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One reason is if the policyholder doesn't provide information on all persons in the household because he or she isn't requesting the advance credit, then col B will be blank. It can also happen for months when someone's coverage starts on a date other than the first of that month.

Right Kathy, the question was really about the total contributions to all IRAs, and the self-employed SEP contribution is considered to be made by the individual himself, not the employer.

Tom, I don't know the CA forms. Does the return include form 568? I googled the error code and found the following is KB from CCH Support Site. The KB is undated though, so not sure if this will help: https://support.cch.com/oss/ml/kb/solution/000220664/000074671 Here's the whole text, including a resolution, if you don't want to click:

Well, Drake is handling it properly, and I wouldn't consider that to be forcing anything or arriving at a conclusion based on anything implied or pervasive feelings. You might consider IRC sec 408(k) that clearly defines a SEP as an IRA.

Have you checked to make sure you have the latest version of the form in question?

First, to state the obvious, a SEP is a type of IRA that employers contribute to, and plans may allow employee contributions to it. Then, Because you say this is a self-employed SEP: this would be used for those businesses reporting on Sch C (sole props, disregarded entities) or partnerships on Sch E, and those contributions are considered contributions by the individual and are reported as an above-the-line deduction that comes from line 16 of Schedule 1, and that is why it is being factored in on the Roth limitation worksheet. Does the return have an entry on that line? It would be different if your client was a W-2 employee of his own company (a C or S corp): employer contributions would not be taken into account for the limitation you asked about, but if client as the employEE contributed to the employer plan, then those would factor in to the Roth limitation.

Yes, correct. That would be easier, yes. I would make sure that the client is aware of the 2 methods and that he is agreeing to deduction instead of the credit. I suppose it is reasonable because the information is unavailable.

The client didn't pay tax on the full $58K because $31,406 of those payments were a return of his own funds, according to the letter and that is why the 2014 1099R shows -0- in box 2. That is the portion that he may not claim as a deduction now. So the 2014 1099R that you have is only reporting the portion of the payments that were a return of his contributions. Is it possible that there was another 1099R in that year or other years where the taxable portions add up to the $26,902, and were taxes withheld? I still do not know what the $6K difference represents, but is it possible that taxes withheld could account for the approx $6K if 20% Fed withheld and the remainder was state/local? If it was taxes, he wouldn't now be entitled to claim that as a deduction for the repayment because that portion representing tax withholding would have been claimed as payments on the tax returns and either fully refunded or otherwise offset the tax liability for that year. Hope that makes sense.

Here's PayPal's page where I got that information: https://www.paypal.com/us/cshelp/article/current-form-1099-k-reporting-thresholds-2024-update-help1131

Finally found what I mentioned earlier about residents of some states receiving the 1099-K because of lower reporting thresholds. The statement below is from PayPal, but I remember the same statement in the email from Square.

Keep reading further into that section about those repayments over $3K of income under a claim of right. Sec 1341. https://www.law.cornell.edu/uscode/text/26/1341 I can't help you with the $6K difference in math. What year is the 1099R for that now is -0- taxable? I'm assuming this is for a closed year?

Full service payroll would be generating paychecks and advising +/or making the payroll deposits for the client, much like payroll services like Paychex or ADP provides. It sounds like you are doing after-the-fact write-up work and the quarterly and annual tax filing.

You said you have to search for it. Is it also gone from your start menu? Have you checked the recycle bin? You can try this:

I would amend this. For everyone reading this, also keep in mind that plenty of states don't recognize superceded returns so that a consideration. This doesn't answer the question for Tom,but it is a good discussion of the differences and has a chart comparing the 2 methods: https://blog-mbgcpa-com.cdn.ampproject.org/v/s/blog.mbgcpa.com/amended-vs-superseded-tax-returns?amp_gsa=1&amp_js_v=a9&hs_amp=true&usqp=mq331AQIUAKwASCAAgM%3D#amp_tf=From %1%24s&aoh=17385457517143&referrer=https%3A%2F%2Fwww.google.com&ampshare=https%3A%2F%2Fblog.mbgcpa.com%2Famended-vs-superseded-tax-returns

This is topic. It is for ATX but the process should be similar in Drake.

There's also a topic here on this site that explains how you can put an authenticator on your desktop and do not need a smartphone.

It has nothing to do with transmission or e-file. It is to access the program itself at login with a popup box that appears right after entering your password. If it doesn't appear, then you have disabled (or not enabled) the MFA function within the program. If you want to check this or see where to change your preference, go to the "Setup" menu at top and then click on "Preparers and Users". Open the Admin user and look for this checkbox shown below. Mine checkbox says disable because I have MFA enabled, but if yours is disabled then the label on the checkbox would change and say enable.

Fwiw, Drake doesn't even have a place to enter 1099K data. For my husband's Sch C, I just entered the gross sales that includes the credit card payments.

Exactly what Tom said above. Drake is only generating the CA540 because of that "CA" you've entered. If the resident state picks up the data from the federal input, it should show up properly on the resident state return, but if it doesn't then you may have to make an entry for the state income to be correctly reported.

Check pub 525. With the repayment being over $3k, I think you can choose either to claim on Sch A line 16 or calculate a tax credit, whichever is better.

My husband has a Sch C biz and was correctly issued one from Block (Square). I didn't keep the email because it didn't apply in his circumstance, but there were lower thresholds shown depending on the recipient's state that may be the reason your client received one from E-bay.

Yes, this could also be a problem. My phone and computer have a difference of 2 seconds and the auth code will fail if I open the authenticator before trying to open the program, but it works every time if I open the program to the point of needing to get the auth code and then open the authenticator. Then it works every time.

Are you trying to pair the device to your computer by entering the initial code for that, or have you completed the pairing and are trying to open the program?

Long-time Firefox here also, and my Bookmarks Toolbar is empty. It's been set up so long ago, I didn't know that news feed would be there, and that would be annoying to have junk stories as I work..

Sometimes though, it is a holdup on the states' side of the testing, not the software vendor.