clients Lose SA1099s

Technical topics regarding tax preparation.
#1
CathysTaxes  
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Procrastinating retirees are going to drive me insane! Two sets of clients. The first set included printouts from SSA for SA1099s but guess what? They were printed last year and they are for 2017!

Today's clients didn't bring their SA1099s.

Since social security income went up 2% on Jan 1, 2018, do you think it would be OK for me to just estimate it and be done? Thank you TCJA for upping the standard deduction. Both sets of clients would have itemized under the old law, I won't need to know what they paid for Medicare.
Cathy
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#2
HowardS  
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Client can go online and get SSA-1099 immediately.
Risk of estimating...Fed tax withholding?
Otherwise, a 1099 is not required to report income.
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#3
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HowardS wrote:Client can go online and get SSA-1099 immediately.
Risk of estimating...Fed tax withholding?
Otherwise, a 1099 is not required to report income.

It takes awhile to setup an account on SSA plus these clients wouldn't know how to turn on a computer.
One client found his 1099s (he's the one that gave the printout of 2017 1099s).
I will call the other client and go with the estimate. Thanks
Cathy
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#4
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I don't estimate. I have the client call and get another copy sent, as most of my older clients are computer challenged. I have been surprised at how fast the new one arrives - one was within a week!
 

#5
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Got the 1099s from the first couple, I was $1 higher on one and $1 lower on the other with my estimate.
Cathy
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#6
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Since social security income went up 2% on Jan 1, 2018, do you think it would be OK for me to just estimate it and be done?


Sure. But they can pull these online, you know…
 

#7
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CathysTaxes wrote:Got the 1099s from the first couple, I was $1 higher on one and $1 lower on the other with my estimate.


Had this happen only one time. Husband had his but wife did not and had misplaced the form. I asked the client to request, but with them in the office had them actually pull bank detail so I could see what the net amount was that they were paid. Husband and wife had the same amount withheld for Medicare part B premiums so I was able to take her net payments plus 12 months of part B premiums. Once a new 1099 was received I made sure it was correct, and luckily it was. They weren't so old they didn't know how to turn a computer on so it wasn't all that difficult, which is not the case here.
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#8
CathysTaxes  
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Jeff-Ohio wrote:
Since social security income went up 2% on Jan 1, 2018, do you think it would be OK for me to just estimate it and be done?


Sure. But they can pull these online, you know…

Yeah, but both couples are experiencing dementia.
Cathy
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#9
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Yeah, but both couples are experiencing dementia.


Then thank them for coming in early this year because their tax return isn’t due until May 15th…
 

#10
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Was the due date actually extended? I read that only once on another bulletin board, but haven't seen it discussed in any other place or articles on the internet or in the newspaper. Just did a Google search and they are showing the due date to be April 15.
 

#11
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April 30th for my clients.
 

#12
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Jeff-Ohio wrote:
Yeah, but both couples are experiencing dementia.


Then thank them for coming in early this year because their tax return isn’t due until May 15th…

Good one Jeff.
Cathy
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#13
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actionbsns wrote:Was the due date actually extended? I read that only once on another bulletin board, but haven't seen it discussed in any other place or articles on the internet or in the newspaper. Just did a Google search and they are showing the due date to be April 15.

I think Jeff was joking.
Cathy
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#14
Jake  
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I have estimated before based on prior year and known % increase. IRS isn't going to bother if the number is off a few bucks. So add a couple bucks if you are nervous. Same think with a missing 1099-Div on an individual stock. You can compare the div per share from '17 and '18.
 

#15
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well you know the col increase so if no federal withholding i think its safe to guestimate.
 

#16
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My office is across the street from the ssa office. It has its perks.
 

#17
makbo  
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CathysTaxes wrote:Since social security income went up 2% on Jan 1, 2018, do you think it would be OK for me to just estimate it and be done?

Yes. UltraTax automatically adjusts the SS taxable income for the known inflation factor when you do a projection for the next year, so one time when in a similar situation I just worked backward from that, to come up with the amount of total SS income that must have been received to yield the projected taxable amount. When I finally got the 1099-SSA forms it was accurate, like yours, to within a dollar or two.
 

#18
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Thanks everyone for your suggestions.
Cathy
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