Pacun

I think you are SOLO... that's how I feel about DC.

There are three problems with DC calculations. 1.- DC Software truncates but I have been ignoring cents when entering withholdings for DC, so that my clients don't receive those letters. 2.- The paper table reads: If taxable income is $17000 - $17050, then tax is 580. ATX does exactly that but if the taxable income is $17004, then DC computer says the tax is 578. If the taxable income is $17,015, then DC computer says tax is $579. I have not seen where DC says, you owe $581 or $582, which will be against the tax payer. 3.- DC sends a "Correction Letter", stating... You requested 110 refund but your refund will be 111. When you enter $10.99 as eleven dollars for withholding, then the client gets a "Correction Letter" stating that the tax payer is getting 1 dollar less. I told ATX that maybe DC expects that software companies be granular and NOT follow the paper instructions but rather calculate tax liabilities in increments of $1, versus $3 dollars increments. Error number three is the worst I have seen. People rather receiving one dollar less vs receiving that letter. The first thing that comes to mind for them is that PACUN doesn't know how to prepare taxes.

DC is sending letters because there is $1, $2, or three dollars difference in favor of the Taxpayer between the tax liability from ATX vs DC's calculation. It is annoying that people are receiving the letter. I thought it was an isolated case but about 50% of the people are getting the letter.

I have done that. The last time, I didn't realize until the wife was buying real estate and the schedule C went to her husband so the SSA didn't have any income for her. Luckily for me, they made about 60K together and they didn't owe any extra when I amended.

Under emergency legislation enacted by the 2019 General Assembly on February 15, 2019, Virginia's date of conformity to the terms of the Internal Revenue Code will advance from February 9, 2018, to December 31, 2018. The new legislation allows Virginia to generally conform to the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 for Taxable Year 2018 and after. It also includes Virginia income tax law changes that may affect business taxpayers filing income tax returns for Taxable Year 2018 and after. In addition, this legislation provides a refund of up to $110 for an individual or $220 for married persons filing a joint return. In order to receive a refund, taxpayers need to file a complete return for Taxable Year 2018 before July 1, 2019. A refund is allowed up to the amount of a taxpayer’s tax liability after the application of any deductions, subtractions, or credits to which the individual or married persons are otherwise entitled. Such refunds are required to be issued on or after October 1, 2019, but before October 15, 2019. This legislation also includes Virginia income tax law changes that may affect individual taxpayers filing income tax returns for Taxable Year 2019 and after. We will publish additional guidance regarding such provisions soon. Tax Bulletin 19-1 details the conformity adjustments that may be necessary and provides more information on how the changes affect 2018 Virginia income tax returns. View the Tax Bulletin Additionally, Virginia will continue to deconform from: Bonus depreciation allowed for certain assets under federal income taxation; Five-year carry back of certain net operating losses (“NOLs”) generated in Taxable Years 2008 and 2009; Tax exclusions related to cancellation of debt income; and Tax deductions related to the application of the applicable high yield debt obligation rules. If you have additional questions, please visit our website at www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.

Processing Individual Income Tax Returns Good afternoon, Earlier today, the Governor signed legislation conforming Virginia’s tax laws to the federal Tax Cuts and Jobs Act. We are now able to prepare our systems to begin processing 2018 returns, and will start processing over Presidents’ Day weekend. All 2018 tax forms and instructions are now available on our website. As you know, our systems process returns in the order we receive them – first in/first out. Once we process a taxpayer’s return, they can use the Where’s My Refund web app to get up-to-date information about their return status. As you’d expect, we already have a significant backlog of returns, so taxpayers will experience slower turnaround times for refunds than they’re accustomed to until we have worked through the backlog. We appreciate your help in ensuring that the taxpayer’s address is correct whether they’re filing electronically or on paper. Please see the Tax Bulletin distributed earlier today for details about the legislation. Thank you.

I want to add, that VA and DC have a nice place where you can see how much each made and sometimes, I have found that the wife doesn't have any income and then I go back to the W-2 and check mark "spouse".

You need to amend... sometimes you sleep better when you don't go back and check. You made two mistakes at least: 1.- You didn't click "spouse" when entering the w-2 (which is very easy mistake) 2.- When you printed the finished 1040, you didn't look carefully on the payments and credits. Normally, at this level is when I notice I made a mistake. 3.- Last year comparison is a very good tool and I always take a look and compare. I made the same mistake but it was on an extension. I put both salaries on the husband so 100K from wife's W-2 and husbands K1 for 90K, was put together. SS was not calculated on the full 90K and that year they owed when filing in October. Luckily for me, he is my friend and I just told him the mistake I made.

It is my understanding that even with form 8332 signed and sealed, the custodial parent can revoke it by claiming the child and the parent with whom the child spent more than half of the year will prevail. Otherwise the first rule of tie breaker would be: 1.- Parent with signed 8332 from custodial parent 2.- Parent with whom the child spent most of the days, etc. Remember, we are not lawyers and we only do taxes, let's keep it at that level and let the courts decide. In any event, most of the time the custodial parent claims the child outside the agreed years is when the other parent is failing with the court order somewhere else. ie is late with child support payments, is not picking up the child on the specified days, etc.

Why don't you use another zip application? It seems that it is the combination of code and zip is causing the confusion.

Possi, you are correct but you don't have to assume that the custodial parent will get HOH. Nights spent wins EIC, dependent care AND CTC. To clarify my position... think about this scenario. My daughter gets divorced and moves with her son to the PACUN tower for which I provide everything, including but not limited to mortgage, food, gardener, maids, etc. My 26 year old daughter earned 20K and her son slept at the PACUN tower with my daughter 184 days. Regardless of what the court said and regardless of who claimed him last year, my daughter will file as single and get EIC, Dependent care (if any), and CTC.

Lion is correct. I do it all the time. Going back to the original poster, I would say NO, in your situation, one of them has to claim the exemption and then you see if that ONE parent qualifies for HH. I am assuming they both are the parents of the child. MCB39 you should amend both returns... I have a family of 5 people and NONE of them are students. Father makes 60K Mother makes 100K Brother 22 years old make 10K Sister 20 years old made 17K Brother 15 years old makes NADA. Sister will claim 15 year old brother and will get EIC and ALL other goodies that come with the teenager's dependency. If all of them claim the 15 year old, then the parents will prevail. If parents don't claim 15 year old, AND both siblings claim him, the female sibling will prevail.

I know it works for divorce parents but I doubt it will work for parents who live together.

Keep in mind that we have two kinds of dependents, those who qualify for a credit of $2,000 and the others that DON'T. You just need to keep in mind that income limitations.

I did one and I remember the obsolete message but I don't remember how I fixed it. I will check tomorrow after 5PM EST and see if I can remember what I did.

7 days a year on average??? that seems to be a hobby or an investment property. They can pocket the rent and not report it anywhere.

I thought you had only to compare the amount of the refund vs the standard deduction. So if the refund was $2,000 and the standard deduction was $9,350, as long as the itemized deductions were more than $11,350, the whole refund was taxable. I normally only overwrite that box.

Before checking the print driver or changing the master 1040 form, I wonder if you have solved it differently. I efile everything and I don't mind that, but when I request ITINs, I have to send a paper 1040. The problem is that the first character is not printing. So Pacun at 1600 Penn AVE NW DC becomes: acun 600 Penn Ave NW DC.

Good point Illmas. In the past, when we forgot to claim the exemption, we would realize our mistake when we saw the refund, but now, the refund will be the same for a single dependent and a single tax payer. Plus, the wording for the check mark "not a dependent" is not friendly.

This is the first time I hear you need a license to fix computers. In any event, I just wanted to know what simultaneously meant in this context. Insurance??? Let's say I am a dish washer living under a bridge, do you think I need to get insurance in case they sue me and and they come after my bridge? My employer only controls my time when I am a dishwasher and he didn't trained me to fix computers. Those two alone are big enough to prove I am not an employee when I wear different hats. How about if besides being a dish washer and fixing their computers, I have a PTIN (that's all) and I am preparing the taxes for the business. Will preparing taxes be part of my dish washer duties and therefore I am an employee?

I messed up the title. Let me see if I can change it. Nice catch.

What is simultaneously? Let's say I am a dishwasher and I left my shift at 3PM and at 7PM computers go down and I go back to fix them? Will I get my $5K that I will charge on my W-2? I spent 5 hours fixing the computers. When dish washing the restaurant pays me $15 per hour. So how many hours will the employer pay to get to $5K? Will that be bonus on my W-2? How about if during my day off, they don't want to call computergeeks and they call me and again I spent 5 hours and charge them 5K? How about if I am on a month vacation and I am call back on day 15th to fix my employer's computers? What if I am laid off for 5 months (March 1st, to August 1st) while the restaurant is being remodeled and in month 3, they call me to fix their computers? How about if I quit on March 15th and they call me back to fix their computers two days later? While fixing their computers the employer convince me to get back to my previous position and I agree to return to work as a dishwasher and I restart my employment the following day? How about if I finish my dishwasher shift at 3PM but at two 2PM my employer asks me to punch out and to fix their computers? I go to my van and pick up my tools and start fixing their computer. Keep in mind that everyday after my dishwasher shift ends at 3PM, I start my van and go to fix computers as Pacunlovescomputers sole proprietorship.

Yes, there is. I am a dishwasher at a restaurant and I get a W-2 and I also fix their computers and get a 1099-misc

Excellent post but a husband will never gift to wife, if I am not mistaken. If they agree to file jointly, they have to report global income and get an ITIN for husband. Attach a letter to the return stating they are married and they both agree to file as a resident for tax purposes and that they are reporting global income.

It used to be easy to print only certain 1099s. Now you have to print them all. So, (Let's say) I am preparing 1099s for UBER, my database consists of 10K subcontractors. This year only 5K had income but the other 5K will work this year, so I don't want to delete any of them. I will have to print 10K 1099s and then get my scissors and look of the ones with salary and cut. A week later, I have 100 subcontractors who lost their 1099s and again I will have to print 10K forms. The pdf workaround is a longgg workaround. Paul, I reread your post and I think you found the solution.