kathyc2

Yes

You could not claim all the kids to make it close.  Then they can write a check to reduce debt held by public for any refundable amount left.

I wouldn't override as that may trigger a math correction on IRS side. 

That is not incorrect. However, if either of their incomes are low enough to qualify for safe harbor payback, they will receive more in total with the same parent claiming both. 

For 2021 and 22 there is no "subsidy cliff".  Even those with income over 400% are not required to pay premiums for SLCSP that is more than 8.5% of income. 

In 2019 and prior if income over 400%, lines 7-8b did not populate.  For 2021 if should calculate 8.5% of AGI on 8a and monthly on 8b.

It should calculate correctly.  If SLCSP is less than 8b, all APTC needs to be paid back. 

If your client is receiving a large credit, I assume he's older?

Yes, it's called a post filing coupon, or PFC.  

Heads up that if your client was not a resident of IN on Jan 1, they don't owe county tax, just the state tax.

19 minutes ago, cbslee said:

We are discussing an S Corp not a Schedule C

I was trying to be helpful that self employed don't need to rush to make their SIMPLE contribution, but it seems like I'm pissing people off.  Whatever.

12 minutes ago, jasdlm said:

you might dive in for a better look.

Are you suggesting they use logic? 

As I'm scaling back to retirement, I'm not doing any corp returns other than one who begged me to keep doing hers.  When I was doing them, I insisted on getting a back-up copy of the full books rather than printouts.  Too many times people would do stupid stuff that it was easier for me to look at the books myself than explain to them why I thought something looked off. 

Several years ago I took on someone who on the phone told me their books were impeccable.  Scrolling through I saw that they "plugged" something like 60K to make cash balance.  They were told to come pick up their info and pay me for time I had invested in it.

57 minutes ago, jasdlm said:

Many of them have the same 'professional' bookkeeper.

Unless the bookkeeper is older, they have probably never kept books other than computerized.  As a result, they have no idea how the accounts all come together. 

48 minutes ago, Margaret CPA in OH said:

A self-employed taxpayer's elective deferral must be deposited by January 30 of the following year

Margaret, a Sch C SP has until due date of return to make their contributions.  You scared me a minute, since I rarely do mine in January!  From Pub 560:  

Example 2.

You are a sole proprietor whose tax year is the calendar year. Contributions under a SIMPLE IRA plan for the calendar year 2021 (including contributions made in 2022 by April 18, 2022) are deductible in the 2021 tax year.

If it was an asset purchase the buyer is required to obtain their own EIN, they can not operate on the prior one.

2 hours ago, ETax847 said:

It's way off. I'm hesitant to take this client on given that issue.  

The the balance sheet from client in balance and just the tax return off?  Or did neither balance?

If you don't have good beginning balance sheet numbers, you cannot accurately prepare a 2021 return.  If your knowledge base is mainly in tax and limited in accounting, you will likely struggle to fix the prior year(s).  Someone with a through accounting understanding will have a much easier time straightening this out.  

Yep.  A balance sheet needs to balance. 

Was this truly a pension and not a 401K?  I'm thinking if you want to convert a pension to an IRA you need to convert the entire amount rather than a partial. 

I'm not 100% sure I'm following what you are saying, but you need to remember than the partnership and the S-corp are separate entities. 

If the partnership paid money to the S, then the payment needs to be either 1)an ordinary business expense, 2)a guaranteed payment or 3)a distribution.   What does the partnership agreement say about payments to the S? 

I'm 99% certain it's because you are taking the "purchases" account on QB to mean purchases, which is is not.  QB p/l does not have a COS section for materials.  Everything is rolled up into one account, which your client is calling "purchases"  So, if you want to come up with actual purchases, you need to do some back calculations:

Your beginning inventory was 4.  Purchased items totaling  14.  Sold items with cost of 13.  Ending inventory is 5.  4 + 14 - 13= 5  Or to get cos 4 + 14 - 5 = 13

The COS on p/l (which is labeled) as purchases is 13.   You need to put 14 as purchases on TR so that the COS will end up at 13, due to inventory increasing.   The 40K I'm assuming is a true-up number from physical count, which doesn't have anything to do with the problem you are having. 

I thought your question was why the "purchases" account was different than the BI + P  - EI = COS equation?  Now you are saying you don't believe the ending inventory amount?????

To further clarify, if set up correctly, inventory purchases should be  debit Inventory asset and credit A/P

When sold it would be a debit to purchases and credit to inventory.  

Even though it's being called purchases in QB, it's actually a COS account.  

What I do on tax return is have the add change of inventory to QB purchases account.  

The change of inventory is likely already reflected in the "purchases" account.  

IOW actual purchases were likely 14M, with 13M being used and 1M increasing inventory.

Never mind, I see I was wrong after reading the 590B that's still in "draft" mode.  Arggghh!

FYI I contacted the broker this morning, and they are issuing corrected forms. 

My understanding is that if an IRA is inherited by a sibling or equivalent, the age of the deceased determines whether they need to take distributions.

If the deceased had not reached age where RMD's are required, beneficiary can wait until year 10 to take distribution.

If the deceased was RMD age, beneficiary needs to take out at least the RMD.

 Am I correct or confused on this?

Have you checked that the default printer didn't get changed in Adobe?  

There is also a 1099DIV.  Total foreign dividends from the statement are less than $200.  The DIV also shows a small amount of foreign tax. 

The point of foreign tax credit is so the same income is not taxed at full rate for US tax.

Since there is no US interest income for this account, I think I should just not show the foreign tax on return???

Client has a 1099INT from brokerage account that show ~400 of foreign tax paid.  Interest income and all other lines on form are blank. I don't know how you could pay foreign tax on zero interest income? If I look in the detail pages it shows it is for Curacao and references Pimco All Asset Fund.

Can this be correct?

$200 federal credit.   https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits