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Most people can't think, most of the remainder won't think, and the small fraction who do think mostly can't do it very well. --Robert A Heinlein

Best to wait until 1040 efile reopens in about 3 weeks, otherwise you will be waiting until sometime this summer

But we know from years of experience that most will not know the amount. Also, how many amounts (EIP1 only) given by clients will be missing their child support offset; how many clients tell you they owe back child support? I can deduct my new crystal ball as a business expense, right?

I will be nice if the client who received and spent the money would know the amount, correct?

Indeed. For me, I get many inquiries asking how to do things which are not allowed. I stick to the rules, then get told I am inflexible. Or, as happened earlier today, someone asks about starting to use my payroll software, and based on their questions, I ask if they have any experience or training, and when they say no, I suggest they will be better of hiring out their payroll until they can gain experience and training. Usually goes over well enough, but some try to make me license to them, which I refuse, because I am not in the business of teaching payroll accounting. It is one of my exceptions to there being a price where anyone is worth having as a customer.

Must be a Catch-22. Don't explain and possibly get grief, explain and either get grief from the fee for your explanation time, or get internal grief for not charging for your explanation time. Out of all of my customers, I think I had one employer defer for their employees (against the advice of their payroll processor).

I'm going to have to explain the options to Sch C clients (and take up even more time explaining lots of new tax laws) for them to decide. If I don't tell Sch C clients and Congress decides to forgive the deferred SS (my crystal ball predicts a D Congress might), clients will be mad at me that they didn't defer, kinda like PPP. I'm more angry about having so much to explain to Every. Single. Client this year than I am about a few bad tax preparers.

Per PA Dept of Revenue Website: Taxability of Paycheck Protection Plan Loans "Paycheck Protection Plan loans used to pay business expenses during the COVID-19 pandemic that are subsequently forgiven by the lender will constitute as taxable income for Pennsylvania personal income tax purposes. The business can deduct proceeds from the forgiven loan that are used to cover ordinary, necessary and reasonable business expenses related to that income." "For corporate net income tax, Pennsylvania taxable income is based upon federal taxable income. Pennsylvania law does not include an add back to or deduction from federal taxable income for forgiveness of a Paycheck Protection Plan loan." _____________________________________________________________________________________________________________________________________________________________________ Is this saying that corporations will not have any addback for the forgiven loan and will also get to deduct expenses paid with forgiven PPP loans (since based on federal taxable income) but self employed (sch C filers) will have taxable income for the forgiven loans? I know the expenses will be deductible if paid from the forgiven PPP loan but this isn't the same treatment as the corps get?

1. Be very careful with EIDL Loans, There are a lot of very restrictive covenants that could hamstring a business. 2, Yes you can do both a PPP Loan and the retention credit, but you have to really thread the needle to make them both work together. 3. I have one client who qualifies for a second PPP Loan, which we are seriously considering since it offers the most flexibility.

pronounced eep? or EEEEEEEEP!!!!!! inquiring minds want to know...

Back in the early to mid 2000’s mortgage lender would quote a buyer a monthly payment that included escrow, the day of the closing they would tell the buyer I lowered your payment and the buyer was happy. Well it turns out brokers were just removing the escrow ( and adding additional closing fees) and would let the buyer find out they had to shell out $$$ down the road. I see many tax preparers doing the same thing to Sch C clients and telling them I saved you 50% of social security and failing to disclosed it has to be paid back within two years. Will this give a bad name to honest tax preparers? If it wasn’t for the financial department requiring brokers/lenders to issue good faith estimates, this practice would of continued to today.

Lynn, your option worked. However, although the client is there, is cannot be highlighted to rollover. I guess because I didn't actually e-file that one, just printed for mailing. So at least I have the program opened now and can just re-enter data. Judy, thanks for the KB. I have just never had this issue in all these many years but think it may be due to the above observation or other gremlins. Pacun, I never roll over automatically. The problem was that I was not even able to access the program as I couldn't get past the select your server screen. When I tried to find something, there was not any option at all. All good now, thanks to all for saving me a tech call! And we're off to the races

Medlin, I can't help how people think, especially non-clients telling ME why they do what they do to save taxes! But I know I need to lay out the options for my own clients and let them decide, even when I think I know what's best for them.

I saw the IRS instructions on line and the worksheet does have 2 separate line items, one for each stimulus.

Likely the similar wonder of those who have had student loans in the past, should current loan holders receive forgiveness.

I know anything is possible in our whacko world. But if they forgive the deferral, how can they not give credit back to those who did not defer.

Yes, kind of irritating, aren't they? Options/Preferences/Open Return then unclick Display Tax Research Tool Tips.

M-1 adjustment on the balance sheet.

If you Rollover a client you also need to click on items in other Data: (Preparers, Payers..etc) I always click on other data and all preparers, companies and Payers get rolled over.

I do a lot of returns where the revocable trust's ein is on the forms, and I just report it on the 1040, and have never had a problem. But you're right. The instructions do say to file a blank 1041. Although, in practice, I doubt the IRS would really care.

I am having to learn as I go. Mom and Aunt did nothing when grandmother passed, now mom passed earlier this year. I even had to sign something as an heir for my grandfather, who passed in '71, because the real property title was not changed. The rub is neither made any plans, gave any indication of their wishes, so intestate it is. I have two sibs waiting for their cut with open palms. Catherine has agreed to help.

This is going to make for one fun tax season, not!