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See qualifying relative rules, instead of qualifying child rules

Why isn't the student a dependent?

They were afraid we'd paper file a return with SSN suppressed. I said fine, don't allow SSN suppression on Filing Copy print packet, but please let me suppress SSNs on Client, Preparer and Custom print packets so the PDFs on my computer are more secure and I'd feel better about emailing returns.

We need to have a chili cookoff. I will bring my Bacon Jalapeno chili with red kidney beans. I will bring some cornbread too. And I don't want to hear from any of you Texans that chili should not have beans in it. Tom Modesto, CA

If your clients are mailing in payment vouchers or any other forms like the 4868, you probably wouldn't want the SSN suppressed ?

This BB goes bonkers when I try to start a new topic, so maybe one of you can cut/paste this into a new subject line... Issue Number: IR-2018-1 Inside This Issue 2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers WASHINGTON ― The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15. Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds. The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns. The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return. The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2017 tax return. Using an electronic filing PIN is no longer an option. Taxpayers can visit IRS.gov/GetReady for more tips on preparing to file their 2017 tax return. April 17 Filing Deadline The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation. The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The IRS and Summit partners continued to improve these safeguards to further protect taxpayers filing in 2018. Refunds in 2018 Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS expects more than four out of five tax returns will be prepared electronically using tax software. The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers. By law, the IRS cannot issue refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. This applies to the entire refund — even the portion not associated with the EITC and ACTC. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if those taxpayers chose direct deposit and there are no other issues with the tax return. This additional period is due to several factors, including banking and financial systems needing time to process deposits. After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving Presidents’ Day may affect their refund timing. The Where's My Refund? ‎tool on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers in late February. Taxpayers will not see a refund date on Where's My Refund? ‎or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund. IRS Offers Help for Taxpayers The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov, the official IRS website. Taxpayers can find answers to their tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide links to these and other IRS services. Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 18 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process. In addition, 70 percent of the nation’s taxpayers are eligible for IRS Free File. Commercial partners of the IRS offer free brand-name software to about 100 million individuals and families with incomes of $66,000 or less. The online fillable forms provide electronic versions of IRS paper forms to all taxpayers regardless of income that can be prepared and filed by people comfortable with completing their own returns. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free tax help to people who qualify. Go to IRS.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider. If eligible, taxpayers can also locate help from a community volunteer. Go to IRS.gov and click on the Filing tab for more information. The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

It's soup and warm bread for us tonight. Saturday is a really, really big bonfire at church, burning Christmas trees with our volunteer firefighters in control, and the proceeds going to Weston Warm-up Fund to help our neighbors with heat this frigid winter. Chili and all the fixins inside. I'll watch the bonfire from inside, I think!

Microsoft issued an emergency patch for all supported versions of Windows, including Windows 7, Windows 8.1 and Windows 10, but added that users should also apply firmware updates when they become available from device manufacturers. Google patched the flaw in Android with the January 2018 update, issued Tuesday (Jan. 2), although only Google-managed devices have the patch for now. Patches for macOS, iOS and Linux may not yet be fully available. https://www.tomsguide.com/us/intel-cpu-kernel-pc-mac,news-26320.html

Microsoft is issuing an Win 10 Emergency Security Update at 5:00 PM EST today. It will be automatically installed on all Win 10 machines. Microsoft may issue Security updates for older OS next Tuesday.

I stayed in today. We have about 7 - 8 inches but its blowing sa hard that we have drifts of 3 - 4 feet. Power is on so I'm happy.

3 ft drift outside my door. Stayed home and doing some CPE. No sense digging out with the wind still blowing the snow around. It's still snowing too. Here's a cam of the worst hit area about an hour east of me: http://www.chart.state.md.us/video/video.php?feed=c1000a2d004700e700498436cf235d0a

silly me.

Our area has been in a deep freeze for a while now, it was so cold they canceled the polar plunge.

From what I read last night there are two different yet very similar security issues. One is for Intel and the other is for AMD and ARM. The security patch is ONLY being issued by Microsoft for Windows 10. If you are using an older version of Windows they will not be receiving a security fix. The slow down of the chips will really only impact high utilization users (gamers, graphics editor types). Normal accountant types using normal business software won't likely see a real slowdown. If you use photoshop, video editors and so forth - you'll see a slowdown. There are no known hacks associated with this threat.

I put carrots in my chili to soften the heat. Bacon Jalapeno? Yes! Why didn't I ever think of that?

As soon as the airport opens I'm there. Do you have enough cayenne? I could also pick up some crusty pancetta and parmesan bread from Little Italy.

We got lucky enough to be in the area with lower accumulations, but it's still drifting. As long as the power stays on, we're fine. If not, we'll fire up the generator. I do feel sorry for those suffering the more extremes of this storm and especially the southerners that aren't equipped. I'm fighting the bone-chilling colder temps and the wind (only at 45 mph here) with a big batch of homemade chili. Who's coming for dinner?

Snowing (and wind) to beat the band here. Benefit of a home office is the 2 flight commute. I heard Jacksonville had snow, hope it didn't impact the early bird specials.

I got an email on 12/30 from cpe247 for 119 for unlimited for a year. I need 80 hours by 3/18/18 and if I don't procrastinate this fall, I can do another 40 hours and end up paying less than $1 per hour for CPE. I hope they offer the same deal next year!

FYI, you can only suppress the Client copy print packet. That's the one I use for K1s so I can email them to recipients. I asked ATX to allow to suppress SSNs on any print packet but they said that we were too stupid to have that feature.

Staying safely inside. Haven't lost power yet, but we installed a generator after multiple hurricanes and don't have to worry about that now. Total white out. Doctor called yesterday to reschedule today's appointment. Have an education committee meeting for NY/CT-ATP on Friday, but someone offered to pick me up.

I use this for code most often: https://www.law.cornell.edu/uscode/text/26 Google searches almost always point you here.

Hope everyone on the east coast are doing okay.

From your details, it appears that he is a qualifying relative and the parents are entitled to the dependency exemption and also the AOC. Pub 970 states : Who Can Claim the Credit? Generally, you can claim the American opportunity credit if all three of the following requirements are met. You pay qualified education expenses of higher education. You pay the education expenses for an eligible student. The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Note. Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. It does not distinguish qualifying child vs. qualifying relative. If the parents' income is too high for them to receive the credit (over $180,000) then you could consider having the student file and claim the refundable portion, He can only do this if the parents do not claim him and he does not claim himself.

I remember a wedding in the 60's with a potluck reception and chili. We were all starving college students. The student who brought the chili said "chuck." It was woodchuck.

Beef chuck if I don't mind simmering for a long time, otherwise grass feed ground beef.

Are we going to have a beans vs. meat debate?! And, what kind of meat?

A qualifying child must be younger than age 19 at the end of the year or younger than 24 and a full-time student. Since your son has already turned 24, he is no longer considered a qualifying child. ... As a qualifying relative, your child can be older than 24 and still be claimed as your dependent.Feb 5, 2013 Thanks to both of you. Andrew will not be younger than 24 on 12/31/18. He will remain a full time student. I'll check to see if he can get dependency as a qualifying relative. If so we still have the question if the AOC applies to a qualifying relative.

Yep, some carrots in mine, red and black beans. Bacon Jalapeno (!!!!) would be a winner here and will have to try that next time.

"too stupid to have that feature." Wow, candid answer at its worst. As a programmer, who also does support, rule 1 is the end user will do something they are not supposed to do. Rule 2, is you will spend the bulk of your time in a vain attempt to prevent rule 1. I answer that inquiry, if this is the proper case, with something along the lines of "the tax agency requires the full SSN on that particular form, we are not allowed to truncate or mask". When pressed, I will mention many tax forms contain a vendor code, and if submitted, and the vendor did not comply with the requirements, not only will the TP get fine, so will the vendor, and the vendor can have all their forms refused if it causes a large number of manual handling by the tax agency. In real use, I am certain things get masked by "printing" to a PDF, then editing before printing to paper, or by making a copy with a sticky note over the items to be masked.

Lots of wind. My commute is just down the hall. No stairs. Although, all my clients know I must be snowed in so are calling me! I haven't changed my phone from the away message I left while visiting my granddaughter, so only pick up the calls I want.

Also, there is a 2017 tax extenders bill currently in front of congress, that wasn't made part of the new tax law just passed.

Dang, that seems really late this year. Concerned that there will be so many returns waiting in the que for processing that it might take down the system. We have seen it before. Any word from ATX on when they will allow us to transmit to them to get in line? Tom Modesto, CA

My point was that if you are running Windows 8.1, you are not receiving a security fix. Yes, everyone else will get a fix and I didn't mean to imply otherwise.

Update this morning: They are mostly done, just working on a few final details. They should post an anticipated ship date soon. http://www.fingertiptaxfacts.com/

Patches have also been issued by Chrome, Linux and a partial patch from Apple with a followup patch to come later.

Thanks for clarifying, Terry. I also itemize now, even as HOH, but I'll lose my last dependent in 2018 (she's graduating with a Doctorate in Physical Therapy thank God on many fronts), so the 20% deduction will be a lifesaver when I move to Single brackets. So glad it's a deduction for income tax purposes only. I don't mind paying SE tax (well I do who am I kidding), but I look at that one as a pension investment. LOL.

Same thought occurred to me. Self rental income is not passive so I'm hoping the 20% deduction will apply. I have the self rental arrangement and so do many of my clients.

If my memory is correct you will need to go to the download center, download it and install it. I don't beleive that it updates from within the inital release. I just wandered in to the download center and I see that Drake Accounting 2018 and CWU 2018 is now available.

Just a random thought - can a business owner who rents his office/warehouse to his business create an LLC to hold the rental property and get the 20% passthrough deduction? I assume treasury will impose self dealing rules, but what if they don't get to them before the 2018 filing season? Just trying to be creative. Tom Modesto, CA

Side question --- Will spouse qualify as one of the // can't deduct as dependent?? where we will get a $500 credit since usually spouses are over 17? Wondering. My main worry on the new brackets and standard deductions are not as much for family's but for those usually older folks who lose their partner -- goes from 24K standard down to 12K so depending on dollars remaining, could be a BIG hit for tax (of course less costly to keep living for one -- but not always that much less at times. Devil in details and all will be specific to the client. Welcome to 2018 ////// as stated by Judy on our Facebook site ------ 365 opportunities to use (for good or bad - you decide).

Thank you for this information. I downloaded the first installation and am assuming it will update to the second version without trouble.

Rita, I do itemize now and will probably not be able to in 2018. Sorry if I wasn't clear. Yes, I get the 20% which maybe my only saving grace. I will, however, reap the benefits by 2021. I plan on retiring from my teaching job by then and will live on SS, pension and business. Oh yeah, I'll get the higher standard deduction then too. Have been thinking about moving to the beach for our golden years and keeping a place here that has living quarters attached to an office for tax season. All sounds nice but time will tell.

All I can say right now is that I am VERY glad I don't have to program these changes - OR design the forms and schedules. For the rest, I can wait.

My little voice tells me they didn't mean for passive income to get that deduction. But my little voice has been wrong a few times.

I think you’re going to be pleasantly surprised, Terry. Unless you mean you’ll no longer be able to itemize in 2018 I read it to mean you don’t itemize now I’m still on the first cup of coffee. And if your business is a pass thru, don’t forget about the 20% deduction there I think the great majority of my clients will pay less tax with the new law. They are “all over the place” when completing W-4s, however, so the bottom line on tax returns may be weird, but that can be explained by comparing with corresponding other lines from the 2017 return.

Yes, going to get very interesting. With so many millions paying more due to all the re-jiggering the lower withholding may not reflect reality. A colleague of mine in Westchester, NY, another high ST and RE tax area said she sees a tax revolt (or at least a tea party) once all these people get their tax bill in 2019. She thought that year would be a good time to retire. As Thunderclap Newman sang...Call out the instigators.....Because there's something in the air. I sense this too, depending on how expensive taxes get for those millions of taxpayers, get ready to do some 'splaining Lucy. We'll be the first sounding board to hear the complaints.

The original post is questioning the math for calculating the tax liability before any credits are applied. Given the assumptions of the child tax credit for 2018, I will agree with Rita the client maybe better off in 2018. It is probably needless to say but each situation will be different and it will be so hard to give any advice until we see the entire picture. On another note, if you're like me, married with an empty nest, and right at the so called middle class limits, not being able to itemize and with the loss of the personal exemptions will no doubt have a negative effect for 2018. BTW- the math of the OP is correct

I have one client who claimed $89k in NY state and NYC taxes last year. Bought a house on Long Island this year which will add $36k in property taxes. Sum of both limited to $10k in 2018. Won't be pretty. But his tax rate will go from 39.6 to 37%. Whooo Hooo. The others who will take a big hit are salespeople who get only partial reimbursement from their employers. I have one who gets a Sch A deduction of $20k just for unreimbursed mileage. With Misc itemized deductions gone, this will hurt.

I've been getting a number of calls and yes, it is all over the map. Many clients in hi RE tax state NY (especially Long Island), many with decent income, nurses married to firefighters and teachers married to cops, and the like. Between loss of deductions and exemptions the higher standard deduction sometimes works by a little or doesn't work by a lot. Especially when they were used to getting much higher itemized deductions. And if they have a second home, forgettaboutit!