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Everything posted by Pacun

  1. I think in this case "child" means son or daughter: "Have a child, stepchild, or adopted child who qualifies as the taxpayer’s dependent for the year or would qualify as the taxpayer’s dependent except that he or she does not meet the gross income test, or does not meet the joint return test, or except that the taxpayer may be claimed as a dependent of another taxpayer." So, I would say your client doesn't qualify for QW.
  2. Correct. He has pay Federal Taxes on CA and GA unemployment. He has to pay GA taxes for the GA unemployment received. CA unemployment is not taxable on GA or CA, unless he was a GA resident while receiving CA unemployment.
  3. I would file a return and charge them only half of what I charge. It will be easier to see they have filed their taxes when dealing with the estate.
  4. You need to enter the dates they resided in DC and the dates they resided in NY. Then you need to go to D-40 page 1 (I think line 7) and enter the income that was "earned while not a DC resident". In this case, I believe your DC income will be 0.
  5. Let me change the name of the company to Fidelity investments to make it easier and let's say that the fee is only $100. Is Schedule A the only place to deduct that reasonable price?
  6. I want to double check this: I have a statement from Robinhood Securities LLC for stock sales. Short termed: Proceeds $1,500, basis $1000 Long Term: Proceeds $2,000 and basis $1,200 The report shows $400 in expenses. Is Schedule A, itemized deductions, the only place to deduct those $400
  7. I have not dealt with your situation because all my clients want $14K refunds from the IRS. Yes, as long as you enter the children correctly, the IRS will adjust the refunds. So, let's say you have a client with three children and $2,000 of withholding and a salary is $20K, you are requesting $2,000 refund and that's it? How about someone with $70K income, 10K withholding and 5 kids, are getting $10K refund and overriding the other entries? Preparing a return to make sure you only get a refund equal or less than what was withheld is very, very hard.
  8. PATaxlady, First decide where the children resided and if one of the parents qualify as HH. If the other parent made less than $45K, then you can have the HH claim both. I think you will end up doing what you said you were going to do because $1,500 in my pocket is better than $3,000 on my ex's pocket.
  9. If it is a Roth IRA, nothing is taxable and it makes no difference if they invested their money in a first home and spent it at the local casino.
  10. Yes, TP could have opened an IRA in April 10, 2012 and split $4,000 for 2011 and $4,000 for 2012. Your are right, It seems that this taxpayer will pay penalty on $12,000 and Federal taxes on $22,000.
  11. I don't think CPAs will take offense on your comment, but I think it makes sense what the CPA is saying. I have read that the only income that is considered to be earned evenly through out the year is income reported on W2s. It makes sense that an estimated payment needs to be sent to the IRS on quarter where the money was received since this is a one time event.
  12. This is like reporting the sale of any other item since there is no exclusion and you have to report the profit as long term. Cost(including land)+improvement-depreciation for the cost and then saleprice to come to a profit or loss. I know others will give you better, more detailed answers.
  13. He could easily benefit for three years by filing MFJ, QW, QW but he was desperate to get married. He has only two choices now, married filing Jointly or separate with his new wife.
  14. On another thread a couple of years ago, I was clarified that once you have lived in the house before renting it, you don't have unqualified used. Meaning that as long as you lived in the house 2 year out of 5. So no unqualified use here. The rooms were converted to personal use on 1/1/2021 until the primary residence was sold. No, the portion where the owners lived was never rented. The half of the house rented was where the adult children lived prior to getting married.
  15. That's legal. Keep in mind that on line 28 of 1040 you will get $4,500*1.5 and on line 30 you will get $1,400*1.5 on the "tp" return. Keep in mind that if wife itemizes deductions, his standard deduction is 0 or he has to itemize too. Another point to remember is that if spouse makes more than $40K (a bit more since there is a $500 cushion per kid), spouse might need to return some of the advanced payments. Give the kids to the person that makes over $40K and leave the person with > $40,000 without any child. The kids don't belong to anyone since they are married, anyone can claim them.
  16. The exclusion will take care of the capital gains since they file jointly and have owned and lived there for 10 years.
  17. What are the chances that the states will mail her something meaningful? She can pay her bill to the states from the print out you give her or her refund directly to her bank account. Send address change forms to each state and that should be it. Just keep records.
  18. If I save the file by mistake when giving an estimate, my old information will be gone. I was just wondering how to use the efile file to recover the data for the original client.
  19. So far this has not happened to me, but it is just a matter of time. When I get a new client, I interview him/her and I look for another client in the same state or county with the same situation, which has been already efiled. I delete w2 forms and all income forms, then I add the income info for the new person and give then an estimate on the fly. I tell them their situation and I close the file and I don't save. I know that if I save, I will destroy my copy of my previous client and I will have to recreate if needed. I know that the efile file that I transmitted to the IRS is intact and still shows the correct amounts for my client (not the potential client). How do I put my hands on that efile file since it seems to not be a real file but a pointer.
  20. Can you use form 3115 with your current filing?
  21. house has 4 floors and it was purchased 10 years ago and tax payer has lived there with wife since it was purchased for $600K. For two years 50% of the house (two floors) were rented and depreciation allowed or allowable was $14,545. Rented the whole years of 2019 and 2020. On march 31st 2021 was sold for $1,100,000. A class instructor said that as soon as you rent, you split the property into two, which doesn't make any sense. Any ways, based on the information above, the tax payer will pay taxes only on the $14,545 which is depreciation recapture, correct?
  22. Yes, it goes to schedule C. QBI depends on the other rules, such as profession and total income for your client.
  23. send 1040 signed by both, passport and w7 signed by wife to Texas.
  24. 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.
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