BulldogTom

Abby is so smart. But what I really want to know is how he has time, in the middle of tax season, to figure these things out???????? Tom Longview, TX

I don't have this issue, but I think it is fascinating how each software is handling it. Not sure who is right. Tom Longview, TX

I don't know why I bother to call support. They never have a person there that can even look at the issue. Then they ask for the same info over and over again, then they say a technical support tech will have to look at it, at which point they ask again for your Cust ID and name and number. I miss the days of Maine customer support...... Tom Longview, TX

Line 12 of the 8812 has an amount. Line 19 of the 1040 does not. They are paying back. I think I will call ATX and see what they say, but if they can't fix it, then I will remove for Efile and then add back in after it is accepted. Thanks Judy. Tom Longview, TX

Taxpayers got advance CTC. Got a little too much and need to pay some back. 8812 added to the return to calculate the overpayment. Diagnostics giving me an error that the 8867 is not needed since no credit was claimed. Anyone else seeing something like this? I think the credit (in a reduced amount) is actually being claimed but not on the 1040 line the software expects it to be on. This is a red error I need to fix. Thanks Tom Longview, TX

Your state law will determine if it is stepped up 100% or some other portion. If she did not own any part of it (based on state law) before his death, she should get 100% stepped up basis like any other person who inherits. If she was a partial owner (based on state law) then only his portion gets stepped up. Tom Longview, TX

I am going to if they don't finalize it soon. Tom Longview, TX

That is aggressive. Wish they had a code section or regulation to back that up. Unless the rules changed, going from your home to your work has always been commuting miles. Tom Longview, TX

The miles from pickup location to delivery location are deductible. What you want to get is the miles from home/garage to pickup location and from delivery back to home/garage location. That takes a legitimate business office in the home. Do they have a legitimate, regular and exclusive office in the home? Do they check their app from that office in the home? Do they do their bookkeeping from that location? Are they running the activity like a business so they can claim the office in the home? If they don't have a home office, I only take the miles between stops. Tom Longview, TX

Client is a high income couple, he is self-employed. Has been able to max out his SEP contribution every year. Asked me what the limit was earlier in the year. I gave him the amounts right off the IRS website which say: 25% of your net self-employment income or $58K, whichever is less. I forgot to add the part about the special rule for self-employed. He did not earn enough this year to max out under the special rule at 20%, but did if you take the general rule of 25%. When I was preparing the return, I let him know he had to withdraw the excess contribution and now he is pissed at me. It is my fault, I should have been more specific about the rate. Sometimes it sucks to do this job. Thanks for letting me whine about my mistake. Tom Longview, TX

I will take them all from you. I have a hard time finding out if mine got the 3rd stimulus payment or their advanced CTC. Send them to me with their perfect docs! Tom Longview, TX

Thanks for that info Chris. Saved me a call to support. Tom Longview, TX

ATX EIC form starts with AGI. If you put the income on Line 1 (which you can do without a W2) and then back it out on line 8 (which you can do in ATX), the EIC form shows the AGI as $0, which then calculates no EITC. I have messed around with the ATX EIC form and I cannot figure out how to get around their programing to allow the calculation. I was hoping that I was missing something in the input that someone else knows about. Last year, I just left the W2 income in the return as it resulted in no tax, in that the Std Deduction wiped it out. That was my work around. I think this will require another call to ATX support. Thanks for chiming in. Appreciate you. Tom Longview, TX

Exactly. Everything I think of will not be able to be matched by the IRS and will look like EITC fraud to the IRS (properly so - in my opinion). If anyone could just put an amount in for income with nothing for the IRS to match to from a third party payer, there would be fraud like the IRS has never seen before. I can't find a good way to do this that will not involve IRS rejection and appeals. Without the W2, I see no other course of action that the IRS could take (again - justifiably so). However, my client is entitled to this tax credit (both Federal and CA). I need to advocate for them. Tom Longview, TX

That is not the question. That issue is settled policy. It can be used to EITC. The question is how to make the software follow the policy. Tom Longview, TX

This is an ATX entry question. T/P sole income is IHSS payments for the care of disabled spouse. The payer has stopped providing W2s because the income is non-taxable. The Tax Court says the payments qualify for EITC earnings even though they are non-taxable. How do I enter the income into ATX without a W2? Last year, when we had a W2 from the payer, it did not matter since the income was wiped out by the standard deduction. Now I am up a creek on how to put this into the software. I have been looking all over the EITC form for a way to show this, but I can't find a way. I thought about a substitute W2, but I am not sure that will fly through the e-file system. Any help appreciated. Tom Longview, TX

Yep. It is draft for paper filing. It sailed through efile. Tom Longview, TX

Thank you. Efiled and accepted return this afternoon. Waiting on signature docs for more. Revenue can start flowing in..... Tom Longview, TX

Which Software has it? Have you looked online at FTB, because I can't find it there yet? In ATX software, the Form Release button says "Final Pending From Tax Agency". Not sure what that means or how long it will take. I need the form too! Tom Longview, TX

Yeah, that is what I thought I was saying.... that is the one that is missing, and since CA does not conform to most of the 2017 tax act, it is needed for most of my clients. Went to the FTB website, and CA does not show the form as ready yet. Hope they get off their butts and get it done. I need some revenue. Tom Longview, TX

First Time ATX is late on California form CA 540 as well. The website says waiting for state approval. We have never had that form held up in all my years with ATX. Tom Longview, TX

The client has the supporting documentation. 2016 losses. I think I can do this if I can figure out how to get the software to do what my brain wants the outcome to look like. Thanks to all of you. This board is invaluable. Tom Longview, TX

I think it is ignored on the 1040. I asked about it at a Spidell webinar and the consensus was that it was like a welfare payment and did not need to be declared on the tax return. ATX does not have all the CA forms yet, and I don't see a place for it on the 540 as of today. I would guess that ATX is going to be late with CA forms this year because of all the adjustments that need to be made. Just the fed contractor/CA employee coding must be a nightmare to put into the CA 540 adjustments. If you find the entry location before I do, please post. Thanks Tom Longview, TX

Yes, there are amounts. How do I get the amounts into Worksheet 7 though? In ATX, you can't touch the schedule directly, it all has to flow in from the 4797 and I don't see a place in the 4797 to bring in a carryforward loss that can flow to the 8582 worksheet 7 and then over to the Sch E pg 2. You are amazing and thanks so much for the help. Tom Longview, TX

We saw this addressed in our CA update class, but I did not pay that close of attention because I don't have anyone in that situation. Federal is computed like a contractor. For CA, you make the adjustments on the CA 540CA. Add the whole 1099 amount to wages, subtract the net Sch C income. Adjust the Sch A Itemized deductions (CA allows Unreimbursed employee expenses as a Itemized deduction). Watch for Self Employed Health Insurance - it goes to Medical Expenses in CA. Tom Longview, TX