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JRS

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Posts posted by JRS

  2. Tax Season - IRS

    in General Chat

    Posted

    Issue Number:    IR-2021-10

    Inside This Issue

    IRS ready for the upcoming tax season; last-minute changes to tax laws included in IRS forms and instructions

    WASHINGTON – The Internal Revenue Service today assured taxpayers and tax professionals that updates to key federal tax forms and instructions are complete and will be available when Americans begin filing their tax returns.

    Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers and payers. IRS has incorporated recent changes to the tax laws into the forms and instructions, and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov and are being printed for taxpayers who need a hard copy.

    Economic Impact Payments are an advance payment of the Recovery Rebate Credit. Important updates include the Recovery Rebate Credit worksheet on page 59 of the 1040/1040-SR instructions. Anyone who didn’t receive the full amount of both Economic Impact Payments should include the amounts they received, before any offsets, when they file. Anyone who received the full amount for both Economic Impact Payments should not include any information about the advance payments when they file their tax return.

    Also new this year is the option to use prior year income amounts when computing the Earned Income Tax Credit and the Additional Child Tax Credit. 

    The IRS has not yet announced a start date for the 2021 filing season. IRS Free File will open in mid-January when participating providers begin accepting returns. The IRS Free File providers will accept completed tax returns and hold them until they can be filed electronically with the IRS. 

    Latest Economic Impact Payments are automatic for eligible taxpayers

    This month, the Treasury Department and the IRS are sending the second round of Economic Impact Payments to millions of Americans as part of the implementation of the Coronavirus Response and Relief Supplemental Appropriations Act.

    Taxpayers don’t need to take any action to receive these payments. Economic Impact Payments are automatic for eligible taxpayers who filed a 2019 tax return and those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return.

    These second round of payments follow the successful delivery of more than $270 billion in CARES Act Economic Impact Payments to about 160 million Americans in 2020.
     
    Eligible individuals who did not receive an Economic Impact Payment  – either the first or the second payment – can claim a Recovery Rebate Credit when they file their 2020 taxes this year. The IRS urges taxpayers who didn’t receive an advance payment to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible for a credit.

    Eligible individuals who didn’t receive the full amount of both Economic Impact Payments should claim the missing amount as a credit. Anyone who did receive the full amount for both Economic Impact Payments should not include any information about their payment when they file their taxes – they’ve already received the full amount of the Recovery Rebate Credit as advance payments.

    For the latest IRS forms and instructions, visit the IRS website at www.irs.gov/forms.

    • Thanks 1

  10. Solar Credit

    in General Chat

    Posted

    9 minutes ago, Tax Prep by Deb said:

    Your take on the solar is correct.  Most solar sellers are misrepresenting the refund and using it to make their offer sound better.  Depending on your clients income they may get 100% of the credit used the first year, but in my client's cases it has been spread out over two.  Each time, the client is told and the contract written stating that the refund will go to principle, lowering the finance costs.

    Not a big fan!

    My experience exactly.

    • Like 1

  15. Update IRS services

    in COVID-19

    Posted

    Subject:  Update on IRS Services

    Due to staff limitations, Practitioner Priority Service line, the e-Services Help Desk line and the e-Services FIRE and AIR system help desks are closed until further notice.

    Please make IRS.gov your first option for answers to questions.

    We are temporarily suspending acceptance of new Income Verification Express Services (IVES) requests at this time and are experiencing delays with existing IVES processing as well as CAF number authorizations.

    Practitioners with e-Services accounts and with client authorization can access the Transcript Delivery System to obtain prior-year transcripts. Taxpayers should use Where’s My Refund? and Get Transcript, both common requests.

    Additionally, we are unable to answer any questions as yet on stimulus payments.

    Normal operations will resume as soon as possible. Please check IRS.govfor updates.

    We apologize for the inconvenience during this difficult period.

  16. ATX Extended Deadlines Issues - Fixes, Updates, Client Instructions?

    in COVID-19

    Posted

    2 hours ago, jklcpa said:

    Either I am missing an update or Drake hasn't made the changes yet. I have auto-update on and my last program updates for the Federal were on the 19th for other unrelated changes for the 1040, an undescribed general program update, and shared tools.

    The summary and comprehensive results letters are still showing original due dates as are the estimate vouchers and their related instructions.  

    No changes in my Drake.

  22. CA Preparers - Charitable Carryover for CA?

    in General Chat

    Posted

    I finished a carryover a few years ago, but the only thing on the FTB site was dated Tax News article from 2015.

    "When contributions are greater than the applicable 50 percent, 30 percent, or 20 percent of federal AGI limitations for a given year, the excess contributions are carried over and may be deducted for five years. The ordering rule is to first deduct current year's contributions, and then look to prior years' contributions carried forward, by each separate limitation amount. It is always important to know the correct limitation category (50 percent, 30 percent, or 20 percent of federal AGI) for contributions; both for the current year's contributions return and for prior years' carryovers. This is especially true if you are preparing a new client's return for the first time and they have contributions carried over from prior years." 

  24. CA CRTPs

    in General Chat

    Posted · Edited by JRS
    Showsection d

    One little section in the bill:

    (d) The written disclosures required to be provided in this section shall be made available in English and the five languages listed in Section 1632 of the Civil Code.

    Hopefully, Google can translate into the five acceptable languages!

  25. Vehicle donated, sale pending

    in General Chat

    Posted

    11 minutes ago, BulldogTom said:

    Interesting.  I just leave the A in the federal return when I take the standard deduction on the federal side and  Itemized on the CA return.   It seems to be working and the Federal return shows the std ded.  Am I doing something wrong?  Or is there something different about DE that makes you go through that process?

    Tom
    Modesto, CA

    That's the way I do it for Ca.  I did for years with ATX and am doing the same with Drake.

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