artp

Thanks for all of the replies. I also got a suggestion from another local tax preparer who has used the free version of MordPass for several years and is well pleased so I am going to give it a try.

I have been using LastPass for several years, but am looking for better alternatives. I am a single user and need a manager that I can use mostly on my desktop, but would also like to consider on my phone as well. Would appreciate your thoughts.

I have brother MFC-L2750DW and am well pleased for over 6 years.  As others have commented replacement toner and drum units are easily and cheaply available thru LD products and are very reliable.

Grandmother and grandson jointly  own the residence the grandson is living in. Both names are on the deed and mortgage. Grandson makes the mortgage payments.  Grandmother wants to pay for the solar system and wants to take the credit on her tax return. She does not live in the home and rents and lives in a separate residence at another location. I don't think that she qualifies since she doesn't live there. Is there anyway that this could be structured for her to get the credit ?

DANRVAN,

Thanks for the reply. I had not dealt with DAF inside a trust before. I had not seen charitable contributions passing through a trust. I appreciate the insight.

A simple trust with a single income beneficiary made a contribution of stock shares through a DAF. Can that be taken as a pass through item to the income beneficiary or must it be taken as a deduction on the trust income tax return?

Thanks for the replies. We will wait a few weeks since she only recently got the voided 1095-A and try to e-file.

Client finally received a 1095-A marked void at the top of the form after much discussion with representative at market place. She had never applied for or got insurance through the market place. We are trying to e-file the 2024 return. The 1095-A marked void has 0$ entered for Jan & Feb and all the rest of the months have amounts populated.  What is the best approach? We have to include a 1095-A or the return will be rejected. Do we include the form with all zero $ amounts and attached a pdf of the form marked void at the top? Drake software has no input for a 1095-A to indicated VOID. Any assistance would be appreciated.

Husband died in May so we may be OK. Thanks for the reply.

MFJ return. H died May 2024. In prior years both H&W had PP pins. W has hers for 2024 but H's pin was never received. Elderly and do not have computer access to check for husband's pin. Can we e-file with just W's pin?  Would it help if we put W as primary on the return and H as spouse? or are we stuck with paper filing if we can't find H's pin?

Judy,

Thanks for being patient with me on this.  I did not see how this was going to work until I made those entries. Brain was just not working.

Art

Reply all

I agree about the earnings on the $7000, but the contribution itself should not be reported anywhere on the return since the $7000 + earnings was returned before the tax due date. See below from Pub 590-A

"You won’t have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw any interest or other income earned on the excess contribution. You must complete your withdrawal by the date your tax return for that year is due, including extensions."

Taxpayer made excess $7000 Roth IRA contribution in 2024. HIs MAJI exceeded $240,000 MFJ. The $7000 was reported on 5498. He will pulled out the $7000 prior to filing the return, but I need to report the earnings on the $7000 as taxable and 10% penalty does not apply. Did not see an input in Drake to do this. I have not gotten any help from tech support on this so do I just do a manual entry on line 8z of schedule 1? How to show the $7000 and then back it out to avoid IRS reporting issue? suggestions?

Art

The son started fully time employment and had over $28,000 of W-2 income so after filling out support worksheet he is supporting himself. He took out the loan in his name; dad co-signed the loan.

Art

On 2/20/2025 at 5:29 PM, Lion EA said:

Get the bursar's statement to see what can be done for 2024. And, qualifying expenses, such as books.

If the parents made too much money to benefit from the AOTC in prior years, for those years they can choose to NOT claim the college student dependent. The college student still checks that he is able to be claimed by another/does NOT claim his own dependency, but then he CAN claim the nonrefundable part of the AOTC. See if filing some amendments can get some monies back for this family.

Getting the son's W-2s and he will be claiming himself this year. Got the bursar's records and $8500 of student loan funds were applied to spring semester so we should be good to get some education credit on son's return.

Thanks for everyone's replies..very much appreciated

15 hours ago, kathyc2 said:

No.  If properly prepared the 2023 form would have a check mark in Box 7.  It's just a timing issue not a taxable issue..

It was checked so if there was a sufficient payment applied to 2024 that exceeded the $7000 of scholarship we should be OK for 2024 and the son has no taxable scholarship to report in 2024, right?

Art

Lion EA

So client gets double whammy. He could not claim any AOTC in 2023 or 2024 because of income limitations and because he prepaid the spring 2025 semester in Dec 2023 instead of paying it in Jan 2024 which would have more than offset the $7000 of scholarship, the student has to pick up $7000 of income unless we can come up with some other college expenses that were paid in 2024. What a bite!

Client filed MFJ in 2013 and 2024. His son graduated college May 2024.  2024 1098-T Box 1 blank, box 5 $7000. Client paid spring 2024 semester $8500 in Dec 2023.  Nothing paid in calendar 2024 as far as he reported to me. For 2023 1098-T Box 1 $31,000, Box 5 $14,000. Client AGI > $200,000 in both 2023and 2024 so no AOTC claimed either year. Do we have a reporting problem for the $7000?

Art

Judy,

Thanks for the reference. That really helps!

Art

Judy

Technically, my client is a "Guardian" appointed by the court rather than a foster parent. She has the same role, legal status, goal, decision making and financial support as parent. When looking at the relationship list Foster child is listed, but I don't see guardianship children, so that was the reason for my question. Guardianship seems to have more legal status than Foster parents, yet are not specifically listed.

Art

Lee B

She was appointed guardianship several years ago and the children lived with her since 2022.

Art

Taxpayer was appointed guardship for 2 children (unrelated) under age 17 for several years.  Parents are both incarcerated and no other relatives qualify to claim the children. Children live with taxpayer all year and are fully supported by taxpayer. Can taxpayer claim CTC?

Judy,

Client has never purchased coverage through the marketplace going back at east 10 years. She is contacting them now to get a voided 109-A or something in writing that we can attach to the return.

Art

2024 return e-file was rejected F8962-070 Form 8962 not filed. Client is single, no dependents has never even applied for health insurance through the market place and in fact has no health insurance through work. Of course no form 1095-A was received.

Client subsequently told me that last year the police questioned her with regard to a woman with the same name living in the same city who was a person of interest in a crime they were investigating. After interviewing my client they were satisfied that my client was not the woman they were looking for. She is requesting for any written confirmation that the police may have, but doubtful anything will be forthcoming.

We could attach an explanation why the form was not attached and try to e-file again, but I am doubtful that it will go through. Anyone have a similar experience? Thoughts? 

Art

Judy,

The client is trying to get the data we need to calculate the credit..should get us a better result.

Thanks again Judy for all your help, very much appreciated.

Art