Slippery Pencil

It's 100% your choice not to put them on extension.

Phaseout Some checkbox isn't checked correctly Go through the worksheet line by line to find the error What software?

How much tax are you costing your client if you tell her to file mfs?

I don't have any clients in that situation, but Ed Zollars discussed it on his podcast Monday, http://www.currentfederaltaxdevelopments.com/podcasts/

I wouldn't waste the time printing out the reject and attaching it. Half the time I don't even remember to attach 8948 and I've never heard back on it.

No. The law states that procedures are to be implemented to prevent double payments, but it doesn't say they have to be repaid: https://www.congress.gov/bill/117th-congress/house-bill/1319/text#toc-HE372FCE88BBF432D9CE73118562D7D33 6428B(h) (2)regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined. The FAQs on irs.gov say they don't have to be repaid: https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-h-reconciling-on-your-2021-tax-return I received a Third Economic Impact Payment. Do I need to pay back all or some of the third payment if, based on the information reported on my 2021 tax return next year, I don't qualify for the amount that I already received? (added March 26, 2021) No, there is no provision in the law that would require individuals who qualify for a Third Economic Impact Payment or an additional payment based on their 2020 or 2019 information, to pay back all or part of the payment if, based on the information reported on their 2021 tax returns, they would have qualified for a lesser amount. Even if they did have to be repaid, returning the check or writing a check to repay it would be foolish. That piece of mail will sit in a truck for 10 to 20 months before it is opened and then you're gambling that the irs will process it and apply it to the taxpayers account the way you want. That's an extremely foolish thing to hope for.

wasting time just track the carryforward

Yes. Sending it back will only cause problems.

Has he even tried to locate her? It's not that hard to find people. If the two of them truly can't find each other, how does he know she didn't already obtain a divorce or nullification?

The irs announced on 4/9 how to handle the excess APTC. There was a program update for it on 4/12. Today is 4/20. Not exactly weeks. Some of ATX programming is worthless shit. The customer service may be the worst in the industry. No reason to make stuff up to make ATX look bad, the truth does that well enough.

If it's a limited partner, se tax would not apply.

Yes

No Yes

Why are so many people hellbent on sending these payments back? No good can come of that.

Was the tax timely paid in April? If so, that's why you had no problems.

Why are so many people hellbent on returning these payments. The payments don't have to be returned. What good can come of returning it? When your client returns it, then the irs doesn't pay the $1400 to the parent because the payment was already sent, are you going to resolve the issue for free? Keep the damn payment. If the irs doesn't catch it and issues a payment to the parent also, lucky for them.

Did the employer file a gift tax for the $50K for what he seems to be claiming is a gift? Not that it would matter, cash paid to employees are wages. This should have been reported on her W2.

That was the irs's made up excuse. Every tax pro on every bulletin board I use complained about this.

You don't need to attach anything. Just use codes M & W on the 8949.

Why not just use on of the many lists online that are updated on a regular basis https://kb.drakesoftware.com/Site/Browse/17148/State-Conformity-to-ARP-Unemployment-Compensation

No requirement to fund the ira before filing. You can file in February, receive your refund in March, then use the refund to fund the ira.

My point has nothing to do w/ complexity or simplicity.

If the idiots who write the laws and the goons hired to enforce them don't know what they mean, how is anyone else suppose to?

https://www.currentfederaltaxdevelopments.com/blog/2021/3/23/irs-makes-a-significant-modification-to-computation-of-arpa-excludable-unemployment-compensation

The irs guidance issued last week was to not efile tax returns affected by the new law at this time.