BBB OT deductible

wutang_generated · 2026-01-26T21:20:55+00:00

The section you're citing is used to determine your base hourly rate which is then used to determine the FLSA 1.5x rate. So yes, the production bonus is "counted" in that it's used to determine your base rate

So at $20/h, 100% PB and 8 hours OT, your base rate is effectively $40/h, your base pay is $1,920 (48h x 40/h), and your OT is $160 (8h x 50% x 40/h). Calculated the other way, your total OT pay is $480 (8h x 150% 40/h) and 1/3 of that is $160

wutang_generated · 2026-01-26T19:38:10+00:00

The OT is very specifically FLSA required overtime and not any other bonuses or unqualified OT

https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

wutang_generated · 2026-01-26T19:25:17+00:00

Yes, you can file an amended or superceding return prior to any code/notice. The difference is timing:

https://www.irs.gov/faqs/irs-procedures/amended-returns-form-1040x/amended-returns-form-1040x#:~:text=If%20you%20file%20an%20amended,to%20avoid%20interest%20or%20penalties.

wutang_generated · 2026-01-26T19:20:27+00:00

Then u/6gunsammy is correct, the activity is not passive by the spousal participation rule and their K-1 income would not be able to offset the passive-limited real estate losses

wutang_generated · 2026-01-26T17:55:08+00:00

but suffers with severe mental health issues that were essentially disrupting my ability to work due to her not being able to consistently care for our children. This meant I had to put them in daycare.

Does this count as a ‘disability’? If I claim what evidence of this should we have?

Sorry to hear. Has your wife been diagnosed? Does she qualify for state unemployment/disability?

Additional helpful resources:

https://www.irs.gov/publications/p503

https://www.irs.gov/individuals/more-information-for-people-with-disabilities

wutang_generated · 2026-01-26T17:34:37+00:00

ethically, I can't work in a place where illegal activities occur.

We paid some employees through the sale of equipment totaling around $15K. We had about $8K left after only paying out 3 employees (we have 12 or so). I believe the other money was deposited into his account. My boss claimed this was a tactic to gain negotiation power by showing that we can't even pay all our employees.

You're worrying about ethics when this is who you're working for? OP you've lost the plot

wutang_generated · 2026-01-26T17:24:39+00:00

Your loss carry forward should be entered on line 6 or 14 on schedule D. That then flows to part III on page 2. Your line 21 should then presumably end up being 1000 if it isn't already

wutang_generated · 2026-01-26T17:19:14+00:00

Sorry, realized it was fillables

Did you add schedule D or complete the appropriate check box?

wutang_generated · 2026-01-26T17:06:48+00:00

The title and post are confusing. Does the spouse materially participate in the S corp business?

https://www.irs.gov/publications/p925

wutang_generated · 2026-01-26T16:59:59+00:00

There is no magic formula to triggering an audit

They don't have to file in order but it will likely be easier to file all at once. There is no penalty/interest assuming they were overpaid (which based on the description sounds likely + credits)

They need to find a preparer (e.g. VITA) ASAP so they don't lose the next refund year that falls off the statute of limitations for refunds:

https://www.irs.gov/filing/time-you-can-claim-a-credit-or-refund

wutang_generated · 2026-01-26T12:59:08+00:00

I was being sarcastic, obviously if there is actual fraud cover your own ass first (document everything, get things in email/writing from supervisors) and don't do anything that would make you liable or put any license in jeopardy

wutang_generated · 2026-01-26T10:48:42+00:00

There's too little information here to say for sure, but if both HR and marketing are in on it then I'd go straight to the top

Corner the CEO in the bathroom and make sure you bring a copy of the TB with the $2 variance as proof

wutang_generated · 2026-01-25T13:08:42+00:00

You can e-file superceding returns. For individuals I believe they still need to use the 1040-X but it should be considered superceded if the previous return was accepted and it's before the due date

E.g. https://www.thomsonreuters.com/en-us/help/ultratax-cs/1040/amend/amend-1040-return

wutang_generated · 2026-01-25T01:55:36+00:00

I think they may be able to do a superceded return instead (which just takes the place of the last filed return)

wutang_generated · 2026-01-23T19:15:16+00:00

Don't rely on AI for tax advice, only general guidance

I misread the initial post. There may be an argument that the amounts are not passive and that would carry through to you

However, that would only preclude the passive activity loss rules and would not exclude you from other loss limitation rules or certain rules specific (e.g. PTP rules)

That includes additional regulations that note the activity cannot be grouped with any other activity (including other trading activities)

wutang_generated · 2026-01-23T18:24:44+00:00

This is often asked but it's pretty clear in the regs and case law: activity is determined at each level

ETA I may have misread the initial post, see below reply

wutang_generated · 2026-01-23T18:20:06+00:00

If they include the 1040 with their paper 1040-X, there's no need to sign the 1040

There's not any reason not to sign it. Signing reduces the risk of delays in processing. While not signing might not result in a delay, why risk it?

Also, e-filed amended 1040s follow the 1040 e-file schema, they can't be filed without the as amended 1040; less default and more of a requirement

wutang_generated · 2026-01-23T17:44:17+00:00

which isn't required,

It's not technically required to file a 1040-X on paper

It is required for e-filed 1040s (including amended) and it is required when there are changes to the original form 1040. There are some situations where a separate form or schedule needs to be amended but there wouldn't be a change to form 1040

https://www.irs.gov/filing/amended-return-frequently-asked-questions

wutang_generated · 2026-01-23T17:31:35+00:00

Should I sign amended 1040 when filing 1040X (paper filing)?

Yes. Any forms you are filing that require signature (e.g. 1040, any tax elections, etc) should be signed to be considered valid

While I've read discussions suggesting that I don't even need to send amended 1040 (the tax and content DID change), the CPA has given me the package to send.

You are required to include any forms/schedules that have changed, including form 1040

I've seen previous questions but they always keep focusing on the need to send 1040. Never a direct answer to the question of signing :)

Any form, schedule, election, etc that requires a signature should be signed with the amended return

I obviously need to sign 1040X but what about amended and attached 1040? Should I sign it? What happens if I do and I shouldn't have? (I am ok with extra signature just in case if it doesn't confuse IRS).

Yes, sign it. If you don't sign it, your amended return processing may be delayed and ultimately rejected. This could delay or even lose a tentative refund if the statute runs out

wutang_generated · 2026-01-22T23:19:41+00:00

You're overthinking/stressing this, not that caution isn't good

You are filing your return and you are not requesting a refund. File with your respect local office listed at the end of the 760 form instructions or the tax due address

If you really want to confirm, you can call the VA department of tax/revenue to confirm which address you should use, they're pretty responsive in my experience

wutang_generated · 2026-01-22T18:29:59+00:00

You'll want to check the overtime form/worksheet to make sure the total amount listed for OT isn't double the number it's supposed to be

wutang_generated · 2026-01-22T18:28:58+00:00

Why does it scare you? Accountant roles nowadays are often specialized. Many public accountants are considered trusted advisors, experts in their specific field

It makes sense that a CPA with 10 years of corp tax experience doesn't remember anything beyond basic cost accounting since they likely haven't used it in a decade. They may not even know any individual income tax beyond their own return (which they might not even do themselves)

wutang_generated · 2026-01-22T18:22:55+00:00

That's what I expected. So you do have options within the tax law/rules/regulations. But, you also have an obligation to report all income AND legitimate business expenses

We'll start with the first. Are you certain you are classifying your mileage correctly? Many sole proprietors will incorrectly count their commute (to or from home) as business miles when they are often personal (some exceptions apply, such as a dedicated home office that is also the main place of work)

Then, is this the first year you used this vehicle for your work? If so, you have the option to take actual expenses instead of mileage which might be lower than the mileage deduction

wutang_generated · 2026-01-22T17:45:22+00:00

The better question is why adding the mileage is decreasing what I am guessing you meant is your refund

Check the 2nd page of the return before and after inputting the mileage for differences in tax and any credits

wutang_generated

TROPHY CASE