Gail in Virginia

My birthday is in June, if you want to come hang out with me and delay that getting sober nonsense!

I realize the big strike against these clients is the lies, but I am also not impressed by clients who blame me because they did not include all the information with their taxes. I am too old and too tired for this nonsense. And if my husband were that ill, I would probably have not reacted at all well. You might all be seeing this on the evening news. Hang in there Judy. We are all praying for your husband's health, and for you!

Generally, Virginia conforms to federal except where they don't. Most of the non-conformity is to increase VA taxes rather than decrease them. I think this is one of the items they conform to, and you cannot take the rest in addition.

Generally, I either see the error immediately after posting, or not at all until someone comments on it. So changing from 5 to 15 minutes would not really help me. I am just really grateful to have this board, and that it is so easy to use, and the Judy does such a great job moderating. Yay Team!

USUALLY, revocable living trusts are just ignored until someone dies and the trust is actually funded. YMMV.

The preliminary payment of EIP2 and EIP2 were based on the filing circumstances of 2018 or 2019, depending on what was on file at the time they sent out the payment. They are reconciled on the 2020 tax return, so that is the only return that really matters for EIP1 and EIP2. The preliminary payment of EIP3 will be based on the 2019 or 2020 return, depending on what has been filed when they send that payment. That will be reconciled on the 2021 return. This may result in duplicate payments for someone, but that is perfectly acceptable. There is plenty of money to go around, apparently.

I am totally unsure about this, but would the earnings on the 1099Q from the 529 plan be counted as unearned income so even if it is reported on the kiddo's return it might have to be taxed at the parent's rate?

Interesting. I have never had that either - I am more likely to have them come to do next year's return without having paid the year before. I would handle it the way you propose. Either way, it should come out the same since the year paid is the same as the year filed. I just don't see a line on the return for paid prior to filing.

From IRS website: Authorized IRS e-file Providers are prohibited from submitting electronic returns to the IRS prior to the receipt of all Forms W-2, W-2G, and 1099-R from the taxpayer. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the return may be electronically filed after Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. is completed in accordance with the use of that form. This is the only time information from Pay stubs or Leave and Earning Statements (LES) is allowed.

I have not done a substitute W2 for a while, so I am not sure, but I think if you have enough information to complete the employer EIN, etc. you can electronically file but not until later in the filing season (March 15 and after, maybe?). But like i said, it has been a while.

Does he have a copy of his last paystub or other information that you can use to prepare a substitute W2? Form 4852, I believe.

Will those penalties become less if you wait? I would file asap, and when the penalty letter comes I would write a letter asking for forgiveness and explaining why it was not done when it should have been. Were the W2s done on time? That might give you a shot at getting penalties forgiven, especially if this is their first offense.

I would probably get a signed 2848 if I didn't already have that, get all the paperwork together to be able to fax it, and call the practitioner priority line and ask for their help. I don't know if that would work, but that is what I would do. Writing letters at this point doesn't seem to be working.

It is my understanding that if a life estate was created, and the mother retained all the incidences and responsibilities of ownership until she passed away, the daughter would still get the step up in basis when the life estate ended and she received the property.

But if all the income is treated as subject to SE tax on a partnership, then treating payments of like amounts between partners as distribution is equitable. I don't see any way around treating unlike payments as guaranteed payments, particularly when they are based on work done by the partner.

Or was an informal life estate created?

Prayers lifted.

Not sure how that will work in a community property state either.

Gee, Rita, you don't have anything else going on right now but this one tax return to do, right? In late March, early April I am sure we all work on one return until it is finished completely, then put it away and work on the next one. And we get them all done the same day we start them. Right?

I am not sure it is something that you did, Margaret, because I am seeing that topic the same way. It is the topic labeled "Unemployment Compensation Exclusion" and the right side of the screen shows the number of posters, who is following, who has the most popular post, etc.

I can't offer to help with extensions since I don't use ATX and would probably cause more problems than I would solve, but I will keep you and ESPECIALLY your husband in my prayers. I sincerely hope you have mild cases that you recover from both quickly and completely.

Did not notice the change in posters - I have had clients tell me stupid stuff and then I have to tell them something they don't want to hear.

I am not surprised, but why on earth did she ever admit to that if she was going to do it in the first place?

Pacun, you raise some interesting points. My income did not change during COVID, although it might have spread out a little because of the extended deadline. But I did have to spend more for cleaning, cleaning supplies and disposable masks for customer use - so my expenses were up slightly. I did not withdraw any money from my retirement, and am above the age of penalty anyway, but I wonder if that would qualify me for paying the tax over three years if I had?

Indiana- #35-6000158 INDIANA DEPARTMENT OF WORKFORCE DEVELOPMENT, 10 SENATE AVE, INDIANAPOLIS, IN 46204-2277 I copied this information from the link in the general chat that has been pinned at the top of the page and labeled All Pinned Topics - ATX Tips/Tricks, QBI, TCJAs, States' Info. Hope it helps. I think it is actuallyfor unemployment but it is the only one we have pinned.