Randall

How long does it take for the IRS to match W2s?  Got a call from a client.  He received a letter from IRS about his 2022 return.  Apparently IRS has more W2 income than we showed on the return.  Spouse had 2 W2s but apparently there is another.  He's going to try to get all the W2s.  But it seems the IRS should have matched this up a long time ago.

There never seems to be any scholarship documentation as to what the scholarship money is allowed for.  I have thought in the past if the scholarship allows to cover other things such as room and board and other living expenses, then it wasn't income.  But the scholarship document must say so.  Is there documentation about various scholarships?

I guess I missed something.  Are these energy credits still ok for 2023?  I was thinking they went away and were caught up in that stalled legislation that's been on hold.

Client went on Medicare during the year.  Both he and spouse were on the market place for health insurance.  Wife remained on market place for the whole year.  They received two Forms 1095-A.  One form shows both thru October.  The second form shows only one person for the last three months.  Do I combine these on one Form 8962 or do I create two Forms 8962?

Add in whatever's going on in Alabama and whoa nelly.

Thanks.

7 hours ago, TaxCPANY said:

Yes, ANY 12-consecutive-month period in which a taxpayer overseas drops by the U.S. for no more than 35 days can be used to qualify for the Physical Presence Test (PPT).  For instance, their second bout of PPT might even carry into 2024 for as many of the 35-day limit as hadn't been used during 2023.  E.g., suppose your client stayed overseas *every day* from Jan 1, 2023 through Nov 30, 2023.  They not only could claim 2023's entire amount of earned-income (AND housing) exclusion(s), but also the first four day's worth of 2024's exclusion amounts.
Not only can consecutive years contain overlapping PPT periods, but the unused 35-day limit before AND after PPTs can be used to maximize claimable exclusion amounts.  Reg. Sec. 1.911-3(d)(3).

Thanks for the reference.

I assume it is officially $18,000 for 2024.  Per the IRS website.  My US Master Tax Guide said only that it was projected to be $18k.

That's what I was thinking.  Page 20 of Pub 54 gives an example.  Someone on another discussion group is saying he can only exclude income from Jan thru April of the 2nd year.  That doesn't make sense.  He excluded income from April to Dec 2022.  And was over there until Dec 2023.  Why couldn't he exclude income from Jan thru Nov 2023.  If he qualifies and you use the overlapping 12 month continuous year to qualify each tax year (both 2022 and 2023).

This is a different client from BBall player mentioned earlier in a post.

Can the same twelve month period overlap for two tax years?  Client was outside US from April 2022 to April 2023.  We used that 12 month period for his 330 day period.  And filed his 2022 tax return in April 2023.  He remained in that country until Dec 2023.  Can we use the calendar year 2023 for the 12 month period where he is out of US for 330 days.  And qualify for the exclusion in 2023 also?

Many of these firms are buying each other out.  Clients should have two 1099s from each company in the year of merger.  After that, only one, if they only have one account.

Does anyone have a client playing professional basketball in a foreign country?  I am getting inquiries from a person playing in Lithuania.  Actually my grandniece’s husband.  They went over there in midyear 2023.  Will be back in US in May, 2024.  I asked him to get info, documents they will provide him, etc.

I’m think he may be eligible for the foreign earned income deduction first, then maybe the foreign tax credit.

Just wondering what kind of documentation these foreign basketball teams provide.  Is he considered an employee or a self-employed person?

9 hours ago, jklcpa said:

I think ATX has the option to leave it there and mark it out of service. You need to do that so that it does not calculate depreciation during the period of time it was not available as a rental.

Yes, I did that several years back.  Client had two properties, both rental and had PAL carryforwards.  Sold one, but took the other out of rental to live in.  Got the PAL freed up on one, but the other was taken out of service but not disposed, so the PAL carryforward on that one is still there.

On 2/8/2024 at 3:20 PM, Catherine said:

I certainly would never go for a pricier package. I'm trying to retire.

Me too.  I looked at Drake back in 2012 (when ATX was having problems).  ATX cleared it up and I stayed with them.  I'll try to stick it out with them the rest of the way.

14 hours ago, Abby Normal said:

CCH owned ATX in 2012.

But doesn't Walter Kluwer own CCH (which used to be Commerce Clearing House)?

And remember if there are capital losses, you can carry them forward each year.  Give a them the worksheet and let them know to retain them for future years.

I probably still have them somewhere.  I won't do past returns unless they are for the years I have on my current computer.  When I get a new computer, I have to put the  most recent year ATX program on it so I can use the rollover function.  But even that's a hassle.  I keep my previous computer in my office so the most recent years are available to me.

I cut back years ago.  I still send about 30 for people who fill them out and request them.  All others just get the Eng Letter and the ATX questionnaire.

My returns don't print the zeroes.  But I'm not sure how I got this.  I remember a few years ago setting something but I can't remember now.

18 hours ago, Lee B said:

ATX has along long history of not providing entity forms to smaller states.

I put in a call, they assigned a case number.  I got the response which I already knew, that the form wasn't available for efiling.  I responded for them to get it on their 'to do' list.  Hopefully they will get it done at least for next year.  Ha.

15 hours ago, Lee B said:

Interesting, since I have efiling OR 41 using Drake

Yes, other tax programs have the Ky 741 available for efiling but not ATX.

ATX does not have the availability to efile the Ky 741 (equivalent to Fed 1041).  Ky accepts this form thru efiling.  Other tax software programs can efile the 741.  I've been trying to get ATX to make this available.  Does anyone else have this problem with their state equivalent of the Fed 1041 or any other forms.  It's a hassle to print out and have the client mail the state form (along with a printed copy of the Fed form).

11 hours ago, Lee B said:

It shouldn't have to be that complicated !

None of this should be that complicated.  But on and on it goes.

15 hours ago, Patti in Upstate NY said:

Thank you all.   61 days left in tax season but who's counting?

I'm counting.  Ha.

15 hours ago, Patti in Upstate NY said:

These clients represent the ONE AND ONLY time I did MFJ then kept both as separate clients after they divorced. 

I have one of these.  Divorce happened years ago and child is grown.  I have not accepted anymore of these since.  Only one or the other.