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Patrick Michael

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  • State
    NY
  • Gender
    Male
  • Interests
    Woodworking, DIY Projects

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  1. A lot of hard work, but definitely worth it. Looks great!
  2. I had a couple of clients that ran into this. You have to re-calculate the federal the amount of EITC the client would have received using the NY Recomputed FAGI, and then use that amount to calculate the amount of NY EITC. Had some clients that lost their entire NY EITC because the NY Recomputed FAGI was more than the NY Maximum Income limit for NY.
  3. I just finished my 25th tax season. I got a late start, going back to school to get my BA in accounting after a 20 year career as a Deputy Sheriff. Last two years have been difficult with all the changes and challenges from COVID. Hopefully next year we can get back to "normal".
  4. One situation I can think of where there were One way this could happen comes to mind. If there were substantial capital improvement(s) that did not add market value to the home. We had a home owner in our area that added a new addition to their home for an indoor pool. I doubt they could ever re-coup the cost of the addition and pool as this is middle class area of the city..
  5. Received one yesterday from a "new client" that said "You will be grateful (sic) for preparing my tax".
  6. it is all too easy us to forget make sure we take time for ourselves, family, and friends this time of year. Two close friends of mine passed away from cancer a couple of weeks ago, reminding me that time away from family and friends can never be recovered. Off to my granddaughter's Easter chorus recital in a couple of minutes. The rest can wait.
  7. Thanks Judy. I missed putting it on 14B (guess that what happens when you're reading IRS instructions at 11 PM after working all day!). The 6% penalty is still calculating on Form 5329. Is this correct? And do I have to add the$1,253 back into their income on Sch 1 since it was not included in Box 1 of the W-2?
  8. First time I have run into this and the more read the instructions the more confused I get. Client changed jobs in 2021 and had $1,253 in excess HSA contributions between the two jobs, reported as "W" on the W-2's. This amount is showing up on Line 47 of Form 5329, with the additional tax calculated. He withdrew the excess plus earnings as soon as I notified him. My questions: Is the excess still subject to the 6% tax? Where and how do report the withdrawal of the excess? Thanks
  9. That's how I am reading too. I have a family with 6 kids under the age of 17 who will be getting over $10,000 more filing separately.
  10. Just found this FAQ. https://www.irs.gov/pub/newsroom/fs-2022-09.pdf?fbclid=IwAR36PKI8b58-pXS2L4B4asxNGUTLvbqM1-Tt6RFbzDodkxsWT7oYOm2m3aQ Q E15. Dependents: Can my 2021 Recovery Rebate Credit include an amount for a qualifying dependent if the dependent received the third Economic Impact Payment or someone else received the third Economic Impact Payment for the dependent? (added January 13, 2022) A15. Yes, if you meet the eligibility requirements to claim the 2021 Recovery Rebate Credit. The amount of your credit may include up to $1,400 for a qualifying dependent you are claiming on your 2021 return.
  11. I am struggling with this too. Not so much the ACTC because that seems pretty cut and dried. But I can't find anything saying you can/can't double dip on EIP3. I've been telling clients, and putting it in the engagement letter, that this is a gray area and they may not receive it, and if they do, they may have to repay it in the future. Just another example of rushing legislation through without digging into the details and looking for unintended consequences.
  12. I have run into a similar situation with unmarried couples who have children in common. In these situations, not only do they "double dip" on the CTC, but also the third stimulus payments. I can not find any information saying this is permissible or that it is not. I hope (maybe more a wish) that the IRS would come out on some guidance on this.
  13. This falls into the "seems to good to be true" category and I need a sanity check. Unmarried couple, 2 biological children. All 4 lived together the whole year. Mom claimed both kids last year. She received $4,200 in stimulus money and $3,300 in ACTC in 2021. This year father claims both kids, he gets $2,800 in RRC for the children, and $6,600 CTC. Mom does not have to pay back the ACTC because her income is below $40,000. There is no tie breaker issues as the parents agree on who gets to claim the children. Am I missing something here?
  14. I may be wrong, but don't you have to be a person eligible to practice before the IRS to use form 2848? I am not a CPA, EA, or attorney. Is there any way for me to pull transcripts?
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