Randall

Mine filled in automatically once the form was uploaded, which was automatic too when I opened the return.

37 minutes ago, Pacun said:

Let me assume that the wife makes less than $50K and that the old child is 7. If the mother claimed the old child, she will not have to return any of the $1,500 she got in advanced and the husband will get $6,600 as child tax credit. If they split the children, they will get $1,500 less child tax credit.

Regardless, don't forget that the new born will also get $1,400 stimulus.

 

That's the way I'm thinking it too.

On 2/16/2022 at 3:43 PM, Randall said:

They've now delayed it until 2/21.  And Fed 8606 is delayed.  Sheesh.

Another delay for Ky 741.  Now it's 2/28!!!

On 2/17/2022 at 5:52 PM, Randall said:

So if the two parents aren't married but live together with one child, they can switch who claims the child in 2021.  The father claimed the child in 2020.  Received the EIP3 for the child.  In 2021, can the mother claim the child, receive the EIP3 for the child and the father does not have to pay it back?  Is this correct?  The father received half the child credit in advance, $1800.  The mother will receive the full $3600 in 2021 but the father will have to pay back the $1800 advance.  Is this correct?  But someone posted that the advance child credit would not have to be paid back if income is low enough.  I'm not seeing this on the 8812 and worksheets.

A little different situation.  Couple is married.  Been filing MFS because of wife's student loan payoff is according to her tax return and joint income would make payment higher.  She has been claiming the one child.  Received stimulus $2800 and advance CTC $1800 based on 2020 return.  If the above applies, can he claim the child, receive the extra $1400 stimulus and the CTC $3600 but she doesn't have to pay back the $1400 or the $1800 (assuming income is low enough).  There's also a 2nd child this year but I don't think that would be part of the double dipping since neither received anything for the 2nd child in advance.

I can't believe people don't know if they got money or not.  Family of four, $5600 and they don't know that $5k was just dropped into their account (or even $1400).  Some of the stimulus letters are just now arriving.  I only got mine the other day.  Some clients who have brought their info to me already are calling saying they just received this letter.  Then there are two letters for both the stimulus and the advance CTC.  Some clients only bring in one letter thinking the other one is just a duplicate.  Watch for those receiving Social Security.  They may have received refunds by check in the past but IRS got their bank info from SocSec and made a direct deposit for the EIP3.

Don't we have to wait for the Form 8915?

11 hours ago, kathyc2 said:

Part III of 8812

Thanks.  I was overlooking line 30.  Once I entered number 1 there, it shows he does not have to pay it back.  Whoa!!!

On 2/9/2022 at 11:09 AM, Patrick Michael said:

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.   

So if the two parents aren't married but live together with one child, they can switch who claims the child in 2021.  The father claimed the child in 2020.  Received the EIP3 for the child.  In 2021, can the mother claim the child, receive the EIP3 for the child and the father does not have to pay it back?  Is this correct?  The father received half the child credit in advance, $1800.  The mother will receive the full $3600 in 2021 but the father will have to pay back the $1800 advance.  Is this correct?  But someone posted that the advance child credit would not have to be paid back if income is low enough.  I'm not seeing this on the 8812 and worksheets.

On 2/8/2022 at 6:58 AM, Randall said:

I'm waiting for Ky 741 (equivalent to Fed 1041).  Was originally scheduled for 2/3.  Now ATX is saying 2/14.

They've now delayed it until 2/21.  And Fed 8606 is delayed.  Sheesh.

4 hours ago, Abby Normal said:

What is this, the 60s?

Maybe the 40s.  The 1840s.

A recent WSJ article talked about higher probably of divorce due to age of marriage and cohabiting before marriage (especially mulitple partner cohabiting).  Whew.  Younger age and never cohabiting resulting is less divorce.  Older marriage age and cohabiting (with spouse) or having multiple other pre-marriage cohabiting partners resulted in higher divorce rates.

Thanks.

Client arranged to receive RMD in December.  Messed up by Fidelity, didn't get the distribution until January.  No 1099R for 2021 but the 1099R for 2022 will have two distributions.  He has letters from Fidelity admitting it was their fault.  I had this situation some years back.  I completed 5329 for the current year tax return, showing penalty and requesting it be waived which it was.  Showed the total (both distributions) the following year.  The amount in the past was small and didn't cause any tax.  Current client says he's ok with paying the tax on both distributions in 2022 but wants the penalty waived of course.  This seems to be the way to report everything.  Anyone know of another way to report the income in 2021 without a 1099R for 2021 and double the amount on 1099R in 2022?  

I haven't noticed an increase.  But my office is in an old house converted to offices.  There are several attorneys here who do divorce and they are busy, very busy.  And have been before covid.

21 hours ago, Patrick Michael said:

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.   

So, if I read this correctly, the child who is no longer a dependent in 2021 can claim the $1400 credit on their 2021 return.  But the parents who claimed the child as a dependent in 2020 and received the $1400 for the dependent in their EIP3 does not have to pay it back on their 2021 return.  It seems the IRS FAQ site is treating the EIP3 and the Recovery Credit as two separate things.  Not just an advance of the same thing.  

10 hours ago, mcb39 said:

I would also say hold it for 2023.  There are enough kinky problems with the IRS already.  Their long release today regarding how they are going to stop sending dunning letters, etc., is about 6 or 7 months late.  I have a few letters and information packets in that pile of unopened and unanswered letters that they are sitting on already.

I agree now that there's additional info.  

28 minutes ago, kathyc2 said:

Unmarried client passed in Jan 2022.  He would have had some withholding for 2022.  Do I need to wait until 2023 to file a claim for it with a 1040?

Off the top of my head, I would say yes.  But you may contact the employer and request they reimburse the estate for the income tax withheld so the W2 will show zero tax withheld.

Does this affect us?  Individual preparers?  Or just the software companies?

22 hours ago, Chowdahead said:

Does that affect many clients?  Because the lack of the MA Non-Resident form essentially makes it impossible to file RI and CT state returns either because both of those states allow credit for taxes paid to MA, which I cannot calculate.

Not too many for me.

I'm waiting for Ky 741 (equivalent to Fed 1041).  Was originally scheduled for 2/3.  Now ATX is saying 2/14.

15 hours ago, TAXMAN said:

I was told that I have to wait for ATX to reject b-4 it will correct itself so I will try what JackieCPA said. Unless someone else is having the same problem and a cure. I have about 5 of these to fix.

That's what happened to me.  Recently efiled both 2019 and 2020.  Had to get EFC rejection, then re-create the efile in order to get the 2022 in the id number.

And am I correct to understand the parents don't have to pay it back?  I know this was the case for EIP1 and EIP2.

I use two external hard drives.  Rotate them.  Keep one at home and one in the office.  I also buy two new drives every couple of years.  I don't trust the longevity of these things.  I've had them go out.  Plug it in and nothing.  Pretty scary.

I do it myself.  I don't have as much these days with the scanning.  I got all the back paper files shredded long ago.  I have a small office and keep a box under my desk foot area.  When the box fills up, I bag it and take home where I keep my shredder.

10 hours ago, NECPA in NEBRASKA said:

Randall, his training was all civilian. He started flying very young and soloed on his 16th birthday, then got his certificates on his 17 and 18th birthdays. He received his Bachelors in Air Transport Administration from the Aviation Institute at UNO, because it was much cheaper to get his flight hours on his own, instead of through the University. I did not believe his first flight instructor when he had a plan to get him through, but it turns out that he was correct. He started instructing at 18, so he built a lot of hours over time. 

Interesting.  I didn't know how people got their training outside the military.  I met a fellow hiker a few years ago.  He was a Delta pilot.  But he spent 11 years as an Air Force fighter pilot.  Recently met a man and woman, recent West Point grads, Black Hawk pilots.  So congrats to you and your son.