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TAX SEASON MAY BE DELAYED


Lee B

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The current bill under consideration in Congress includes a second round of Stimulus Payments, $ 600 Single

and $1,200 for a married couple and if the qualifying parameters get changed,

the start of tax season will probably will be delayed. For the IRS, this comes at the absolute worst possible time!🤢

 

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  • 2 weeks later...
21 minutes ago, TAXMAN said:

I hear the 600 and 1200 are still going out. I thought that was stalled. if so doesn't that make the reconciliation incomplete? Some of tp's may not get funds untill after they have filed? Darn mess this will be.

Don't think that will be a problem, since for some unknown reason the last day the IRS will be mailing checks and initiating direct deposits

will be January 15th.

Everyone else who qualifies will have to claim it on their 2021 tax return.

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On 12/31/2020 at 8:37 PM, grandmabee said:

SO I thought it all would be on 2020 return.  Otherwise people would have to wait until 2022 to get the stimulus on their 2021 tax return.  That doesn't make sense.....but wait maybe  it is the IRS.

I agree.  If they haven't gotten the first stimulus but should with their 2020 status, it's supposed to be on their 2020 return.  If they're going to have to delay the filing season to make changes in the 2020 forms, why couldn't they have the latest stimulus payment included too.  Especially if the payments will stop Jan 15.  Hopefully they will at least have another round of payments later based on 2020 filings.  Oh well, we'll just have to wait and see.

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Attended a tax update seminar last week and they said the new $600 stimulus payments are included in reconciliation on the 2020 return.  So if a client did not receive the payment it will be included in the refund.  I asked what happens if they get the $600 after they have filed and he did not have any answer.  Makes sense now if payments are cut of on January 15th.  

And got mine in the bank account this morning! 

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16 minutes ago, Abby Normal said:

Got mine this morning, too. It showed as pending over the holiday weekend.

If you don't get it now, you claim it on your 2020 return. That's why they're rushing to get it done by January 15th.

Ok, good news.  Now we just have to wait for IRS to get the forms ready and open up the filing.

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2 hours ago, Abby Normal said:

Got mine this morning, too. It showed as pending over the holiday weekend.

If you don't get it now, you claim it on your 2020 return. That's why they're rushing to get it done by January 15th.

Can someone provide a general overview as to how these stimulus checks are treated on the 1040?  Specifically what needs to be done to "claim" them?  I assume we'll need to make sure we ask our clients if they received them.  Is the IRS sending out any type of 1099?

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The first round received letter 1444; the second round, I think, nothing. Line 30 -- your software may use a worksheet to do your data entry. Your software should compute your client's allowable Recovery Rebate Credit; you will enter the two payments your client received, or one, or none; your software will reconcile to see if your client has some remaining credit to transfer to line 30. Something like that!! I've heard that the payments are showing up on transcripts that you can check on e-Services or have clients check on Get My Transcript...

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ATX has it for the first $1200/2400 payment.  Not yet updated for the latest round.  There's a line item in the area of tax payments with a jump to worksheet.  If the person is eligible, the $1200 or $2400 will be included in the total payments and/or credits amount.

 

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2 hours ago, TAXMAN said:

I wonder if there will be 2 calculations one for the first stimulus and one for the second or will they both be accounted for in one.

I saw the IRS instructions on line and the worksheet does have 2 separate line items, one for each stimulus.

 

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