RitaB

On 3/19/2021 at 1:14 PM, Abby Normal said:

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

 

Yes.  Also.  A good thing to do, when I've just finished your 2018 return that I started in October 2019, is not bring me two 2018 LPL Financial 1099s when you drop off 2019.   This will guarantee you WOAT status among clients.  

I think IRS is sending a lot of incorrect letters.  But, it is very common that people don't know that the date of the liability is the date of the payroll checks.  

I will say this, I had forgotten how much I hated those 2018 forms.  The WOAT.  So glad we only had one year of those.

11 minutes ago, Gail in Virginia said:

Gee, Rita, you don't have anything else going on right now but this one tax return to do, right?  In late March, early April I am sure we all work on one return until it is finished completely, then put it away and work on the next one.  And we get them all done the same day we start them.  Right?

Exactly.  

2 hours ago, Hahn1040 said:

The "filing as surviving spouse"  should be in the deceased person's signature line.

the line for the signing spouse should be open

Did you perhaps enter the the date of death for the wrong spouse?  ( I started to say: Did you kill of the wrong spouse.  but that seems too harsh even for a whiny procrastinator)

Oh, you know what I did?  When the error message said you can't e-file when the taxpayer croaked way after this &^*% thing was due?  I switched and made her taxpayer.  Same *&^% message for the spouse croaking way after this &^*% thing was due.  I forgot to switch the date of death.  

My bad, everybody.  I'm losing it.

Thank you, I am laughing.   

So, I have this surviving spouse that is going to have to sign 2018 and 2019 Forms 1040 and mail them because she has poked around until now, and after the husband died in Jan 2021, to get me the information to finish the returns.  I can't e-file.  I am sorry to confess to you all that I am unsympathetic, but she first came in my office October 2019 crying, "Can you get this [2018 return] done before the deadline so we won't to jail?"  And she called crying April 14 ish, 2020, "Can you get me an extension for 2019 so we won't go to jail?  And tell me what to pay in?"

She just gave me the missing information I was waiting on to finish 2018 on 3/16/21 because she wants PPP funds, and I told her I'm completing both returns, not just giving you a 2019 Schedule C.

My question, and I do have one, is does she cram her signature above the typed "filing as surviving spouse" and inside spouse's box, or does she sign inside the box for "Your signature"?  (Where husband would normally sign.)

Thank you, everyone.  Mother was 97, and she has moved to heaven.  I am so happy for her.  Thank you all, again, for your prayers and kindness!

Thank you, Fine Ladies.   I am out of the office with my 97 year old mother who's in the hospital, hopefully getting settled in to our very fine Hospice facility today, Monday the 8th.  Great ideas, and I was about out of them, not gonna lie.  Appreciate your prayers.  

Where would I enter a Section 481(a) adjustment for residential rental depreciation with all personal use 2020? Sold in 2020.  Depreciation never taken, a DIYer, and not rented 2020.  Husband lived in it, and wife lived at home, but that's another story.  Made it through Form 3115, but if I enter the expense on Line 19 of Sch E, it's disallowed.  First thing that comes to mind is Form 1040, Other Income.  

I just have to say I love the title of this thread @NECPA in NEBRASKA.  This is me every day about something.  Like yesterday, I actually had a Covid early distribution with Code 2.  I looked around for hidden FBI cameras and thought about completing Form 8915 (which I have called 8715 for six weeks), for a very long time before I stuck it in the stack. 

11 hours ago, Sara EA said:

The EA journal this quarter actually had an article on navigating tax groups on social media--they must have seen a need.  It went into how some respondents are nasty, belittle those who asked a question or disagree with an answer, try to show off their smarts, etc.  It also talked about people who ask basic questions because they are too lazy to look up the answer.  It made me think about why this forum is so great.  Everyone truly tries to be helpful so no one is afraid to ask a question.  If others disagree with a response, their remarks are always respectful.  What a great group!

Yes, this group is like family.  Another good one is the Facebook ATX Tax Software Support Group.  Frankly, the other groups I read have some folks who never picked their own switch off the tree, and it shows.

7 hours ago, joanmcq said:

I haven’t had anyone die, and forgoed my RMD since I didn’t need it. Stock market is up. Have less expenses since I haven’t gone anywhere. I’m going stir-crazy, but financially I’m fine as are my clients as far as I can tell.

maybe I’m just weird.

You’re not. Every one of my clients who applied for PPP loans had MORE revenue in 2020. I had more revenue in 2020. I actually got Covid in November 2020. Never missed a day of work, just told people not to come in the office. No financial hardship for me, no applying for assistance that wasn’t intended for me. Kinda mad at the windfall some received. Happy to help those whose businesses and livelihoods were destroyed, and I feel so badly for them, but I don’t know any of them.  It have felt sad and frustrated but I am thankful. 
 

1 hour ago, Abby Normal said:

Yes, if you're under the 85% taxable limit or just over, it matters and you'll have to override line 3 of the SS worksheet by subtracting 300 from whatever is there.

I believe you add [up to] 300 to Line 7 of the SS worksheet. 
 

Grace, I have overridden Line 7 on two or three (can’t remember) that have been accepted. 
 

These 0h Rita titles always throw me off:   No way I have made 37 errors already shut up. 

6 hours ago, Abby Normal said:

If the tax is right on the return, regardless of how I got there, I almost never amend the return.

Absolutely agree. I’m only concerned about the possibility of a letter to a client. Always a time waster. There is no chance of getting paid either.  I would hope IRS would not chase this rabbit.  Waste of their time, too. 

Alright.  I sent three returns for clients who didn't want to take advantage of reporting the early distribution over three years.  I used Form 5329 only.  They were accepted.  THEN I happen to read on the ATX Form 5329, under Part I, that we don't use this Form for coronavirus related distribution. 

I noticed just now that the IRS pdf for 2020 Form 5329 does not have that instruction against using the form for coronavirus distribution.

Just throwing this out there.  No idea if we that used 5329 should amend to include 8715-E or not. 

I have three others that I will hold onto and use 8715-E.  And yes, I have tried to dissuade folks from shooting themselves in the foot by not spreading the income over three years.  They have already shot themselves in the foot by taking distributions they didn't need while the market was down.  There's no helping these folks:  "Oh, your hours were cut causing your income to be 4,000 less.  It makes perfect sense to take out 90,000 from your 401k.  Ok."

I was a high school teacher for eight years.  I did spend money out-of-pocket every year, probably under $500.  I think the teachers whose returns I prepare are not really the most philanthropic.  I know many teachers are, including my daughter-in-law.  Did not mean to disparage the entire profession.

Seems like I get a lot of pastors who really hate paying Caesar, too.  Is it me???  A few that don't tithe.  It always makes me want to ask them if they trust God or not.

I will say I really regret rolling my teacher retirement monies into an IRA.  That money is probably worth five times as much now, but TN Consolidated Retirement System till I die would have been so much better.  Regrets, I've had a few...

35 minutes ago, Pacun said:

Rita, 

I am on the same situations:  After giving my clients the three options at hand, and giving them the dollar figures for each choice, I have three clients that have decided to pay all taxes in 2020 but I guess I will not able to send their taxes this week...MUST we wait for form 8915F to avoid that early withdraw penalty?

Well, I don't know, but I sent my three who don't want to spread it over three years this morning before seeing the directions on 5329.  They were all accepted.  I don't know whether to amend for that Form 8915E or hope nothing happens.  I would rather chew off my right arm than for a client to get a letter where I messed up. 

Or where my software messed up, like Line 10b not making it to the SS benefits worksheet.  (See thread:  Taxable SS and 300 donation).  That's on me when it gets adjusted, but I think I caught them all.

1 minute ago, schirallicpa said:

Thank you for responding to yourself.  I was going to check that out in a few minutes.  

 

Feel free cause I have trust issues.

13 minutes ago, RitaB said:

Do we have to use 8915 if the client wants to report the entire distribution in 2020?  Can we use Code 12 on Form 5329 Line 2 to show the distribution is not subject to the early withdrawal penalty and be done?  ATX is allowing me to do that.  Can I trust ATX?  Forgive me for not reading Instructions to Form 8915 yet.

 

Never mind.  It is staring me right in the face on Form 5329.  I guess I cannot entirely rely upon Code 12 on Form 5329.  My bad.  Carry on.

Do we have to use 8915 if the client wants to report the entire distribution in 2020?  Can we use Code 12 on Form 5329 Line 2 to show the distribution is not subject to the early withdrawal penalty and be done?  ATX is allowing me to do that.  Can I trust ATX?  Forgive me for not reading Instructions to Form 8915 yet.

I think it's Line 7 of the current (2/15/21 @ 7:00 am CST) ATX "figuring taxable SS benefits [my name for it]"worksheet that will have to be overridden.  When ATX corrects it, Line 5 should be omitted, Line 6 will become Line 5, Line 7 will become Line 6 and include the donation amount.

See page 30:    2020 Instruction 1040 (irs.gov)

Wow, when I tell them it's up to $250, what did you actually spend?  The range is $0 - $67.78.  

I must not have the shining stars of the educators.  

32 minutes ago, Corduroy Frog said:

I am 60 miles from downtown Nashville and have AT&T supplying my cellphone.  Could use my cell for about two days.  Rita is further away, so don't know whether she was affected or not.  If she doesn't use AT&T, she should have been OK.

Is anyone's guess as to whether we have been given all the relevant facts about the bombing.  For whatever benevolence may ascribe, it is obvious that the bomber didn't want to kill anyone but himself.

Yeah, turns out I'm 112 miles from Nashville, who knew?  My cell phone was fine, but we had a substitute 911 phone number.  And, when 911 was back, they had to announce on Facebook:  "Please don't call 911 to see if it's working - it is."   

Awww, thanks, BB, and hey, my friends, I'm here!  75 miles from Nashville, and hoping 2021 walks in with a smile, sits down, and doesn't touch anything.