Jump to content
ATX Community


  • Posts

  • Joined

  • Last visited

  • Days Won


Everything posted by TexTaxToo

  1. Yes. The repayment forgiveness was for 2020 only. But there is not a cliff at 400% of FPL where everything has to be repaid. Those over 400% continue to qualify for PTC thru 2025 so only excess has to be repaid.
  2. To be specific, the American Rescue Plan Act of 2021 modified the tax code Section 108(f)(5) to exclude from income most education loans forgiven in 2021 through 2025, and the IRS issued Notice 2022-01 indicating that lenders should not file Form 1099-C for them.
  3. Until the "tax-tool" is updated for 2022, you do need to look at the list of plans to find the 2nd lowest. You should be able to filter on silver plans and sort by cost. All other information you need is available but can be difficult to find and calculate. The poverty level tables are at HHS. For TY2022, use the 2021 table (not the 2022 table) from HHS or the federal register reference on this page: https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines/prior-hhs-poverty-guidelines-federal-register-references The "applicable figure" table normally adjusts for inflation, but they were changed and fixed for TY2021 and TY2022, so last year's table should work (and the IRA extended that change thru 2025). The repayment limit tables do adjust for inflation. The changes for TY2022 were published in RP-2021-45.
  4. Not quite! They have to meet the MAGI limit for both the prior and current year. And they just added a claw-back provision so that if a TP gets the dealer rebate, but don't meet the MAGI limit in the current year, they must pay back the rebate as an additional tax. Of course, everything could still change, and the rebate provision doesn't start until 2024.
  5. I understand they started taking congressional referrals again in June. https://www.taxnotes.com/research/federal/other-documents/other-irs-documents/taxpayer-advocate-service-updates-case-acceptance-criteria/7dm2j
  6. TexTaxToo


    The efile was rejected because the Marketplace reported to the IRS that his SSN (or the SSN of someone he is claiming as a dependent) was included on a Marketplace policy and received APTC. It doesn't matter who purchased or paid for the policy - he must reconcile it on his return. If your taxpayer does not believe any such policy exists, you can include a statement of explanation. Your software may allow you to e-file with a canned explanation. See https://www.irs.gov/newsroom/how-to-correct-an-electronically-filed-return-rejected-for-a-missing-form-8962
  7. The 2017 regs also clarify that government payments to an individual used for support of that individual is support provided by a third party, not support by that individual. (The exception to this is Social Security benefits which are treated as support by the beneficiary.) Also, government payments used by the recipient to support another individual is support by the recipient, not support by a third party. In other words, government payments to the child are support by a third party, and government payments to the foster parent, if used to support the child, are support by the foster parent. The support requirement for a qualifying child is simply that the child not provide more than half of their own support - it is unlikely that they do unless the child is receiving Social Security survivor or disability benefits. See https://www.federalregister.gov/d/2017-01056/p-338
  8. A slight correction. The portion of the proposed regs I quoted have to do with qualification for head of household. The section dealing with qualification for dependency is later in section 1.152-4(d)(2): https://www.federalregister.gov/d/2017-01056/p-365
  9. There is no requirement that the foster child live with them 6 months if they were placed later in the year. From Pub 501 https://www.irs.gov/publications/p501#en_US_2021_publink100091910 This was clarified in the 2017 proposed regulations on dependency section 1.2-2(c)(4) https://www.federalregister.gov/documents/2017/01/19/2017-01056/definition-of-dependent
  10. Interesting question for a tax lawyer. If you think they qualify, would they be able to take the entire $500K exclusion on each sale? Or should they get only a combined $500K exclusion on the two sales? Both may run into the problem that the exclusion is not allowed for any sale if the exclusion was taken on a sale within the previous two years. Of course, they could have made a single sale to a third party, who then sold the two units separately. Since they didn't, I don't know the answer.
  11. See Pub. 463. You can switch back and forth between the standard mileage rate and actual expenses any year, as long as you used standard mileage the first year the vehicle was in service. If you are asking about depreciation, part of the standard mileage rate is depreciation which must be used to reduce basis. Again, see the table in Pub. 463. Once you have used the standard mileage rate the first year, only straight line depreciation is available in the years you use actual expenses:
  12. Announced today: https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022 The revised standard mileage rates are: (1) Business 62.5 cents per mile (2) Medical and moving 22 cents per mile The revised rates apply to mileage on or after July 1, 2022.
  13. Was the trustee notified that the distributions were a return of excess contributions? The trustee should indicate that in Box 3 of the 1099-SA and determine if there were any earnings included in the distribution (reported in box 2). These are taxable.
  14. You may want to read Revenue Procedure 21-49 which describes "Emergency EIDL Grants" of up to $10,000 under the CARES act and "Supplemental Targeted EIDL Advances" of up to $5,000 additional under ARPA.
  15. When the IRS announced that anyone could now get an IP PIN, they said: The IRS plans to offer an opt out feature to the IP PIN program in 2022. But I haven't seen any announcement of how to do that, yet.
  16. IP PINs expire each year. You must use the new IP PIN even if filing a prior year return.
  17. The rule that there is no PTC for incomes above 400% of FPL was removed for 2021 and 2022.
  18. Judy, please don't. I've learned a lot from your posts. I assume (hope) you are joking. I make more mistakes than I care to admit. The great thing about this board is that there are always plenty of proofreaders.
  19. If both spouses are over 55, they can each contribute $1,000 catchup to their own HSA. If they split the family amount equally, the wife's limit would be $4,650 for the year - and the husband's 5/12 of that or $1,937.50 for a total of $6587.50 - they can of course split the $7,300 any way they want for the first 5 months - the catchup cannot be split.
  20. If they didn't get APTC (column C blank), they are not required to file Form 8962. However, the law changed for 2021 and higher-income people may now qualify for PTC (some with incomes well over $100,000). You can obtain the values to put in column B (SLCSP amounts) at https://www.healthcare.gov/tax-tool/ Use those to see if they qualify for PTC. (You will still put zeroes in column C in the software.)
  21. Sure. The only thing you cannot do is go from joint to separate after the due date. I read somewhere that you cannot e-file to change filing status, but I'm not sure if that's correct. In general, you can e-file three amendments - after that, they must be paper.
  22. I agree that unused funds cannot be refunded, but the Consolidated Appropriations Act 2021 allows plans to extend the grace period to 12 months for plan years 2020 and 2021. They can either extend the claims period or allow carry over of the unused funds. They can also allow the carried over funds to be used for dependents who are age 13 (normally only care for those under 13 or disabled would qualify). See Notice 2021-15 and Notice 2021-26 The plan must still be amended, so this probably won't help this TP, but they can check with the administrator.
  23. But in this case, any loss on a personal residence would be disallowed regardless. I think you mean that this would apply if the property is rented or used in a business or as an investment, not if the daughter continues to use it as a personal residence. I am also curious about the basis, but perhaps Tracy is asking if the daughter will qualify for the maximum exclusion if she eventually sells the house after living there long enough to qualify. If the basis is correct, I believe she will be able to use the donor's basis in figuring her gain, and can use the exclusion on top of that.
  24. CTC for those residing outside the U.S. is non-refundable, so she would need to have a tax liability to benefit. ACTC is available as a refundable credit, but requires earned income. But why wouldn't you include the children to claim RRC for them?
  25. Citizens residing outside the U.S. half the year can still get the full new amount ($3000 or $3600 per child) as a non-refundable credit (if below the AGI threshold). If they don't have enough tax liability to make use of it, they get up to $1400 as a refundable credit as in previous years.
  • Create New...