Gail in Virginia

I agree that it is a temporary absence. How can you determine which house the kid would have been at in cases where the kid goes back and forth equally? And the first year if they live together for 65 days in a house that they provide together, before separating and each parent then gets the kid for 150 nights after they separate, who provided the house for more than half the year? They both did but they can't both claim head of household and the dependency exemption for the same kid. This is why I liked tie breaker rules. Sometimes there is a tie.

I realize that 365 divided by 2 is not going to come out evenly. However, if the kid spends a week with grandma or at summer camp, there are 358 nights left which could be divided evenly. And the first year the parents are separated they could both have the kid more than half of the year.

Is it accredited?

I don't want tax season to be any longer than it already is BUT it seems like broker statements and K1s come later every year. I understand why - brokers are now required to track basis, show all kinds of information they did not have to in the past and K-1s are waiting for some of that same information to do the return that generates the K1. So perhaps we need to permanently move this deadline. Or maybe I just need to find a new line of work.

Did whoever changed the deed to reflect the new ownership issue a 1099S for the sale? And even though this is an installment sale, you can elect to report the entire sale in one year. I think the election is made just by doing it. So the only question would be if he has to treat the amount received as including interest and report that interest on the tax returns. Technically, I believe he does. Practically, how much can it amount to?

I understand not wanting her to have to pay all of the employment taxes BUT she expected to make -0-. If she is in a 20% bracket, after paying SS, Medicare, and FIT, she will still net close to $33,000. That is better than -0- in my book and at least in FL she won't have state income tax on top of that which would take another 5.75% if she were in VA.

Actually they fixed it by going out of business last year. Corporation is closed, and what little business they still do is not a sole proprietorship on the daughter's return since she is the only way still involved. Problem solved.

I use an organizer for those of my clients I think will fill it out, or al least use it to help them remember what to bring. But for the vast majority of my clients, I also use a one to two page form. First page is for everyone, second page just has them list children and/or estimated tax payments. Just in case you are interested, I have attached the word file. Questionairre for Drop Offs mailed 1-9-21.docx

And I have seen 1099K generate a letter - repeatedly. Customer who has a corporation let her daughter set up the square account. Daughter set it up in her own name and social security number, even though the bank account belonged to the business. So for at least two years the corporation reported the income but the daughter got a letter because she did not report the income shown on the 1099K. First year that happened was a surprise because I did not know how it was set up. Thought the daughter changed it. But apparently once set up under a SSN you can't convert the square account to a different tax id.

ProSeries does not allow you to remover the form if they have a 1095A attached. However, the software has been updated for this issue, and if you are up to date you should still see the form but there should be no amount carried forward to Schedule 2 as a penalty.

After the tax season that wouldn't end last year, and the last minute changes this year, I have had it with this business. A little young to retire but boy does it sound appealing. In the meantime, I have a client who is a partner in a law firm. He has been working from home this year. Can he take office in home expenses? Would this be shown as UPE? Does it have to be covered int he partnership agreement? Have I lost my mind? Don't answer the last one - I don't want to know since it is probably too late to get it back. Thanks for any help.

Using the dates is somewhat helpful, although I tend to be more general - spring 2020, or this winter. Personally, my stimulus checks came in July and February because one of the main banks here was bought out and changed everyone's account last year.

Virginia also does not recognize common law marriages that occur within the Commonwealth. In the past, if couples volunteer such information and I tell them that i cannot file them as MFJ, they just go somewhere else and keep their mouth shut so the question of what to do about prior years does not arise.

Did the client not have that information on previous returns? That is not a new requirement. The new requirement is the date of the decree specifying the alimony. At least that is my understanding.

I thought it was just my clients. I have never understood how they can trust me to do their taxes but not trust me to know what a W2 is.

Is there someplace on the IRS website where instructions say to not file the 8962?

I think originally the IRS was requiring you to be alive at the time of the payment to receive the stimulus payment. That was later clarified to be if you were alive 1/1/20, you got the 2020 stimulus payments. So your method of handling this is correct.

My birthday is in June, if you want to come hang out with me and delay that getting sober nonsense!

I realize the big strike against these clients is the lies, but I am also not impressed by clients who blame me because they did not include all the information with their taxes. I am too old and too tired for this nonsense. And if my husband were that ill, I would probably have not reacted at all well. You might all be seeing this on the evening news. Hang in there Judy. We are all praying for your husband's health, and for you!

Generally, Virginia conforms to federal except where they don't. Most of the non-conformity is to increase VA taxes rather than decrease them. I think this is one of the items they conform to, and you cannot take the rest in addition.

Generally, I either see the error immediately after posting, or not at all until someone comments on it. So changing from 5 to 15 minutes would not really help me. I am just really grateful to have this board, and that it is so easy to use, and the Judy does such a great job moderating. Yay Team!

USUALLY, revocable living trusts are just ignored until someone dies and the trust is actually funded. YMMV.

The preliminary payment of EIP2 and EIP2 were based on the filing circumstances of 2018 or 2019, depending on what was on file at the time they sent out the payment. They are reconciled on the 2020 tax return, so that is the only return that really matters for EIP1 and EIP2. The preliminary payment of EIP3 will be based on the 2019 or 2020 return, depending on what has been filed when they send that payment. That will be reconciled on the 2021 return. This may result in duplicate payments for someone, but that is perfectly acceptable. There is plenty of money to go around, apparently.

I am totally unsure about this, but would the earnings on the 1099Q from the 529 plan be counted as unearned income so even if it is reported on the kiddo's return it might have to be taxed at the parent's rate?

Interesting. I have never had that either - I am more likely to have them come to do next year's return without having paid the year before. I would handle it the way you propose. Either way, it should come out the same since the year paid is the same as the year filed. I just don't see a line on the return for paid prior to filing.