Randall

Wouldn't they have to roll over the inherited 401(k) to an individual IRA (inherited/beneficiary) to get the distributions spread out over their life expectancy? Non-spouse beneficiary.

ATX just answered my question. On their checklist, a notice says that both boxes should be checked if it is an inherited IRA.

Another wrinkle. Just entered one which is an inherited IRA. The 1099R doesn't show it is inherited other than the account name (beneficiary of deceased). But has IRA/SEP/SIMPLE box checked. But in ATX input screen, there is a separate box for IRA and Inherited IRA. If I check the Inherited box, ATX puts this in the pension section of their summary sheet and not the IRA section. ATX also allows both IRA and Inherited IRA boxes to be checked at the same time. If the IRA box is checked, ATX puts it in the separate IRA section even if both boxes are checked. So my question is which category does IRS consider an Inherited IRA to be?

Thanks for these comments Hahn1040.

Thanks for posting this joanmcq. I see in ATX in the 1099R input screen, tabs at bottom for Summary Totals shows the breakdown for IRAs and Pensions with a Total section. But the 1040 line 4 still seems whacky when trying to read it and make it sensible. I wonder if IRS will address this next year. On the other hand, the 1099R worksheets are included in the efiling, so they may not care what the 1040 line 4a and 4b look like. I need to remember to include a copy of the 1099R Summary Recap sheet with the client's copy so they can tie into the numbers on 1040.

I did one for a traditional IRA distribution with basis. It worked for me.

They always seem to want that new tractor or some piece of equipment. I like to take the loss and add back depreciation and interest to get an indication of potential profit or being close.

I had to follow their recommendation on several. Duplicated the return, created the efile in the duplicate and transmitted. One was Fed, two were state where Fed already accepted. I did notice in the Efile manager, that the originals were grayed out now after transmitting the duplicate. So hopefully, no problems will pop up.

That's why I was doubtful about duplicating a return and transmitting. Seems there would be two returns out there.

I'll have to check out those examples in the IRS Pub. But I don't see how you can create your own excess. If the scholarship is for the tuition, I think the tuition is gone for AOC.

That's what I thought, not 404.

A recent update in ATX has added input spaces specifically for these three items. Their 199A worksheet auto fills the Sch C profit and you have to manually input the amounts for these three items. Then the ATX worksheet deducts them before calculating the 20%.

They are not deducted on Sch C. But for purposes of calculating the QBI, half of SE tax and SE Health ins and contributions to qualified retirement plans under IRC Sec 404 are deducted for QBI purposes. Reg 1.199A-3(b)(1)(vi) I was asking about traditional IRA and HSA in this context which I don't think are deducted.

I think we've discussed this. Half of SE tax and SE Health ins deduction and contributions to SEP, SIMPLE plans come off the Sch C profit in calculating QBI. What about Traditional IRA and HSA contributions. Client has no W2 income or spouse with earnings. My latest PPC references just says the above 3, doesn't mention Trad IRA or HSA. Looking for confirmation.

Yes, I've heard of this. But this still sounds like the traditional way of scholarships, that is, if the scholarship exceeds costs of tuition, a way to get around the child paying tax on the excess as income. I think the scholarship would have to be very specific in wording to NOT apply to tuition to get around everything so the parents can claim AOC.

No, nothing done in your program. Go to ATX site, under Efile status, search for the client, you'll see an option to 'Rehang'

I've heard of this strategy but it sounds bogus to me. It seems the scholarships pay the education costs and reduce qualified education costs eligible for the credit.

Mine are going thru slowly. They will show status as Transmitted to EFC, then later come thru as accepted, never showing the status as Transmitted to Agency. Wouldn't rehanging them be better than duplicating the return?

Just did my 2nd deceased return. On the first one, I wondered why the Deceased date didn't show up at the top. It did on my state (Ky). I now noticed (with this 2nd one) it is at the bottom of 1040 page one. Not the bottom of the page but at the bottom of the printed portion (mid page). I think someone else wondered about the notice not being there so I wanted to post this.

That's what I've been doing.

I see that now I'm in a 1065. I don't think the 1120S had it. And the 1120S had the total at the top. The 1065 total doesn't show a total. Ugh.

Mine are going thru now.

I only scanned thru the instructions so I may not have it right. But under IRAs, for multiple 1099Rs, it seems to say put the gross amount on line 4a and the taxable amount on line 4b. It seemed to be saying the same thing for pensions and annuities. If gross and taxable amounts are the same, line 4a is blank. If all 1099Rs are marked the same, the software puts the total gross in line 4a and the total taxable in line 4b. I was thinking with the two lines combined into one line, and the 1099Rs, some IRA and some not, ATX just missed something. I was wondering how other software was doing it. Any Drakes users reading this?

Does not a long journey begin with a small step?

Just discovered ATX has a summary of the unadjusted basis of depreciable property. It's under 4562 statements. I was working on an 1120S and calculated the amount manually, then saw this statement. Same amount as I calculated so I must be doing it right.