kathyc2

3 hours ago, Margaret CPA in OH said:

I think this is especially unfair when one considers how many grandparents or foster parents are 65+, still working and having all the same responsibilities and more of many younger people.  It is income restricted so only low income people qualify anyway.  And people in increasing numbers, I believe, must continue to work instead of retiring.  If having worked in low wage jobs, often without retirement plans, they could use a little boost, in my opinion.

The 65 restriction does NOT apply if there are qualifying children.

2 hours ago, Max W said:

 

And if the IRS doesn't change the current draft, so what! 

Because I'm set in my ways!  It took me at least 2 years to get used to where things were on the "postcard" return while reviewing.  Now it's hide and seek again where they moved things.  

I've used office supply places like Staples and also Amazon.  I order by part rather than set as I don't need 5 copies of 1099. 

What the heck are they doing?  Many, many lines added to "main" forms with obscure stuff I've never encountered in 25 years.  Not just on the 1040 but also Schedules 1, 2 and 3.  Uggghhhh!  

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

27 minutes ago, mcb39 said:

I think they are overpriced, to say the least.

I think the unlimited subscription has the best bang for the buck.  Most you can do self study, webinar, etc.  A word of caution.  Some have in small print that they will auto renew the next year.  You need to set a reminder on your calendar to cancel that before it happens. 

The 19,560 only pertains to income subject to FICA tax, not investment income.  The 19,560 is also per person, not tax return.  

If a 15 wage/ 10 investment return split is reasonable is another matter.

There's a couple different ways to approach it. If you are putting in their financial data, it will calculate the credit based on SLCSP.  If they went through healthcare.gov rather than an agent, they can log in to their account and find out a lot of info.  Under messages there will be a message about marketplace eligibility.  This will tell them the income they used to apply and the amount of credit they will receive based on that income.  Since you say they want to know how much they will need to pay back, I assume their income is higher than what they used to apply.  Put in the higher income keeping ages, and people that same as when they applied to see what the credit would be at that level.  if the 795 credit is calculated on the new projected income, just take the difference between that credit and the credit when they applied to see the payback.  If they are under 400% FPL the payback may be limited.

If you don't know what the original credit is they received, then you need to go about it a little differently.  You will need to know the exact plan they chose and then calculate the difference between the full price plan and the amount they are paying.  That will give you the calculated credit when they applied. 

This probably isn't clear, so let me know which part needs further clarification.

Here is the link:  https://www.healthcare.gov/see-plans/#/

You need to be a little careful as SLCSP is not always obvious.  They only use the core medical to determine it, so plans that have dental or vision can skew the numbers. 

https://apnews.com/article/biden-misinformation-health-care-reform-internal-revenue-service-fb835c1099dad4cca5ff893bfd07d466

Included in article:

"He added that members who are of retirement age have expressed a greater desire to retire due to the increased attention on their jobs. More than half of the IRS’ enforcement workforce of 80,000 is retirement eligible."

I would prepare the 5329 and request the waiver.  You don't need a note from the Dr.  Just indicate that it was an oversight and that both the 2021 and 2022 have been removed from the account.  I've had several of these over the years and never once did they access the penalty. 

Lots of different ideas and suggestions.  Everyone needs to determine what works best for THEM. 

21 hours ago, Lion EA said:

Her broker's insurance agent told her NOT to and wait until next April when she files taxes. I don't have time to learn about insurance, Medicaid, Social Security, etc., as well as taxes!

Probably good advice from a tax perspective due to the limits on payback based on % of FPL.  Insured are told to contact the marketplace if income changes, so be careful of ethics if recommending to wait. 

You could have client make 2 payments through direct pay with different bank accounts.

22 hours ago, schirallicpa said:

I have all my tax returns from when I first got married.  I was always going to put the AGIs and tax liab on a spreadsheet -oops -the accounting nerd in me is showing.

Mine go back to my first return in high school.  Pertinent info from each year is entered on a s/s.  So, I guess I'm a super-nerd.

It's just me and I use a spreadsheet.  I start with last years sheet, so it has all the names.  One of the columns is for status.  I only use a few, such as can do, waiting, need 8879, extended and done. More could be added based what you need.  You could also add a column with date received, or latest status, but I don't find that necessary for me.   The column has filters, so I can quickly see which clients pertain to each status.  I also use countif function that I can tell at a glance how many are in each status.  I also have it calculate was to what % of days are left in tax season, and the % of returns what are finished.  

For me, Excel is much less cumbersome that using tax software status sheets. 

Are the kids receiving SS benefits for deceased father?  See if you can justify that this money if part of the 20K. 

18 hours ago, GLJEANNE said:

Leftover chocolate??  I'm not familiar with that concept.

Well......  it's a Costco size bag of Lindor truffles.

I'm essentially done and still have some of my stress chocolate supply left.  That's a good sign!

8 hours ago, Catherine said:

 is what QB does with them behind the scenes in its reporting, 

Control/y will show you the QB journal of a transaction. 

What I would like to know is why the *&^*$ does the Treasury print the interest paid on 8 3/4" paper?????  It makes everything all scrunchy when fed through the scanner feed.  

Some people will take a mile if you give them an inch. This year seems worse for some reason.  I've always charged on a per-form basis as I'm terrible about tracking my time.  I've spent way to much time on what should be the simplest of returns simply because they can't or don't want to keep track of things like what they paid in child care.  I've decided I'm going to raise fees around 30% next year and then give a substantial discount to those people who can follow simple instructions of what to bring. 

Highly doubtful.  This is a one shareholder S-corp.  Assets were sold mid 2020, SH disbursed money from bank accounts and returns were filed for 2020 and marked as final.

Had anyone filed this for an S corp?  I've always marked the final 1120S as final and never had any issues.  

An over zealous attorney is insisting it needs to be filed. 

I don't think you meant line 5 on 5329 as that is for ABLE accounts.  If the amount was for periodic payments over lifetime, code 2 should have been in box 7 of 1099R and 5329 is not needed.  If box 7 is not code 2 but client is telling you it's part of distributions over a lifetime, I'd have them to have issuing company send a corrected 1099R.

If I'm understanding you, the net tax on the original return was correct, but the IRS is looking to access the 10% early withdrawal penalty?  

If so, I'd contact the PPL and see if sending documentation that she was deemed disabled before the date of withdrawal would close the matter.