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About Chowdahead

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  1. I had a similar client. Better to get it over with and pay the income tax. Also, to my knowledge the 10% penalty has been waived for 2020, and is not deferred, which is big.
  2. So here is a weird one. I have some clients from 2019 who are Rideshare drivers. In 2020 their Rideshare income is way down or zero, they may taken a part-time job with little wages, and they also collected some unemployment benefits. They have kids but their 2020 EIC is near zilch. First of all, clicking the box on the EIC Questions tab to use 2019 Earned Income doesn't pull from the 2019 Work Sheet B for the Sch EIC. It pulls Line 1 of the 2019 1040 which is Wages. However, these folks have income on Line 7A from the 2019 1040, which is business income. When I open up the clie
  3. Came on here to ask about this as well. This is horrible. I too noticed the missing language related to Coronavirus on Line 12N of 5329. When I went to check the Form Update Report I saw a change was made to 5329 but no exact information about what was changed. This is horrible. I don't think I have any clients that hadn't been transmitted before this change was made. I was about to transmit a return and noticed the client now had a tax due when the penalty was reinstated and that's how I caught it. However, I'm wondering what is going to happen to those clients who I transmitted
  4. This is good news. I've read conflicting info on this. Also, can anyone confirm whether they would be eligible for both the (EP1) $1,200 and the (EP2) $600? Or would they only get the $500 for EP1 if they file a 2020 return and they are not someone's dependent?
  5. Something new this year that I am seeing as a blue informational message when running error check is in the 1040 EdExp Tab. Client received a 1098-T with $1,500 in Box 5 Scholarships or grants. This reduces the otherwise amount i Box 1: Payments received. The blue message indicates "It may be more beneficial to choose to include tax-free scholarships or grants as income rather than allocate some to be tax-free." When I include the Scholarships amount on the 1040 under "Other Income" instead of on the 1040 EdExpTab, the client's tax obviously goes up but the refund goes up because t
  6. Thanks you. Forgot to mention, this is a single-family home and they lived in it for about 10 years consecutively. I will go through the 982.
  7. With all of these e-mail alerts from the IRS about new scams and identity theft, I wonder why the IRS continues to do two specific things: When making a payment the voucher instructs the taxpayer to write their SSN on their check or money order. I advise my clients against doing this because a digital image of that check or money order could turn up anywhere and in anyone's hands. Even the voucher only has the last 4 digits of the tp SSN so I don't understand why the IRS continues to ask people to do this. When replying to a notice, there is a spot on the IRS that asks for
  8. Good afternoon. I need a clarification. When filing Form 982 based on a taxpayer receiving a 1099-C due to a short sale of their principal residence, does any of the amount from the 1099-C need to be included on the 1040, or does entering the excluded income from the 1099-C on the 982 and filing it with the return appropriate? I know that ATX doesn't carry any amounts from the 982 to the 1040. The reason I as is because including the excluded income it on the 1040 creates quite a tax liability. I just want to make sure it doesn't have to be included and the IRS will calculate the redu
  9. Good to know, but that's not free. They have to pay the $55 plus tax and then sit there and do all the work themselves and question if they missed something. Plus they need to make sure they retain access to a copy of their return for the future of they have to pay. I don't charge clients for copies.
  10. So the IRS isn't asking. The software companies aren't asking. And TurboTax will update their software Mar. 1 to not even ask users the question. But you will continue to ask or require them to answer Yes or pay the penalty? Perhaps they should choose whether the box should be checked. I think many people may need that extra $695 or $1390 dollars in their pocket now rather than have to file an amended return in a year to get it back.
  11. Many free programs either don't provide the option to file the state return, or they charge for that. Not expecting that, I suspect many filers simply don't file the state or put of for later and probably forget or never get to it. It baffles my mind that someone would use a free file program to avoid paying yet leave hundreds or thousands of dollars in a state refund uncollected...
  12. Last week, in the middle of a busy day and sitting with a client I received a call at my office from a number listed in Georgia with the IRS identifying it as "IRS". Another staff member picked up the line but when they transferred it to me the line was dead. Several minutes later my cell phone rang with the words "US GOVT" on the screen and the number 1-678-537-8873. I answered and the male voice asked me for by first and last name. I was immediately on the defensive because I know the IRS does not call and does not ask for identifying information. However, the person sounded professi
  13. Yes I did at just over 3 and half hours. It was bitter sweet because the Rep I got was amazing. He was patient. He apologized twice for the other Rep disconnecting me. And best of all he was knowledgeable. He remoted in on my PC and was able to assist me. What happened was at the beginning of January ATX sent me a link to download the PaperlessPlus software but it still had the 2015 version. So that's why my activation code would not work. The two versions look almost identical. He was also able to clean up some networking issues and transfer my database over. I thanked him a mil
  14. Or you can can simply send them to the IRS's own FreeFile or TurboTax or Credit Karma etc and they won't be required to show any proof of anything to those services and file their taxes faster than the interrogation we are being asked to give them. But I digress... The 8867 and Due Diligence also do not stipulate what dates the documents need to contain Does the document need to prove more than 6 months of residency of the child in 2016? SO do we need a doctor's statement from January and another from July? What if the client only has a Jan 2017 document? It's mind-boggling... T
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