kathyc2

The AOC is only good for the first 4,000 of tuition/fees. If they already have that much, I'd pay the Spring in 2023 to at least get some Lifetime Credit if the AOC has already been used 4 years.

If the student files on their own for the non-refundable portion, their income would need to be over 17,550 to see any net tax benefit. After standard deduction, 17550 earned income would have $500 tax offset by the non-refundable AOC. Mom loses the $500 other dependent credit, so break even. Also, it money Mom took from retirement was an IRA, see if it can be exempt from 10% penalty for higher education expenses.

I think you misunderstood me. I was pointing out that while it can only be used on 4 tax returns, there may be multiple years available to choose which are the "best" 4 years.

That will be over 5 calendar years though, as the student almost always starts in fall. In actuality, it can run over several calendar years as the requirement is "at least 1/2 time".

I have the plastic sleeve client, several don't open envelopes, a couple staple happy ones, some that use a box of paper clips and one that puts sticky notes on everything. Like I need a sticky note to tell me a W2 is a W2.

Part III of 8812

LOL! I don't think seniors that have Social Security and a couple hundred of interest income need to worry about SOL. No reason to pay me to prepare a return that is not required or offers them zero benefit.

I have a lot of senior clients with AGI below the standard deduction. The only reason I still file for them is that IN has such a low filing threshold.

I'm guessing there is a strong correlation the family/religion/community that frown on cohabitation also frown on divorce.

As long at it was oversight and missing distribution is taken before filing return, they won't assess the penalty. From 5329 instructions: Waiver of tax for reasonable cause. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows. Complete lines 52 and 53 as instructed. Enter “RC” and the amount of the shortfall you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54. Complete line 55 as instructed. You must pay any tax due that is reported on line 55. The IRS will review the information you provide and decide whether to grant your request for a waiver. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.

I'm guessing you are referring to accrual basis taxpayers needing to actually pay out accrued expenses in the first 2 1/2 months of next year?

If it make the most sense to report it on Corp return, then I'd put it on 1040 Sch1 line 8c and also negative amount with short explanation on line 8z I'm assuming you checked if there is any exclusion due to insolvency?

Are you sure the loan docs have it as guarantor instead of co-signer?

That's what I figured. I just wanted to make sure there wasn't some trick I wasn't aware of.

The bank handled it correctly. See if Pub 4681 answers your questions for your particular circumstance.

|That's a good idea. However, it's from a monthly IRA payment and he also had withholding on SS benefits.

Unmarried client passed in Jan 2022. He would have had some withholding for 2022. Do I need to wait until 2023 to file a claim for it with a 1040?

It depends on her income. If it's less than 40K, no payback. If between 40 and 80K, partial payback. Over 80K all needs to be paid back.

Does anyone have a link that summarizes which of the changes are for 2021 only?

You can only use it if 2019 income is higher than 2021.

I'm thinking the over 65 is just for 2021 unless they pass additional legislation. Abby, the RSC wouldn't apply as to get EIC,AGI is already below the standard deduction.

I wasn't talking about software. I was asking if it was allowed under law to opt to have W2 dependent care taxable in order to take advantage of 2441 credits. Just putting it out there in case it can be done, and others didn't think of it. Could be a big difference from some....

I don't have one of these right now, so haven't done any research on it. Just curious. With the 2441 credits being significantly higher for 2021, a lot of people will come out better to take the credit than employer dependent care allowance. Is there a way to make the W2 amount taxable and then take the credit?

Am I understanding you to say that before the IRS accepts the efile, they check to see if any SSN's on return have been issued a 1095A?

I'd just add that if the excess was in the account long enough to earn interest, the interest is taxable.