Dave T

Also, if the student is under 24 years old they wouldn't get the refundable credit component I believe.

Thanks very much.

T/P moved from PA to MO is first week of 2021. He as one week of pay in PA as well as a 1099G from them for approx. $2K in unemployment presumably for 2020. Not sure how to file for him? Does PA have partial year resident or non-resident similar to NY? Thanks very much

Yes the NY SDI and PFL flow to Schedule A

Good points Lion and cbslee, No his only client is his former employer. So based on this then, no QBI but obviously S/E? And then, if not QBI does the income need to be reported on Sch C or just as other income?

Yes, would agree with the fact that he has now has another full time job. In addition he is beyond the 3 year period and has just maintained the relationship with the former employer in a highly technical field Also, in the first few years after leaving he continued to consult and received a w-2. This is the first year of receiving a 1099.

I think there may have been a thread on this awhile ago but not sure. T/P has full time job but also does consulting work for former employer. Former employer gives him a 1099-NEC which I know of course in subject to S/E tax but the question is does this go on Sch. C and qualify for QBI ? Thanks

I had given her the estimated vouchers for 2021 and when meeting with her the other day I asked about her estimated payments and her answer was I didn't make any. Oh well what can you do. We can just suggest.

Unfortunately no refund to apply from 2020. She has large amount of self employment in 2021 and thus facing a fairly large tax bill.

It may be a moot point but just wanted to double check. T/P took $40K IRA distribution due to covid in 2020 and elected three year payback. 1099R showed $4K federal tax withheld which i included on 2020 return. Now, doing 2021 return she owes significantly more due to no tax withheld. I obviously should have checked this last year but could the withheld amount be spread over the three years as well? Thank you.

Long time client moved out of state in 2020, bought a house and just texted me to tell me they are using that house as an Airbnb. I have had clients with rental property before but never something like this. How is depreciation calculated since it is their personal residence as well as rented? I know there are other expenses a well but not sure about this component. Thank you

Will try these suggestions today. After a trip to Urgent Care for my wife and then a late night trip to airport to pick up my son from a very delayed flight from Dallas, didn't get much chance to work on this yesterday. Thanks for all the helpful ideas.

Brother is the default printer and I can create PDF files from ATX but still can't print them. Pacun, I tried your suggestion but when I right click on the file I don't see a Properties option. I will try first to uninstall the printer and then try to download drivers if uninstall doesn't work. Thank you

I'll try these suggestions and let you know. Thanks for all the input.

Yes, I save all prepared returns to pdf and these won't print out either.

Anyone having difficulty printing PDF files? Just recently my Brother printer stopped printing them. I have several clients that send me their docs that way and when I go to print them nothing happens. As noted, this is just recent, never had problems in the past. Not sure if it is a printer driver issue or something to do with Adobe? Any input would be appreciated. Thank you.

What am I missing then? There are no other Roths and they don't meet the 5 year rule. Thank you.

Yes, I should have noted that it is a traditional IRA and thus the opportunity to abate the 10% on the educational expense component of the withdrawal. I looked into the boys claiming the credit but their income was so small that it wouldn't have worked. Thank you for your response.

There were no other Roths and the first conversion was in 2019 so they don't meet the 5 year rule. Seems that the 2021 distribution s/b taxable. The $10K distribution wasn't for a first time homebuyer, just a downsize.

T/p's both over 59 1/2. Over the past three years they convert traditional IRAs to Roth IRAs, $12,000 each year. ( 2019-2021) In 2021 they take a distribution from the Roth for new home. The 1099R shows the $10,500 as zero taxable, but with code T, exception applies. I assume the exception is that due to not being held for 5 years and thus now shows as taxable on the 1040. I then start inputting the 8606 showing the $10,500 on line 19 as a distribution and $36,000 as basis in the Roth and all of a sudden the distribution is no longer taxable. Any thoughts as to what I might be missing on this? Thank you in advance.

Yes, there were definitely education expenses but the distribution was much larger than the college expenses. The funds were also used for a roof and other home improvements. I presume I can mitigate the 10% penalty on the education expenses which will entail an override of the penalty amount in ATX. I believe this has been asked before but can the return be e-filed with over ridden fields?

She did have education expenses paid on behalf of her sons. She said that was automatically deducted from her checking and paid to the school. She also used some of the distribution for home improvements (roof). Assuming we can identify the education expenses, then 10% of the penalty could be mitigated by that amount? If that is the case not sure how I would handle that in ATX. Thanks

Another great point. I need to call her this evening. She had originally said used for household expenses but will ask if that includes college .

Another great point. I need to call her this evening. She had originally said used for household expenses but will ask if that includes college .

One more related question and then I hope I can let this go. Normal 4 year degree encompasses 5 calendar years, fall semester of freshman year and spring semester of senior year. if AOTC only good for first four years, then no AOTC for spring semester senior year. So either LLC for final semester or pay in previous year to maximize credit. Am I thinking correctly? Sorry to be obtuse on this but disallowance for a new client has also got me thinking if this then becomes a lost year of eligibility? This large early withdrawal of retirement funds sure had a very large negative impact all the way around. Again, thanks for all the input.