kathyc2

It happens very infrequently, but it is does, it really throws me for a loop. MFJ- 1 state 3 w-2's, 2 1099R's, K1 from trust with capital loss so Sch D, small and simple Sch C, child tax credit, tuition credit (had to ask for 1098T even though it's on checklist), standard deduction. Would you charge: a) less than $250 b) between $250-300 c) more than 300 Curious minds want to know.....

If the house was jointly owned, she would have received at step up upon his death.

That is what the code D in OP would indicate. Non qualified annuities have their own rollover rules.

See if Pub 575 answers your question: https://www.irs.gov/publications/p575#en_US_2021_publink1000226849

So... after being on hold forever with SSA the agent sent me in the right direction. In certain circumstances, adult children can make a claim for last month SS benefit of parent via Form 1724 Claim For Amounts Due In The Case Of Deceased Beneficiary. This article describes the circumstance: https://maximizemysocialsecurity.com/when-will-social-security-pay-deceased-persons-last-payment Not sure how your client received the payment without supplying his SSN. Since the money was after death, it would be income in respect of decedent same as if it were interest earned on a bank account after death. Since post 1997 new claims are not paid on the first of the month, I think this will become more common.

Mine had the daughter (my client) SSN in box 2 so I put it on her return. I've found lists of the codes that can be in box 8, but none list U1.

I also had one this year paid to adult daughter. Never seen this before. Is box 8 the Dad's SSN followed by U1? I can't find what that code means, but I'm wondering if it means underpaid?

Zero because she gave him the money to buy it, then gave him an additional 7K to boot!

Basis could be 0, 3K, 5K or 10K depending on how you look at it.

None of the special situations apply to her. Also, the 255 is only paid if there is a surviving spouse, not adult children. I just thought it strange since I've never seen it before. I've always thought it's not fair that when someone signs up benefits are delayed a month, but upon their demise that month is not made up. I looked a little to see if it might have changed but didn't find anything.

Middle aged client received what looks like 1/2 father's SS benefit for one month. Her sister received the other 1/2. Her SS is listed as beneficiary so obviously she filled out some kind of paperwork, but doesn't know detail. I'm not disputing that it's taxable to her. I've never seen this before and just curious if anyone knows what kind of situation would have benefit paid to adult children.

If he's married, check if this might be a situation where MFS has better results.

Couldn't you send an e-mail to all and tell them that they need to all agree who will be the Rep? I personally would disengage from this account as quickly as possible. If two of the partners can't be civil enough with each other to handle business, they will likely try to put you in the middle of things. Not worth it IMO.

Has it ever been that a state tax refund was taxable unless a federal benefit was received from over-paying? Less than 9.5% of returns itemize deductions after the higher standard amount. I'm guessing a good chuck of the 9.5% was limited by 10K total. So, the only ones that it would be taxable to are the middle class that itemize but don't have 10K in state taxes.

As long as each parent could have claimed child (their biological child) if they filed MFS the CTC can be allocated any way they want. IMO it's the clients call, not yours. Vast majority of time they will choose option to get most cash rather than pay debt. Do not allocate EIC, IRS will calculate that.

Sounds to me like they contributed to Roth in 2021 then realized they could not due to AGI. Since most markets were down in 2022, it's reasonable that if they had less than the 7K to withdraw. Entering codes JP does not make anything show as taxable, does it?

Just remember that the only actual costs that can be used for charitable driving are gas and oil.

The state payments are a refund of taxes paid. So, unless they took a deduction for it off of their federal return, not taxable. Even if TP does not pay state income tax, they are paying sales tax. If TP income was so low they have no state income or sales tax, they aren't going to be having federal tax either. Same general concept as credit card rebates. If the rebate was for personal purchases, not taxable as it is deemed a reduction of payment. If the charges are for business purposes, then taxable because the full (pre rebate) amount was deducted.

Technically, the NFP can pay volunteers whatever rate they want. However, anything over the 14 cents is pay and taxable income to the volunteer.

Unless the TP itemized state taxes and were not limited to the 10K, I don't see how this could affect federal tax????

14 cents. The same rate that they could take a deduction for it they itemized deductions.

If you look at the last year or two of 1040 of deceased, you be able to tell what the fund was.

How do you answer Q 15 on 8867?

I understand you are trying to be helpful, but what info would you have that would be needed in the next 30 days? If they are looking for what bank or investment accounts she had, that could certainly have changed in the last 7 years. In that case how would you know what documents to have them look for?

IN has a bill in the works that would allow pass through entities to make an election to pay state tax at the corporate level. The shareholders would then receive it as a refundable tax credit to use on their individual returns. They are saying that state tax paid by S would be a deduction for federal tax. Since it's an election i.e. voluntary, how could it possibly meet the Sec 162 "necessary" requirement? Do any other states do this?