Leaderboard

A QCD could before and can be now used over and above an RMD (when required) up to $100,000 (is that the amount?). So, if you want to give to charities in this time of need and you expect to take the standard deduction, you will not get any benefit except for the new $300 adjustment to income. If you use your retirement plan to give directly to charities, your retirement withdrawal is NOT income up to your donations. I will probably use that, as our other accounts are low, and the needs are high for food banks, etc. I stopped my RMDs for this year, but will probably take a QCD soon to give to some local organizations and our church for this year, sooner rather than our more usual December.

Not at all an answer - but in reading the thread title quickly, my brain turned it into "depression of defenestration" and I thought someone was so tired of being inside they wanted to jump out the window!

That is what I have read, no repayment. I have a case where client's wife recently passes away. Client wants to hold off on filing 2019 until the advanced credit is paid on 2018 return; in case the advance is reduced based on 2019 return indicating wife deceased. As in other cases, I have made it clear that to him that although it appears he will not have to repay the excess, there is no guarantee of that.

The 3115 asks for totals, so I should think that one for the both will work - just be sure to add the correction for each, in separately to both properties. Yes, attach pdf of 3115. Mail 2nd copy to Ogden.

In a course I took, the handout said Software not always capable of filing electronically – attach as .pdf Returns including a 3115 can be filed electronically, but many software packages do not have this capability and require that a .pdf copy of the Form 3115 be attached to the return. (This .pdf copy does not have to be signed. It is considered signed because it is attached to a signed return.) 2 copies must be filed – Ogden address correction A second copy must be sent by mail to Ogden (even though some software package instructions incorrectly say otherwise). That copy cannot be filed electronically...The Ogden copy must be filed no later than the date the taxpayer files the original Form 3115 with the federal income tax return.

This post on the other forum suggests changing the 'late payment / filing penalty and interest' tab on the 1040. It seems to have worked, at least on the one test client so far. https://community.atxinc.com/forums/thread/285718.aspx

Yep, telling clients the same, no guarantees. This is all new with rules being written on the fly. We don't know. Here's what we know, and you decide.

I thought the reconciliation does not go below zero on the 2020 return.

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf This is the most authoritative source. I found answers here that could be not be found anywhere else. PPP is covered in section 1102 page 6. Loan forgiveness section 1106 page 19 EDIL section 1110 page 26. I have some anxious clients to talk to next week, this has given me a better understanding to help them.

I devote a tab in my tracking spreadsheet to federal and NYS powers-of-attorney and info authorizations -- shown in an oldish 'Snip'. I keep it next to the tab for current-year returns-in-process and the tab for current-year e-filing. Simply having the tab adjacent my hottest two reminds me to keep its contents uptodate, I believe -- the reverse of "out of sight out of mind". Like Abby, I have only virtual files now, and keep an image of the signed copy of the PoA alongside other client documents of like period.

I prepared a PPP loan application for my largest client yesterday thru a local bank. The local bank had a much more detailed application asking questions about how many employees had been laid off due to the coronavirus. How many employees would be reinstated, on what date and the payroll cost of reinstating those employees etc.

Absolutely, Payroll Protection Program. No requirement to have laid anyone off, or had sales drop by application date. Affirmation is vague enough anyone can affirm. Just sign up after me

I haven't charged any of my clients for helping with the short form application. I just want to do what I can to help them stay in business. The income stream from not losing them due to business failure is worth a lot more than a few $ in the present. I consider the time to be an investment in their future and mine (or the tax preparer I hand them off to when I retire). They will have to prepare more detailed financials when the actual loan process starts and that will be the time to discuss fees. Personal experience - this evening I was speaking with my daughter and her husband on my way home from work. I mentioned the EIDL in passing during our conversation. She had to cut the conversation short because an HVAC repair guy had dropped by to pick up his check for some work he had done for them. A short while later she called to ask if i minded giving some details about the EIDL program because the HVAC guy had just told them he wasn't sure his business is going to survive this situation. She put him on the phone and I spent about 30 minutes explaining some aspects of the program and telling him exactly what he needs to do AS SOON AS HE GETS IN FRONT OF A COMPUTER. Then I ate my dinner which by now was getting a little cold. No charge for the advice, but maybe he and 5 or 6 of his employees may continue to have jobs that would have disappeared in the next few weeks. That's worth more to me than a processing fee. But if I were seeking clients, I'm betting I'd have a pretty good chance of stealing his business from his current accountant.

This is from stimulus Q and A from various websites: What if my income is higher in 2020? You do not have to pay the government back. Technically a person’s 2020 income is what qualifies them for the payment. Since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check. If you get a payment and then your 2020 income is higher and thus merits a reduced payment or no payment, the money does not have to be paid back.