Pacun

MFS.  That's the only choice for married and living in the same house, besides MFJ. 

Remember that the rules for HH have not changed at all.

I thought you only input information from 1095-A for the filer, not the dependent. 

This year, you can efile and it will be rejected if info from 1099-A is needed. That's a big plus in comparison to last year that it allowed you to efile and then clients got a letter and refunds were delayed.

53 minutes ago, grandmabee said:

I had a client bring in a notebook today with the clear pages that each tax doc was inserted.  So I have to pull them all out and copy and then yes he wants them back into the clear jackets and put back into the notebook.  They think they are being helpful, helpful would be clients who open the enveloped and throw them away.

26 minutes ago, Abby Normal said:

Add a records processing fee.

 

19 minutes ago, jklcpa said:

Agree with Abby and tell them why.

Grandmabee,

Tell them the charge is for being too organized.

The appreciation should be taxable the same way that if you leave your money (collected from Card Rewards) and they earn interest, you pay taxes on that interest.

It is interesting to see that you should have basis on the bitcoin the same way you have basis when you cash the rewards and leave it in your checking account, (you pay taxes only on the interest).

How much money are we talking about? 

If it is less than the standard deduction, I would use a 1099-NEC and redirect it to "line 7" (old school).

I would be prepared to explain to the IRS if they question it. 

It gets even better, for one child 6-18 years old,  you don't have to return any penny if your income is less than $50k. Once you start plugging in the numbers you will notice that the calculation doesn't start owing taxes until you consume the reminder of the $2,000 original child tax credit. 

You will understand better if you plug in the numbers but keep in mind that any one that made less than $50K will not return any child tax credit. If the advance child tax credit was more than $1,500 per child, then returning money might start at $44K

12 hours ago, Randall said:

So, if I read this correctly, the child who is no longer a dependent in 2021 can claim the $1400 credit on their 2021 return.  But the parents who claimed the child as a dependent in 2020 and received the $1400 for the dependent in their EIP3 does not have to pay it back on their 2021 return.  It seems the IRS FAQ site is treating the EIP3 and the Recovery Credit as two separate things.  Not just an advance of the same thing.  

Correct. IEP3 does not have to be repaid.. Advance child Tax credit doesn't have to be repaid if the person who received the monthly payments makes less than $40K.  AND the person claiming the exemption this year can claim the EIP3 since it didn't receive it in April. The advance child tax credit depends on other factors.

For example: You claimed a child from your current marriage. You receive $1,500 in advance. This year you don't claim that child but it is your turn to claim a child from your previous marriage who is 15 years old... Even if you make only $10K in income, you will have to "repay" those $1,500 by virtue of loosing the $1,500 that you would otherwise get for the child that you didn't claim last year. 

On 2/3/2022 at 1:26 PM, Abby Normal said:

Changes should not be done mid-tax season.

That will make too much sense, something very hard to deal with for some people.

26 minutes ago, Janitor Bob said:

Am I the only one that pauses and needs to re-confirm to themselves that this is actually allowed?

Maybe. I don't pause, I continue with the return and let them double dip. After so many changes, I face a reality "I don't make the laws". 

We will have a lot of very-unhappy people when it is time to collect back all those goodies by raising taxes. Ironically, there people making just above the limit, so currently don't benefit with all of these or some people don't have any children BUT when the tax raises come in a year or two, they will be hit hard. 

A key question to ask the question is: "Why did you sell the property?" Depending on the answer, you could use the exclusion partially or make the profit fully taxable depending on their income.

Check to see if question 2 or 3 jump you to question 6. 

From the top of my head:

Day care credit
EIC Credit
Advanced and child tax credit
Using 2019 income to calculate EIC and Child Tax Credit
and others less common. 

I don't see any difference between this and a scholarship that becomes taxable in order to get the credit. 

Since this is new this year and unique, your guess is as good as mine but I hope someone else can give you a better answer.

21 minutes ago, kathyc2 said:

Am I understanding you to say that before the IRS accepts the efile, they check to see if any SSN's on return have been issued a 1095A?

 

I would say yes.  Not sure what it checks but it is accurate. 

To be honest, one of the returns was rejected before the 1095A was issued. So, I guess each month the IRS gets an entry stating that such and such social security number is getting money from the government to cover for ACA.

You will have to override in two places at least. The first will be to prepare the return without Child care and see how the amount Box 10 of W-2 Flows to the turn. Then you will have to override the W2 income amount on 1040. Then go to 2441 and override what is transferred from box 10 of W-2.  

I personally don't like to override an entry and 2 entries it is too much for me. 

In the past, when the client didn't consolidate ACA Premium Tax Credit, the client got a long letter stating not to amend and to fax the form received from the Exchange along with form 8962 Premium Tax Credit. 

This year, there is flag for those people and when the software detects the lack of form 8962, efile rejects. MUCH better than the client receiving a letter and having his/her/their refund delayed.

Use the first two rows of cells that you see, and a third one will be opened automatically. 

If you need 10, the 10th row will be opened when you utilize row number 9.

I would also see 2020 1098T didn't not include scholarships that should have been included.

As Lion correctly pointed out, see if the university report helps you figure it out.

Read carefully questions 2, 3, 4, and 5. If you answer those correctly, the credit will be calculated if the person qualifies.  If it doesn't calculate, it is because TP doesn't qualify or the Tax preparer is not jumping to question 6 as instructed.

Make sure those 13K in scholarships are not more than 50% of her support and report that income on the dependent's return and call your next client.

The only payback provision is for Advance child tax credit. All stimulus checks are not re-paid. 

Check all the entries on "dependents" on 1040. EIC line 4a is populated based on your selection on the Dependents tab.

Don't override anything, rather see your answers on form Sch EIC on both Qualifying child and EIC question. I will bet you will find the/your mistake.

Do you have all the reports from Uber or just 1099-Misc and 1099-NEC? Ask your client to log on again and to print the rest of the report and it will match.

Yes, you should claim $1,400 on line 30 on their jointly return provided they don't qualify as a dependent for 2021.

If you are using a DELL computer press F12 when booting up and then select "diagnostics". You might get an error that your hard drive is going bad. 

Find out how to run diagnostics on your computer if not a DELL.