GraceNY

Is this correct? Unmarried taxpayers. Mother claimed dependent on 2018 tax return. Received EIP #1 of $ 1,700 ($1,200 + $500). Mother received EIP # 2 of $600. Father claimed dependent on 2019 return and I don't know what if any EIP #1 or EIP #2 he got as I don't do his return. Mother is claiming dependent on 2020 return and ATX is computing a $600 EIP #2 for the dependent. It just seems like a double dipping on the $600 EIP #2 for the dependent. Thanks in advance for your input. Grace

Thanks HV Ken for your response and patience. I still think ATX is incorrect. My form is the same as yours. From your screenshot, Line 4 says "(see instructions)." When you go to the instructions for Line 4, it says ..."and any child who was less than 17 years old on 12/31/20, that qualifies for the federal credit for other dependents." 1 of the dependents was not less than 17 years old on 12/31/20. She turned 17 in 2020. And, as I outlined in my prior post, Worksheet A, Line 1, uses the number in the box from Line 4 IT-213 for computing the credit. ATX starts computing the credit with $2,000 implying that both dependents qualify for the credit when they don't. Only 1, the 12 year old qualifies.

The Line 4 Instructions specifically state "Enter the # of children who qualify for the federal CTC, and any child who was less than 17 years old on 12/31/20 that qualifies for the federal credit for other dependents." Only 1 of the children qualify for the federal CTC. The other child who qualifies for the federal credit for other dependents turned 17 in 2020 and was not less than 17 years old on 12/31/20. Also, if you look at "Worksheet A, for IT-213, Line 6 "Line 1 says "enter the number of children from Form IT-213, line 4 by $1,000" ATX answer is $2,000 ($1,000 x 2) because they are taking the Line 4 # of 2 (which I believe is incorrect based on my above referenced instructions). In the end, ATX computes a Empire State CTC in the amount of $272. When I complete the form and worksheet manually and based on the instructions, I get $215. ???? Grace

Taxpayer filing HOH with 2 dependents. One is 12 years old and is considered a "qualifying child" for CTC purposes The other turned 17 during 2020 and is listed as "other dependent" and qualifies for the credit for other dependents. On the NY IT-213, Line 4 ATX answers that question with "2." The NY Instructions clearly state that only those dependents who are under 17 at the end of the year (12/31/20) should be listed. Therefore, this question should be answered "1" not "2." Of course this error produces an incorrect Empire State CTC. I have manually calculated the credit. I can't override it because the number "2" comes from the dependents information listed on the 1040. I submitted this case to support over a week ago. Today, I get an email saying "case closed" with no explanation. I am starting not to trust ATX and it's software. Between this and the SS worksheet it makes me wonder what else is incorrect in this years software. Grace

Somewhere on this message board, I read that this issue was only affecting taxpayer's when their social security benefits were 85% taxable. Just had one where only 15% of their SS was taxable and it impacted their return. Personally, I would rather not override numbers. Has anyone e-filed a return with Line 7 on the worksheet overridden? If so, any issues? Disgusted with ATX. They should have fixed this issue as soon as it came up. On the Official ATX Community, many have submitted cases and contacted support about this. Crickets. Grace

If you just split the income, I would think that would cause an IRS matching issue since the tax documents only report the husband's SSN. What I did with a TOD account where there were dividends paid out after the death of the account holder was pull up the 1099-DIV and typed in XYZ brokerage account dividend's and listed the entire amount. Then pulled up another 1099-DIV and typed in XYZ brokerage account dividends - Nominee Distribution to XXX-XX-XXX (in your case the wife's SSN). All of this came out great on the Schedule B. So far no letter from the IRS and that was a 2018 tax return for a decedent. For the TOD beneficiaries I pulled up the 1099-DIV and typed in XYZ Brokerage Account Dividends - Nominee Distribution from XXX-XX-XXXX (decedents SSN). Since I prepared all the tax returns involved, I could easily document the numbers if there were any IRS Notice. Doubt the IRS would issue a letters to beneficiaries as they reported more income than was listed under their SSN's. The decedent's return would be another matter. Grace

Go to the Form Sch E, page 1. At the bottom of the page, click the Loss Limitation Input tab. Select the Check ("X") to enter prior year At-Risk or Passive carryover amounts check box. I had to do this with a new client. It worked fine. Grace

Go to "forms." Click "customize master forms." Look for invoice/billing. Make changes and save them. Also, it may not work on a return that you already prepared or is in process. Only for returns that you start after that change.

I have spent a considerable amount of time searching for an answer on this. I don't see anything on it. Just taking original basis and adding selling expenses (i.e. title, commissions, etc.) New client. Started renting out a house in 7/2010. Not his primary residence prior to that just a 2nd home. Took it out of service in 5/2019. Between 5/2019 until date of sale in 10/2020, he spent a considerable amount of money getting the property in shape for the sale. I would like to know if the if those expenses can be added to the basis. And, if so, would it just be "capital improvements" not fixing up expenses like painting. Thank you in advance for any input. Grace

WMIUAWGA = We're Making It Up As We Go Along

I was typing when Lynn responded. Just received IR-2020-66. According to the notice, "for 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020.: Also, according to this notice, 2nd quarter estimated tax payments due on 06/15 have also been moved to July 15. But, don't forget to check with the states. Tax software folks are going to have a lot of fun with all these changes.. Grace

New client. Taxpayer owns 1 residential rental. Tenants in upstairs and downstairs apartment. On his worksheet he lists the following and my query follows in parenthesis. Looking for an agree, disagree or a WWYD. Hot water tank - $575 ( A structural component and therefore depreciated over 27.5 years?) Which, if so, seems ridiculous. Refrigerator - $ 1,100 (An appliance on which the bonus depreciation can be taken?) Listed as a repair, roof drain plugged up and damaged kitchen floor. $5,500 to remove and replace floor and sub-floor (A repair or improvement?) Lastly, on his 2018 tax return a new roof in the amount of $12k was expensed under Section 179. I thought it had to be NON-Residential in order to use the Section 179 deduction? Thanks in advance for any input. Grace

https://www.tax.ny.gov/pdf/notices/n20-2.pdf New York Notice regarding filing and payment deadline as well 1st quart estimated tax.

https://www.finance.senate.gov/imo/media/doc/CARES Act Section-by-Section (Tax, Unemployment Insurance).pdf Hope this link works.

The IRS will make the calculation. It may not be what you think it should be so I would advise clients accordingly.

Customize Master Forms under the forms tab. Grace

It will be the same as the government has always handled tax matters. Last minute. I'm thinking they'll let us know on 04/14? Maybe 04/16?

I am working on an Estate 1041 which is on extension and due by March 15, 2020. It's a fiscal year 07/01/2018 - 06/30/2019. Taxpayer was collecting a small pension, $ 425/mo. She died on 07/20/18. The Company paying the pension was not notified of the pensioner's death until December of 2018. Another $ 425 was deposited in January of 2019 and then the payments for August, 2018 thru January, 2019 were reclaimed from the decedent's bank account ( $ 2,550) 2018 1099-R issued in the decedent's social security number was $5,100. There was no 2019 1099-R issued for the $ 425 paid in January of 2019. I know that the pension payments from January, 2018 thru July, 2018 were reported on the decedent's final 1040 return ( $ 2,975). And, the balance of the 1099-R, $2,125, was reported as a negative on the other income line with the description of XYZ Company Pension IRD to the Estate, EIN XX-XXXXXXX. Is there any adjustment I can make on the Estate 1041 to take into account the repayment of the $ 2,125 so the estate doesn't get taxed on the income that was reclaimed? Thank you in advance for any input. Grace

First Form 709. Taxpayer transferred a life insurance policy which was issued back in 2002 to irrevocable trust. Still paying premiums. Form 712 from insurance company shows a value of $80k at the time of the gift. According to the trust document, lifetime beneficiaries of the trust are his son and his 2 children, NOT the grantor. Am I correct in reporting in Part 2 of Schedule A (Direct Skip) due to the grandchildren being beneficiaries? And, what about "Electing Out of Automatic Exemption Allocation" (IRC Section 2632(c))? I'm not sure about this. Thanks in advance for any input. Grace

TP had an existing mortgage of 75k on a home valued at 250k. In October of 2018, did a cash out refinance of 185k. If I understand the new rules, the interest on the 75k portion is still deductible. The 110k balance of the loan, which was NOT used to improve residence, is considered "home equity debt" and is no longer deductible? Also, OLD rules would have allowed the interest on 100k of the 110k to be deducted? (I am asking as I am in a state that is not following 2018 federal changes). Thanks in advance for your feedback. Grace

What about the "kiddie tax?" Aren't taxable scholarships taken into consideration?

My 2 ¢. The 1st 1099R looks like the TP cashed in a non-qualified annuity. TP had made contributions of $8,900 (Box 5) and cashed it out for $10k (Box 1). Only the $1,100 should be taxable. I just did one of these recently in ATX and only the box 2a amount showed up as taxable. Check your input. The 2nd 1099R is a nontaxable exchange (Box 7, Code 6). I am confused by the fact that the company checked the box "taxable amount not determined." If it was truly a non-taxable exchange, then none of it would be taxable and that's why Box 2a was blank. Perhaps you need to get more info from the TP. It may be that the TP exchanged an annuity, life insurance or LTC policy for a new LTC policy or a hybrid life insurance/LTC contract. Maybe the $25k that went to the company was too much and they refunded the $2,589? Also had a similar one recently. It was an exchange between 2 non-qualified annuities. Box 1 $94K, Box 2a blank, Box 2b Total distribution box checked, Box 5 $61k, Box 7 Code 6. I believe that the fact that yours had the "taxable amount not determined" box checked is what's causing ATX to tax the whole $25K. If the TP did not received the $2,589 as a refund and actually received the whole $25K, the company should not have put a Code 6 in box 7. Then, I would put the $2,589 in as the taxable amount.

Schedule 1, Line 28. I've done a few of these.

Would anyone know for sure if a death benefit received by a beneficiary qualifies for this subtraction. It's 1099R with a Code 4 in box 7. I know about the 20k limitation. It's only 2k and there's only 1 beneficiary. Thanks. Grace

My whole beef with this driver's license info is that it has to be entered in the federal filer's info tab (at least with ATX and my understanding is Federal is optional for now) and it gets transferred to the NYS EF form with the exception of the document number. The IRS's systems have been hacked 3 times (tax info, PIN system, and now FAFSA filing system). It's really comforting to know that if anyone hacks the IRS now not only do they get name, DOB, SSN, and address, but now they'll get enough info to put together a fake NYS Driver's license and slap their own picture on it.