Pacun

Very interesting question. The first thing to check for your client is to see if AZ has a reciprocal agreement with CO. In my case people move among DC, MD and VA and there is no issue. How about this. For 30 years you deposit 10K on your 401k each year. You live in MD. So MD didn't tax you on $300K. When the client retires, moves to Colorado.... you don't keep filing MD taxes do you?

So basically if someone withdrew due to covid less 100K, they are electing to use 1/3 reporting and no withholding... it is as simple as ignoring the 1099R, go to form 8915-E, check part A for Coronavirus, click on lns1-4 tab, enter $60,000 columns a and be and that's all. (in this case client withdrew $60K) That will transfer $20K taxable without the penalty. If person returned $15K, all you have to do is to enter $15k on line 10 and $5K will be taxable. Now, the question for withholdings, I guess you will enter it on a blank 1099-R. Is that the way you are doing it or are you entering the total distributions on box 1 1099-R and taxable amount 0 on 1099-R box 2? Also, will I be allowed to create the efile file simply by attaching 8915-E as pdf?

This document doesn't mention paper filing. If every person with covid relief on MD has to paper file, they will have about 40% of the MD population filing by mail. Also, it says that whoever filed doesn't need to amend. I believe form 502LU is not available yet. https://www.marylandtaxes.gov/RELIEFAct/docs/2.16.21-748am-RELIEF-Act-Tax-Alert.pdf

Box 14 on W2 is nothing. I guess I don't understand the question.

When I run the numbers, most clients who got a 401k distribution due to Covid-19 are opting for 1/3 in 2020, 1/3 in 2021 and 1/3 in 2022. Does any one know if DC, MD or VA has pronounced on the 1/3 reporting?

I have a lot in my plate now. Can you hold that thought for me until January 2022 please?

Hold to the state, have the sign later. For CT, I would ask clients to sign two forms (one just before Fed is sent and another dated just before the state is sent) just to be covered. I hold the states when something is pending vs amending.

Claim $600 for child EIP #2.

I wonder if it is mandatory to enter the amount received on the federal level and that we are doing it wrong.

File schedule C and report all the income and pay SE. That's how the world bank pays to their employees and they file schedule C.

You DON'T put it anywhere. You only need to enter it if the client didn't received the full, deserving amount.

Jim already reply correctly so I am going to repeat. Salary for daughter is not a problem as long as daughter did support herself more than 50%. No SE, and you can file Schedule C if you want or "line 21". Both of them will yield no SE. That entry on social security tips (box 7) has been already taxed and sometimes we, tax preparers, forget to enter and there is no problem because that amount has been already reported in Box 1 of W2. since $8,700 is not a lot of money anymore, chances are that mom still qualifies for HOH and all other benefits.

I was trying after hours. Person died at 10:01PM.... just kidding.

I am trying to get an EIN for a estate but it doesn't seem the online assistant is not available. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online Do you happen to have another link?

I have a better idea, I rent a bus, take them to the casino and I stay with them writing down their winnings and losses.

I believe all my clients go at least once a year to the casinos. I guess I will have to report their income on their 1040 even thought they lost a couple of hundred dollars. My questions will be... did you work, "yes", show me the W2. Did you collect unemployment? "yes", show me the 1099-G, did you take out 401k, "yes", show me the 1099-R. Did you go to the casinos in 2020, "yes I went one time". How much did earn? "I lost $200"... did you keep a log? "no", how many times you won a dollar on two dollars during the session? "I would say about 50 times I won a dollar and about 20 times I won 2 dollars.... but wait, I got the free games and I got one hundred dollars one time and the next time I only got $43.26. On another machine, I hit the mini jackpot for $10." Off course my pencil will be well sharpened and I will we adding those times he won to come up with the winning amount. Then I will move on to see how he knew that he lost $200 during his only visit. I will do that for every client that visited a casino and I will tell them that this year (2021) to keep a log and keep writing every time the win something during their only visit.

If this person is not a professional gambler, I think you don't have to report it. For sure he lost money and we don't report income and loses on people that go to the casino a couple of times a year unless they win. A W2-G is issued when the winning are bigger than certain percentage of the wager, correct?

That's correct, the refund will be bigger because they are not paying SE taxes and maybe unemployment withheld some money. Yes, I noticed that Schedule C income is not pulled. At some point I thought I forgot to check "materially participation" for 2019 but I checked and I did it correctly. In this case you have to manually enter the correct amount on EIC sch and on form 8862 because you have to use it in both.

Doesn't NJ get the income from 1040?

I am going to give you an example of when to use Earned income from 2019. HH with two children under 17. 2019 earned income 25K. other none earned income $40K. So in 2019 this person didn't get EIC. 2020 earned income is 1K, unemployment is 8K. So, this person could not get full additional child tax credit of $2,800 and her EIC is tiny if using 2020 earned income. So this person qualifies or will benefit to use 2019 earned income credit. Same situation as before except that in 2020, person earned income was 1K and unemployment benefits were $50K. So this person is well beyond EIC credit for 2020 and is getting the full $4,000 of child tax credit. Why will you look for 2019 earned income if there will be no additional benefit. Another example, same situation for 2019 but in 2020 the person had earned income of $20K. As you know 20K is a very sweet spot for EIC and child tax credit for a person with two children. Why will I bother to compare 2019 earned income if I am in the best sweet spot?

No, you should not call support. You should not try to use 2019 income if the person doesn't qualify or will not benefit.

To avoid many little issues, file jointly. It seems that husband is a high earner and wife is making enough money to make sense to file jointly.

Since it is ethical and legal, why don't you give the whole investment income to the wife?

Abby's suggestion also include deletion of any print jobs that might interfere.

I usually change printer on ATX and continue working and printing. Today, I couldn't print, so I click OK to the printing error and I printed a single pay. It went through, so I thought the issue was over. I sent the big print job and this time ATX crashed. So, maybe the issue is not ATX but the printer. Blaming the printer makes sense because this is issue is not widespread. I am using M670 HP print, I THINK.