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Showing content with the highest reputation on 02/13/2021 in all areas
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I don't know how you would separate their school internet and phone use from their personal use, so I wouldn't do it. I could see teachers spending less this year because with virtual learning they probably aren't buying special books, kleenix, toys, etc. Most of my teacher clients usually spend way more than the $250. Some work in districts that reimburse everything, but others even have to buy their own printer paper once they use up their meager allotment.3 points
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The Get my payment link would be more helpful if it gave the amount, but I don't think it's a waste. I too had a client whose spouse died. He got the first payment and not the second. The site showed that the second has not been issued, so at least we know to claim the recovery rebate. Another client lives overseas and only got the first. The site showed the second was mailed, so he'll just have to wait for it. At least the information provided was helpful in both cases.3 points
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However, I just looked at the instructions for Form 8615 and they say: For Form 8615, "unearned income" includes all taxable income other than earned income. Unearned income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust. So I think is is taxed at the parents' rate.2 points
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From IRS website, see the last bullet point. FS-2018-9, April 2018 Businesses can immediately expense more under the new law A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. The new law increased the maximum deduction from $500,000 to $1 million. It also increased the phase-out threshold from $2 million to $2.5 million. For taxable years beginning after 2018, these amounts of $1 million and $2.5 million will be adjusted for inflation. The new law also expands the definition of section 179 property to allow the taxpayer to elect to include the following improvements made to nonresidential real property after the date when the property was first placed in service: Qualified improvement property, which means any improvement to a building’s interior. However, improvements do not qualify if they are attributable to: the enlargement of the building, any elevator or escalator or the internal structural framework of the building. Roofs, HVAC, fire protection systems, alarm systems and security systems. These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017. Tom Modesto, CA2 points
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How do you spell "job security?" LOL2 points
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I meant to have the client log on to set up their account to find out how much stimulus they got not for us to do it for them.2 points
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Have the student get you the bursar's statement to use, not Form 1098-T.1 point
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Copied from Pub 596: "Income That Is Not Earned Income: Examples of items that aren't earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Don’t include any of these items in your earned income."1 point
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Just a thought, how does a high school student meet the "availability for work" requirement and draw this much in unemployment???1 point
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Fact & circuses. Love that, Gail. I had a teacher add another line on her cell service at an extra $14.95/month so she could keep her personal # personal. My hubby had to buy Zoom, because the free version cuts off after 40 minutes. My NY/CT-ATP group paid $39.95/month for ClassMarker testing/certificate software for our on-demand tax courses. One of my older teachers had one phone line at home that included her computer (old-fashioned, I know) and had to add internet for the first time. I see all kinds of extra expenses for teaching remotely, especially software for specific subjects or projects that has no personal purpose. And, yes, those expenses will go away eventually. I'm canceling ClassMarker today, because NY/CT-ATP decided to stop on-demand classes this month and resume live classes (we hope) in September. Facts & circuses. Ask questions.1 point
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We should start a pool for how long it will take before the new MD tax forms are ready to be filed.1 point
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Thank you, Bart, and I did know what you meant also. My quote and post was meant as a warning to any other readers that would consider doing something like that, including the many visitors here that may or may not be tax professionals. I never thought you would do that and I'm sorry if my quoting your post suggested differently.1 point
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That was what I assumed you meant. Forward the link to the client, and have them report back what they found.1 point
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Facts and circuses, IMO. If they are using the same internet and cell phone they have always used, I would find it hard to justify deducting it this year, However, if because they have to stream video and do 'Zoom" type meetings with classes,and therefore they had to purchase more bandwidth, pay overages, or otherwise change their plan to accommodate a different type of teaching, I would. YMMV.1 point
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1 point
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https://sa.www4.irs.gov/eauth/pub/login.jsp?Data=VGFyZ2V0TG9BPUY%3D&TYPE=33554433&REALMOID=06-00029c6a-0543-17b0-89b8-163b0acf40c7&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGENTNAME=UOkC7yx4eMTO24FGxPfBRb5q3Mj3Xh3pyXfBEjYyHJ97nGCXu16wx5MzFHjfZmlG&TARGET=-SM-HTTPS%3a%2f%2fsa.www4.irs.gov%2fola%2f%3fGMP%3d1 Set up a user name an password. Answer a few stupid questions and it will tell you how much they got and when. irs.gov has a link to it also i think.1 point
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Current and prior 2 years may be efiled any time this year up until the IRS shuts down MeF late this year to prepare for the filing season in 2022.1 point
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Anyone who doesn't know how much they got and can't look it up, I will assume they got the full amount. Everyone is entitled to screw themselves out of money, if that's the way they choose to live. I also looked mine up on my IRS account, BECAUSE I'M NOT A LUDDITE!1 point
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Haha, if only.... This is going to be a PITA. No one kept the letters, and I have some in the phase-out range. One older client swore over and over to me that he knows the first EIP was only supposed to be $600 and he has never been comfortable giving anyone, including me, and direct deposit info. Then he remembered getting a check but said any time he gets checks, he always makes a rounded-off partial deposit and takes some cash back as mad money. He refuses to use the internet! I looked up the date for him on the IRS site. Said he found a deposit for an even $2,000 on 4/29/20, so he says he either added some to the $1,200 from another account...or he got $2,400 (wife died April 2019, 2019 return filed on 2/11/20) and deposited only $2,000. On top of that, he definitely didn't get the $600 in Jan 2021, I'm filing his single return now with $1,200 and $-0-, and claiming the RRC for the $600. He's so stubborn about not using internet, he's one that walked into Walgreens and tried to get the vaccine without any application, then had to have a friend do it for him. Of course, loudly complaining about all that work just to find out there are no appointments anywhere near us at the moment. I wonder if friend is frequently checking back for him and monitoring emails. Just shoot me now because I already hate this tax season. I only have about a dozen in so far, and only three have complete data.1 point
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Your schools must provide more than ours! My hubby bought paper to cover bulletin boards/walls, a three-year rotation of choral-related educational bulletin board displays, pencils/pens/erasers, music staff paper, spray cleaner/paper towels, lots of Kleenex, rolls of quarters to give kids public bus money to get to evening performances, green ties/scarves for performances (not counting the donations of white shirts and black slacks he'd solicit from teachers/staff/friends), various rewards such as coupons for ice cream at lunch, .MP3 and other audio aids, continuing education every year, etc. He got off easy. Other teachers bought bookcases, books, videos, notebooks, etc. I had one teacher who was buying underwear/socks for a couple of her students! I think the average for my teacher clients is about $1,250, so coming up with $250 is fast and easy.1 point
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Wow, when I tell them it's up to $250, what did you actually spend? The range is $0 - $67.78. I must not have the shining stars of the educators.1 point