DANRVAN

The IRS has not posted any "regulations". The authority comes from the Cares Act and the IRS notice referred to above. The penalty exception and "three year rule" are allowed in specific cases only. Unfortunately, there is no exception for an individual laid off prior to the pandemic and who could not find new employment because jobs were not available. However, he could qualify if was unable to work because of quarantine, unable to find child care, a job offer rescinded or start date for a job delayed due to COVID-19. If you have read a source that says differently please post it here.

Bingo!

A discretionary trust can give the trustee complete authority to decide who gets distributions and how much. Also whether to pay out of income or corpus. What does the 50% refer to?

but none of those reasons meet the criteria of Section 2202(a)(4)(A)(ii) of the CARES Act or notice Notice 2020-50 in determining that the taxpayer was unbale to find employment due to pandemic.

Click on the "Distributable Income" tab on the bottom of 1041 input. The middle column is for deductions, you enter it on the line for "ordinary loss."

Sorry, I misunderstood your post. Was he unable to work or find work due to quarantine? Did he have a job offer rescinded or start date for a job delayed due to COVID-19?

Suggest you review Section 2202(a)(4)(A)(ii) of the CARES Act or notice Notice 2020-50.

If those expenses are related to the rental use only then I see no reason to allocate to personal use. BTW, welcome to the community here jb005.

That was repealed awhile back, AJCA 2004 I think. Currently you can expense $10,000 per year, balance is amortized 84 months. Pub 225 should tell you what you need to know, different rules for trust etc. I don't have the code section handy.

Right, it is a federal tax credit that can affect the federal tax subtraction along with AOC and PTC. See Oregon pub 17 for details.

For Oregon you do need to input it in order to calculate the potential adjustment of the state deduction for federal tax.

I just had a similar situation with a different twist. New client filed w/o dependent in 2019 but actually was entitled to claim since lived in house hold over 1/2 year. E-filed 1040x yesterday and was rejected because dependent already claimed. So off with a paper 1040x we go.

Here is what I would do, as Abby mentioned no need to input the W-2. Instead report on Schedule 1 as 1099 misc with the federal and state withholding and the minimum amount of income needed to cover withholdings. Then make an separate schedule 1 entry to back out the income. Bottom line: -zero wages reported -zero schedule 1 income -federal and state withholdings correctly reported. I am overlooking anything here?

Right there, first post!

Any 1099's to report that you can bump up the withholding as ABBY N suggested.

Might be the quickest and easiest way to get it done. HR should have made the correction and paid the amount withheld back to him.

In Oregon? I don't think so, although a good idea to have one.

If they want to work and get paid they will!

Thank you for the reply. To be more specific, he is looking for an app employee's can put on their cell phones.

Client is looking for a time card application. Has one fulltime and a couple part time employees. Is anyone here familiar with an app that they would recommend. Dan

Okay, I will try that. And it works!

I still do not see the edit button Judy. Where did it go to?

I haven't seen that option lately. I agree that a time limit should be in place.

That sounds right Pacun. In the situations you described it appears to benefit the client by using the 2019 earned income which is higher.

meant to say EITC. How come we are no longer able to edit?