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My season wasn't as bad as I expected other than the lost time to being really very sick. I really dislike the new 1040 and that was a time suck to explain it to each client with the schedules having multiple items combined into one number and looking like memo items stuck off to the side in the text instead of in the column of other figures. It's like a giant stop sign that slows the preparer down in multiple ways. I have some extensions, and except for two, all owe me information. I had to yell at one this morning to stop calling me multiple times a day every d@mned day, and told her that I am so frustrated by the calls that I'm on the verge of telling her to come pick up her pile of and take it elsewhere. If not, she will get a termination letter this summer.

I got $17K+ taxable SS using your figures, if I entered properly, and the figure I came up with is exactly 85% of the $20,904 you said was attributable to 2018. Here are the printouts, using a practice return and 2018 planner: Lump sum SSA.pdf

Another first for me, I actually had someone get a very small credit on the 8801 for the AMT credit.

I've been following too. Very sad.

Haha, I'm more tired than I realized. I completely read that question wrong. Thanks, Jack.

Yes, and I'm moving this to its own topic so that any answers you receive there will be on topic.

I hope you all are feeling and doing well going into the last day! For me, the last of the extensions are filed and only one client coming tomorrow. It was another wild week and I've been working into the wee hours each night to make up as much of the time lost to the flu as I could, and I'm just so relieved to have completed all that I did! I have more extensions than I'd like, but about 1/2 of those do still owe me information so I'm not complaining.

Hmm, is it IRS or ATX that is down? IRS MeF status page is reporting as "operational"

Clarification for calculating state refunds received in 2019 using the tax benefit rule for taxpayers affected by the SALT limitation:

Putting this here so it will come up in the searches and for a link into the pinned topic on TCJA: https://www.journalofaccountancy.com/news/2019/mar/tax-treatment-state-local-refunds-201920934.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=01Apr2019 Whole article for those that don't click links:

Correct. No recapture of depreciation for years that the simplified method is used.

Yes, it is reported as you described. 1099-R, code 1, and subject to the penalty. The plan documents will govern when the loan actually goes into default, and whether it is a deemed distribution (not eligible for rollover) or if there is a plan offset, in which case IS eligible for rollover. Here's a Q&A from the IRS that may be helpful to you as a start: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans#5

Yes, that is correct.

I love this idea and am donating this evening because of a recent post that helped me out and another older post, coincidentally started by Possi, where I found my answer to a different issue through the search function.

Pacun, thanks for confirming. I defer to those of you that do these EIC returns regularly and I was really doubting myself. I think I'm on the right track with this family now!

I can't answer what might be making your software do that. PA-40 has a box to mark as full year nonresident, and your software may be working from that input, or lack of. If the W-2 doesn't specifically break out PA wages, or if the PA wages are incorrect, then a nonresident would use the NRH to allocate.

New law eliminated like-kind transactions on anything other than real estate. For cars and other tangible property traded in, you would report this as a sale using the trade-in allowance as the sale proceeds. Record the new asset as a purchase separate from the trade-in.

No, use the PA-40, and it has a residency box where you'd enter code "N" for nonresident.

Not true. If he claims himself then his std deduction is $12,000. If he is a dependent of another, standard deduction is earnings + $350 and he has a small amount of tax that reduces his refund. For the other son that I didn't ask about, I think this older son meets all the tests to claim the EIC. I only do a couple of EIC returns and always look up the rules so I don't fall into a trap of missing a piece of documentation. Older of the two sons: Single, a citizen, has a SSN, no children, no disability, lived in U.S. all year no investment income Age eliminates this taxpayer from being anyone's qualifying child, and income too high to be anyone's qualifying relative. His brother is younger but can't be his qualifying child because over age 19 and not a student, not disabled (lazy) and can't be a qualifying relative because support test is not met. Earnings and AGI are ~ $10,000 What disqualifies the older of the two sons from claiming the EIC? What am I missing?

Are you using PA Form NRH to allocate?

Mom has coverage through her employer and I have no idea how she/they answered the questions for his coverage. It's one of the items on my list to discuss with her.

Taxpayer, a total enabler and pet peeve but story for another time, has 2 adult sons still living at home, ages 28 and 30. One makes enough to not be a qualifying relative, is back to college, NOT contributing to the household finances, NOT any toward support of the other son. No questions on this return. The 2nd son should be her qualifying relative. I looked up fair rental of home for support worksheet, and the mom meets the support test by a long shot based on this alone without considering any other expenses she paid. This deadbeat son had $1,500 of gross income from wages and unemployment, no other sources of income or support. Q1 - MUST mom claim the son? She didn't keep any documentation or receipts for the support. I know she could look up electric and utility bill payments and print those if needed. Q2 - I *think* is will create a problem with son's Medicaid coverage, and it should! Delaware allowed Medicaid expansion & son is over 19. I think this means that if she claims him as a dependent, then her income is what Medicaid looks at as the "household income." Is this correct? Q3 - Deadbeat son is required to file based on gross income. If she doesn't claim this son, his return would show a higher refund, but if I answer the 8867 question "can someone else claim this person as a dependent", then it knocks him out of a whopping $29 of EIC. I'm not worried about that, but am about the ramifications of indicating that he CAN potentially be claimed by mom but isn't. What can o' worms does this open? Will he still get the notice that he might be eligible for the EIC, or the Medicaid issue, or something else? Apologies for the long post, and if you read this far then I appreciate your patience! Hate, hate, hate these returns.

Hmm, I can see there will be many mistakes or omissions with, I may be one. The partnership is including the QBI info with the K-1, but why would a signed statement be required at the partnership level when the deduction is determined by the individual on the personal return?

Yes, thank you. I use Drake and found it on the input screen for generating page 1 of Sch E. My client and wife are each 50% owners, together own 100% of their LLC for a commercial strip shopping center. I don't see how to generate this for the partnership K-1 passthrough, although I believe this does qualify for the deduction. I guess I'll have to retype the darn thing and create my own statement. At least I have the wording required.