kathyc2

I didn't change anything. He passed in Jan 2024 so they filed jointly both 2023 and 2024 with DOD noted on returns. The notice was in her name only so somehow they must have removed him from account along with the payment. Never had that happen on similar situations before, but MI is not the primary state I file returns for.

And there's your box of rocks!

I have real concerns about SS requiring so much to be done online or in person. Local office is in a heavy traffic part of town that many seniors don't like to drive in. Some parts of country the office may be 100+ miles away. Many don't have computers or are not computer savvy. I can see business advertising to help them, for a fee of course. And I think we know that there will be offers of "help" that will be scams.

For years I've gotten a bag of Lindor truffles before the start of tax season. I know it's been a good year when there are some left after 4/15. Still a month to go and the bag is empty.

I've never had an experience this bad trying to resolve a simple issue. Couple had been filing jointly for many years. He passed in Jan 2024. MI 2023 had a small balance due of a little over $100. I set it up in software to come directly out of bank account, which it did. She said she received a notice of non-payment over the summer, called them, and mailed in the bank statement showing payment. Nothing more heard until today when she receives a demand notice of payment for 2023. I call MI to get simple issue resolved. Box was checked on MI return that state can discuss return with me. Agent says she can't see that part of return in system. So, I call widow on other line with both on speakerphone to give authorization. Wasn't enough to just give her information for identity, she also had to find his SSN. So, now she can talk w/ me about return. Puts me on hold for 10 minutes or so. Finally got it figured out that they put the payment to his SSN and with his passing widow is now primary on return and payment is floating around somewhere. It's now going to have to go through a review that can take 6 weeks. I ask her to put a hold on collections while it's being resolved. She says she can't do that. 2024 has been filed and refund is more than 2023 due. I' betting they will take 2023 balance plus penalties out of 2024 refund. Unbelievable ineptitude.

SSA recently announced recipients can no longer change bank account via phone. The stated that they can't verify identity of caller via questions. Changes need to be via myssa or going to an office. How long until IRS adopts policy that information via phone is no longer available?

If you enter month by month you will get the pink. If you just enter the total on line 33 you won't.

That makes no sense. To clarify: you enter the info on Form 1095-A. You enter annual total on line 33A, leaving 33B and 33C blank and you get errors? What do the errors say? I will clarify something I said earlier. Putting an amount in 33A will populate the 8962 form. However, it won't show as a form in use.

Doesn't on mine. Are you using PS Professional or one of the lesser versions they came out with?

Don't forget the dang sticky notes. Sorry, you don't need to write me a note that your W2 is a W2!

I encourage clients to start paying charities out of IRA's at age 70 1/2. Not only are they getting money from IRA tax free, it will lower RMD's when they set in.

Absolutely not true. I use Pro and have one that paid full price. If I don't enter amount on 1095A w/s for SLCSP that I had to look up, no 8962.

Taking it a step further, they also don't qualify to take the premiums on Sch A, since it was paid with tax free money.

3. If you paid full price and are sure you don't qualify for the premium tax credit You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes. Keep your Form 1095-A with your other tax records. https://www.healthcare.gov/taxes/marketplace-plan-without-savings/#:~:text=If you paid full price and are sure you don,with your other tax records.

I don't think so. I just amended 2022 and 2023 returns for client that had 1095A paying full price. The previous preparer did not look up SLCSP to give them the credit. IRS isn't going to be looking up info that's not on 1095A to see if there should be a credit.

It comes down to a matter of conscience. If you didn't know they received payment from union, you would have entered the 1095A, looked up SLCSP and credits would be generated. However, since you know someone else de facto paid it, would you feel right signing the return with credits? As far as the 8962 goes, you can either not input the 1095A or not enter the amounts you needed to look up for SLCSP on worksheet in Pro.

If they are paying premiums with tax free money, I don't see how they can make a claim for credit. This isn't anything official, just my logic, but if they would make the entire amount from union taxable, then take credit. I doubt they would come out better that way though.

Gal that I've prepared returns for year generally has a hand full of small W2's and gets huge refundable CTC and EITC. She dropped off her info and no W2's. I text her and ask her if she forgot to include. No, she didn't work this year. I ask what she's living on. Answer is her parents are supporting her (live out of state). I tell her that with no income, there is nothing to file. Her answer is she still wants to claim her kids. Again I tell her no income nothing to file or claim. She wants to know why she can't claim the money parents are giving her as income. Thank goodness it's Friday!

You wouldn't put anything from union on the 1095A worksheet. Since there wasn't advance credits, you aren't required to reconcile the 1095A. What is the criteria to determine how much the union pays? Is it a set amount? Bases on their net premium? Something else? Did they get a 1099 or such from union for the amount they received? Or, is the amount they received tax free retiree benefit?

Interestingly I'm working on one today. Her only income is SS disability. He had house before they were married and she was never added to deed or mortgage. Sch A total is less than 29,200, but with pushing it all to him on MFS other than small charity in her name, they come out better MFS.

I've seen a few 1099R's with an accompanying letter stating the QCD, but never on the actual form. What box # was it reported in?

It won't happen but it should. Ridiculous that someone needs to be certified to give a manicure but anyone can hang a sign and say they are a tax preparer.

There are quite a few deductions/credits not allowed on MFS student loan interest deduction being one of them. State income taxes go to each from their withholding on W2's. If only one spouse is on mortgage or deed, then all goes to the named person. If only one spouse is on a charitable receipt, that is the person it goes to. For joint mortgage, receipts etc. you can either split 50/50 if payment came from joint account or prorate according to income. For example if combined income is 150K and one spouse is 100K and other is 50K then items would be split 67% and 33%. Same for interest, investment accounts, etc. If both on account either 50/50 or prorate. You should use same method for both income items and deductions. Sounds like this may be a situation where they are separated. If so, present options and then they need to fight it out and both sign off on the method used.

There is a new line on Sch 1 to report 1099K personal items sold at a loss.

Child is QC for both son and GP. For qualifying relative (other dependent) the person claiming needs to provide more than 50% support. For QC the rule is child did not provide more than 1/2 of their own support.