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Thank you for the birthday and well-wishes. Birthday was low-key, relaxed at home, and made some delicious strawberry shortcake. I'm pretty much recovered and feeling back to my old self again already. I'm certainly not overworked because of my workload as I am probably one of the few here that is definitely underutilized. I've purposely not taken on any new clients in the last 3 years and a few of my business clients have either sold or retired, so that is also less work during tax season and the rest of the year too. I did take one new referral in early April but that is the first in a while for me. The reason I end up working into the wee hours is because I now spend a total of 2-2.5 hours a day on mom's lunch, dinner, and bedtime routine each day and doctor's appts, etc., and then there is my husband's health issues. Read on if you'd like to know more. There are only a handful here that are aware of husband's health issues, but for the rest that aren't, he is battling TCC bladder cancer that was discovered in early 2019 during the pretesting leading up to treatment for prostate cancer (PSA well below 1.0 now). At that same time those tests also revealed that his heart was skipping 30K beats a day (1/3 of normal beats were missing or erratic), and he also had an abdominal aortic aneurysm. The moral of his story is if a doctor tells you that you have cancer and can "wait, watch it and see...," please consider a second opinion or think long and hard on that choice! If he'd listened to those first 2 doctors about the prostate cancer, then his heart, aneurysm, and TCC may have been discovered too late to treat, as is often the case. So in a little over the last year or so he's had corrective surgeries for the heart and aneurysms plus the ongoing bladder treatments, biopsies, and followups for that. He's doing really well overall but had a major reaction to the BCG bladder treatment on 3/16/22 and ended up in the ER that night and hospitalized for 4 days with a major fever, the cause of which has yet to be determined. The ER visit and subsequent admittance cost me an entire night's sleep being there with him and where I then went from there straight to 3 client appointments, and just the extra time spent each day with him in a hospital that was 1.5 hrs away round trip in the days that followed. All of that left me that much shorter of time that I have had to devote to tax preparation this year, but I got it done with only 2 clients on extension; 4 in total but one of those individuals also has 2 small partnerships along with the individual return. So, worry not, I'm feeling better now and have mostly caught up on my sleep. And for those that would say I was here too much in light of all of that, helping others here is actually a break from my own reality at times. If you made it this far and read all of this, thanks also for listening!

Glad the perps did not gain entry.

How are you all feeling, and are you feeling mostly recovered? Besides sleeping more and going back to normal hours, what are you all doing to recover and what are your plans for enjoying your personal time? I didn't realize just how very tired I was and still am. Husband and I went to an evening concert this past week, a very loud concert, and I was actually falling asleep after the intermission. Thank goodness we stopped for coffee and he was the one driving home because he's usually the one that's napping along the way. This morning I also realized that along with the extreme weariness, I've been having a slight issue at the prospect of turning 62 this weekend and feeling old, that age when some start collecting social security, and that feeling is totally out of character for me. I remember having these same feelings at reaching the age of 50 and mentioning it to many of my friends, and here I am telling this here too! I may need to go for a bike ride, a walk, or some other fun thing. Most of my enjoyment involves outdoor activities, and maybe I'll get in some fishing this year too before the temps and humidity here feel like an inferno.

Thanks again for being correct. I just updated my android phone that is my latest device of ~ 1 yr old, and it is at the version 100.0.4896.127 after the update yet the Win 10 desktop is now most current, which is a very good thing since it needs and has the most protection.

Oops, the most current version I now have is the most recent at version 101.0.4951.41 after I relaunched. Thank you, Lee, for confirming. Next up is to check my androids.

I don't use Chrome all that often and have manually updated today to this version 100.0.4896.127 (Official Build) (64-bit). Can someone confirm that this is the updated version we should have after this latest discovery, or is this the version that has the flaws that allowed these hacks and the latest patches haven't come out yet?

A snippet from this article from Wed April 27th:

I agree with you and Yardley that there is no downside to this provider supplying the identifying number, and it is up to the taxpayer to determine if he/she meets all of the other rules for claiming the credit. You are correct that pub 503 specifically mentions that soccer camp IS an allowable expense, but then goes on in the examples to show that camps including recreational activities are allowed IF the taxpayer and dependent otherwise meet all the other tests of the credit including the dependency and work-related tests by using the phrase "may be eligible" not "is eligible." If it helps, dependent care credit is covered in IRC sec 21, and the definition of employment-related expenses is at sec 21(b)(2), and then the special rules at sec 21(e)(9) and (10) covers identifying information of the service provider, but it doesn't specifically mention the W-10 but only that the taxpayer must show due diligence in his/her attempt to include all of the required information on the return pertaining to the service provider. https://www.law.cornell.edu/uscode/text/26/21 I think my software would not allow e-filing if the EIN or other required information is missing but would have to test it to be sure. YMMV.

Make sure to mention that in your convo with Drake's team.

Hi Herbert and welcome to the forum. Did you have a question for us? I see you own a tax practice in GA. Are you a current ATX user or looking to switch to it and want a demo?

@tax1111, Below is what I created using the practice return. Drake's calcs are in black and my corrections are in red. You may have to supply something like this to Drake's programmers if you have any hope of having them correct this. I did post this same thing over in Drake's official forum for state issues, and I tagged Merry so that she may possibly intervene on your behalf and direct this to the NJ programmers. Also, if any users of other software (ATX, Proseries) could confirm if your program is generating this schedule that allows the negatives in columns B & E in support of this, that would be great.

Looking at the schedule that Drake produced from my hypothetical input using a practice return, it is clear to me that there are errors in Drake's output. My schedule had a positive amount (incorrectly, but ignoring that fact) in col e for the 2nd qtr but didn't multiply that out in any way and reported a zero in col G for that quarter. You are correct, it makes no sense!

I see what you mean about the Option 1 worksheet, because I input enough in a practice return to force the NJ2210, and I also tried it in 2019 with the same issue you are having. I don't see any way to override this calculation or line 51 of the NJ-1040 in Drake, and it doesn't seem that this is a NJ error but IS a Drake error. You have only the options to print or suppress the NJ2210. I'm sorry. I think you should call in to Drake's support if you haven't done so already. From the instructions below that worksheet, Col E is clearly intended that it can be a negative (based on instructions for Col G that says "if Col E is negative") and Col B is also allowed to be negative (based on Col C instructions that says "if Col B is negative...."). ETA - I also posted this in response to your same question over in the Drake forum so that others may see what answer you've already been given and won't be starting over with saying the same thing or may refute my idea. I'd also like to see the resolution to this issue because I have some clients that work in NJ and may run into this in future.

What is in 1st qtr column A, line 13? Is that not carrying over to col B, line 7 and so forth? Was the 1st qtr estimate paid timely on or prior to 4/15/21, and is that entered correctly in the software? Is this ATX or other software?

Wow, interesting read. Thanks for sharing this.

Yes, I noticed this too. The worst was the when all the technical people assigned to the accounting program were helping with tax questions even though I'd called the phone # supposedly dedicated to the accounting support. Then the person proceeded to chastise me for expecting accounting support help saying "you know this is tax season, right?" and my answer of "yes, and you know this is 3 days before the Jan 31st filing deadline for all the information returns, payroll returns, and W-2s that I should be using your program for but am unable to do so." You know when I got the call back with help for their program that was stuck in an update loop and wouldn't load - it may have been around Feb 3rd after I'd used an online vendor for my filings, filed W-2s directly on SSA's site, and hand-prepared the 941s and 940s and mailed them in. At that point on Feb 3rd, I would never need to use the program again, ever. What a complete waste of time and money for that less-than-useless program. Tax support was fairly useless also.

Slower than usual. I had one submitted on the 15th and took 3 days to come back. I'd assume that the last couple of days of the filing season are even worse, and I wouldn't worry as long as you transmitted before the due date.

Yes

To answer Christian so that he may make sense of how this should be reported: Christian, because your client used MACRS SL deprec, you are correct that there is no recapture of excess depreciation like happens with sec 1245 tangible property. That would be where that portion of gain is split out and the recapture portion is taxed at ordinary rates. That is NOT what is happening in your case. What is happening - when real property is sold (sec 1250 property) that has been depreciated, that portion has the potential to be what is called "unrecaptured sec 1250 gain" and that portion of the gain equal to the depreciation taken is carved out and can be taxed at a special rate up to a maximum of 25%, and that rate depends on the taxpayer's tax bracket. Obviously with that carve out, it may be possible that the unrecaptured portion exceeds the total gain, but basically, carve it out and split the gain into its components that are taxed at different rates. As cap gains, both of these portions of gain are able to be offset by cap losses, again obviously within the cap gain/loss rules and mechanics of Sch D. Here is an example that may help: Real property purchased $150K, accum deprec $30K, adjusted basis $120K Sold for $185K, generates an overall gain of $65K Unrecaptured 1250 gain is $30K (the amount of depreciation) and is subject to the higher cap gain rate with max of 25%, and the remaining gain of $35K would use regular cap gain rate.

anyone?

You may want to have the client pay the 1Q'22 estimate now. Yes, it will be late, but will help minimize any 2210 penalty, if any, by paying that as close to the due date as is possible. Client's options now for paying the 2nd, 3rd & 4th estimates are by check, direct pay, or EFTPS.

So do I, and the current filing should update banking info in the states' and federal systems.

Catherine said this started as a state issue though.

Never seen it either. How did that happen?

It's 41 yrs for me and not thinking of retirement yet either.