Pacun

Nice point... the student was the second to be born and he the first born baby of the year in the time zone he was born.... just for that fact, his brother deserves to get EIC... do you agree?

Client married 20 year old sweetheart In February, 2019. He is 21 years old and his twin brother came to live with them in April. His twin brother didn't provide more than half of his own support and he is a full time student at a local university. Married couple made $30K in W-2s income. Can they claim earned income credit? All of them are US citizen and have social security numbers. Brother still lives with them.

It might have nothing to do with your computer at this point. It could mean that the 2019 software doesn't have the fix asset "form" ready. I would install ATX 2019 on you Windows 7 machine and do the same thing. If the message is the same, it is ATX 2019 that is not ready.

If you had that setup last year, nothing should change for you.

The message means that the assets and depreciation taken will not be available to you. Illmas and I will move to Windows 10 in December so any glitches you find, please share them.

Thank you for the research. I was trying to read notice 87-13 and I only found references to it from other websites but not the actual notice. I guess the IRS has bundled them and searching for "notice 87-13" doesn't provide any results. Thank you again.

I was looking at the code and it is very clear but the IRS comes with this conclusion: "the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan)**" ALSO, this is from a textbook: "Age 55: Observe the wording of exception 01 carefully. The recipient must have separated from the service of their employer before receiving the distribution. They need not have actually reached their 55th birthday prior to the separation, as long as they do so by the end of the year" After reading the code and reading the deviation on the IRS website and the textbook, I wonder if there is another deviation for the year the tax payer becomes 59.5. I also wonder where those deviations come from since the code seems to be clear.

Yes, I saw it. So, do you think that in my scenario, the employee will not pay penalty if he waits until December 22nd 2019 to make the distribution? or do you think he will still be liable for the penalty?

Correct.

Sounds good. I guess I was confused with this one. On December 21st, 2018, I tell my employer that I will not return to work after my two weeks of vacation. So I give my two weeks notice on the date of my 54th birthday (December 21st, 2018). On Friday, January 4th, 2019 I come in and return and apron and spatula and that's the last day I am the dishwasher for the Mortons Restaurant. The following Monday, I took out $100K from my 401k to travel around the globe. I don't have to pay penalty, correct?

On January 2nd, 2019 client took out 100K from his 401k to travel around the world. He was 59 years old on June 29th, 2019. Does he have to pay penalty? What if he were born a couple of days later?

It is time to decide how much you will put in your HSA in 2020 through your employer. You will be 55 on January 2nd, 2020.... if you have a family HDHP how much can you contribute for 2020? Employer will contribute 0 You will be 55 on December 22nd, 2020.... if you have a family HDHP how much can you contribute for 2020? Employer will contribute 0 It is my understanding that it is a monthly thing but I need to verify it.

Alerting??? Is she a bad person or tax payer? (this will also keep your post afloat). In Spanish, alerting means "bad things are going your way". BUT yesterday I received an email that read: "That solution was sanctioned by my manager". I immediately thought that there were penalties involved "sancionado". After my teacher (Mr. Google) explained what sanctioned meant to me, I felt better. Some translators think the way I was thinking:

Excellent. I knew the IRS divides it throughout the year when withholding comes from W-2s but I wasn't sure about the 1099-Rs.

Then, let's analyze this. On December 20th, 2019, they got the distribution from the 401(k) for $100,000. They pocketed $90K and $10K were sent to cover the penalty. Technically they will be liable for a penalty. The IRS would know they will be liable for some type of penalty because Q1 = 0 withholding, Q2 = 0 withholding, Q3 = 0 withholding and Q4 = $10,000 withholding. If I am not mistaken, in my scenario, only if the money is distributed on the first quarter they will not be liable for a penalty.

Nice catch. So currently it is 90% of tax owed in the current year and 100% of previous year (110% if high earner)?

So in the case above, the couple will become high earners in 2019 but the $10K of penalty withhold will cover that extra 10% that they will need to comply with.

I heard that a high earner needs to pay 110% of prior year. Is that true and how much do I have to make to be a high earner?

Will this scenario on April 10, 2020 be correct for a couple who are 40 and 42 years old? In 2017, MFJ tax liability was $8,000 In 2018, MFJ made $100,000, tax liability was $8,742 and withholding was $7,000 and taxpayers had to pay a penalty. In 2019, MFJ made $100,000 in W-2 again and tax withholding was 0. Besides the $100K in W2, taxpayers withdrew $100,000 from their 401(k) to purchase their first home. Company didn't withhold any taxes but they withheld the 10% penalty which is shown on 1099-R code 1. For tax year 2019, they will not pay any penalty if they file and pay all taxes owed by April 15th, 2020, correct?

You don't even have to enter an extra password if you want. All of us should encrypt the hard drives in case our computers and/or hard drives are stolen.

Up to 2012 or even later, you could install the application and just copy the database folder (I don't remember the name) from the old computer to the new one and everything would work.

Yes. I chatted with the sales person and it only reduced the price $10. He said I was getting a good deal already and there was no room for more discounts.

ILLMAS, Without seen your post, that's the computer I was purchasing 3 minutes ago, but my partner never sent me the code she received on her cell from Bank of America. The key there is: 9th Gen Intel® Core™ i5 9400 Win 10 Pro, 1803 or 1903 16G of Ram 512 Solid state drive I added to big monitors but they are sitting in my cart. I don't like the fact that they don't send the Windows Media so you have to see/use the extra applications that they promote. A sales person said: We can send you a USB with an image... I said no.

I would invest that money on a new computer and will bring Windows 10 at least 1803.

I would suggest to them to form a corporation for the future. Then have the clients pay the corporation and they can get guarantee payments. For the current year, I would report them on Schedule C and share the expenses. I agree with Lion.