Pacun

Shark bought 10% of a business for $50K in 2020. Partner invested only the money and has never visited or worked at the business. K-1 show a loss of 2K. I input the information of his $100K W2 and of his K1 loss. I entered -2,000 on line 1 Ordinary income (loss). I have also checked "passive activity" and "General Partner". I have also entered his basis as 0 at the beginning of the year and $50K cash contributions. The 2K should be allowed as a loss, but it never shows on 1040. It shows on other forms but it never transfers to 1040. What am I doing wrong? It is my understanding that passive losses up to 3K are deductible or were deduction prior to new law.

I have a client that brought 2019 and 2020 documents. I am ready to efile. 2019 he owes 1K. 2020, he will get a refund for 2K (stimulus helped). I want to efile 2019 first and wait until the account shows that he owes the money so when 2020 shows up, the IRS is ready to get its money. How long do you think I should wait after I efile 2019 if I am going to efile both years? Child efiled by mistake for 2020. I filed 1040X freeing up his exemption so that parents can claim him. Parents tried to efile last month but it was rejected because child SS number was used on another return. How long do you think I need to wait before I efile parents with the child as a dependent? I tried to help a client with an online payment plan but when we entered the account and routing numbers to have the money withdrawn every month, we were asked for a name and SS number. This client has an ITIN and we couldn't continue. I asked him to call and see what happens. I guess people with ITIN cannot do on line payment plans.

If it is a Roth IRA older than 5, nothing is taxable I think.

Change the code from G to something else. Or you will have to make another entry for the conversion and pay the taxes.

File her as MFS today. The tomorrow amend and add the husband's income.

Most of us have a decent computer and it crashes a few times a month. In my case, it has solid state hard drive, 16G of RAM and this is my work machine. I don't play games or watch cool videos that my friends send me. I don't allow programs to stay resident and I don't have cool screen savers or other cool programs that are not needed for my work. If ATX would have programming errors, then most of us would suffer more than you because not all of us have 65G of RAM... not even half. Remember also that the default printer, its driver, its age, its memory, it firmware update, the connectivity between your computer and the printer, and its manufacturer have something to do with this crashes.

Remove the form and efile at once.

Install more memory on your computer... it seems you might need 32G or buy a new computer with at least 16G.

If EIC credit is involved and if he has enough itemized deductions, maybe the mother can file as single and claim the child. I see these choices: Mother: Single which makes the father HH with a dependent Mother: Single with one dependent which makes the father as single with no dependent.

The IRS cannot issue refunds beyond the three year window. File 2017 somehow now and then wait for the other years. Don't feel bad since they had a few years when the husband was NOT missing to file and they didn't do so.

I used to meet 90% of my clients. This year, I would say about 60%. They come to drop off documents and they come back to sign and pick up return. Some of them drop off with my partner, I prepared their taxes and talk on the phone with them and then they come to pick up their copies from my partner. I am the only one preparing taxes in my practice.

I think I shared this before: in 2019, only grand mother worked. Three daughters, 5 gran kids. Grand mother claimed two children from each daughters 1 and 2, and the only child from the third daughter. She got EIP1 and EIP2 for herself and five children. In 2020, the two daughters with two children each worked and filed their returns with their children. Again those children were correctly used to claim EIP1 and EIP2 on daughters' returns. For 2020 Grand Mother claimed ONLY one child from the third daughter and got rejected. Third daughter filed with 61 income and claimed her child by mistake... well... not really. Remember that the smell of money is strong and she wanted some money. So, while I waited a bit to amend third daughter's 2020 filing to free up the child, IRS used 2019 filing from Grand Mother and issued her a check for 7K for EIP3. So, I believe Patrick's client will also get a nice EIP3 check based on 2019 filing.

This is what I said on another post and it might be helpful in your case. "Enter the 1099-R and when finish, scroll down and check "check box ONLY for Cornoavirus (CARES Act)...." that will trigger form 8915-E. On form 8915-E, enter the date of the earliest 2020 distribution to the left of the amount from 1099-R. If it is not from IRA, you click the box on page 1, and pay all taxes now. If you don't click the box, then 1/3 will be taxable. If client has returned money to the plan before filing (including extension), you enter that amount on line 10 for OTHER THAN IRA. IRAS have section III with the same choices but as long as you enter the 1099-R correctly the amount will flow to the correct section. Remember that you have to attach form 8915-E after signed for efiling."

Don't file the parents 2020 yet, amend child's return, wait for it to clear and then file parents. I bet you that parents will get her $1,400 if they claimed her in 2019. There is a lot of money thrown up the air by Congress and any one can grab it. How hard was to do it the same way it was done when W was president? That time, it was consolidated and some people had to return it.

I doubt, but I could file 2017 as MFS and that will give time for the other years.

8915-E is only to avoid the penalty, not the tax. If the client re-invested 1/3, then nothin will show on 1040, but you need to enter 1/3 as amount reinvested on 8915-E

8915-E is only to avoid the penalty, not the tax.

Age will not prevent parents from getting earn income credit. Income will not prevent them to qualify as dependents as long as the children don't provide more than 50% of their own support.

The medicare tax was already sent to the government agency so the university doesn't have that money. I would just file 1040NR and get the amount withheld that the IRS will be glad to return to her.

sometimes too much information is a dangerous thing for me. When a client comes to me and shows me a W2 and a social security card, I decide what form to use. I only have two choices 1040 or 1040NR. I don't care if they had an ITIN number before because the ITIN number dies with the issuance of a social security. After I decide what form to use... it is not my responsibility to find out if the SS card was issue by mistake since that beyond my scope of what I was hired to do. In your case I would use form 1040NR because if the time length the person was in the United States. I believe filing 1040NR will prevent the IRS from adding the stimuluses to the return. I will add that ONLY if the withholding or payments were made under the ITIN, I wouldn't mention it on this filing and the visa she has will not change the filing to a regular 1040.

I agree with jasdlm. Those expenses cannot be deducted in the year occurred because the house was not rented. You have to add it to the basis.

Anyone except the mother can get EIC. Let's say that the father earned $5K and he was supported by the in-laws and his support is $20K. The fact that he is not blood related make him NOT a qualifying child to his in-laws based on his earnings. He is not even a dependent for his in-laws, so he is free to claim EIC. Let's assume that he decides not to claim the child, as long as his in-laws made more than him, they can claim EIC. You can be 10 years old and still get EIC credit if you claim your 8 years old sibling or you could be 105 years old and get EIC as long as you claim a dependent that qualifies you. Age doesn't matter at all for EIC credit but you have to be older than your dependent. Mother could be a qualifying child for her parents and that will prevent her from claiming EIC. You didn't mention her age or income but you should have enough information now.

She will get stimulus and nothing else, correct?

was any of the daughters a full time student for 5 months in 2020? You don't have to support anyone to use them for EIC, but the dependent doesn't have to provide more than 50% of their own support. So father can file as single and claim the 20 year old provided she was a full time student and father can get EIC, even if the 19 years old supported her partially.

It is not paypal... it is payApal. I got it too but I read it carefully.