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Especially if it is one of the people that kept bugging me all summer about where there check was, because they did not want direct deposit but wanted this free money right away, then I will certainly charge to put the amount they got on their tax return.

Without the third party sending the K, you may not have heard of this amount. The seller likely has expenses/fees which were kept by the third party, at least for the charge card aspect. There is also the possibility sales tax was withheld/paid, which the third party handled. Some third parties also charge listing/selling fees. As others suggested, there will or should be fees for license(s), shipping, tax prep, etc. For the product described, seems like there are more than enough expenses that there should be a loss, unless the product is valued below selling price. If a short term process, not ongoing, I really like the $1 "profit" idea so it can be done with on one return. (My DW sells or gives away our random no longer needed items online, at least the items we cannot find a good home for via donation.)

Perhaps my clients are more laid back here in Oregon where we have huge surpluses of Marijuana, THC and CBD. I actually did not get a single call asking about any of this stuff However, I did spend many hours assisting with PPP Loans

I'll charge extra for two MFS returns instead of one MFJ return when one spouse make less than $75,000 and can claim RRC1 and RRC2 as MFS. Maybe a Research charge for all the questions, explanations, and especially phaseout calculations.

This is a good way, too. Thanks. My only concern with the Sch C is that the state of VA watches these Sch C's very closely because they will demand a business license and personal property tax on anything they can think of. So, this is looking like a better option. I use TaxWise and can easily note the detail. Thanks! edit: I am confident this was personal property sales of clothing and other things. Sold at a personal loss, I'm sure. There are so many websites these days where you can easily list your "junk" and make some money that otherwise you would have lost.

Some of the states (like MA) will inquire, even if the feds don't. I've seen this. Selling personal property at a loss is not a taxable event. (If they sold at a gain, that's different.) What I have done is put it on the "other income" screen (I use Drake) description "1099-K" with a second line description "sale of personal property, no gain" with a negative number $1 LESS than the 1099-K amount. Why less? Because the detail screens don't transmit unless there is a net amount. And $1 additional income won't break anyone's tax bank.

Who is going to be charging their clients to reconcile the credit? And how much would be you be charging?

It will depend on the situation. If my client me gives accurate detailed info and they received the EIP up front, then no charge. If i have to do extra work then there will be an additional fee, especially if the reconciliation generates a credit on their return.

"February 22. Projected date for the IRS.gov Where's My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns. First week of March. Tax refunds begin reaching filers claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns."

Employers of boyfriend of the barber's cousin, and other knowledgeable tax super-experts!

Posted on the IRS Website Friday: "Under section 206(c) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, an employer that is eligible for the employee retention credit (ERC) can claim the ERC even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program (PPP). The eligible employer can claim the ERC on any qualified wages that are not counted as payroll costs in obtaining PPP loan forgiveness. Any wages that could count toward eligibility for the ERC or PPP loan forgiveness can be applied to either of these two programs, but not both. If you received a PPP loan and included wages paid in the 2nd and/or 3rd quarter of 2020 as payroll costs in support of an application to obtain forgiveness of the loan (rather than claiming ERC for those wages), and your request for forgiveness was denied, you can claim the ERC related to those qualified wages on your 4th quarter 2020 Form 941, Employer's Quarterly Federal Tax Return. You can also report on your 4th quarter Form 941 any ERC attributable to health expenses that are qualified wages that you didn't include on your 2nd and/or 3rd quarter Form 941. If you choose to use this limited 4th quarter procedure, you should add the ERC attributable to these 2nd and/or 3rd quarter qualified wages and health expenses on line 11c or line 13d (as relevant) of your original 4th quarter Form 941 (along with any other ERC for qualified wages paid in the 4th quarter). You should also: Include the amount of these qualified wages paid during the 2nd and/or 3rd quarter (excluding health plan expenses) on line 21 of your original 4th quarter Form 941 (along with any qualified wages paid in the 4th quarter) Enter the same amount on Worksheet 1, Step 3, line 3a. Include the amount of these health plan expenses from the 2nd and/or 3rd quarter on line 22 of the 4th quarter Form 941 (along with any health expenses for the 4th quarter) Enter the same amount on Worksheet 1, Step 3, line 3b. We understand this might be difficult to implement so late in the timeframe to file your 4th quarter return. You do not have to use this limited 4th quarter procedure. You can instead choose the regular process of filing an adjusted return or claim for refund for the appropriate quarter to which the additional ERC relates using Form 941-X."

I love Oregon. People there follow traffic rules and don't litter. And they grow all kinds of food, and make great cheese and wine.

Bingo. There's a huge difference between someone clearing the good-but-don't-fit items out of their closet and selling them on ebay or etsy and likely making nearly nothing after shipping costs and fees (and certainly not profit compared to what they paid in stores), and someone who makes a living cruising yard sales and picking up the "good stuff" to sell for profit.

Seeing all these ATX trouble posts makes me so glad I left ATX 3 tax seasons ago

I guess I have a different take on this. The amount of clothing you would have to sell at second hand prices to total over $ 12k is mind boggling, probably at least $ 40 k at retail. I think additional inquires need to be made !

I doubt the IRS even matches 1099-K's. File without it and let us know what happens.

I think that I would put it on a schedule C and make COGS equal to the amount received. Not accurate, but this is a personal loss not a deductible one, and will at least hopefully stop the IRS from sending a letter

The 8879 is not part of the efile. I've created an efile but I haven't transmitted any. My bigger worry is heard a rumor that ATX will make you recreate any efiles over 5 days old before you send them. for us, that's almost 100% of efiles that will need to be recreated, one... at... a... time!

line 10B ? click on the arrow to the worksheet. enter the cash charitable contributions on line 5 of the worksheet. that's what shows on my system. Did you do the program update when it came out a couple of weeks ago ?