Pacun

send 1040 signed by both, passport and w7 signed by wife to Texas.

It is not clear to me if the spouse has an ITIN already. 

If she has an ITIN, you can efile 2021. All you do is to enter the fake ss# on the W2 form that is correctly tagged as "spouse".  The only problem is that some of the W2s now hide the social security number with XXX-XX- but they might have previous W2 showing the fake number and you can enter it or they will tell you what number they were using. Then I would amend 2020 by efiling if husband efiled last year. 

If she doesn't have an ITIN, I would amend 2020 and request an ITIN as spouse of a resident (for tax purposes) and enter the name and SS# of the primary tax payer on form W7.  You will need the wife's passport, her current address, the address where she lived abroad and the date of entry to the US. The rest will be from her passport. Sometimes, you will need the city, state and country where they were born. Send 1040X, passport, W7 to Texas. When the ITIN comes, you can efile 2021.

47 minutes ago, XP4ME said:

True Pacun, but in the case where I deleted them there is zero chance of re-contribution.  So just delete the 8915-E?

 

Yes, deleting form 8915-E is not a problem (it is obsolete anyways). Deleting both is not correct.

The last time I checked, if both forms are present, the correct amount is entered, then when you delete form 8915-E, you are ready to go. You have to make an entry if the person re-invest money up to 1/3 of the amount distributed in 2020.

XP4ME, remember that people has to 1/3 or re-deposit 1/3 to their retirement plan, deleting both is not correct.

MD has reciprocal agreements with PA, DC, VA and WV.  I know for DC and VA, people pay taxes where they live. So, if this would be a MD person who worked in DC (my area of semi expertise), I would file MD as resident and file a DC non-resident form requesting the tax withheld by mistake.  Employers in DC should withhold taxes for MD and not for DC since the person told them he was a MD resident.

I am not sure if that's the way it works for PA, but I am 77.777% sure that it might work the same way. 

It was assets purchase.

24 minutes ago, ILLMAS said:

How does one get state acknowledgment before federal?  I tend to file both at the same time, but I cannot transmit the state until the federal clears.

On April 14, I change my settings from "hold state" to "do not hold state" and that allows me to send both at the same time. I guess people do it from the very beginning.

When the IRS rejects a return that affects both state and federal, those people wish they "held" the state return.  On April 14th and 15th, I don't have time to be waiting for the IRS and that's why I make the change. 

Now that we have sorted out that portion of my info, can someone help me with my original question/concern?

I also got my acks, today.

Now that we have sorted out that portion of my info, can someone help me with my original question/concern?

How do I report one month of income for a C corporation without closing the FEIN? New owners will continue using name and everything from previous set up.

As long as the child didn't support herself more than 50%, it doesn't matter who supported her.  Support matters for HH.

Correct me if I am wrong. We used to be able to call ATX and ask them to stop a return before it was "Transmitted to Agency". I have had a return for 18 as "Transmitted to EFC" for 18 hours and ATX said it cannot be stopped. They said that after we click "transmit" no one can stop it. 

Just make sure that the person qualifies as a foster child and take the credit. 

that's accurate so far.  The change was only for 2021, but the night is still young.

5 hours ago, Lion EA said:

Get her set up for 2022 ES so it doesn't happen again.

You mention that she's going to pay it back over three years. Did she pay any back during 2021? Have her pay it back soon, so you can amend the prior years.

When people get a huge bill from the IRS, most likely they will not have money this year to pay the bill and pay estimated taxes.

The issue is that people don't have money this year to pay the bill, so for sure they don't have money to send back to the 401k plan, which will be 3 times higher than the bill. 

I think just the opposite. It is not obvious and it is an interesting question a only a handful of people know the answer.

Total income? MFS? Have you answer the questions where it asks you if the person is a felon?

I never figure it out but it has something to do with the receiving end. If it was ATX, it might have issues with every state which was not the case for me. 

I got the same error from DC. I tried twice and then I waited a week and the issue was solved.

18 minutes ago, Abby Normal said:

You pick up where you left off, BUT if the FMV of the house is now less than the original cost, you must use the lower number as basis.

If you made improvements, you could also have additional depreciation. 

I guess the IRS has never sent refund for returns that are fraudulent and use fake W-2. Sorry for spreading that conspiracy theory.

Depreciation uses 39 year.  Direct expenses go 100% against the rental income received. Utilities are prorated based on the portion rented vs the portion used by the owners. Use the same ratio for taxes, house insurance, mortgage, etc. Don't forget to deduct from Schedule E a different portion of personal cell phone if used to receive calls or to check reservations from clients and your payment. 

I hope they don't cook for their clients because it could become ugly. 

If I am not mistaken, the IRS gets everything together in December. 

They trust the W2s have the withholding claimed but the IRS doesn't have proof of that, hence they send fraudulent refunds with invented W2s. 

If reported only on line 1 of W2, take the credit. If reported on line 10, report it and the credit will be zero if that's the only child care expense incurred.

I think I am right.

For clients that make a lot of money, this doesn't make any difference because the whole credit is used to kill tax liability.  If you have daycare expenses, be careful and pay attention that it is refundable when your client makes little money.  You must check that client or spouse lived in the US for more than .5 of 2021.

Let's say someone lives in El Salvador and he is a sole proprietor but has employees.  He makes clothes using local materials and selling them locally. His payroll is prepared in El Salvador and at the end of the year, he reports his income in a form called Schedule C ElSalv.  He lives in El Salvador with his US citizen child age 14. In 2020 his income was $60K and for 2021 was $300K. 

No tax treaty between the countries and he is Head of Household. Does he have to pay SE taxes? Will the child get only $2,000 Child tax credit. Will they both qualify for stimulus 1 and 2? Can they exclude income for both years but pay SE? Any information or suggestion will be appreciated.