Pacun

I found the error. Form 8959 was triggered and it had those 9 dollars listed. GOOD THING that for each set of withholding we now have to enter EIN. Efile gave me that error and I deleted form 8959 and everything seems to be good now. I was surprised that changing the $9 on W2 line 12 to $9,000 the return remained at the same level. Good to know... I guess.

I enter everything on W-2 line 12 including those dd entries. I have been saved by the software when I enter amounts with D codes and a savers credits pop up. Today I entered $9 with code B. I checked the return and those $9 have been entered on lines 23 and 25c on form 1040. Those entries eliminate each other. Is that correct?

I am filing as laws have been written regardless of what will happen. It is not my fault that Congress will change them retroactively. I guess Congress gave me a chance to create demand for my services and file those with unemployment benefits as soon as they hit my desk. lol. For sure we will have to amend a lot of returns but I don't have a crystal ball to see what will happen and I am filing as clients are coming in.

For others who have not figured it out. Correct, 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.

Number 3 will not stand. There is no way for tax preparers, the IRS to accurately split payments for all tax payers that receive unemployment. Unless (which I doubt) the law will force the states to change form 1099-G and have two boxes: Pre Sept 7 unemployment and post Sept 6 unemployment.

If the roll over occurred at the beginning of 2020, that gives you more reasons to believe that your clients were not planning to touch the retirement plans but covid came strong and getting a new job was hard. Only few employers were hiring... a lot of them were laying off people and more people were on the market looking for a job.

Then she must have provided more than 50 percent of her own support.

This is clearly a covid situation. Think about it. In December 2019, taxpayer's plan was NOT to use that money and he made a bank to bank transfer. He knew then that he would not pay penalty if the money was withdrawn because he was over 55 and separation of services. Then the pandemic came and he was forced to take the money out. As you know Dec 2019 is/was around the corner.

NO, "we" mean that employers were not hiring.

I am going to my other country during the "holy week". I will be there for 11 days with the expectation that it will be extended. If it is not extended, I will work extra hours after my vacation.

Randall.... if she is 19 and NOT a full time students, then she is not a qualifying child because she earned too much ($12K).

$100 bet that regardless of letters, the deadline will be extended.

yes, as long as she is not a qualified child of another tax payer. If she is not a qualified child, she will get: EIC, additional child tax credit, Stimulus of 500 and 600 for the child, if she was a dependent in 2019, she will get stimulus for her too which will be $1,200 and $600 AND she will get up to $1000 refundable AOC. She will get more money from the IRS and state(s) than the net she received from her job.

The company can have its headquarters anywhere and that doesn't make the income taxable at that location if the taxpayer didn't work or live in that state. For states, you should look for part year tax forms or non-resident forms and prorate.

What do you mean by parent company is in NJ? If the person lived in Florida and NY, he doesn't have to pay taxes to NJ. The W2 is never accurate on the states and you have to either prorate the income per months they lived in a particular state or find a way to separate the income while in FL or NY.

Maybe they came to you to solve a problem and you sent the power of attorney to start the engagement. In that case they will not be in your clientele list.

Yes, but the benefit will be bigger because you will have to base AOC from $1,900 vs $1K.

If you have $4K after you deduct the scholarships from payments to the U, you don't need to mention the books and computer (if any). Credit card payments to the book store is a good record and I accept them. Technically you have two documents to prove that books are needed and students have to pay. You have the 1098-T that shows the student was enrolled in classes and most classes require books and you have the credit card receipts.

That is called tax planning, which we have been suggesting for a long time. I think I read that the next stimulus will be reconciled with 2021 return.

I was able to get the EIN by trying during "business hours". It is interesting that they have a schedule since it is a computer generated number without any human intervention.

It is our understanding that a child who was born and died in 2020, it is considered to have lived the whole year. That applies for EIC and child tax credit.... how about about stimulus? The child I am referring was born in August and died in November. Client has SS card for baby but I don't know about if one or both stimulus apply for the baby.

The second stimulus died at $175K, which was twice as fast as the first stimulus. Short answer to your question... TOO BAD. The stimulus was an advance for 2020 tax return. In your clients' case, they made too much so there is nothing they can do to claim the crystal ball stimulus they "lost". Maybe in 2018 the made more than 198K and the filed 2019 after the checks were cut.

Any MD preparers using another software package? Will unemployment amount from 502LU transfer to line 15 on 502 or any other line? ATX is not doing it now and I don't want to override.

I see form 502LU correctly filled out but the unemployment compensation is not deducted from 502. Any one having this issue? Tax payer collected from DC and lives in MD, which should not be an issue per instructions: "You received unemployment benefits from the unemployment insurance program of any of the following jurisdictions, with which Maryland has a reciprocal taxation agreement: Pennsylvania, Virginia, West Virginia, and Washington, D.C."

After Possi posted that, I checked and if entered correctly on 1099-R, you don't even have to invoke 8915-E... it is brought automatically and it seems to be correct. will I be allowed to create the efile file simply by attaching 8915-E as pdf?