Margaret CPA in OH

Another possible option is to file the return as of date of death as that is when the taxpayer's year ended. I just read this morning about possible tax planning opportunities (doesn't seem, well, seemly) regarding filing jointly or separately in this regard. Your situation may not directly apply but I wonder if just having a 'short year' would make a difference. I agree with Judy that trying alternate indications may help.

Sadly I believe the term is 'allowed or allowable.' Thanks for bringing up this situation as I have now learned about the qualified extended duty exception. In 25 years, I've never actually had an enlisted client other than my son in the National Guard.

Exactly! I was certain it was something I did and still might be thus ruining it for everyone. Oh well, eventually that thread will disappear and so will the weirdness. Thanks for replying, Gail! It's good to know one is not alone.

The other day I was looking at the Unemployment topic and did something that caused the panel to move to the left side leaving about 1/3 of the screen on the right that has a listing of things. I have no idea how to change it back to the original look and it is only on this topic, it didn't carry over. Ideas on what I did, more importantly how to undo it?

When you click in the original (or a duplicate) return to amend, Form 1040X appears, right? Then you change the numbers in the 'original' 1040 to populate the amended column. You already know the figures for the original column. When creating the e-file, 1040X does NOT appear but, by its presence, the system knows that it is there. See the responses in General Chat where you have also posted this. I believe that the original must also have been e-filed though not necessarily by you. After you e-file, the tab under 1040 EF Info, E-filed Forms, will list all the forms that were sent including the 1040 that you altered and the 1040X as well as all other schedules some of which you may have had to add when amending. It works, really!

No, you don't see the option for 1040X. If the 1040 is there and the 1040X showing the original figures and amended figures, the system knows it is filing the 1040X because it is there. When you submit, look at the tab to see the documents e-filed and Form 1040X will show there. It is a bit disconcerting but works. One would like to think that there would be an option showing 1040X but....

I e-filed an amended 2019 return January 31, accepted same day.

ATX does have Form 37, the RITA return, which you could also use and print out to mail in. If there are losses or other wrinkles, the RITA form is specific. You would get a warning about e-filing but just ignore and print out like you would for the Form r.

Only those cities managed by RITA, Regional Income Tax Agency, can be e-filed. Here are the member cities. https://www.ritaohio.com/municipalities Many other cities, that I know about, can be filed online but, to my knowledge, not through a single software program and perhaps not by a preparer. Check the municipal website for each city in question and/or check the ATX cities package. ATX outside that package does have many city form and a generic form which other cities must accept by law but they have to be mailed in. Doesn't bother my clients. Some residents of RITA cities are willing to go to the local tax office where their returns can be filed for free. If e-filing RITA, it costs extra. Maybe more than you wanted to know...

Same situation just landed here, but reversed. It appears as though both end up getting the money as the payouts were first determined by 2019 filing to be adjusted for 2020 filing. Gaahhh! My brain hurts with this and APTC.

Okay, I will ask if she recalls seeing that on her pay. It was in 2012. If she doesn't recall, is it safe to assume that it was included? The value is about $3400.

A client was gifted 49 shares of stock on retirement several years ago. Is her basis (she sold last year) the market price at that date? Seems a bit odd as the 'donor's' basis would not be the current share price, would it? Happy to use that as basis. I've often managed stock gifts among family and friends but not as a retirement gift from a company.

Hugs back to you. Know that we are here grieving with you.

Click on the green arrow on Line 26, choose Ln26-Est Tax.

I just received another notice (first in December) about 3 unsuccessful login attempts so automatic 24 hour lockout. Of course it isn't me trying to login and I will follow the instructions as before to reset the password but this is annoying and concerning. Why try to access my e-services account?

Sounds very, very tempting, especially with all the gyrations we've had to endure recently.

No, IRS doesn't really care but many banks do. My AU client's bank will not accept a direct deposit in the name of someone not on the account.

An AU client's son is independent in 2020 and qualified for the money but a check will be mailed as he does not have a US bank account and he is not listed on his parent's account. Parents are planning to have it mailed back to US relative to deposit into parents account. He is looking into having an international account but I can't recall the bank-it's an internet bank. I would imagine that receiving SS it would be advisable to have a US or appropriate bank account for direct deposit. I don't believe he can't have dd into an account on which he is not listed. If getting an international bank account, be sure that it works with Philippines as not all banks work with AU.

As Expats, wouldn't you be filing Form 2555 for Foreign Earned Income and the exclusion? With the likely full amount of income excluded (I don't know the exchange rate), I don't quite see how they would qualify for any tax credits when there is no taxable income. I have not looked at a treaty, just extrapolating from my AU clients. If all earned income (until this year when they exceeded the maximum exclusion) is excluded from tax, how could there be any credit? I have not had any clients qualify for the ACTC, though.

And I thought I had interesting clients! My handy, dandy Quickfinder seems to say okay as the child is a stepchild and meets other qualifiers but wonder about those tie-breaker rules. I couldn't easily see an example like this one, though. Then I wonder if the other parent has any say by releasing exemption to the noncustodial parent but only to that parent, not that parent's new spouse. My brain hurts thinking about this. I'll go back to interest tracing.

Yes, I do have several interesting clients among many more 'normal' ones. I don't recall how I got the German folks many years ago but, through their university teaching positions, I seem to have become THE person to contact and, in fact, received another referral just yesterday. The AU folks were originally here so they don't count but are getting more interesting now that both children have graduated and are on their own. The daughter is a successful freelance illustrator working virtually. She was quite dismayed learning about self employment tax and began asking her mother about renouncing her US citizenship to avoid it. We will see how that goes. No income tax due to the exclusion but SE tax just like her father's when he lectures or consults. Thanks Judy, I will pore over that to refresh my memory. I have had to do, um, interesting tracing for another client before when they mortgaged one property to pay to purchase and remodel another. I encouraged them to mortgage the second property as soon as possible. They also took out a LOC loan for their own home and a rental. Ah, the spreadsheets...

Rita, so sorry to hear this about your mother but glad that you can be with her. You know prayers and supporting thoughts are with you and your mother from this group and more. Do let us know if we can be of other assistance. We are here to help each other. Remember to care for yourself, too.

Clients borrowed money from family (appropriate interest terms but not deductible as personal loan not secured by property) in Germany. In 2020 they refinanced the property having made extensive improvements including a rental apartment. The much higher value permitted a refi sufficient to repay family loan with cash out as well as complete additional major improvements. Rental property is 39% of property value overall - it's been, um, interesting keeping track of what costs went where. Normally on a refi of rental, some items would be added to the basis, some would be amortized over the loan life, some would be deductible. Is it correct to allocate to the rental portion these refi charges at the percentage of property value? And what about that part where the funds taken out should be used to improve the property? I'm thinking, in a sense, the private loan payback does that as the original was used to improve the property and they couldn't even get any deduction for the market rate interest they were paying. Thoughts? (At least this isn't unemployment insurance or PPP loans, amiright?)

Bar Dog Cab is outstanding! I grocery shop tomorrow morning and wine is on the list. I will see if my local Kroger has this. Always looking for treats!

Can I have a zoom wine party with Possi tonight? Can I come, too?