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Don't allow yourself to feel like a loser. There was no way safely to predict this; better to file (once) and be safe than to skip it and possibly be open to nasty fines and investigations. Your advice kept them safe. Had it gone the other way, you could have been castigated for callousness or negligence by those same clients.

Most of the clients I've had in assisted living get a letter from the facility annually that states "32% of our charges are considered medical assistance" or "$1,312/mo is the assistance fee" or something similar. Sometimes the letter has to be requested.

No, not the heir, but if you are preparing the final tax return for George & Elizabeth, they may be able to finally use some of the suspended losses. The property is considered disposed of on their final personal income tax return. Below is the paragraph that explains how it would work, and that is taken from this article by The Tax Advisor: https://www.thetaxadviser.com/issues/2017/jan/carryovers-death-spouse/

I would: Proceed to file 2024 return (with corrrect correct carryforward figures).

I've seen three elderly clients in the last couple of years end up with huge capital losses on "managed" accounts. More like "churned" as "managed" implies they have a clue that someone in their 80s or 90s is looking to preserve capital not trade for gains (losses). It is infuriating. These folks are trying to live on savings plus leave something for the kids and grandkids, not lose it all to fat fees to callous churner scumbags. And reporting them gets one absolutely nowhere.

Whelp, I stand corrected. Repayment Limitation does come into play if under 400%.

According to the instructions for Form 8962, Line 28 (the cap on repayment): So it would seem the cap is available if income reported is less than 400% of FPL.

A few years ago I had a client of about 3 years and I noticed that there were lots of st trades - lots! I asked her about her understanding and she had no clue. I suggested that she take her portfolio to a couple of other firms to review and ask how they would invest and manage her account. She changed investment advisors within a couple of months. It certainly looked like churning to me and it was. Yes, there are too many greedy people out there just waiting to take advantage of the vulnerable.

I believe you do not account for this on the 1041. In NJ you account for inheritance tax on the NJ IT-R. See website https://www.nj.gov/treasury/taxation/inheritance-estate/inheritance.shtml As Tom and Sara, suggested, you are missing information. You will need to see the will and prepare the NJ-ITR to calculate the inheritance tax first, no double dipping. Then move onto the 1041. The website above has most of the information you require.

Reminds me of the joke of the IT professional whose only in-house electronic device is an ancient printer, and they keep a weapon near to hand in case it ever makes any weird sounds.

Seem only foreign entities have to register now.

You need more info. Did the K-1 bene die in the taxable year you are working on or after? If after, need the will to see what happens to their share, if the current year, it belonged to them and you need to issue the K-1 to the person via the trustee/executor of the decedent. What @Sara EA said. Are they truly benes or just charitable recipients. Benes get a K-1, recipients are a deduction. Tom Longview, TX

Judy, I disagree. Worksheets I and III should have 1 for the alternative family size (and that may be his problem), but Form 8962 should have 2. The example on page 44 of Pub 974 makes this clear. The example has one spouse with no dependents and one spouse with two dependents: Then on the worksheets:

Put a Zero in Box 2A; then page down and look for a box to check at bottom of 1099

Actually have Dean, Tony Bennett and others on rotation. I listen to everything, well.. except rap and new country. Has to be old country. Chet Adkins, Merle Haggard, Charlie Pride. And then Judas Priest kicks in !!!!

Have Rush's first album cranking !!! Two more weeks people !!! Then a long deserved break for a week or so. Then do the extensions. Then enjoy the summer and gkids !!!

The client received a Masked transcript, where all the issuers information is truncated. He should be able to get a unmasked transcript on The IRS website - "get your tax records".

Yes, thanks to all. I was missing the checkbox on the 1099R worksheet. Once I checked the code J/T box calculated correctly and as stated no 8606. Thanks again

You shouldn't need to fill out the 8606 at all. Software should enter gross distribution on 4a, and 4b should be -0-. I agree with Kathy that you are missing a checkbox somewhere. 1040 instructions for lines 4a and 4b, under Exception #2 says Exception 2. If any of the following apply, enter the total distribution on line 4a and see Form 8606 and its instructions to figure the amount to enter on line 4b. 1. Doesn't apply to your situation 2. You received a distribution from a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 4b; you don’t have to see Form 8606 or its instructions. a. Distribution code T is shown in box 7 of Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2018 or an earlier year. In fact, the 8606 instructions for Part III, line 19 says don't include on line 19 any of the following, and item #4 says: 4. Distributions made on or after age 59½ if you made a contribution (including a conversion or a rollover from a qualified retirement plan) for any year from 1998 through 2019.

Were the charities actually beneficiaries? Most often bequests are made to charities, e.g., give $10k to my church. Any charity of person for that matter that receives a bequest does not get a K-1. K-1s go to those who share in the income and expenses and remainder of the estate.

A new custodian, if the client moved the account less than five years before, is required to use code "T". If they have had the account open long enough (with no recent conversions) I think the workaround is on the 1099-R worksheet. But make sure it qualifies.

Software is not recognizing that account has been open for 5 years. Likely a check box somewhere.

I mailed my Frontier bill on March 13. It was due today. Today I received a late payment notice and the check has not cleared my account. Now we have to be afraid of electronic payments and paper payments as well. Where will it stop?

I mailing something to a client the other day on a Friday. I was told it would arrive Monday. It was a week later on the following Monday when the client received it.

OP's software must require the address, or at least the zip code be valid, to pass the error checking for e-filing. Does the client have a paystub? Or just put in the city, st, zip where the client worked. That won't affect the return's figures and will allow e-file to process.

If he deposited the paychecks, he could go to his bank and get a copy which would give him a name and address.

The client should call employer for the information, but if that isn't possible you could add all the W-2 income together as one entry into your software and e-file that way. Detail of each individual W-2 isn't transmitted to IRS with the e-file. In the explanation for the amendment, just put that one W-2 with taxable wages of "$XX" and fed witholding of $XX was omitted from the original return. As long as the totals are correct, it should be OK from IRS perspective. You just have to make the software behave. Which software are you using?

If you have EIN and it's a larger company it will show up on google search what company is attached to that EIN.

A lot of it is USPS issues too. Had a client mail in her $5 balance due to School Tax and it took 20 days to travel 50 miles !!!! We printed off another payment voucher and they were ready to mail it in when they received the "Certified Mail" receipt. Always mail Certified.

This could drift into political expressions about the current administration, which won't be allowed here. But I would expect much of such as this to be rescinded when it hits the fan. Tennessee required all tax payments and unemployment taxes to be electronic 7-8 years ago. But they still accept checks and dare not penalize the issuer. They need and love any kind of money like a pig after slop.

I don't care about the IRS paying me via DD, they do it already. What I don't want is those stupid ba$ta3ds to require me to get an ID.me account to pay them. I don't understand how a nation as advanced as ours has a government that knows when a russian spy sneezes and can't id me without the help of a private company. Tom Longview, TX

Believe it or not, I had a client come in today and tell me about it. As she was writing the check to go with her voucher, she said, "This is the last check I will be able to write to the IRS!" I was really surprised as we have only known for such a short time.

Yep. Check Washing. They steal checks out of envelopes. Wash off the check but leave the signature and fill it out to themselves (well aliases). They say to use Jell Pens to make out checks. The ink smears when they try to wash them.

I've moved a lot of my clients to direct debit this year--I think it helped when I told them that is how I pay. But Tallahassee has had an epidemic of stolen checks, those who've experienced dealing with that are willing to try something different.

I have a not so old couple (in their 40's), very high earners, who pay by check. I don't know if this means anything, but one of them works for Google and the other as IT for another tech company.

What I recommend doing is have a free checking account for all electronic payments, keeping the bare minimum that the bank requires in that account. Then just transfer money to that account to cover payments, and when a deposit is received, transfer it out to your normal account.

They can pay at a 7 Eleven after registering on line. A bar code will be sent by email, or directly to a smart phone. Payment can be made by credit/debit card, cash, or click to pay.

"The order includes language allowing for "limited exceptions," including for people without bank accounts."

Does Social Security even issue paper checks anymore ? All of our older clients have it direct deposited anyway. And with the state of the USPS, it seems a good move. We have had so much stuff lost or damaged by the postal service.

I can already hear it from some of my elderly clients: "I don't want to give my bank information to the government." Then they mail the check, which has the bank information. Another reason this is looking more and more like my last year.

There is a very well-known phenomenon where an obvious solution hides - very cleverly and thoroughly - until one gives up an asks here on the forum. At which point it jumps out just as a colleague reports that hiding place/location. I think we have all been bitten over the years! Heck, I've used this to my own advantage by posting a query in the hopes of flushing out my prey.

For years my electricity bill has been paid via automatic debit from my checking account. Two years ago, I received a past due notice. I had to do some detective work and my utility didn't want to admit what had happened. It turns out they had been using a third party service to handle all of their automatic payments . The third party service had computer problems which skipped 2 days worth of automatic payments. It made me mad because our utility co had never notified us of the use of a third party service. So electronic Payments can malfunction too

Thank you! I don't do very many trusts and haven't done an estate income tax return in probably 10 years. But I have a bunch of estate & trust returns this year. My client's parents are dying.