Lion EA

Did you read page 5. You might have to list the wash sales. I ask the broker for the gain/loss statement in a format that can be read by Excel and import it into the return. I've also attached a .pdf to an e-filed return. If you're lucky enough to have only covered sales with no wash sales or other adjustments to basis, you can just summarize on Schedule D. Read the instructions.

See especially page 12, and watch out for Wash Sales page 5: https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

ILLMAS, remember that parent can use 2019 earned income if higher than 2020 to qualify for both EIC and CTC, if that helps. HOH and EIC are two different things. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant https://www.irs.gov/help/ita/what-is-my-filing-status

Either way. Will one keep the spreadsheet or other records, collect rent, pay the bills (please open up a separate bank account), etc.? And, if one performs all the administrative duties, how will he be compensated? Will decisions be made by all four? What happens in a tie? What happens when one wants out? Or, the others want one out? I suggest an operating agreement even if they don't form a partnership. And, liability insurance.

Did you enter the parents' information correctly? And, that of any siblings? Step through the worksheet your software generates. Basically, the first $1,100 is excluded, the second $1,100 is at the child's rate (10%), and the excess at the parent's marginal rate. Did child have any other income? If parents' rate is low enough, capital gains can be at the 0% rate. Step through the worksheet...

Like telling teachers they can deduct PPE as their $250 above the line. I never met a teacher who didn't spent over $250 already, before PPE became a necessity. Politicians making their voters happy and leaving it up to us to explain how it doesn't benefit them at all.

The ID# is under your client's name, right? So, payroll will be under his name, too. The payroll reports should have ALL the payroll that's under his name. As far as wages/payroll taxes on each Schedule C, that would be the actual amounts attributable. Or, is he going to have one Schedule C with two DBAs? I guess that would depend on if he organized for the biz purpose of mowing or for any legal biz purpose. And, whether or not he needs to keep the two separate for liability insurance purposes. Have fun.

So, I DID remember it correctly, at least at one time, before "clarifications" and other interpretations! Probably read/heard it in an ARPA class shortly after the bill was signed.

I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429

Yes to prior year. And, to mark-to-market. I don't have any trader clients, so can't think through how that flows on a trader's return right now. Someone will jump in to help you with planning for next year. I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429

That's a great way to phrase it, Pacun.

cbslee is right. I haven't had a Single or HOH ITIN holder (no spouse on return) with kids, so hadn't remembered that correctly. There has to be one spouse on the return with an SSN, but other spouse can have an ITIN; then SSN spouse and all kids with SSNs get EIP/RRC. If they'd been disqualified from EIP1, then they now can get RRC1. So, giogis' situation will get no EIP and no RRC.

Oh, yes!

Yes, the ones with SSNs. So, your taxpayer will get $1,400 for each dependent with a SSN but nothing for him/herself with an ITIN. For previous EIPs, a taxpayer with an ITIN would disqualify the whole family. If married couple where one had SSN, could file MFS with the kids with SSNs with the parent with a SSN and file the ITIN parent MFS by him/herself. Now, you don't have to play games.

The custodial parent (IRS's definition, not the divorce court's) signs 8332 to give the dependency to the noncustodial parent, in your case every other year. The custodial parent is and remains HOH every year.

Yes, I have clients who were sure I didn't need to know about EIP2 because it arrived in 2021, and others who gave EIP3 amounts, and others who are sure they never got anything.

Our tax dollars at work, ha!

Gee, did the daughter get unemployment, too, and the boyfriend get APTC, and the parents had a Covid-related IRA distribution, and the baby has a bank account/kiddie tax, and dad worked in NY or another state that decoupled from The CARES Act, and...

Wow! I want free money...

Thank you very much!

Yes, employer will cover 50% and withhold 50% from employee starting in April. Thanks cbslee. Anything else I need to know and any leads for me to research? I don't do payroll, so this is a weak subject for me. Will his gross pay will be a deduction for company as wages and then the company paid part as employee benefits?

https://www.irs.gov/retirement-plans/ira-deduction-limits Check to make sure your client qualifies for a deductible Traditional IRA. Also, see if the Saver's Credit is available?

Yes, read about Cost, Adjusted Basis, how a disallowed Wash Sale loss adjusts basis, how to code adjustments to basis, etc. And, use your software's Help, Knowledgebase, Chat, Support, whatever features to learn how to do the data entry for the rows and columns on that 1099-B. I suggest taking a simple return with smaller numbers and preparing it by hand on paper forms to understand how the numbers flow from one form to another. When you know where all the numbers go, enter the same return in your software to make sure you understand the data entry needed to get the correct results. Then you'll feel more confident with larger numbers &/or more complicated returns.

A Roth IRA contribution is not a tax deduction. Does he qualify to make a deductible Traditional IRA contribution?

Also, where can I learn about employee healthcare plans, but not more than I need to know?! I just want to be able to answer Paychex's question about is her amount w/h for healthcare pre- or post-tax.