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jklcpa

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Everything posted by jklcpa

  1. They can file jointly, but each of the two gain exclusions is calculated for each individually and limited to $250K for each, not a combined exclusion of $500K as any other joint couple would have. IN other words, if one as a gain of $300, it would have a taxable gain of $50K. So, it is acceptable to claim both on a joint return, but I can't tell you whether or not it is possible within ATX or how or where to input in that software. Is it possible to add a second 8949 and indicate that the first is for taxpayer and second one is for the spouse?
  2. Because the taxpayer is only 48 years old (under 59 1/2), the earnings withdrawn will be considered as income and subject to income taxes and a 10% penalty tax. The 10% penalty may be waived if you meet one of the exceptions.
  3. FDNY, it's part sec 101 of the Victims of Terrorism Tax Relief Act of 2001 that was H.R. 2884 found in this link. Check out the full text here: https://www.congress.gov/bill/107th-congress/house-bill/2884/text And the code references are there in the text of the bill, specifically referencing sec 6013(f)(2)(B) and sec 692. Also, there's this non-official news brief: https://www.gillibrand.senate.gov/news/press/release/gillibrand-reminds-9/11-first-responders-survivors-of-possible-tax-relief-available-through-irs , and this Journal of Accountancy article that came out shortly after the bill passed. Hope these links help with your documentation.
  4. Mine is a crosscut also that makes confetti, but it wouldn't meet the new requirement of the chip being 1mm or smaller in width.
  5. Gah, what next! There's always burn or mulch too. One more great reason to go totally paperless. Maybe I'll offer my chips to my neighbor with the dirt farm that could churn it in with his used mushroom soil compost, and no one would touch it then.
  6. If anyone needs a reference for this, it is Reg 1.6013-1(d)
  7. Because the deceased's tax year for the individual return ended on the date of death, and on that date of death the deceased's marital status was married, and because the widow(er) remarried, that person gets to choose MFJ or MFS.
  8. I'm starting to panic more than a little. I got the flu in late Feb and was so sick for a full two weeks that I couldn't work and then was finally able to work enough to meet the March 15th filing deadline because I had the accounting or bookkeeping in good enough shape to complete those. It's taken a full month to recover completely, and now though I'm in a real hole with the individual returns. How ever many I finish in a day, it seems I'm getting double that many in.
  9. Came from this pdf from the IRS site: 4491_filing_status (1).pdf
  10. file the deceased as married filing separate
  11. jklcpa

    Fixed asset

    How was your predecessor coming up with the figures for the 4562? There are no fixed asset schedules for any of the clients in prior year files or workpapers? If this former preparer was using another software program to generate the figures for the 4562, it might be easier to purchase that program too rather than starting to input all from scratch into ATX in the middle of this season, then deal with moving all of it to ATX when you aren't so busy.
  12. Yes, the payer of the third party sick pay is acting as agent for the employer and the payment is considered wages to the extent it is subject to withholding and includable in income, so it does qualify as earned income for EIC.
  13. Agreed with the others. This is clearly an ethical violation for CPAs here, and both the State Boards for Accountancy and for Law, and the DE Bar Association would quickly find out and put a stop to it, especially in my small state where everyone knows everyone. This happened to a public accountant with an EA that lives close by in my small town, and he was ordered to cease and desist by court order that he flagrantly ignored and ended up with fines for nine violations totalling of over $35,000. He was also brought before the State Board of Accountancy on 3 separate times resulting in cease & desist, lost his license to practice for 2 years the first time which he ignored and it was finally permanently revoked. His fines in these instances totalled over $582,000 that was based on revenues that ultimately went back to aggrieved former clients. He was writing wills, trust and estate documents, giving legal advice related to those, and other legal work too that the DE Bar Association had been watching for a while before all of this transpired. He used to come to the CPE breakfast seminars and was pretty much lobbying our state representatives to give him a CPA license because he wanted to issue financial statements beyond compilations. He'd sit at my table and once asked me if I'd speak to my state rep on his behalf. My response was that we'd each tested and worked hard for those hours of experience to qualify, that we each had hurdles that we overcame, and that we'd EARNED the certificate and he should do the same. If you want to read about all that he did, his case is always included in my DE ethics course. I've wondered if his case is in the courses for other states too, or if it's only in ours because he was licensed here: Estep case.pdf
  14. FYI for all, when posting please remember the forum policy of limiting the discussion to only the tax law and its provisions, and that all commentary related to politics, politicians, or their motivations will be hidden or deleted. Thanks.
  15. Uh, I edited Abby's post to remove some symbols that were setting off my AV software making it think there was a script running on the page. It wasn't happening before Catherine's and Terry's posts, so that is strange, but I removed the colon symbols. Still not helping with my AV that is now chiming every minute even though I told the program this page is a safe link. Thanks, Abby. Grumble, grumble.
  16. The cap is only for the flat dollar portion of the calculation. The determination is the greater of - 2.5% of the excess household income over filing threshold OR the amount calculated using the flat dollar amount for the family's size, flat dollar amount capped at $2,085 for 2018.
  17. jklcpa

    Clergy and EIC

    Two ways: Click on Jack from Ohio's name that will take you to his profile page and click on message - Or, from any page, click on the envelope in the upper right of the screen and fill in "Jack from Ohio" as the recipient. This envelope is also where you'll see the indicator when you receive messages back to you. -
  18. Use the search function within General Chat and search for "Puerto" and you'll see some past posts with general information on this.
  19. Ah, sorry, I do see that in the instructions now. Sorry I couldn't help.
  20. I'm not familiar with this credit but took a look at the form, its instructions, and the fields available on that page. From looking at the instructions, it appears that the identifying number field is for an FEIN that would be 9 digits, not the 10-digit COR you are trying to enter. Did the IL DOR say that the 10-digit COR # is what is expected on that form? Did this taxpayer go through the entire process of registering for an account and applying for the credit on the MyTaxIllinois site?
  21. Attorney is wrong. Executor can sign the return as a representative of the estate. It's possible the IRS would create a SFR and there may be no assets in the estate to collect from. Would the standard deduction + the extra for being over 65 be enough to also eliminate tax? If not, I'd file a return with the medical deductions to eliminate the tax bill. Now, what about the state return?
  22. The error message is correct; it does not need to be reported. From the recipient instructions for Box 1 of 1099R:
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