ETax847

This article is from today's USA Today: https://www.usatoday.com/story/money/taxes/2021/02/15/irs-says-it-wont-extend-this-years-tax-filing-deadline/43387603/ Bummer!

ATX is giving me an error message saying the character limit has been exceeded in the client's last name and the return needs to be paper filed. Does anyone know a work around for this error?

Ah I see! Thanks for your help!

Thanks for sharing, while a similar issue, its a different question. I was not sure the best way to proceed.

What about when there are multiple 1099R's, how do you handle that?

Why are they now asking for the EIN for taxes withheld on this worksheet. Its aggregating the tax withheld (ie for 1099R) and now asking for an EIN? What does one put on this line? If there are multiple TIN's there would be multiple numbers but its only allowing for one entry. Any thoughts?

Agree with those above. 5 minutes of your time in reporting it can save many headaches of having to deal with the IRS down the road.

Max, where did you read to treat it as such? I'd love to be able to share with my client some reference material so he knows why I handled it the way I did.

Margaret, I see what you are referring to, but it was a regular RMD not a CARES Act distribution. Handling it like this would trigger a notice for the IRS, which is what I am trying to avoid.

Given all we are dealing with this tax season, I think you have to raise fees to justify all the extra time spent on each return. This tax season will be unlike any other.

One thought I had was to adjust the taxable amount on the 1099R input to reflect the amount returned. Would that still trigger a CP2000?

I see the amount that was returned on Form 5498, but I am curious of how to report the returned amount in the tax software.

Client took his RMD in 2020 and then deposited it back before the deadline. However, the 1099R shows the full amount as taxable with code 7 (normal distribution). Is anyone familiar with how this should be reported in the tax software so the RMD is not taxable to the client?

Abby, that did the trick! I had no idea that function existed. Thanks for the tip!

I'm having some issues with the Client letter as well. If a client has a Federal refund the language is "Your return shows a federal tax refund of $xxx. However if the client has a state refund it reads as follows: As requested, your Illinois 1040 tax refund of $xxx will be deposited directly into your checking account. Why doesnt the Federal Client letter pick up on the fact of the refund being deposited directly in the checking account. I have selected that refund option on the 1040EF?

The program update did the trick. I usually wait on the updates in case there are bugs, but that did the trick! Thanks!

I'm preparing my first tax return of the season and the charitable contributions for someone who takes the std deduction does not appear on the 1040. Is there something I am missing?

Thanks Lion! I had no clue that form even existed!

Many people tapped 401(k) and IRA balances to access emergency cash amid the Covid pandemic, as allowed under the federal CARES Act. I know there is no 10% penalty, but is there any feature in ATX that allows you recognize the income over a 3-year period? Also, if someone pays it back down the road, on what form do you recoup the taxes previously paid?

I tried again today, and it was transmitted. I'm not sure what the bug was, but it seems to be gone. Thanks for all the responses!

I use ATX. I'm wondering if it has to do with the fact that the client lives in Michigan. Do any states preclude one from E-filing a 1099 NEC?

Today I tried to E-File my first 1099-NEC and received the following error message, "Some marked E-files cannot be transmitted and have been unmarked." Does anyone know why the 1099-NEC cannot be E-filed at this time?

I just discovered we can now add our logo to the Billing Invoice. Go to Customizer Master forms to do this. Definitely makes the invoices look way more professional.

My apologies for the confusion, I was referring to when entering the 1099 forms on a tax return. Do you enter the address when doing that?

When doing the data entry for a 1099 MISC / NEC form, do you enter the address or omit it? It seems that the software only required Payer Name and TIN for e-filing.