Pacun

TP has an ITIN and two US Citizen children. Will that person receive the $2800 2021 stimulus? Two of my clients have called me and told me that their cousin, friend or co-worker with ITINs have gotten their stimulus for the children. I know that ITIN holders don't get it only the mixed families but I want to double check.

Since the standard deduction is big... you could just enter 11,341 as unemployment and that will make room for the 10% withholding. I think the IRS will appreciate that efile because paper filing is a pain for everybody... including the IRS.

Make sure you treat your work machine as such. Do not install anything that is not work related, don't have those cool screen savers, toolbars and other programs. Do not open multiple clients or don't open ATX for 2019 and 2020 at the same time. Close all unneeded programs while doing taxes. I have not had any ATX issue except that when printing big returns, it freezes from time to time. I had that happened about 4 times during this tax season.

When purchasing ATX, let them know that you want to import your data. They will ask you what software your are using to access the data to be imported and they will give you instructions and advice you of any incompatibilities.

So, you submitted an amended return to the State without filing a regular return?

I don't have step by step solution but this is what I did with one return. make a copy of the return that you sent to the IRS. Go back to the original one and add the expenses and efile NY. Go back to the newly created copy, select amend return. This will create a copy again of the return. Go to the copy of this return and open 1040, add the expenses, then go to 1040X, make sure the changes are correct, add the explanation and create the efile for Federal. Transmit the efile to Federal only. Make sure your client has copy of the original filed 1040, the NY filed return and the 1040X return. I am not sure how NY or the IRS operates but most likely the IRS will send a note to NY and say... "this guy amended in 2020". NY might wonder in a couple of years why you didn't amend NY.

Maybe the W-2 he brought was from his sibling and when his sibling paper filed, the IRS knew only one is legit. I always insist for my new clients to show me their SS card, not only for situations like this, but also because I need to match my filing with what is listed on the SS card.

What kind of computer do you have? How much memory, Solid state drive, etc?

Wow... NICE post. I am glad this season is over for me. I also want so say thank those who post questions and thank those who take time to answer our questions.

I have a client who has only the last paycheck stub. In the past, I have mailed those returns but now I want to efile. I need to fill out the W-2 and the substitute W2 in order for the amounts to be correct on line 7?

Thank you. I file client's ifta every three months. Ifta is asking for the IRS letter with the new name and same EIN in order to update the IFTA information. Ifta needs to match to the new name.

Pacun.llc was cancelled by the state. State allowed the name to be Pacuns.llc because they sold pacun.llc What should I do with the IRS, will the IRS allow my client to keep the same EIF and add the letter to the name?

Can you create a new client? As you know, you can update the program or update the forms, have you done both?

Your client will have to pay 10% penalty on the amount above $100K, unless he is 59.5 years old, 55 and separated from service, 50 if he was a public safety employee.... etc.

When you click on line 30 of 1040 form, make sure you only have a check mark where it reads that your clients have SS number. If you check mark the next box, it is assumed that ONLY one taxpayer has a valid social security number.

all gifts in the past 2 years are reconsidered and put back as income to the decedent or something like that.

enter that 2019 EI amount in box 6a of form 8812.

I think I miss read the post... is "last year" 2019? If you already dealt with the 1099C, you don't have to do anything else this year.

The money received is not taxable but he never paid the debt to bank of america. The 1099C is taxable.

To qualify for the exclusion they have to own and have lived in house for two years in the past 5 years. You have entered less than 2 years.

Client filed early and her unemployment was taxed by MD. It is my understanding that MD said that they were going to adjust automatically and people were going to receive the extra refund automatically. Client called MD and was told to amend. This will be very interesting because as soon as you open the return, the numbers will change and there will be no way to open the form the way you sent it. A lot of overriding will have to be done and then we will have to amend the return. Have you heard that MD is requiring amendments because of unemployment if refund has been issued? Any work arounds during the amendments will be welcome.

I am surprised the experts on Embassies have not commented on this. Schedule C and no deductions is the way of doing it.

about 10 years ago, I started filing Schedule C for a person that worked for the monetary fund. The person showed me all the letters from the employer and they showed that her salary was X and that she was getting X*1.13 or something like that because the employee was responsible for all taxes. (This situation is common in DC). One year, she attended a training and we took $3K deduction on Schedule C, the IRS sent her a letter and said "Any expenses need to be reported on 2106". So that's why I said schedule C with NO EXPENSES whatsoever. This extra money are given to US citizens and to legal permanent residents. I have a couple of clients that do not accept a "Green Card" from immigration because all the money they are getting is tax free but as soon as they become a green card holder they will have to pay taxes. Think about this: You have a nice position and making $150K a year and no kids. The embassy appreciates you and your non-inmmigrant visa is guaranteed. Also you get $150K, pay no taxes... why do you want a green card if it will cost you $30K every year? And by the way, it is legal for these organization to not hold taxes and it is also legal for this money paid to non-immigrant visa holders not to be taxable.

Maybe not. But I know the end result. I will find a way for this person to file as HH, not pay SE taxes, and to get $1400 refund. And as mentioned by someone else... we learn something new every day. If we wait to be master on something before we dive in, we would not have filed our first 100 returns because among those 100 returns the we filed a long time ago, there were a couple that were above out head.

File Schedule C and SE with NO DEDUCTIONS whatsoever. What they have not shown you is the other letter where the embassy tells them: "We are going to pay you 100K for your services but we are going to give $113,650 because embassies don't withhold any tax money for the US." All embassies, the monetary fund, the world bank, etc. do that.