jasdlm

This happens to me at least once a year, and it takes me forever to figure it out. Per 8962 Instructions: Household income above 400% of the federal poverty line. If the amount on line 5 is 401%, you cannot take the PTC. You must generally repay all APTC paid for individuals in your tax family (but see below for two exceptions). Skip lines 7 and 8, and complete lines 9 and 10 (and Part IV and/or Part V, if applicable). Complete only column (f) of line 11 or lines 12 through 23. Enter -0- on line 24, and enter the amount from line 11, column (f), or the total of lines 12 through 23, column (f), on lines 25, 27, and 29. Enter the amount from line 29 on your Schedule 2 (Form 1040), line 2.If your household income is above 400% of the federal poverty line but you qualify for the alternative calculation for the year of marriage (see the instructions for Line 9, later), you may be able to reduce the amount of APTC you have to repay.If you enrolled an individual who is in another tax family for the year of coverage, the other tax family may be responsible to repay all or part of the APTC (see the instructions for Line 9, later). This has worked for me in the past. I haven't had one like this yet in 2020.

A/B trust structure from years ago and clients did not update for tax law changes. Retirement account (large) beneficiary is decedent's trust. Retirement company has agreed that the trust qualifies as a look thru trust. My question is: Does a look-through trust require a separate tax ID/separate tax return for the retirement distributions? Although these are not new, of course, this is the first time I've ever had this come up. Thanks much to anyone who has experience in this area.

Thank you. I did this, and even restarted the software. The box is unchecked, but it is still flashing the *()&*(^&*^&% triangles at me. Thank you so much for responding. It probably is a ransom request ... getting my bitcoin ready.

Sake of Pete. Can someone save me from the incredibly obnoxious little blue triangles that bring up the pop up boxes if you get too close to them? I 'unchecked' the box in preferences, closed the software, reopened, and prayed, but the hateful little creatures are still there. My kingdom in exchange for their riddance!

Glad to see you! Welcome back to the grind. You picked a good year to skip (you skipped last filing season, correct?).

I bought a book recently; the research I did told me that 100% of 1 year's revenue was the max I would be willing to pay. I ended up paying a lesser percentage, but I had referred many of the clients to the preparer in the first place. I do have a retention clause so that the amount decreases if retention isn't maintained. I'm paying over 5 years because of this retention clause (so X% of gross revenue for 1 year based on clients who actually sign up with me and then are retained). I have to make a good faith effort to keep clients, etc., and I will still owe if I lose a client as a result of a mistake, lack of timeliness, etc. Hope this is helpful.

Decedent died in December 2018. SS was deposited in Jan 2019 and then reversed, but withholding was sent to the Feds. If I get an EIN and file a 1041 for the refund (which is what the Feds are saying 'may' need to be done in their usual form letter), how do I indicate on the 1041 that the withholding is in the SSN of the deceased? I can't file a 1040 for 2019 because Decedent's DOD is 2018. I know that I can attach a copy of the 1099-SA showing the withholding, and I can add a statement to the return, but I don't have too much faith in the service right now in terms of getting the money transferred and refunded. I'm not certain anyone is actually reading notes/attachments. It's several hundred dollars, so it's enough to worry about. Anyone have any pearls of wisdom? Thanks much!

Client and spouse are medical providers through an s-corp (the only 2 members). They are part of a collective, and about 1/2 of their patient fees come through the collective (a partnership) as guaranteed payments. Former preparer (this is my first year with this client) took QBI on the entire S Corp distribution amount, but I think I have to take only a proportional QBI deduction based on non-guaranteed payment income/total income. Am I correct? Also, for those of you better at tax history and philosophy than me, why is it okay to run GP through an S-corp and 'lose' the self-employment tax? Thanks so much.

I'm not feeling particularly whiny about it, but the only downside is that I don't feel that 'post tax season' relief/freedom that I usually feel. Because I have work in the office, I still feel like I need to spend weekends/evenings preparing returns. On another note, did anyone else get behind on returns that would usually be out of your office by 15 April as a result of providing countless hours of support/assistance to people applying for PPP/EIDL loans, self-employed unemployment, or just trying to run various cashflow scenarios, or am I the only slacker? I hope everyone is doing well.

I have trouble with this, also. For some reason, clients think we are going to get this information via osmosis. The only clue I've figured out is if withholding is wonky (strange percentage because only part of the distribution was QCD) or nonexistence, prompting me to ask the client. Grrrr.

I'm using Docusign, which according to my research meets the IRS standards noted above. It's working well except in the case where MFJ clients share 1 email address . . . can't verify identity on each separately then. Downside is $40/mo cost.

Thank you!

Is there a way to enter a capital loss CF from 2018 (if one was not the preparer on the 2018 return) without overriding? There is on a 1040, but I'm not smart enough to find the input worksheet for 2018 to 2019 on the 1041.

Possi - prayers for your family. Judy, I empathize with what you're going through. It's hard to know what's best to do during this crazy time. I would like to join the respite board for the 'I'm bored and a bit anxious -- maybe I'll bother my accountant' call recipients. Grrrr.

A11, 17, and 18 I would put it on B 3 and 20 as you suggest. Should net to zero on the K40.

Ignore me. I think the CLE 'bits' I've gotten are just incorrect. I think it is at Topic 452 describes.

Hello, tax friends! I already have an alimony (maintenance) issue from a pre-12/31/18 divorce decree that was modified in 2019. The TCJA in Section 11015 says: (c) EFFECTIVE DATE.—The amendments made by this section shall apply to— (1) any divorce or separation instrument (as defined in section 71(b)(2) of the Internal Revenue Code of 1986 as in effect before the date of the enactment of this Act) executed after December 31, 2018, and (2) any divorce or separation instrument (as so defined) executed on or before such date and modified after such date if the modification expressly provides that the amendments made by this section apply to such modification. This fits with anything I've learned in CLE/CE - re: the tax deductible aspect only remains if specific reference is made to the same as in (2) above. Also found this to support the same: https://www.irs.gov/pub/irs-drop/n-18-37.pdf However, the language in Topic 452 AND in the clarification to Pub 5307 state the opposite: Note: You can't deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments you receive under such an agreement are not included in your gross income. Anyone have any thoughts? Did I miss an amendment/modification/clarification? Thanks so much. Happy beginning of the season!

I thought the season went really well until yesterday. Yesterday was nuts! I went home Sunday evening feeling totally prepared for Monday, but Monday came, and it was brutal. The software (ATX) was slow this year and crashed multiple times a day, but once I started shutting it down after every few returns and restarting (a suggestion from Abby, I think), that problem mostly went away. As always, I was super grateful for this Board. Working solo, it's nice to have a 'firm'! I have amazing staff, but no other preparer. I hope each of you gets a little down time this week! I'm curious . . . I filed 365 returns (all types) and have 70 extensions. I know there are people here who did many more returns. If you're so inclined to share, what does your practice look like? Jim (who did 1000, I believe, and briefly outlined his system in an earlier post) might need to do a seminar ;). Best to all of you!

Wow! I do just over 400 returns, and I work basically every hour that I don't have to sleep from 15 February to 15 April (I do take my son to chess tournaments, etc., but I take my laptop and keep on working -- and I haven't had any tournaments since 9 March). How do you do it? What types of returns? I'm standing in awe. I do have legal/financial work that I have to do (although nothing where there's not 'blood', as I tell my clients), but even if I did NO other work except returns, I couldn't come anywhere close to 1000.

I'm sure you forgot about me when you gave this answer! There are a few of us around who are A-OK and working for the greater good.

Tom - there are specific rules. Many of the conferences have 'blurbs' about it in their ministers guides or some such thing. Copied below is one of the Lutheran 'blurbs' because I don't know how to attach a .pdf. We have a few clergy experts on this board - MAMalody, JJstephens, and I think there is at least 1 more. They can explain it far better than I can. I think all of the conferences/denominations school their clergy in these rules, because the Ministers definitely know about it ;). Retired Ministers – Housing Allowance If you are a retired minister of religion and at the time of your retirement your name appeared on an LCMS official roster of ordained or commissioned ministers, you may exclude eligible housing expenses from taxable retirement distributions reported on your federal tax return if certain conditions are met. Benefits earned while a minister are eligible for housing allowance exclusion when distributed to a retired minister. To be considered “retired” for this housing allowance exclusion depends on a minister’s specific circumstances. Ministers who are uncertain whether they are “retired” for this purpose should consult with a tax advisor to discuss the facts and circumstances involved in their individual case. The relevant issues involved in determining “retired” status are beyond the scope of this brief summary and are specific to each individual. Please note that if you are receiving an “in-service” benefit from the CRP, you are not considered to be retired for purposes of claiming a housing allowance exclusion on the CRP in-service payments distributed to you. If you are eligible to claim the housing allowance exclusion on retirement benefits and your eligible housing allowance expenses equal or exceed the amount you listed on Form 1040 Line 4a, then enter $0 on Form 1040 Line 4b. If you did not use the entire distribution as housing allowance, then enter the unused amount on Form 1040 Line 4b. The housing allowance exclusion applies only to those retirement benefits earned while a rostered worker. It does not apply to any benefits you might receive as a result of some other member’s participation in one of these plans or survivor benefits you or your spouse may receive. While the Internal Revenue Service has granted retired ministers this exclusion on their own retirement benefits, it does not extend to beneficiaries of a retired minister or survivor benefits paid to a retired minister. If both you and your spouse are considered retired ministers of religion, only one of you will be allowed to take the housing allowance exclusion unless your eligible housing expenses exceed the total retirement distribution amount received by that one person. In that case, the additional excludable amount can be applied to the retirement amounts received by the other retiree. It is equally important to remember that while benefits from retirement plans are reportable and taxable (minus applicable exclusions) as far as your federal and state income taxes are concerned, they are not reportable or taxable for Social Security purposes. You are not required to pay any Social Security or Self-Employment tax on any retirement benefit received from the CRP or CRSP. For more information of interest to ministers, go to www.irs.gov for a copy of Publication 517. Publication 517 contains details on housing allowance, social security, taxable ministerial income and includes various worksheets that you might find helpful.

OP said 1099R. I agree with you on the 1099-Misc. To clarify, my comment above refers to a 1099R.

I believe you just subtract the housing allowance portion from the gross distribution box and enter what is actually taxable, if anything, in 2a. If the minister is actually retired, no SE, but if the minister is not retired, I think you have to consider whether subject to SE.

Oooops . . . and daughter qualifies for AOTC, so the premium credit (more than what was calculated for daughter on the 8962) combined with the AOTC, allow for a large refund for Mom. I just want to make sure this all passes the smell test.

Client's 19 year old daughter was not going to go to school. Got a low paying part-time job, and signed up for marketplace insurance (on her own). Decided she was going to go to school, and went full-time in the fall of 2018. Lived with Mom all year, made $8,000, and Mom paid tuition. Daughter got PTC. Mom had insurance through marketplace, but did not take PTC b/c thought she would be filing single with no dependents and wouldn't qualify. Mom paid more than 50% of daughter's support. Question is this: Now that daughter is clearly a dependent of Mom for 2018 (full-time student for 5 months), can I legitimately add Mom's premium and daughter's premium together, and add the 2 SLCSP premiums together, to calculate repayment (if any) of PTC collected by daughter? ATX won't let me add more than 1 8962. Mom w/ daughter is at 357% of poverty level. Thanks. Never had a situation before where a dependent got his/her own insurance on marketplace.