Max W

8 hours ago, Lee B said:

I assume you have an ID.me account, because I don't and I can't get in.

Yes, I do have an ID.ME account. I've had for at least 5 years.  It's used mostly for obtaining transcripts online.

22 hours ago, taxit said:

I am in the process of downsizing/retiring. I put my office on the market and moved everything to my home. I need to update the change of address and phone number for My EFIN. It says to long into e-services. When I do that I do not see anywhere to update these items. Has anyone completed this task and can offer a tip?

Click E-services; > e-file services > efile application.  then click the little eye under View/Edit.  This takes you to the summary page where you will see the categories underlined in Green at the top of the page.  click the first one - Firm info, then start making changes.

I just updated mine when I saw this post.  The only problem is at the end they ask for a PIN to accept terms, but it won't take any input.  Maybe its not required on an update?

HTH

On 5/3/2025 at 1:20 PM, Catherine said:

It's the computers sending all the letters. No people involved - especially with the more stupid letters.

That's why it is called ACS - Automated Collection System.

Look on the positive sign.  It's over, until Oct. which is never as busy as Apr.  I screwed up royaly and now have to report the bad news to a client with an LLC.

Forgot to plug in the LLC income to the SE page.  It's going to add about $12K to his tax bill.

15 hours ago, BulldogTom said:

Conspiracy theorists with the highest credentials who spoke on condition of anonomy claim the workers who were forced back to the office are sabotaging the end of tax season in their final days before exercising their buyouts.   No one is available to confirm or deny these rumors.   Film at 11.

Tom
Longview, TX

I wouldn't put it past them.   Remember, just before W was inaugurated, the white house staff pulled out the letter W from all the keyboards.   Infantile in both cases.

You could have used actual expenses - gas, maintenance, insurance, etc.  This way it doesn't matter what the mileage was, if it was 100% farm use.

Then tell the client to keep a log from here on.

6 hours ago, DANRVAN said:

But OP said he was deceased.

 

 

Ah!  Then get out the Ouija Board.

Copies of tax returns from the IRS are limited to 7 years.    

Might try contacting the retired preparer.   My next door neighbor was a retired tax preparer and when he died all his old record were shredded.

I don't know how far back they went, but the shredder truck was out in front of the house for the better part of the day.  I doesn't hurt to ask.

It seems that the tax preparer is probably confused.   Before 1997 if you sold your home you could defer capital gains by buying another for the same, or greater, amt of the sale.

On 4/9/2025 at 8:24 AM, TexTaxToo said:

You must make taxable a part of the scholarship that was or could be used for tuition, in addition to the amount in excess of tuition.

For example, if tuition was $24,000 and unrestricted scholarships were $40,000  ($16k in excess of tuition which was used for room and board).  If you make $20,000 of the scholarship taxable to pay nonqualified expenses, that leaves $20,000 to apply to the tuition, and that leaves $4,000 of tuition available for the credit.

The scholarship terms must allow that $20,000 to be used for nonqualified expenses and it would be taxable to the student.

And pay attention to Slippery Pencil re. kiddie tax and getting an accurate statement of account - was the scholarship actually used for qualified expenses in another year, or was it for room and board in the current year.

 

The majority of what the dependent received were Pell grants and they can be used for room and board, books, and tuition.

The statement is very clear that all expenses occurred and paid in 2024 for winter, spring and fall semesters.

From SEC archives -  One of these contacts might help

RockTenn Contacts:MWV Contacts:

Investor Contact:Investor Contact:

John StakelJason Thompson

Senior Vice President, TreasurerDirector, Investor Relations

678-291-7901804-444-2556 

[email protected] 

Media Contact:Media Contact:

Robin KeeganTucker McNeil

Director, Corporate CommunicationsDirector, Corporate Communications

770-326-8245804-444-6397

[email protected]@mwv.com

Sard Verbinnen & CoJoele Frank, Wilkinson Brimmer Katcher

Bryan Locke/Carissa Felger/Elizabeth SmithSteve Frankel/Joseph Snodgrass

312-895-4700212-355-4449

Westrock was created in 2015 by the merger of MeadWestvaco and RockTenn.  To compound the problem, MeadWestvaco was the result of a merger between Mead and Westvaco in 2002.   So, unless one knows which of the three stocks was inherited, you are shooting in the dark.   Having said that, I think the RockTenn would be the most likely one as it operated in TN going back to 1973.

The above info was gathered from perplexity.ai

2 hours ago, Slippery Pencil said:

Kiddie tax.

Get the account statement.  1098Ts are notorious for being wrong.  Also determine if the scholarships for the whole academic year were posted to the account in September 24 but covered both the fall & spring semester while the Spring 25 semester tuition was paid in January 25.

The 1098 has all the detail and everything was paid in 2024.

Dependent has $16,000 scholarship/grants, etc in excess of tuition, which means $16,000 taxable income.

As I understand in, the parent can take $4000 of that  income and claim the full $2500 credit.  The dependent would take $12,000 as taxable income.

Any comments please.

What? No sex, or inappropriate language.  Ain't watchin'.

20 hours ago, Pacun said:

Not only that, they only check the date when meaningful... for example, when the child becomes 14 and no longer qualifies for daycare expenses, or when they turn 17 and they no longer qualify for $2,000 child tax credit.  

You are thinking like a human.  Software works differently.  It's broken down into modules and there would be a module for CTC, CCC, RMD, etc.  Each has several lines of query.  for example with CTC, there would be a module for each dependent.  All that stuff from form 8867 , 15 lines are queried. What you check off as 'yes' or 'no', in the computer sw comes out as 'true' or 'false'.  In the cas of CTC and the other modules requiring birthdate, the computer sw has an algorithm.  It would be something like this -  CD - YrOB > 16.  Current year - yr of birth is greater than 16.  If this is  True, then the credit gets denied.  If it is  false, then it passes.   The point is that all Birth years are compared, not any selected ones.    The actual software is likely written a little differently, but thi is the basic gist of what's going on.

The IRS does match birthdates, if the return is e-filed.

The client should keep  all bank records pertaining to the transaction.  It has been my experience that the IRS will send out a letter asking for them.

The client received a Masked transcript, where all the issuers information is truncated.  He should be able to get a unmasked transcript on The IRS website - "get your tax records".

On 3/25/2025 at 12:23 PM, Lion EA said:

Does he have $3,200 in taxable scholarships? Or, are any of the scholarships usable against room & board? Or does he have any required books/equipment/etc.?

Would it be to the family's advantage to use any scholarships available for R&B to free up $4,000 of tuition for AOC?

Did he report the Starbucks scholarship to financial aid?

Yes,there was more than $3200 in taxable scholarships and tax was withheld on the Starbucks paychecks.  

Not sure about the R&B.  The schools financial aid?

On 3/25/2025 at 12:24 PM, jasdlm said:

Can you add $4,000 to taxable income (Schedule 1) of student return and then take AOC?  

The taxable income is more like $11,000

On 3/25/2025 at 12:37 PM, Lion EA said:

Does he have a Form 1099-Q also?

No.

3 hours ago, Margaret CPA in OH said:

  OIC is not an option anyway for federal as the limit is $50,000 owed.  

OIC has no limits.  I've done some that owed over a $1M.  $50,000 os the limit for a streamlined installment agreement.  Beyond that its determined by disposable income and assets.

Don't overlook the possibility of CNC (Currently Non Collectable).  Even if OIC is feasible there is still the 5 year compliance and est tax requirements.  CNC will also protect future garnishments of SS benefits.

5 hours ago, Gail in Virginia said:

SO what do people who do not have checking accounts do?

 

They can pay at a 7 Eleven after registering on line.  A bar code will be sent by email, or directly to a smart phone.  Payment can be made by credit/debit card,  cash, or click to pay.

Tom, try this number 916-845-4900, Withholding Services and Compliance phone service.  

Client rec'd a 1098-T with Box 1, Tuition $13000 and Box 5, Scholarships/Grants $11000.   However, the entire tuition was covered by grants or scholarships.    One of the scholarships was from Starbucks, of which $5200 was tax exempt.

At first glance of the 1098-T, my first thought was an AOC, but with nothing out of pocket by the client, it doesn't seem to be the right thing.

Comments please.

TIA