Gail in Virginia

This is a rural area with not a lot of financial support. I don't intend to advise on what they should do,; I may in some cases direct them to websites that they can read to get up to speed themselves. I would like to know at least enough to warn them of any tax pitfalls since they do rely on me for that. Since I do the payroll for some of my clients, I will probably wind up more involved than I want to be.

There are all kinds of options during this crisis that are not normally available. I understand Tom's point, and would hope that the increased unemployment would enable most people to navigate this difficult time without going so far in debt that they will never see daylight again. On the other hand, trying to navigate what is available and how to apply for it is often EXTREMELY confusing, and the people who need the most helpful often lack the resources or education to be able to figure out what is available to them.

Thanks for the warning Catherine! I have been getting the summary email, but have not had time to really look at it to see if there was anything of interest there (I would rather spend my time on this board!) and now I won't bother.

You might try updating the program even if it doesn't appear to need an update. Just for luck.

When the itemized is close like that, I almost always wind up checking to see what forcing the itemized will do since VA only allows you to itemize for the state if you do for the federal. Sometimes it is better to pay a little more on the federal to save a whole lot on the state. But I have not had the situation that you describe show up.

I do but I use a different software so I can’t help.

I don't believe an amended return will accomplish that. You have to cancel the payment that is set up, and I believe the method for doing that is addressed in the FAQ at the site that Judy provided the link. Then you set up a new payment date on or before July 15. Personally, I would cancel the first payment date and wait until it had passed to make sure that the cancellation took before I set up a new payment date.

I only had one customer that bought bonds in the right time-frame and cashed them in for education purposes (okay, it was me for my son's college) and every time I found that it was better to use the amounts from AOTC or even tuition and fees deduction than to exclude the interest. But YMMV.

I don't think that they need to do the form showing the valuation that is required for vehicles over $500, but it would still be nice if they gave a receipt that just said he had donated cars for nothing in return. Even Goodwill gives that for bags of used clothing.

I think that self-employed people who would be eligible for paid sick leave if they were employees instead of self-employed are entitled to a refundable credit against income tax BUT i don't know how you get a refundable credit before the tax return is filed. I really haven't worried too much about this since I am more concerned about getting current taxes out the door before I have to completely close my doors.

It does raise some questions though. What happens to a couple that was MFJ in 2018, but has a restraining order now? I think they get one check made payable to both of them. The only thing I know for sure is I am not getting in the middle of that.

As it stands right now, I believe filing extensions is not out of line. Payment has been extended to July 15 for federal, and June 1 for Virginia but both have said the returns still need to be filed on time or extended. Since VA has automatic extension unless you owe I am not really sure what that means in terms of requiring return to be filed by May 1 even though taxes are net required to be paid until June 1. And if the April 15 estimate for the federal doesn't have to to be paid until July 15, but there is no change in the June 15 estimate due date, does this mean you pay estimate 2 before estimate 1? I hate changes done on the fly like this, and trying to get information that is coming out piecemeal with lots of speculation about proposed changes. And never sure if me or my staff is going to catch something and have to stay home. Argggh!

I am curious about the extra $500 per child. Is that based on children age 17 and under? Dependent child as defined for purposes of what used to be the dependent exemption, so that students under 24 qualify? Will they use the number of children claimed in 2018, even though they may have grown up and gotten off mom and dad's return by now? Or more children might have been added by now?

IF a home birth is an option for her, that is what I would do, especially now. Too many germs and sick people in hospitals!

Thanks, Catherine.

Thank you for your help, Max!

That looks like something that would have been handled at the closing since it has to be filed within 30 days of the transfer. So hopefully the attorney would have handled that. If not, it would have already been late when I got the information.

I have a client who sold a mobile home that had been lived in by various family members in New Hampshire. Client is a VA resident. I see that NH taxes interest and dividends but not wages. What about property sales? Are there any NH preparers (or NH Adjacent) who can help me out with this?

If the decedent did not sell the stock then there was no gain. The stock would be valued for estate purposes at the value on his date of death, and if there were any estate tax due that would be calculated at higher value. But the "gain" that he never recognized is not income in respect of a decedent. At least that is my understanding.

Thanks, John. Now we know where the toilet paper all went.

I like Rita's method if there is any question about which way is best. The worksheet can be a starting point, but most programs will only do that for the federal, and sometimes the state matters too.

I fell like i have been self-quarantined for the last month anyway, since there are never large crowds in my office, lol. Seriously, I am not upset about not shaking hands and hope that perhaps that change will stay even after the virus is contained - i have arthritis in my hands and some handshakes are downright painful! Mostly, I think right now we don't truly know (at least in the US) what the mortality rate is because we cannot identify everyone who has the illness. The area I am in has no confirmed cases in this end of the state. Might mean there are none, might mean the people who have it are young and healthy and don't know that they have it. I have always washed my hands, with soap, multiple times a day. I am trying to not touch my face but usually that is an unconscious thing so I don't know if I am succeeding. I don't feel a need to hoard supplies, and I am really too busy right now to need much. I will miss March madness, though!

Ever since this started, I have wondered if Chaz, Janitor Bob's friend that stands on the corner and drinks warm Corona, has anything to do with it. I don't know about drinking corona warm - does that cause disease?

And even if it was business related, how would the airline know that? Surely they don't think all the people who fly business class are flying on business trips?

IMO, yes. If the account was titled in the daughter's name, then the parents contributed to it when they set it up but the account and any earnings thereon had become the daughters and would be funds considered she provided for her own support. If the account was titled in the parents' name as guardians for the daughter, you might be able to argue that either way. This is not a researched and verified opinion, just a gut reaction.