RitaB

"Yes, I completed Virginia Schedule of Income, Page 1 correctly..." is what I should have said.

Yes, I completed Form 1 correctly, just caught that I needed to adjust Page 1, Line 5 when Line 10 was -30,000 ish.

ATX put 28,633 which REALLY got it down there. No warning that I might need to adjust since they are part year residents. Would Taxwise warn you? Or make the adjustment? I know it's ultimately on me, but things like this are kinda why I gave up pencils and the carbon paper.

Line 5 Instructions - Social Security Act and Equivalent Tier 1 Railroad Retirement Act Benefits Enter Social Security and equivalent Tier 1 Railroad Retirement Act benefits reported as taxable income on your federal return and attributable to your period of residence in Virginia. My client moved to VA on 11/20/20. Filing Status 2. SS Benefits 33,686. Taxable SS Benefits 28,633 On Line 5 A, I'll enter the quotient of 28,633 and 12 = 2,386, correct? It's strange to me that Line 10, VA Adjust Gross Income turns out to be negative for these folks, but I see that I'm subtracting the Qualifying Age Deduction twice, so ok.

I'm still mad about PPP funds being abused and then not even being taxed. And while I found a wonderful substitute for health insurance in 2015, this is all too stupid to be real.

Yes. Also. A good thing to do, when I've just finished your 2018 return that I started in October 2019, is not bring me two 2018 LPL Financial 1099s when you drop off 2019. This will guarantee you WOAT status among clients.

I think IRS is sending a lot of incorrect letters. But, it is very common that people don't know that the date of the liability is the date of the payroll checks.

I will say this, I had forgotten how much I hated those 2018 forms. The WOAT. So glad we only had one year of those.

Exactly.

Oh, you know what I did? When the error message said you can't e-file when the taxpayer croaked way after this &^*% thing was due? I switched and made her taxpayer. Same *&^% message for the spouse croaking way after this &^*% thing was due. I forgot to switch the date of death. My bad, everybody. I'm losing it. Thank you, I am laughing.

So, I have this surviving spouse that is going to have to sign 2018 and 2019 Forms 1040 and mail them because she has poked around until now, and after the husband died in Jan 2021, to get me the information to finish the returns. I can't e-file. I am sorry to confess to you all that I am unsympathetic, but she first came in my office October 2019 crying, "Can you get this [2018 return] done before the deadline so we won't to jail?" And she called crying April 14 ish, 2020, "Can you get me an extension for 2019 so we won't go to jail? And tell me what to pay in?" She just gave me the missing information I was waiting on to finish 2018 on 3/16/21 because she wants PPP funds, and I told her I'm completing both returns, not just giving you a 2019 Schedule C. My question, and I do have one, is does she cram her signature above the typed "filing as surviving spouse" and inside spouse's box, or does she sign inside the box for "Your signature"? (Where husband would normally sign.)

Thank you, everyone. Mother was 97, and she has moved to heaven. I am so happy for her. Thank you all, again, for your prayers and kindness!

Thank you, Fine Ladies. I am out of the office with my 97 year old mother who's in the hospital, hopefully getting settled in to our very fine Hospice facility today, Monday the 8th. Great ideas, and I was about out of them, not gonna lie. Appreciate your prayers.

Where would I enter a Section 481(a) adjustment for residential rental depreciation with all personal use 2020? Sold in 2020. Depreciation never taken, a DIYer, and not rented 2020. Husband lived in it, and wife lived at home, but that's another story. Made it through Form 3115, but if I enter the expense on Line 19 of Sch E, it's disallowed. First thing that comes to mind is Form 1040, Other Income.

I just have to say I love the title of this thread @NECPA in NEBRASKA. This is me every day about something. Like yesterday, I actually had a Covid early distribution with Code 2. I looked around for hidden FBI cameras and thought about completing Form 8915 (which I have called 8715 for six weeks), for a very long time before I stuck it in the stack.

Yes, this group is like family. Another good one is the Facebook ATX Tax Software Support Group. Frankly, the other groups I read have some folks who never picked their own switch off the tree, and it shows.

You’re not. Every one of my clients who applied for PPP loans had MORE revenue in 2020. I had more revenue in 2020. I actually got Covid in November 2020. Never missed a day of work, just told people not to come in the office. No financial hardship for me, no applying for assistance that wasn’t intended for me. Kinda mad at the windfall some received. Happy to help those whose businesses and livelihoods were destroyed, and I feel so badly for them, but I don’t know any of them. It have felt sad and frustrated but I am thankful.

I believe you add [up to] 300 to Line 7 of the SS worksheet. Grace, I have overridden Line 7 on two or three (can’t remember) that have been accepted.

These 0h Rita titles always throw me off: No way I have made 37 errors already shut up.

Absolutely agree. I’m only concerned about the possibility of a letter to a client. Always a time waster. There is no chance of getting paid either. I would hope IRS would not chase this rabbit. Waste of their time, too.

Alright. I sent three returns for clients who didn't want to take advantage of reporting the early distribution over three years. I used Form 5329 only. They were accepted. THEN I happen to read on the ATX Form 5329, under Part I, that we don't use this Form for coronavirus related distribution. I noticed just now that the IRS pdf for 2020 Form 5329 does not have that instruction against using the form for coronavirus distribution. Just throwing this out there. No idea if we that used 5329 should amend to include 8715-E or not. I have three others that I will hold onto and use 8715-E. And yes, I have tried to dissuade folks from shooting themselves in the foot by not spreading the income over three years. They have already shot themselves in the foot by taking distributions they didn't need while the market was down. There's no helping these folks: "Oh, your hours were cut causing your income to be 4,000 less. It makes perfect sense to take out 90,000 from your 401k. Ok."

I was a high school teacher for eight years. I did spend money out-of-pocket every year, probably under $500. I think the teachers whose returns I prepare are not really the most philanthropic. I know many teachers are, including my daughter-in-law. Did not mean to disparage the entire profession. Seems like I get a lot of pastors who really hate paying Caesar, too. Is it me??? A few that don't tithe. It always makes me want to ask them if they trust God or not. I will say I really regret rolling my teacher retirement monies into an IRA. That money is probably worth five times as much now, but TN Consolidated Retirement System till I die would have been so much better. Regrets, I've had a few...

Well, I don't know, but I sent my three who don't want to spread it over three years this morning before seeing the directions on 5329. They were all accepted. I don't know whether to amend for that Form 8915E or hope nothing happens. I would rather chew off my right arm than for a client to get a letter where I messed up. Or where my software messed up, like Line 10b not making it to the SS benefits worksheet. (See thread: Taxable SS and 300 donation). That's on me when it gets adjusted, but I think I caught them all.

Feel free cause I have trust issues.

Never mind. It is staring me right in the face on Form 5329. I guess I cannot entirely rely upon Code 12 on Form 5329. My bad. Carry on.