Pacun

I have not found anyone NOT affected by 1 dollar because of covid. That's all that is required. So, I was going to prepare a W7, for which I charge $60 but DC closed all non-essential businesses in April, I lost that income of Covid-19. I would pre-qualify myself as being affected by covid and get $99K (nice number) from my 401k. I have until the 10th of April of 2021, 2022, and 2023 to put back $33K each year and I will be OK. If you are not affected by COVID, which I doubt, your spouse, dependent or a household member will make you qualify.

Try to create an efile file and you will know if you are required to enter a number for line 25.

This is the way I understand it. I have a mother who didn't have any children in 2019. On January 31st, 2020 she gave birth to a child and qualifies for Head of household based on my interview. She quit her job on January 14th, 2020 after earning only $1,000 to give birth and to take care for her child. Even though, her job in cleaning has always been available as an essential job, she didn't go back to work in 2020. Since she earns $500 a week, in 2019 she earned $26,000. She is a new client and will bring copies of her 2019 filing. So will prepare her taxes and I will enter $26,000 as earned income. I will quickly make a note of how much she will get for EIC and ATC/ACTC. In this case, I know for fact that someone who earns $1,000 gets a tiny bit of Child tax credit and I also know that someone who earns $26,000 will get the full $2,000 or at least the $1,400 refundable portion. So I will concentrate only on EIC. Going back to the return, as soon as I enter, $26,000 as income for 2020, I will get EIC = $2,514. I will make a note of it and now I will enter the correct information for 2020. As soon as I enter $1,000 income, EIC credit drops to $349. Now I know that for this lady, I will be using 2019 income. So, prepare the return and look for the place where I will enter her 2019 income and I will verify that her EIC is $2,514. Now, Same situation as above, except that this lady earned $15,000 in 2020. Since I do a lot of EIC and using 2019 earned income is optional, I know that I don't need to bother with 2019 income because she is in a "sweet spot" for 2020. But if I am not confident, I will enter $26,000 for 2020 and make a note again that EIC is $2,514. Then I will enter the correct amount of income ($15,000) and EIC credit will jump to $3,584. In this case I will prepare the return just like business as usual without looking for a place to enter 2019 unless it is mandatory. Now the trick is if this lady earned $5,000 in 2020 and $32,000 in 2019. If enter $32,000 (2019 income), EIC is $1,555 and if I enter $5,000 (income for 2020) EIC will jump to $1,709. Without looking at the tables, I know that I should use 2019 income in this last example, because in this case the Child tax credit will be $2,000 with $1,400 refundable, which will be more beneficial than the $154 that she will lose in EIC. As you can see this will be tricky unless the software comes to our rescue and requests: "Enter 2019 earned income" and the software will select the best choice for us. How many of us know by heart what is earned income for EIC? Someone said "4". Yes, only 4 of us know for fact what earned income for EIC is by heart and I am not one of the four. So, if I get a new client with only W2s, I will use the suggestions above. But if I get a client with different types of income, I think I will prepare their 2019 return and then roll it over so get extra help from the software. If someone can double check my suggestions, I will appreciate.

Send an email. "Sincerely, Dennis Dixon (800) 495-4626 [email protected] Wolters Kluwer"

ATX payroll 2019 will do it without any issues but it is interesting that qbooks does that. Thank you for your reply and for sharing your experience.

I am not able to print to paper file.

Quickbooks is friendly when updating people/income from 1099misc to 1099NEC but now I have a problem. Client was a non-filer for 2019 and now he is ready for both years (2019 and 2020). I printed out two 1099misc for 2019 and gave it to him to distribute. Then I prepared the 1099NEC for this year and it was a very simple process, which only included a few clicks and all the 2020 data transferred correctly to 2020 1099NEC. Client came back and told me that a check for $1,000 was for a 1099misc for 2019 and I need to print a third 1099misc and an updated 1096. I cannot do it and the program now only takes last fiscal year for forms 1099misc and 1099NEC. I am unable to change the dates. Does anyone knows a solution before I call intuit?

ETax847... so you tried to efile a few 1099NECs and all of them were efiled but one was rejected by the software while preparing the efile file?

So, basically most people that collected unemployment for 9 months in 2020 will benefit by using 2019 earned income to calculate EIC (unless they made $14,800 or more on the first three months of 2020).

That server hosts the data from 2013 to 2019 tax years that proseries accesses. I called proseries and they said that in order to move that data, I had to uninstall and reinstall every year. Then I have to export the data and that takes time. To add the pain, they have about 20 returns each year with password. When it is time to export a file with password, the program doesn't continue until you skip it or you enter the correct password. The process takes about 3 hours but with that stoppage for passwords it could take a whole day. Then you have to go to each computer (total of 10) and install the new program. As you can see, this is not a choice of having a new server or a workstation with shared drives but using the existing server and its contents. I already have a clean install on a new server 2019 which is the KING of the forest with all the roles properly working. But if I transfer the data, I have to install on the main computer and import the files and then go to install on all 10 computer. Since there are 7 years of taxes, it is a lot of work. I guess tax software is the only field where data migration is a nightmare. Instead of improving, they are going harder each year. I remember when ATX, you would copy the database folder and you could point the program to use it without uninstalling. It is amazing also that proseries, which cost about 6K (not all states), doesn't have an elegant way to migrate the data when replacing a server.

I just retired a Server 2008 R2... but I would like to keep it sharing files but I need to upgrade it to Server 2012 and then to server 2019. That means that I will invest about $2K buying Windows server 2012 and 2019. Does anyone know where I can buy cheap software? The server 2012 upgrade software, I will use it only for a couple of hours and then upgrade to 2019 where it will be my final destination. There is no direct flight from 2008 R2 to 2019, so I will have to upgrade to 2012 and then upgrade again to 2019.

Disable the firewall completely for 5 minutes and test.

If the IRS had bank information from the last filed return (2019 or 2018), tax payer was going to get direct deposit. They were also going to get direct deposit if taxpayers went to the website and enter their bank information in time. All others were going to get checks or debit cards. I guess the IRS said... let's put our printers to work but we also have contractors that can help by issuing debit cards. Let's give them 40% or 60% of the load to them. I got a debit card which I was going to trash because I thought it was fake. The tax return was filed as Pacun Gomez and Mrs Maria Hernandez. The card came as "Pacun Hernandez and Maria". I have never been hernandez but hey, it was money, so I didn't care. After reading the card and instructions, 5 minutes later, I have transferred all the money from the card to my checking account using my computer and I was done.

I owed 14K and the interest and penalty was about $200 each based on a letter/bill I received a week ago. I filed in time but I didn't pay, so I was expecting a 25% penalty for not paying plus interest.

Can you share, how exactly are you exporting and importing?

Let's imaging for a minute that last year I did the 1099-misc for Uber. I have the info for all the drivers but now I cannot just plug in the income numbers because the form has changed to 1099NEC. Do you know how I can transfer the drivers to the new form or do you think I have to manually enter them?

Too late to register for the course. I didn't check it yesterday.

It seems that the stimulus refunds were untouchable. I owed the IRS 14K and still got the full refund based on my 2019 situation. Have you seen situations where the stimulus refunds were diverted?

I will be nice if the client who received and spent the money would know the amount, correct?

Install and don't roll over automatically. Open the program and you will not have any of your client, then invoke the "roll over manager" and make sure it points to the correct part of your computer where the data resides.

DC doesn't allow DC return to be efiled by itself but I know that just by practice, not because I have read it on their regulations. The way I discovered it was when I requested an ITIN. I used to efiled DC after the IRS sent the number to the tax payer and all the sudden I couldn't efile DC by itself. I think you will figure it out when NJ and NY open up their efiling season. At that point, you will prepare the efile for for NY and NJ and try to efile.

Since no one commented on this post. Can you share something that you have researched about covid-19 that will affect this tax season... I mean law changes, credits, etc. I have seen post about SE being deferred for Schedule C filers... Can someone elaborate a bit on that and also mention C corps, partnerships?

It really depends on the intent of the person in charge of the church. Is the intent to help the ex-pastor because he was a pastor. Is there another person in a similar situation of the pastor and that person is also receiving the same amount as the ex-pastor? In other words, if the receiving the money had not been the pastor in the past, would he/she be receiving that money? Also, an ex-pastor can easily and effectively represent the church in future engagements and that will leave a prepayment aroma in this gift. Another smelly thing to consider is when was the pastor terminated... 10 year ago... no problem, within a year... he still smells as a pastor.

Well, I believe HR block has its own direct efile with IRS. We send it to ATX, then it goes to a queue for the next batch. Even though the next batch is in the next 2 minutes, HR block's return would be filed when mine gets there.

It will happen the same thing that happens with any other return. The return that is processed .0000006 seconds before gets the deduction and the second return will be rejected because the dependents social security was already used. The second parent will have to paper file and the other will enjoy the money temporarily or permanently.