Possi

WHEW!

I'm seriously selling, but I'll still be working! Even if I wasn't, I would still stalk y'all and try to help.

Wait... there's a K1? This is my first one, and he didn't give me a K1. I sure hope he's telling me the right figure. grrrr

Thank you. Amazing.

Do I NOT include the PPP loan as income?

The latest I had was March 2, so you have updated information. Thanks. I'll go with that!

My client received his PPP loan for $20,800. (he had no payroll and his business did not suffer, btw) He included the PPP amount in his gross receipts on his P&L. Am I right in my research, that it is not considered income, even if it is forgiven? And, expenses paid with PPP money are still deductible? THEN..... If it's not taxable to the Feds, but it IS taxable to Virginia, has anyone negotiated that on the VA return yet? I'll call Richmond for assistance if not, and post my results.

Taxwise is a little different. If I don't include any payments received, the entire stimulus is added to the refund.

It was not a good marriage. They might have been drunk.... anyway.... She was the primary TP on the 2019 return. He has 2 children, 13 and 15 yrs old. They weren't married very long, and divorced in 2020. IRS Account transcript was included with their paperwork, and it is reflects the joint return. 4-15-2020 $1200 issued, (verfying their date of divorce, but I believe it was after the first payment) 1-18-21 $2400 issued. They were NOT married for this payment that is indicated as a joint payment based on the joint return in 2019. I'm checking to see who received this. Am I to report the payments on her return as #1 $600 and #2 $1200? OR... do I report how THEY split the payments. I believe he actually received the second payment of $2400 because he has the kids, but this transcript she brought me has both SS numbers on it as a joint return. I'm not sure if there is any matching rule. At this point, I don't think there are ANY rules, and I could probably throw any amount on either return as long as the total $3600 is reported.

Last year, I notified my clients that I had zero intentions of working past June. Fortunately, I have very good clients and they trust me when I say something. I will be selling my business after this tax season.

I perfectly agree. But can't stop... 22 amendments for unemployment are looming here, and I'm sure that's light to most tax pros. When will they issue an extension? And should the states be forced to extend as well? No way they can properly prepare for all these changes.

As you know, Rita's mother recently went to Hospice Care. "Mom" went to Heaven a little while ago. It was very Peaceful and we are thankful. She approved my posting this. Please keep her and her family in your prayers. Thanks, Love and Blessings...

BOOM! THERE it IS! It is in his divorce decree that he claims the children every even year. BUT.... since they don't spend over half the year with Dad/step mom, the 8332 must be used. And THAT says Dad claims them. Thanks for turning my little light on! IF the children actually spent half the year with Dad, and the 8332 was not necessary, THEN, step mom could claim them. Thanks for the chat, y'all.

Parents divorce. They trade years to claim the children. Dad remarried. Dad and step-mom want to file separately. Is step-mom allowed to claim the children?

Thanks, I am going to take it on the tax return. You are right, they have completed the first set of payments.

See if you have a report that lists "forms"... and find the 1099G's. TW had it.

I found the CTC info, too late to edit. Would it change how the credit worked? Here’s where it gets interesting: You could receive some of the credit as an advance on your 2021 taxes. The bill would make the credit fully refundable, which means you can receive money from it as a tax refund even if your tax bill is reduced to zero. And half of that money could be advanced to households over the next six months (based on their 2020 tax information, or 2019 if that was unavailable). It’s not clear how frequently payments would be made — perhaps monthly — but under the bill they would begin in July. The changes are effective for 2021 only, though at least some Democrats would like to make it permanent.

I was just told that my client's second stimulus is "scheduled for deposit on April 15." Should I include it on the tax return? The form clearly says "check here if no payment was received." If I say it was already received, that scheduled payment might vanish.

Taxwise has a query for forms. ATX might have one, too. In TW, go to "reports," then Lists comes up. Choose "form selection report." I hope this helps.

I've done 22 when I ran a query. It's not just the numbers, it's the fact that fat cats grab their designer pens and stroke a signature without one thought of how this will affect anyone but the man in the mirror. Will the child tax credit be retroactive, too? I'm looking but can't find it.

That's a good question and I'll be looking to see what responses you get. My friend did not return his stimulus check for his wife who died in April 1, 2019. He did not receive a second stimulus payment. His first payment was addressed as an overpayment on the tax return worksheet, and the second portion was a credit of $1200 (that he did not receive) for him and his minor son. So, on the return he netted $1200 in credit. They haven't hauled him in from his fishing boat.... yet.... Let's see what others say.

My stay at home mom worked one week in the church nursery for a little over $200. Two hundred dollars. She got over fifteen thousand dollars in unemployment. I do a lot of tax returns. I see this over and over. I too, was hoping the IRS would fix this and just send refunds, but then I woke up. They do not care about software or the very tax professionals guarding their gates, following their mandates, crossing T's and dotting I's with threats of penalties looming. We are the "good guys" and we are the ones getting kicked around... again. I'm sorry, but I have way too many clients to postpone filing tax returns based on "what ifs," and I'm sure many of us are in the same boat. This isn't the end of the world for me, it's just "another day in paradise." I have a job, and for that I'm thankful.

Thanks.... or as soon as they get their hair done.

Knowing that this is coming, I will encourage those still coming to wait to file, but I have already done so many it will be difficult to pick them out right now. I need to, but it will be challenging.

YES, this.