GLGACCT

It is an SNT with the standard Health, Education, Maintenance, and Support clauses from what I am told. The trust will be funded upon her death to preserve her disabled adult child's SSI benefits. Her other children will just inherit from the estate. I wanted to familiarize myself with more information on the SNT to see what expenses the trust can deduct, as well as if the trustee has to pass any income via a K-1 to the beneficiary and what that will do to his SSI reporting requirements. The client has been working with a lawyer to update the Trust documents that were created many years ago. Her other children will be the trustees. Wanted to educate myself on these types of reporting. Thanks

Was working with an elderly client on other matters, when she told me she has updated her will which includes provisions for a Special Need Trust for an older child collecting SSI and ask if I would work with her other children and or their accountants to answer any questions on her finances if need be. I will not be handling either the Estate or Trust. Wanted to do some reading on SNT's and QDT's and looking for more information? Does anyone have any recommended articles, links or recommendation for CPE courses regarding the matter? Thanks in advance

Thank you, was able to listen to all the prompts and advise the TP how to get through. TP was able to get through and received a call back within 30 minutes. The system even assigned someone from the first time he entered his SS number a few weeks ago. System works as expected but you have to listen to the prompts or get caught in a loop. Thanks

TP mistakenly paid his state taxes to the IRS as well as paying what he owed to the IRS for tax year 2023. State notified him that he did not pay his taxes, that is when he realized what happened. The IRS never sent his overpayment back nor applied it to 2024. When you run his transcript, you can see the overpayment is there. His online account does not show the overpayment as he owed taxes that year. He has tried several times calling 800-829-1040 with no success. The phone tree will not get us to a live agent. Any ideas how he can reach a person or a different number to call?

Are you sure the efile manager says the extension was rejected? After the 4868 was accepted and you go revised the return you will see some type of a save error like you stated but it should not reject the 4868. After you add the K-1 and you click on check return you will have a red error about the 4868. However, when you click the efile button to finalize the return after your corrections, you would only select federal and state. It will do the error check again and since you are not doing the extension the error will not be there. Again, this is assuming that the 4868 says accepted. However, in your case if the efile manager has the extension rejected something else is going on.

Thank you for the response. I put it on extension and will review after this week.

Found this on another site: The Rejection Rule F5329-006-01 is an issue that happens when the waiver amount is equal to the minimum required distribution amount and no excess tax is calculated on Form 5329, line 54b. The same could happen with line 54a. This will be addressed with the next 1040-US update. Has anyone done a missed RMD and successfully e-filed with waiver?

Efiled return gets rejected F329-006-01 If the value of Form 5329, AllOthQlfyPlanRqrDistriAmt minus AllOthQlfyPlanActualDistAmt + waiveTaxOnExAccumQRPStmtAmt on AllOthQlfyPlanExcessAmt is greater than or equal to zero then AllOthQlfyPlanExcessAccumAMt must be equal to the value multiplied by 25%. Requested waiver but can't efile. There is an amout on line 54b RC. I must be missing something Any ideas

I believe you do not account for this on the 1041. In NJ you account for inheritance tax on the NJ IT-R. See website https://www.nj.gov/treasury/taxation/inheritance-estate/inheritance.shtml As Tom and Sara, suggested, you are missing information. You will need to see the will and prepare the NJ-ITR to calculate the inheritance tax first, no double dipping. Then move onto the 1041. The website above has most of the information you require.

Client paid taxes owed to the Treasury last year, then paid the state taxes to the Treasury as well. Account Transcript shows the overpayment, but it has not been returned. Should the overpayment be applied as estimated taxes for this year even though the transcript clearly marks it as a payment, code 670 or any other thoughts on getting the overpayment back?

It is my understanding that codes can be reset if you lose your phone. Here is a brief video from the solution center. https://support.cch.com/oss/sfs/video/U7mpfMUm17s

Kofax Power PDF may work for you. They are now Tungstenautomation they still have a free trial. Here is an old post with some details from a prior year. https://www.atxcommunity.com/topic/30243-atx-questionnaire-users/#comment-196790

Here is a useful video to set up and also to reset codes. Unfortunately, no help with two computer. https://support.cch.com/oss/sfs/video/U7mpfMUm17s

Tom, your thinking is consistent with mine. The way the client's son was explaining it to me, the NJ lawyer was having an issue with putting it on her personal return Sch E. I wanted to check to see if I was missing something. In hindsight, the son may have misunderstood the difference between revocable and irrevocable. Thank you for your response.

Tom, the will states everything goes to revocable living trust through a rest, residual and remainder clause. Note the NJ property is actual a rental property. The trust document states son gets NJ Rental Property and daughter gets Florida home. The son and NJ lawyer were skeptical about titling the NJ Rental Property in the Trust as NJ is very easy to probate. Any concerns with or without retitling the property to the Trust? No real value associated with personal property. Agree with the IRAs and bank accounts, as most are joint accounts with the son paying all of the mother's bills, it was suggested to move one account into the Trust. Thank you for your response.

Client Mother lives in Florida, Client Son lives in NJ. Daughter lives in Florida and is not a client. Mother and Son created will and revocable trust to place her house in Florida (has mortgage) per daughter's wishes. Client son just read me the will and some of the trust documents. Both being dropped off today. Will states everything should go to the Trust. Son's NJ lawyer is questioning whether a NJ rental property (has mortgage) should be placed in the trust as well as the small bank accounts and small IRAs. All accounts have beneficiaries and or TOD/POD designations. House in Florida is in the Trust already. Do not know if the lawyer requested an EIN. Son will get NJ property and one Ira and Bank account. Daughter will get Florida house and one Ira and Bank Account. Son and NJ lawyer are questioning funding the remaining items to the Trust including the NJ rental property. The daughter was concerned with the Florida probate rules. Any ideas on how to address?

See attached link from the IRS https://www.irs.gov/businesses/small-businesses-self-employed/lost-or-misplaced-your-ein Your client will have to call

It depends on the area of the country and checking the model number to see if it is energy star efficient. Click on the link provided in the previous post above. Right above filter your results, find your climate zone it will say click here. Enter category, state and county. Once you know your climate zone it will also provide the energy efficient criteria for that zone. Next select skylights in this example and look at the brands listed. Once you find the brand, click the link for more info, this brings you to a different website and you will see a list of model numbers and what zones are energy efficient. You can also go to the manufacturer's website as well. Some certificates can be printed from the energy star site, others you need to go to the manufacturers site.

Try this website make sure you pick the right climate zone: https://www.energystar.gov/most-efficient/me-certified-windows/results?is_most_efficient_filter=Most Efficient

Thank you. I have passive selected. I may try duplicating a return in 2023 to see if it is isolated to 2022 ATX.

In this estate there are dividends with foreign taxes withheld and stock sold at a loss. There will be a net loss to the estate. Using 2022 ATX as it is a fiscal year. Received a red error message: Form 1116 Schedule B must be attached as a PDF; create the PDF, then from the E-File menu select Attach PDF. Schedule B looks to be correct and has the correct carryforward into the following year. Any ideas as to why this error message?

See attached link below the requirement is more than one-half of the cost of maintaining the household https://www.irs.gov/faqs/filing-requirements-status-dependents/filing-status Second FAQ: Question: If the parents of a year-old child never married but live together with the child for the tax year, and both contribute to the cost of maintaining the household for the child and themselves, may they both file as head of household? Answer: No, only one parent may claim the child as a qualifying child to file as head of household. To file as head of household you must furnish over one-half of the cost of maintaining the household for you and a qualifying person. Therefore, only one of the parents will have contributed more than one-half of the cost of maintaining the household and be eligible to file as head of household. If a child is a qualifying child of both parents, there is a tiebreaker rule to determine which parent may claim the child. See Publication 501, Dependents, Standard Deduction and Filing Information for more information.

Read section 1.121-1(b)2: (b) Residence—(1) In general. Whether property is used by the taxpayer as the taxpayer's residence depends upon all the facts and circumstances. A property used by the taxpayer as the taxpayer's residence may include a houseboat, a house trailer, or the house or apartment that the taxpayer is entitled to occupy as a tenant-stockholder in a cooperative housing corporation (as those terms are defined in section 216(b)(1) and (2)). Property used by the taxpayer as the taxpayer's residence does not include personal property that is not a fixture under local law. (2) Principal residence. In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer's principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer's principal residence. In addition to the taxpayer's use of the property, relevant factors in determining a taxpayer's principal residence, include, but are not limited to— (i) The taxpayer's place of employment; (ii) The principal place of abode of the taxpayer's family members; (iii) The address listed on the taxpayer's federal and state tax returns, driver's license, automobile registration, and voter registration card; (iv) The taxpayer's mailing address for bills and correspondence; (v) The location of the taxpayer's banks; and (vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.

From the IRS website: https://www.irs.gov/help/irs-document-upload-tool Under more info, it seems like it is only for a few forms. Also, there is a video link for instructions.

You do not report an amount like you do on a NJ-1040X. You need to take the corrected return less the previously filed return to come up with the new amount due. My guess is that NJ will add the two payments together which will equal the corrected return.