Christian

The upper age limit on this credit has been suspended for 2021. In looking to see if this rule applies going forward I cannot find that it will. The former age limit of 65 will again apply for 2022 ?

That is likely what I will need to do and simply overlook any qualified business expense deduction.

I can do that but as he works in construction and his jobs are assigned by the company I am sorta lost in space as to indicate his type of business. I suppose I could leave all of that off the Schedule C but cannot recall ever having done so in the past. In effect creating a business which in fact does not exist. He cannot turn them in as they would simply fire him. And of course there is the 20% right off for qualified businesses but clearly this is not applicable.

A single taxpayer has come in with one Form 1099-NEC. His company "doesn't want to fool with filling out a W-2". He is not in a business so I am left attempting to discern the best way of handling this. My Uncle who was an IRS agent would simply fill out a Form SE and let them pay all applicable taxes along with any penalties. There was no Earned Income Credit back then and I can't seem to find any info on this. Can he take the Earned Income Credit as his income otherwise qualifies him for it. Clearly he is self employed but not in a business of his own and therein lies my problem.

Do you call your shower creations Water Music ?

Well I am a native of the American South and we like to palaver on and if we on occasion introduce an irrelevant point along the way we don't mind all that much. A number of my Yankee friends blow their gaskets with some degree of regularity.

In Virginia driver's license info is not required so I do not provide. We have enough digits to deal with and, of course, ATX does not roll them.

A grandparent couple has claimed two minor grandsons for a number of years. The Service based on their 2019 tax filing sent them an EIP3 payment of $5,600 in 2021. In 2020 one grandson was dropped as a dependent. The second one attended college in 2020 and the couple received a Form 1098-T for his tuition. In entering the grandson's social security his grandfather used the wrong number and the Service disallowed the exemption. They apparently advised the grandson of this and he filed some form of paperwork and got another $1400 check from the Service. The tuition statement qualifies the grandparents for the American Opportunity Credit for that year. Is there any reason an amended return cannot be filed changing the exemption status of the grandson and picking up the credit for ole granddad ?

Thanks Slippery that's very useful information as I have never encountered this matter before. The course in question is unrelated to her getting her degree. Her father sighs and says he will likely be paying for some course of study for her his remaining years on this planet.

Well the amount from the community college does not qualify for the American Opportunity Credit. Frankly I have no idea as to how you would add the tuition from the community college to the university tuition without skewing the reported figure from the university. After taking a closer look at the figures the father will likely have enough tuition from the university to use the entire American Opportunity Credit and as noted by forum members the use of both credits for a student in the same calendar year is not available.

This was her second year at university with 2022 being her junior year. I am trying to determine if taking the American Opportunity Credit for some $11,000 of university tuition excludes her taking the Lifetime Learning Credit for the course at the community college.

A client's daughter is enrolled at a local university as a half time student which qualifies her for the American Opportunity Credit. She also took a side course at a local community college where her tuition expenses on the 1098-T indicate she was not a half time student. Can she use the Lifetime Learning Credit for the tuition expense of this side course or is it excluded. After review of the educational credit material I am myself unsure of the answer to this. If she qualified for the Lifetime Learning Credit as well will it require the preparation of an additional Form 8863 ?

An older client passed on in January. She has a balance due on her final return handled by her daughter. In the past I usually have them mail these in but see no reason this balance due return cannot be efiled with the daughter mailing in the Form 1040-V. Is this correct?

To jasdim better squash than poop. To Abby. A competitor used to smoke something awful. Folks would go in and have him chain smoke. Before he finished one cigarette he would light the next one and duck the partial butt in his ash tray which was overflowing. Clients reportedly left his office smelling as if they had been in a tobacco smoke house.

With respect to the EIP3 issue. After reviewing what the client was able to ascertain and ended up saying they received no payment or did not know if they had. I simply advise them I can file them for a refund OR they can wait for the letter coming from the Service with the clear understanding they can get a rejection notice since they did in fact receive the payment. Most are in a hurry to file and don't give a rip if they get the rejection notice. And a few are likely being less than honest and hope they get a second payment. Imagine that.

I had a grandparent couple come in this week. In 2019 they apparently claimed two grandsons living with them as dependents. In 2021 they got a deposit of $5,600 EIP3. The grandfather dropped one of the dependents for 2020 and the Service disallowed his second one due to a filling error but sent the former dependent $1,400 after notifying him of his dependency change. The grandfather filed a 2020 return claiming $3,600 in UNPAID EIP3 payments apparently thinking he had been cheated by the Service but this was denied. I don't know about the rest of you but I am encountering what I had earlier feared namely massive misunderstandings of the law and blank expressions when clients are asked how much EIP3 amounts they got. If the client can't provide proof they received the payments I add it to their refund and the Service sorts it. No one to date has received the letter noted by the Service indicating the EIP3 they got and of course everyone has thrown away the one which came with the payment when or after receipt.

Thanks for the help. Apparently it is much the same here. How they arrive at these figures is beyond me. Some time back a former client's wife died leaving a sizable estate but the heirs needed no certification but then sizable parts of her estate passed directly by transfer on death setups and county land taxable land values are largely below market.

Lately I am encountering heirs who record their parent's wills but are not certified by the circuit court as evidently the estate assets do not require it. In looking at one of these currently I am going to check box C of the Form 1310 and answer yes to question 3 in Part 2. I expect this to go through but if anyone knows any reason it won't please let me know.

This has been a problem return in the past. The wife was adjudged deceased after the death of her first husband. It finally got resolved and she subsequently remarried. She and new hubby's return went through flawlessly in 2019. Her single filling had done so in 2018. In 2020 their efiled return was rejected indicating she was deceased. It took the intervention of our State Senator's office to get it corrected this time. However she still did not receive her EIP3 payment of $1,400 which I added to their 2021 filing. I am keeping my fingers crossed hoping we are not going to have a problem this year.

To date my efiles have gone through routinely but one which was filed around 3:30 yesterday 2/12/22. No acknowledgement as of today. Are they working on the system or something ?

Y'all have confirmed what I was thinking. Namely you need a transaction to use the box not just a purchase.

Kentucky bourbon usually fills the bill here.

In reading the rules for checking this box I am wondering if simply buying Bitcoin or whatever requires it be checked. A client purchased two Bitcoins but still holds them in his account. It does say received so I assume that qualifies to check the box.

I don't know what Lagavulin is but I am game to try ANYTHING ! To date the service has LOST two of my client's mailed returns after cashing the payment checks included with the returns. They advise they have not received the client's return for the referenced year. Last year a client who filed in October 2020 got the same letter in December and had a certified mail receipt from the Center where the return was received. He finally got his refund in July of 2021. The season is off to a great start. I have pulled a muscle in my lower back and am sitting at my desk with a pillow stuck back there to give it support. I've not had a heating pad (good grief) in the house for years but will likely have to trundle off to Walmart and get one post haste !

Just as an opener. How many of your clients are going to locate must less remember those Child Credit letters and EIP letters from the Service. I am reading a married couple will receive a Child Credit letter to the wife and one to the husband. Am I reading this correctly ? It appears so illogical to me. I don't know about youall but my fees so stable for years are going to take a considerable jump.