TKTax

From ATX News Feed:

It’s important to know when the ATX software will be updated based on IRS guidance due to the American Rescue Plan Act of 2021’s changes to unemployment taxability.

By March 29, 2021, we will have the software updated to ensure these calculations are based on IRS e-filing guidance and are auto-calculated.

The majority of tax returns filed using ATX are e-filed rather than paper filings. We want you to be aware the recently released IRS guidance for handling unemployment compensations due to the American Rescue Plan Act of 2021 changes are for paper filings, not those who choose to e-file.

We have chosen not to provide you with workarounds and manual calculations to input the pertinent data into your tax preparation filing software. These workarounds would be drawn from recently released IRS guidance for paper filings and possibly cause rework at a later date.

At Wolters Kluwer, we are here to support you during busy season and especially during the peak of your compression period. We believe taking the time to act deliberately and ensure accuracy is the best way to support you during busy season. We want you to be right the first time, not waste time and lose productivity because a workaround didn’t fully capture the information you need in current and future years.

Make sure to check the Latest Impacts to 2021 Tax Season Filing Dates blog post for more information on State and Federal filing changes. 

Wolters Kluwer – when you have to be right.

I was hoping that the "Other Income" column in tax warehouse would include unemployment, but it does not for some reason, even though that is how it is listed on the 1040.

I just received accepted files from IRS. Went to file states and they all have to be redone because they are too old. 

Sadly till a red error, but this from the ATX message board:

"Just spoke to a support rep, they are aware of this, IRS is updating their system She said , as per the IRS, the resolution is to put in all zeros into that number

There will be an update shortly"

per NYTaxLady

Would be nice to include the charitable deduction on 1040 in the Form 1040 checks or as a reminder on the Check Return function. 

I am still getting the error on 1099-R line. I have multiple 1099-R. I am using all zeros

Guess we need to send it back. IRS has updated Q and A on their website:

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

Questions #10 and 41 deal with this

A  Q&A on thecollegeinvestor.com states that a surviving spouse that was MFJ will have to payback any  stimulus money received  for the deceased  husband. I could not find it in any of the resources.  Anybody else see anything on this?

Thank You All!  Discussions like this are why I love this message board.

Tim

 Finally have more info. Sale was totally in daughter's name. Medical Assistance allocated 30% to mother.  

This was a life estate in 1993, father died 2011. I am afraid that Lion is correct that mother would get step-up, but not daughter.  

I am inclined to use Medical Assistance 70/30 split.

Daughter was gifted house with life estate by parents in 1993. (no gift return filed. ) One of the parents died in 2011. The other continued to live there until entering nursing home last year.  They sold house just after.

My question is: Is there a step up in basis for both mother (tenant) and daughter (remainderman), when spouse died?

Mom will owe no tax as she meets Sec 121.

I do need to figure daughter's gain. 

Client made an excess Roth IRA contribution in 2017 and 2018. He has withdrawn the 2018 contribution before due date, so no penalty for 2018.

He still owes the 2017 penalty. He has already filed for 2017.  Do I send in a paper Form 5329 for 2017 and payment with that?  The instructions tell me that I need to file a 2018 Form 5329 if he had tax due for 2017. Couldn't I report it and pay on there?

First time on the prior year penalty, a little confused. 

This is from Walters Kluwers facebook:

"Since yesterday, May 6, we are experiencing network and service interruptions affecting certain Wolters Kluwer platforms and applications. Out of an abundance of caution, we proactively took offline a number of other applications and immediately began our investigation and remediation efforts. The secure use of our products and services is our top priority. We have been able to restore network and services for a number - but not all - of our systems. We are still investigating the root cause of the interruptions with assistance from third-party consultants. At this time, there is no indication that our customers’ data has been compromised. It is part of our ongoing and thorough investigation. We appreciate your understanding as we work to resolve this issue."

Apparently there is speculation on Reddit that this is a Malware issue.

Same problem. ATX board indicates it is widespread, but no company comment.

My client's 1041  k-1 shows these excess deductions. When I enter them in the k-1 input on line 11, they show as a schedule E loss in column (f).  I had to override the k-1 continuation page. 

They also show up on Schedule A for the state.

Thanks everyone! I  like the first answer, but I'm afraid SaraEa is probably  right. I was hoping to use a loss. 

Client sold assets from a business that ended 12/31/16. I no longer have a Schedule C, so all assets are unassigned. When I try to do a Bulk sale, it requires an activity. Any suggestions?

Taxpayer owns an art consignment shop. She sells items of art created by consignors. She subtracts her consignment fee, and pays rest of sale price to consignor.  I seem to read conflicting information on whether or not she needs to issue 1099-misc to consignor if over $600. I thought that as long as there is no service performed for her, no 1099 need be issued. 

Any opinions?

I just received a pastor as a new client. He receives a W-2. Their former accountant has been adding his 403- B  contribution from box 12, and his life insurance from box 12, to his taxable income on the clerical worksheet. I have never done this. Have I been missing something?

I agree that you need to use the simplified method. I have one of these, and  I compared it to a postal  annuity that does have the taxable box filled in. The difference between gross and taxable did not match the employee contribution. 

I used a worksheet from publication 537. It is designed to adjust for a reduced selling price, but it works for adjusting the basis also. It changes your gross profit ratio for current and future installments. 

I have an additional expense in the final year of my client's installment sale of rental property. How can I properly show this? Can I just reduce the amount of payment received by this amount? I don't see a place on the 6252 input for for this.

Just put the contributory amount from the RRB-1099-R  in the taxable space. This will work even if there is a simplified method deduction. 

On Wisconsin Schedule OS ( Credit for Net Income Tax paid to Other States) page 2 line 26, it asks for Total income tax by the other state. I am doing the credit for Minnesota taxes paid. ATX is populating the line with  Federal taxable income, which is what Minnesota starts with.  I believe that it should be picking up the full amount of income being taxed (in this case wages) from MN Schedule M1NR. You can adjust this figure in the Schedule OS detail line. I just wanted to check with other WI preparers.