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I agree that the tax portion of the refund is nontaxable since they used the standard deduction, and also agree with mcbreck to report the $396 as interest income.

Personally I'd claim the $396 as interest earned.

How many people will hold up sending in their documents to us after reading or hearing this. I already had 2 calls. I hope they come out with guidance soon. Tax practitioners don’t have time for this right now.

Yes, Delaware is calling ours a tax rebate refund, and was paid to anyone that filed a 2020 resident tax return regardless whether or not they continued to live in the state in 2022. I am inclined to treat it like any other state tax refund, if they itemized for 2020, using the tax benefit rule.

Sometimes you can't rescue people from their errors.

Bank says NOPE. I swore I had a client years ago where the bank allowed them to do it after the fact and risk the 60 day rollover question by the IRS and qualifying for a waiver. Maybe the difference was that time it was the bank's error and this time it was the client's error. Senior citizens need help on this stuff (like taxes).

Hmm, that doesn't happen on returns I've prepared, but I'm not sure which of the settings helps with that. Here's how I have mine set up, if it helps: In the program's main setup menu on the tab for "Optional Items on Return" I have a checkmark to always print the date on the return, but I keep the box unchecked for printing the date next to client signatures so that the date line on the 8879 and state e-file forms is blank in case there is a delay in the client picking up. Then, in each return's input: on the PIN screen I entered the date that I print/assemble/sign the return as preparer, on the ADMN screen (found on the Miscellaneous tab) I enter the date complete that is the date I'm printing the return as pdf and saved to the document manager. This is in case a program update causes a change and I always have the pdf as an archive, and on the PRNT screen (also on the Misc tab) I enter the date I print the return as the date to appear on the return.

The program has a planner that you can use to estimate next year's taxes. Once you are finished with 2022, open the planner and select 2023 and the program will replicate all the entries from the 2022 tax year into 2023 with inflation adjusted items at the correct amounts such as the standard deduction, etc. It will also calculate whatever state is in 2022 and you can make any changes in 2023 that you want to. You can have more than one planner for 2023 and even print a comparison. Once you've made all the changes you want in 2023, do make sure to "calculate" so that your changes are incorporated into the planner's figures. You can then easily use that tax minus any withholding to come up with the quarterly amounts the client needs to pay in.

I don't think that is fair statement, but you are entitled to your opinion.

I That is what I have been saying all along.

Using one of the practice returns, I was able to create vouchers for both states in one return. Those vouchers for both states did appear on the print screen The things I had to do: Install each of those states Make sure that one of those states was indicated as the resident state on screen 1. In my test case, I used OK as the resident state. Make sure that the other state had some sort of input by going to the State Tab, selecting the Kansas (the nonres or PY return) input for General Information, and I simply entered a "T" for taxpayer in the top box, and OK in the PY resident state box. Go to the ES input screen and in the lower right quarter of the screen, enter one of the state abbreviations, the "IN" to indicate the estimate is for individual tax, enter the amount for each of the vouchers, THEN Page down to a 2nd ES screen and repeat the above input for the second state entering all of that similar data. Calculate or go to Print/View where I was able to see +/or print all 4 vouchers for each of the two states.

Thanks Judy, I'm right there with you on the calculation. Drake is correct, I checked the reports for future years and it matches my calcs as well. With the asset in-service date of 10/1/2022, the MQ is correct as well. Sorry for the confusion. Most of it was frustration on my part and not taking a break.

@Terry D EA, I got the same thing because it is using the mid-quarter convention for the 4th quarter. It's falling into that MQ convention because the program thinks more than 40% of assets placed in service during the year occurred in the 4th quarter of the tax year. Either that is the case and the calculation is correct, or not correct if you haven't entered other assets yet that remove that mid-quarter convention. $38933 / 15 * 1.5 * 1.5 months of 12 = 486.66.

Ok I guess I need to walk away from this for a while. My math is definitely not right. First mistake, 150DB to determine the percentage the 150 is divided by the years of useful life. In my case 150/15 = 10% and not 15% 38,932.97 x .010 = 3893.30, 3893.30/12*1.5 (months) = 486.66. Using this method, everything matches. My brain hurts. Something so simple and I made a major catastrophe out of it. Too early in the season for this type of brain fart.

Your math is correct, if that is what you want to accomplish. Instead of using "DB" as the method, which is for pre-1981 assets, try the code "ALT" that should calculate for alternative MACRS 150%DB.

Try this. Go to tools, repair index files. Be sure to click on all files. You can uncheck the test or sample returns. This tool runs very quickly and usually aligns everything back up.

I always create a Group called Admin2 that I give all of the privileges to, so more than one user can be an admin. Ooops! Sorry! I wandered in the Drake forum. I'll see myself out.

Do you sometimes log in as preparer and other times as administrator, and do those both have the same access to all returns? I'm a one-person shop so I always log in as admin but have to use the preparer name if I want to use the scheduler.

MA at least called these payments tax rebates, tying the payment to state taxes. If the client did not itemize, we're ignoring it. If they did, we'll check the property tax amount. For many in eastern MA, the $10K state tax maximum is more than covered by real estate taxes alone.