ETax847

Taxpayer is MFJ and only one spouse is covered by an employer sponsored plan.  MAGI is $130, however, ATX is not showing the IRA contribution as deductible.  Any idea if I am missing some type of input? 

This was reported on CNBC today:

Treasury may consider delaying Tax Day to Sept. 15, Mnuchin says

https://www.cnbc.com/2020/06/24/treasury-may-consider-delaying-tax-day-beyond-july-15-mnuchin-says.html

Thoughts?

Thanks Tom! 

Can taxpayer who is MFS and claiming the kid, still claim the Child and Dependent Care Expenses on form 2441.  ATX is allowing it, but I have read "You may be able to claim the child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work. Generally, you may not take this credit if your filing status is married filing separately.

Any thoughts?

I must have an incorrect link as when I clicked yours, I had no trouble.  Thanks Abby!

Has anyone tried to log in to the ATX solution center recently? When I try, I keep getting the following error message: 

AuthenticationType: UUMS-MFA-Email

Thank you!!

If a tax payers are filing under the Married Filing Separately status, is it true that the one who claims the child only receives 50% of the Child Tax Credit?  ATX software is putting the full $2k in, but I have read only 50% is allowed.  Any throughts?

Does anyone know when the E-File option will be available for filers needing to amend their 2019 Tax Returns?

Thanks for the feedback guys.  I wouldn't say I'm trying to "fix" this for them, but assist in any way I can.    

To make matters worse, the client moved the brokerage account from Vanguard to Fidelity many years ago.  Vanguard is telling him to check with Fidelity and Fidelity is saying they never received the information from Vanguard

What do you do when the 1099B reports no cost basis with Box E checked and the client has 0 clue when the stock was bought?  

Thanks Abby! Much appreciated.

Client's CEO emailed client saying "With regards to effects on your personal return, profits interests won’t have a tax basis or at-risk basis to take any losses.Tax advisers should know that any disallowed losses are carried forward and will be allowed at any time you dispose of your interest" 

My question is why is the Ordinary Business Loss carried forward?

Client has a loss of $89k in box 1 for Ordinary Business Loss and Guaranteed Payments of $125k in Box 4 of his 1065 K-1.  His ending capital account on Line L shows a negative amount.  Is the tax payer able to take the loss having a negative capital account or does that change things?

Thanks Abby.  As always, I greatly appreciate your help.

I'm amending a new client's 2018 tax return as her previous tax preparer considered her HSA distribution as taxable income plus a 20% penalty.  In doing this amendment, should I include a transaction summary for the qualified medical expenses for the HSA distribution or is that not needed?  Thanks!

Circled back with the attorney and a Trust Return is in fact the way to go.  Thanks to all who chimed in.

Trust EIN

Thanks for the prompt response and guidance!

It's a settlement trust.  From what I've read, "The trustee of a settlement trust is selected by the grantor, who is also the beneficiary because the trust is established with the beneficiary's own funds." 

Does that mean I should prepare a trust return? 

Client is the sole owner and beneficiary of a trust.  Client received a k1 for the trust.  Does a trust tax return need to be prepared or since she is the sole beneficiary, the k-1 can just be included on her individual tax return?

I'm with you with clients dragging their feet and this headline is only going to make it worse.

This article came out today on CNBC:

https://www.cnbc.com/2020/05/07/white-house-weighs-pushing-tax-deadline-back-to-sept-15.html

Think it is likely to happen?

I found this online:

Who pays for unemployment benefits?

Unemployment benefits are paid out by the state using a portion of the payroll taxes that employers should be paying regularly. “Assuming that the family has been paying their required unemployment taxes throughout the time that the employee worked for them, the state will pay the employee directly, and it does not come to the family in the form of a bill,” explains Mills.

But if, for some reason, you were paying your nanny “under the table” and not taking out the necessary taxes, the nanny would not be eligible for unemployment benefits, and you would then be liable for paying all back taxes, penalties, and interest.

Does that impact anything if she was paid under the table?