Randall

I'm not sure if this applies to you. But 529 qualified expenses includes much more than the AOTC qualified expense. Room and board. Even if they're living at home, I think there's a chart for the school area you can use for 'room and board' expense.

Are you talking about direct payment? I just put one in to pay April 15. But my letter is showing May 17 now.

Thanks.

Client has legal custody of grandchild. Efile rejected due to dependent ssn already used. This will happen every year. Is there a way (a form) to inform IRS to only accept this ssn with the grandparents?

Thanks Pacun. This is what I got from my reading. It's just one of those situations that seems too good to be true and I guess I was trying to cover myself from the diligence point of view.

So Pacun, in my case, my 20 year old natural father (living in same house with natural mother (not married), their baby and parents of the natural mother) can claim the child, and qualify for EIC. I've been looking for references and can't find any specifics. So if they're all living in the same household, they can pick and choose who claims the baby? I believe the natural father's earnings are over 50% of his own support. But the main support of natural mother and baby are coming from the grand parents and their house.

Interesting. I have a little different situation. But I'm wondering if you can pick and choose if they're all living in the same house. In my case, natural father of baby, living with natural mother (not married) in mother's Mom & Dad's house. Much more beneficial for natural father of baby to claim baby, qualifying for EIC even when under 25 age (with child).

Does a person have to make an election in the prior year (by April 15) to claim trader status and allow the wash losses? It seems the instructions to make this election has to do with mark-to-market, claiming the gains & losses as ordinary. Can one just claim to be a trader and put these on Sch D as capital losses? Client had about $10k in the account, 1099B proceeds total 35 million. Disallowed losses show him with a gain of $28k.

So I guess ATX is doing it correctly, just adding back the 10,200 on the SocSec worksheet to what the 1040 lines add up to.

I thought IRS changed their interpretation of the law so the 10,200 was not added back. I'm really confused now.

They should move the filing date back to the year 9595.

It's not just the elderly. Many get confused with the more recent payment and forget the first. I usually tell them to track it down because it is very unlikely they would get one and not the other. One lady insisted she did not get one, looked at her bank accounts. Then remembered her nephew scared her with 'end of the world' stuff and remembered she cashed the check and put the cash in a safe. Ha.

Ha ha. You're trying to make it harder.

This thing just keeps getting better. Household, father & mother. Daughter has a baby. Father of baby also living in household but not married. Daugher's income is low not enough to claim half of her support. Father of child income is low but high enough to claim over half of his support. (His parents not claiming him, they are not my client). I was going forward with father & mother (grandparents of baby) claiming both daughter & baby. Father of baby claimng himself only. But if father of baby claims the baby, he not only gets $1400 additional child credit, $1100 stimulus, but now qualifies for EIC (under age 25 but with a child) of $3400. A bigger benefit than grandparents claiming the baby (by about $3000). My question is can he claim the baby in these circumstances. Lived in the same household with the baby.

Thanks for that. I must be bug eyed. I read that several times and was thinking Do NOT. Sheesh. And ATX concurs.

I'm not sure if I'm reading this correctly. Person under 24 provides over 50% of his support. Rule 1c. But when answering the questions, both ATX and IRS 8863 instructions, question 5 seems to contradict things. Was your earned income LESS than half your support? If I answer no, this means it is greater than half. But it tells me to stop, you canNOT take the refundable part of the credit. If I answer yes (which is inaccurate), it tells me to continue, then with a living parent, not filing a joint return, it again says you don't qualify for the refundable part of the credit.

Just did one with UE and SocSec. Worksheet for SocSec in ATX adds back the $10,200. Looked on irs.gov and their worksheet just says to add the amounts on 1040 p1. ATX took that number and added back the 10,200. I'll put it on hold until ATX updates.

The list shows Oh conforming but I don't see anything on their website.

I'll wait a little while longer. I've been adding it back for now as my preliminary. Still waiting on Ohio. Had one who was over 150 AGI so it didn't matter. Another Oh I added back, didn't increase income to cause tax so it didn't matter either.

Word from the Ky Society of CPAs is the legal beagles are checking to see if the Revenue Cabinet has the authority to say yay or nay. If not, it will take legislation and that is not likely given their time left in session.

I'm still waiting on Ky and Oh.

I was wondering if it would trigger something. This whole ppp thing is another world.

When completing Form 1120S, Schedule B has a question about any loans being forgiven. Does this apply to the PPP loans forgiven? If I click yes, it ask for the amount. Do we include the PPP forgiven loan in this question? Will it trigger an inquiry? Is there a place for a description or explanation. I don't see one.

Thanks. I thought I remembered reading this too.

What about the SBA making several payments on an existing loan. Not part of a PPP loan. Would this too be treated as tax exempt income or just other income (taxable)?