Abby Normal

I have some older clients with small W2's and low income. They make Roth IRA contributions just to get the retirement savers credit, knowing that they can take the Roth money whenever needed or leave it for their beneficiaries.

Nope. The loss goes bye bye.

ATX support called and said state forms for unemployment changes should start coming 3/29.

MD did July 15th before the feds due to MD law changes in February (that they still haven't fully implemented).

I was only half joking when I said a few weeks ago that we should all close our offices for a month, to let this all get sorted.

VA doesn't tax unemployment at all, and I think it's been this for a long time. MD is a new law, but has lower earnings limits (75k single, 100k MFJ & HOH) than the federal law, and it's a cliff. https://www.marylandtaxes.gov/RELIEFAct/docs/Maryland-Unemployment-Assistance-FAQs-FINAL.pdf

When figuring the following deductions or exclusions from income, if you are asked to enter an amount from Schedule 1, line 7 enter the total amount of unemployment compensation reported on line 7 (unreduced by any exclusion amount) and if you are asked to enter an amount from Schedule 1, line 8, enter the amount from line 3 of the Unemployment Compensation Exclusion Worksheet. See the specific form or instructions for more information. If you file Form 1040-NR, you aren't eligible for all of these deductions. See the Instructions for Form 1040-NR for details. Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet) IRA deduction (Instructions for Form 1040 or 1040-SR, IRA Deduction Worksheet) Student loan interest deduction (Instructions for Form 1040 or 1040-SR, Student Loan Interest Deduction Worksheet) Nontaxable amount of Olympic or Paralympic medals and USOC prize money (Instructions for Form 1040 or 1040-SR, Schedule 1, line 8.) The exclusion of interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815) The exclusion of employer-provided adoption benefits (Form 8839) Tuition and fees deduction (Form 8917) The deduction of up to $25,000 for active participation in a passive rental real estate activity (Form 8582)

It redirects here, so it appears legit: https://www.irs.gov/identity-theft-fraud-scams/identity-verification-for-irs-letter-recipients

It would be an incomplete gift.

My old software sent an email after returns ack'd. I don't like the idea of emailing the 9325 due to the sensitive nature of the form, but an email with no attachments would be great.

Seems like guaranteed payments would be the way to go since the concept is to pay them more if they work for the partnership more. But you will need to explain to them the new dynamic. The one who earns less is currently paying tax on income that is going to the one who works more, so they will definitely want to switch from draws to GP.

Call the IRS.

The "quarters" aren't calendar year quarters. Look at the forms and give her the exact dates you need.

All the best to you and her! She should probably be hospitalized and get any available treatments to control it, even if just overnight.

This is why we love eservices and clients with IRS.gov accounts. Just download whatever you need.

People paper filing 2020 are going to be in for rude surprise.

So WOAT is the opposite of GOAT? I did not know that!

Wasn't sure whether to start a new post for this or not. If a child's unemployment compensation would trigger the kiddie tax, how does the exclusion of the child's unemployment affect the kiddie tax? Also, if the parent's AGI is over 150k, does that change the answer?

https://www.accountingtoday.com/articles/irs-to-automatically-process-refunds-on-jobless-benefit-payments

I think it does because I believe the law is written that IRA contributions are due by the tax return due date, although I couldn't find it in the IRC earlier when I was looking for it. I didn't look in the reg's.

I think Rita entered the date of death for when she's plans on murdering the surviving spouse.

Have the trustee add the beneficiaries to the IRA then split the IRA into 4 separate beneficiary IRAs. No need to distribute it all out. https://www.fiduciary-trust.com/insights/naming-trust-ira-beneficiary/

Fast, quick or quickly? Fast and quick mean moving with great speed. Fast is both an adjective and an adverb. Quick is an adjective and the adverb form is quickly. Compare It was a fast train. We need to have a quick chat before the meeting. Fast and quick are adjectives. You walk very fast! Not: … very fastly. We should do it as quickly as possible. Fast and quickly are adverbs. https://dictionary.cambridge.org/us/grammar/british-grammar/fast-quick-or-quickly

'Quickly' is an adverb and yes too many people use grammar incorrectly, dropping the '-ly' way too often, such as in 'Drive safe.'

No, just use the total actual PTC allowed as the subtraction.