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About Hahn1040

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  1. VAGI on the form 763 is Federal adjusted gross with some adjustments for age deduction, social security, state tax refund and those plus and minus for Fixed date conformity. Pretty much, if you are required to file federal and you have non-resident VA income, you are required to file 763. The form prorates VA income to total income and taxes that. i have one with a Virginia rental: net income of $230. federal AGI: $160,000 Tax is $3 Virginia wants it! and... they only file joint if BOTH have VA income. VAGI for resident and part-year resident is only the VA income and if under the $11,950 then they don't have to file
  2. recharacterization of a conversion is no longer allowed contributions can be recharacterized Though, my first question is: did they contribute too much to the ROTH because of income limitations or because they were over the IRA limit? If they contributed $6,500 to the ROTH or any IRA but they were only 40 years old, then they have an excess contribution that must be withdrawn including earnings. Taxed on the 2019 return because that is when it was distributed. If they contributed $5,000 but earned income was only $3,000 then again: excess that must be withdrawn If they contributed too much because of income limitations, then they can recharacterize the excess plus earning. It must be accomplished by the due date of the return (including extensions) The contribution is treated as if it had been contributed to the traditional IRA originally. Report the contribution on form 8606 Include an explanation in the notes on form 8606 : include date, amount and reason for the recharacteization 1099R will be issued for 2019 with code R. IT is NOT reported on the 2019 return. The distribution is not reported on 2018 or 2019 line 4a or b.
  3. Hahn1040

    Form 8453

    I also attach the car... ok not the car the receipt for the car I attach everything...never mail 8453 I recall a few years back, I had to send the 1099B details with a trust return. Not sure why it was a paper return, probably the state. That was back before most things were A or D or there were wash sales... needed to send the 1099B. IT was a zillion pages, so I copied it 4 on a page double sided. I didn't want to waste all that paper and postage to print single sided... you know NO ONE was ever going to actually read it!
  4. this is an IRA nothing taxable or reportable until distributions are taken. The statement should just be an annual report to show the activity and the value. IF there is a 1099int, 1099div or 1099B, then this is not set up as an IRA. Either they are mistaken about the kind of account it is OR it was done wrong. The most confusing IRA reporting are the K-1s when they have invested the IRA in one of those PTPs or other partnerships. At first, the K-1 looks just like the ones that must be reported However, they do say IRA in I1 and I2.
  5. Pub 970 page 5-6 A scholarship or fellowship grant is tax free only to the extent:•It doesn't exceed your qualified education expenses;•It isn't designated or earmarked for other purposes (such as room and board), and doesn't require (by its terms) that it can't be used for qualified education expenses; and•It doesn't represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Expenses that don't qualify.Qualified education expenses don't include the cost of:•Room and board,•Travel,•Research,•Clerical help, or•Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution.
  6. if they are living with a parent. then at least one parent is alive SO NO refundable credit (see above and Pub 970)
  7. it is not just providing 50% of support. The greater than 50% of support must be earned income. .... and having a living parent factors in: You don't qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you.1.You were:a.Under age 18 at the end of 2018, orb.Age 18 at the end of 2018 and your earned in-come (defined below) was less than one-half of your support (defined below), orc.Over age 18 and under age 24 at the end of 2018 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below).2.At least one of your parents was alive at the end of 2018.3.You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2018.Earned income.
  8. I see in the forms update report that this was changed with Version 76. Wonder what day that was?? When did VA revise the form vs when ATX made the update??? BE SURE TO check your figures for all Virginia returns with Schedule A that you had sent to clients or have printed a few days ago. Your tax may have changed with this revision.
  9. Is it just me or what??? In the several days from the time I sent the completed forms to a client and he sent back his signed forms, the figure on line 11 had changed. This is the amount of state taxes that is subtracted from the total itemized deductions. "back in the day" it was (with some exceptions) the amount of state tax from the federal Schedule A. This year, with the $10,000 cap, Virginia is using a prorated calculation for the figure. It is not a calculation that I can see, so I don't know what has changed about it. The new figure is to the advantage of the taxpayer. so that is a good thing But my concern is: is this something ATX changed or did Virginia change the calculation? Am I safe to go with it or is it a mistake that they will adjust in another day or so. I experimented on my own return: marked it complete; opened the return the figure was $3,812. closed it ; unmarked complete; opened it again now it says $2,576 UGH!! Does this make all of the returns I already filed incorrect? Has anyone seen any info about this?
  10. form 8606 part III will show the distribution. enter the basis on line 22 the taxable $2,000 will go on 5329 subject to 10% penalty
  11. keep in mind that it is not reported on the 2018 return If you had included the non-deductible contribution on the 8606 for 2017, you want to remove it Guess you should amend the 2017 8606 to correct it and include the statement that the 2017 contribution was recharacterized . There is a page for the explanation. see tab at the bottom of the 8606. AND in response to the people who are complaining that the 8606 is not working... you just have to make sure you have the correct boxes checked on the 1099R and the top part of the 8606. IF it dosn't look correct, look for another box to check. My stumbling block was always when they have a traditional IRA with a basis and an inherited one- to keep the inherited one out of the calculation. Finally figured it out: for the inherited one: check inherited and do not check IRA.
  12. if it a code R then it was a recharacterization- not a conversion Recharacterization is treated as if it were contributed to that IRA in the first place. Does not trigger a taxable event
  13. 1099R with code R in box 7 is a 2017 contribution recharacterized in 2018. It is not reported on the 2018 return. It should have been addressed on the 2017 return: attach a statement to your return explaining the recharacterization. If it was a ROTH to Traditional, then the nondeductible contribution would have been reported on the 8606 for 2017. See form 8606 instructions: IF it is a 2018 contribution recharacterized in 2018 then it would be code N. That would be reported on the 2018 return Form 1040 4a.
  14. Possi, it is a subtraction to income on line 5 of the adjustments on the 1099R input use code 3 (it is 3 on your 1099R isn't it?) then there is a box on the 1099R input just under the box 7 that says "check if disability and the taxpayer is disabled" it will them put it on line 7 as wages and subtract out a max of $20,000 on line 5 of the adjustments
  15. Last week Virginia finally sent a reaction to the new law: https://tax.virginia.gov/sites/default/files/inline-files/tb-19-2-military-spouse-veterans-benefits-transitions-act.pdf?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term= though last I looked, form 763-S has not been updated on both ATX and Taxwise Many states have not issued any response....or changed the forms
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