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Don't forget the dang sticky notes. Sorry, you don't need to write me a note that your W2 is a W2!

The custodian also doesn't know if the recipient is a qualified charity. They ask the question, but they depend upon the taxpayer to do their own homework in this regard. I'm sure the custodians don't want to accept that responsibility. Also, many custodians will send the check directly to the charity if the customer requests.

It's up to the taxpayer to determine the amount of QCD to be deducted from the 4a entry in arriving at the 4b entry. Neither the charity nor the IRA trustee will accept responsibility for this adjustment. Thus, the 1099R will always be marked as "Taxable Amount Not Determined." Likewise, the charitable organization will not indicate which contributions are QCD's (although some will provide a footnote the the effect that all or part of the contributions may be, but consult your tax advisor regarding the actual amount). QCD's are simple to do and valuable to borderline non-itemizers, but there is some responsibility to keep track of the amounts.

We are not open to the public on weekends so we can get stuff done. Plus I can crank the music !!!! Nothing better than classic Sabbath, Aerosmith, Steely Dan and Zep !!!

Excess contribution is shown on line 1h of the 1040.

I grumble about the whole social welfare system being included in the tax returns. They need to separate the two anyway.

I have been watching this thread and it is a beautiful thing to see y'all helping out with this. I like all of you. Tom Longview, TX

Law says 70 1/2.

If you have marketplace insurance, whether you get an advanced credit or not, the IRS expects a reconciliation. They are looking not only to see if you got a credit you shouldn't have but if you should have gotten a credit you didn't get. I would say that you do the 1095A the way it came without including any reimbursement they received from the Union. I wonder if the amount of insurance premium they receive back in 2025 based on their 2024 situation causes part of the union reimbursement to become taxable income. And if so, for 2024 or for 2025 when they received the reimbursement?

There is a difference between assisted living, residential care with medical assistance, residential care with extensive medical assistance (memory unit, etc.), and skilled nursing care required around the clock, as for someone in a coma. The last is considered 100% medical.

Customers, or casual donut enthusiasts, who wear green to participating Krispy Kreme shops between March 15 and March 17 can can get one free O'riginal Glazed Doughnut, no purchase necessary. The O'riginal Glazed Doughnut is simply the green version of the brand's famous Original Glazed Doughnut https://www.aol.com/krispy-kreme-offers-free-doughnuts-091110310.html

Really, without the tax credits some preparers would be unemployed

The beauty of ATX is that you can type up any letter you want and insert variables to make it say what you want. Then roll that letter over to next year.

My son-in-law gave me a Bulls**t button

Gal that I've prepared returns for year generally has a hand full of small W2's and gets huge refundable CTC and EITC. She dropped off her info and no W2's. I text her and ask her if she forgot to include. No, she didn't work this year. I ask what she's living on. Answer is her parents are supporting her (live out of state). I tell her that with no income, there is nothing to file. Her answer is she still wants to claim her kids. Again I tell her no income nothing to file or claim. She wants to know why she can't claim the money parents are giving her as income. Thank goodness it's Friday!

Especially since their pile stapled together with the W2 note also contains a 1099-INT and 1098 and maybe their car tax receipt.

Taking it a step further, they also don't qualify to take the premiums on Sch A, since it was paid with tax free money.

3. If you paid full price and are sure you don't qualify for the premium tax credit You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes. Keep your Form 1095-A with your other tax records. https://www.healthcare.gov/taxes/marketplace-plan-without-savings/#:~:text=If you paid full price and are sure you don,with your other tax records.

OK, I tried finding an answer to the reimbursement issue. Union plans may fall into the category of an "Individual Coverage Health Reimbursement Arrangement (ICHRA)", and that is what you need to find out. ICHRAs allow employees to choose their own plans and allow employer reimbursement of employees' qualified medical expenses including the insurance premiums. Those reimbursements are tax-free if used for qualified expenses. If this is the case with your client's reimbursement, then they are not eligible for any PTC. I think the reference is IRC sec 36B(c)(4) but would suggest you do further research into the plan's exact details. It may involve you or client contacting the union's plan administrator to be sure.

From what I remember, it was usually someone who had Marketplace for part of the year and "forgot" about it. My experience is that if they were issued a 1095A; the IRS knows it and will reject the return if it is not included.

I haven't had this situation, but it seems like 2 separate transactions: purchase of marketplace insurance, and then income from the union. Or, reimbursement from the union. Form 8962 would be filled out per its directions. Would the income go on one of the Other Income lines? Or, would it reduce any Schedule A medical deduction? Did the union pay the insurance company directly or send a check(s) to your client?

Maybe I am looking at this the wrong way. Maybe they are entitled to the APTC they didnt get. Based on what they paid and their income they are. Who cares if his union reimbursed it. Just doesn't seem correct. But then again we all remember the stupid stimulus payments. How some got the payment and shouldn't have and didn't have to repay them. And the other stimulus situations depending on filing status.

I've added disposal fees, staple removal fees, and more. Some clients learn & clean up their acts. Others just pay. Either way, I figure it's a win. Try it! If you don't have an easy way to burn it all, as does mcb39.

It gets really trying when you have three or four generations of a family living together and they try to figure the most advantageous way to claim the minor children. They know all about the advantages of CTC; but know nothing about getting a job and supporting themselves. Thankfully, I only have a couple of these and cringe when they come in.

We have an outdoors wood burner; so immediate incineration of all unwanted paperwork from this office. Very little shredding here.

A Sch A deduction would be of no benefit to the majority of retirees who don't itemize, plus it wouldn't reduce AGI for state tax calculations. I've pondered why the 1099R doesn't show a QCD. All I can come up with is that most IRA custodians make the check out to the charity but send it to the taxpayer to pass on. Since the custodian has no idea if the taxpayer did so in a timely fashion, they wouldn't be able to put the amount in some box on the form. Any other ideas?

I have a button that is similar to the Staple's Easy button, but it says "NO" in various tones. My husband had it when the kids were little and now I have it. It's perfect on Friday evenings when someone wants to drop by late. I also have my kids' old Oscar the Grouch button saying grumpy stuff. That one is handy too.

We already are agents in some instances. Preparer penalties for lack of due diligence and documentation for EIC comes to mind as one example.

I always preferred instrumental music during crunch time. Mike Oldfield and Two Siberians were my go to.

Spill the Wine !!! Yes I love the 60's too. In rotation is everything from Benny Goodman to Pink Floyd. Will check out Magical Mystery Doors on YouTube if they are on there. Great band name.

If you like that era and are willing to see tribute bands, I'd highly recommend Magical Mystery Doors. We've seen them several times including last night, and all are very talented musicians. They actually combine songs in unique ways with lyrics of one band's song over instrumental of another band. They cover The Beatles, Led Zeppelin, and The Doors. They are local-ish regional to us but are gaining a following farther away now. If you want to see original artists and don't mind slightly older back to the 60s, both Tommy James and Eric Burdon put on awesome concerts and are still high energy shows.

I encourage clients to start paying charities out of IRA's at age 70 1/2. Not only are they getting money from IRA tax free, it will lower RMD's when they set in.

It comes down to a matter of conscience. If you didn't know they received payment from union, you would have entered the 1095A, looked up SLCSP and credits would be generated. However, since you know someone else de facto paid it, would you feel right signing the return with credits? As far as the 8962 goes, you can either not input the 1095A or not enter the amounts you needed to look up for SLCSP on worksheet in Pro.

Thats the issue. If 1095A was issued, then the return will be rejected. The IRS expects it and form 8962. Spouse paid full price for the lowest cost plan. And was reimbursed by the husbands union. Im using Proseries. But there was no advanced credits on the government side. More or less a wash.

However, I have had a few reject from efile because the 8962 was not included in the return. The efile system knows who received one and rejects if it is not included in the return.

Another quirk about the QCD I recently learned. The age for RMDs went up recently to 73 (I think). But the eligiblity age to do QCDs did not go up. So more confusion on the part of the clients to do or not do the QCDs.

OK, then it is right. This is the only 1 of 2 clients I have now that has dependents, so I'm not much up on it. Thank you all.

Yes this! Get all the junk off the returns.

Delete the entries and the software won't create the form.

Maybe we're using different software. My understanding is that there was no APTC claimed, so no requirement to file an 8962/reconciliation. Sorry. According to Healthcare.gov: If you paid full price and are sure you don't qualify for the premium tax credit. You don't have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes.

None, in this instance.

I've had this happen. After I try a few times, it let's me reset the password. I think it might happen when the password expires. I hope it works for you.

Delete the 8962

Yes- let's issue a disposal fee for all the envelopes.

You wouldn't put anything from union on the 1095A worksheet. Since there wasn't advance credits, you aren't required to reconcile the 1095A. What is the criteria to determine how much the union pays? Is it a set amount? Bases on their net premium? Something else? Did they get a 1099 or such from union for the amount they received? Or, is the amount they received tax free retiree benefit?

I would guess that someone in a coma would not have expenses that weren't medically necessary.

I am sick and tired of the IRS complaining that they can't regulate preparers and that is why they can't catch the boogieman who is filing fraudulent returns. It is the system they designed that allows the fraud, and if they would make TurdoTax a single user, pay for each download, register the purchase of the software product, they would not have boogieman preparers out there because the cost of the scam would outweigh the benefit of preparing fraudulent returns. And they already regulate CPAs and EAs and they can't seem to catch any of them doing dirty deeds...allowing inflated business expenses, letting rich shareholders run all their personal through the corp, allowing no mileage logs, no business meal receipts, coding entertainment to "marketing" for those pricy box seats at (name your favorite stadium or arena). The IRS has to know this crap is going on, but they don't do anything to make the system harder to game. We are the dog whistle they blow when they want Congress to over look the crappy job they have done with tax enforcement for the last 2 decades. Done with my rant....stepping off the box...walking back from the ledge. Tom Longview, TX

Thank you mcb39.

"FREE", throws up a red flag for me. A quick search revealed 3 counseling Institutes in Africa, one in SA and 2 in Nigeria. They all charged fees. My guess is that the free seminar is to get attendees to listen a few hours of actual seminar followed by a high pressure sales pitch to enroll in a series of expensive courses. Tread carefully.