Abby Normal

Thanks, Possi! Even though MD has excluded UI, they used lower income limits, so it's looking like the fed exclusion will be a MD addition, then if you qualify for the MD exclusion, you can calculate that.

I already posted the latest from irs.gov that covers the Social Security calculation and others.

My policy is to assume they got the stimulus if their AGI was low enough and let the IRS sort it out.

I can't believe they took down the site to check and see if the payments were sent.

From 4835 instructions: Partnership or S corporation with rental income and expenses from crop and livestock shares—instead report on Form 8825.

Sounds like it.

Use 8825? Is it a flat rental or rent depends on production? If 4835 doesn't work and it's not a flat rental, just put it on the 1120S.

I have some older clients with small W2's and low income. They make Roth IRA contributions just to get the retirement savers credit, knowing that they can take the Roth money whenever needed or leave it for their beneficiaries.

Nope. The loss goes bye bye.

ATX support called and said state forms for unemployment changes should start coming 3/29.

MD did July 15th before the feds due to MD law changes in February (that they still haven't fully implemented).

I was only half joking when I said a few weeks ago that we should all close our offices for a month, to let this all get sorted.

VA doesn't tax unemployment at all, and I think it's been this for a long time. MD is a new law, but has lower earnings limits (75k single, 100k MFJ & HOH) than the federal law, and it's a cliff. https://www.marylandtaxes.gov/RELIEFAct/docs/Maryland-Unemployment-Assistance-FAQs-FINAL.pdf

When figuring the following deductions or exclusions from income, if you are asked to enter an amount from Schedule 1, line 7 enter the total amount of unemployment compensation reported on line 7 (unreduced by any exclusion amount) and if you are asked to enter an amount from Schedule 1, line 8, enter the amount from line 3 of the Unemployment Compensation Exclusion Worksheet. See the specific form or instructions for more information. If you file Form 1040-NR, you aren't eligible for all of these deductions. See the Instructions for Form 1040-NR for details. Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet) IRA deduction (Instructions for Form 1040 or 1040-SR, IRA Deduction Worksheet) Student loan interest deduction (Instructions for Form 1040 or 1040-SR, Student Loan Interest Deduction Worksheet) Nontaxable amount of Olympic or Paralympic medals and USOC prize money (Instructions for Form 1040 or 1040-SR, Schedule 1, line 8.) The exclusion of interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815) The exclusion of employer-provided adoption benefits (Form 8839) Tuition and fees deduction (Form 8917) The deduction of up to $25,000 for active participation in a passive rental real estate activity (Form 8582)

It redirects here, so it appears legit: https://www.irs.gov/identity-theft-fraud-scams/identity-verification-for-irs-letter-recipients

It would be an incomplete gift.

My old software sent an email after returns ack'd. I don't like the idea of emailing the 9325 due to the sensitive nature of the form, but an email with no attachments would be great.

Seems like guaranteed payments would be the way to go since the concept is to pay them more if they work for the partnership more. But you will need to explain to them the new dynamic. The one who earns less is currently paying tax on income that is going to the one who works more, so they will definitely want to switch from draws to GP.

Call the IRS.

The "quarters" aren't calendar year quarters. Look at the forms and give her the exact dates you need.

All the best to you and her! She should probably be hospitalized and get any available treatments to control it, even if just overnight.

This is why we love eservices and clients with IRS.gov accounts. Just download whatever you need.

People paper filing 2020 are going to be in for rude surprise.

So WOAT is the opposite of GOAT? I did not know that!

Wasn't sure whether to start a new post for this or not. If a child's unemployment compensation would trigger the kiddie tax, how does the exclusion of the child's unemployment affect the kiddie tax? Also, if the parent's AGI is over 150k, does that change the answer?