Randall

I told the client I'd call just to see if they would let me cancel. After being on hold for an hour, they did allow me to cancel. Had to go thru 3 different cancellations (for the estimated payments 6/15, 9/15 and 1/17) giving dates, amounts, bank routing and account numbers three separate times. Got the agent's number and cancellation confirmation numbers for each of the remaining 3 payments. I assume there is nothing to be done for the first payment (4/18) since it bounced. As someone said, I guess the client will receive a letter regarding that payment. Since these are 2022 estimated payments, I assume there would be nothing more to do.

Thanks Abby. I remember setting the 2021 tax payment but not for the ES. Maybe I hit it accidentally.

Thanks. I was wondering if he could do that on line. Is it the same as the direct pay page?

Can anyone verify this? Seems outrageous at this time. Seems IRS would have had this out from the beginning.

I posted this originally. My client owed a lot of tax on the 2021 return (and Ky too). He wanted a direct debit payment. We set it up for Friday, April 15. He transferred enough money to cover the payments. IRS took their 2021 tax payment. Ky waited until Monday, April 18. Unfortunately I missed something on the return. The ATX software automatically calculated 1040 ES payments for 2022 using the total tax of 2021. He shouldn't be anywhere close to that amount of tax in 2022. ATX automatically used the direct debit info for the ES quarterly payments for 2022. Client saw a pending payment in his account for April 18, IRS first quarterly 2022 payment. That was the reason for my post. Things went as various comments said. IRS and Ky got their 2021 tax payments and the 2022 ES payment was rejected because funds weren't available. I was annoyed with myself but also ATX. Ky 2022 ES also calculated the ES payments but ATX gave me a prompt in the 'Check Return' function. So I kept Ky from doing the same thing. I just missed checking the Fed 1040ES and the direct debit info went in with the efile transmission. Now my question is how to stop or cancel the IRS instructions for the direct debit payment of 2022 estimated payments. Anyone have any suggestions? Is there a direct telephone line to call for these matters? Client has in the past paid online estimated payments. Is there a way he can go into that system and cancel the direct debit that IRS has for him. 2021 tax is correct and all paid correctly. Just wanting to get the 2022 ES direct debit attempts stopped for 2022.

Does anyone know if there are not enough funds to cover an IRS direct debit, does the withdrawal take out whatever balance is in the account or nothing at all since the exact amount to be withdrawn isn't available?

This site has been very helpful to me over the years. More so than another site which I think has a bunch of legal beagle types. I always try to get my extensions done a week before the deadline. It seems every year, I just hit the wall and can't get much done the last week. I usually start cutting down my hours even before the deadline.

I didn't make an adjustment on the K-1. I left the amount in Box 5 (Portfolio Income). Then put the amount in Box 14 code E as a positive and code H as a negative. I added a statement for Line (Box) 14 saying that the amount was retirement income, listed the payor and payor tax id number and address. So preparer of 1040 could make the entry on the 1040. I was the preparer of the 1040 so I entered it as 1099R income from the info on the K1 statement. No change for Fed but I wanted the software to carry this amount to Kentucky as retirement income and be eligible for their $31k exemption of retirement income. I hope this helps.

Thanks. I think she's well above the half of support test. I was just curious about that 4th year. If parents could have claimed it but was stopped out because of income, was the 4th year still available to someone (parents or child), all other things qualifying.

Parents claimed the AOTC for 3 years. The 4th year, sold rental property, big gain, income too high to claim AOTC the 4th year. Now 5th year, daughter/student had one semester in school, earned too much to be dependent of parents. Can daughter claim the AOTC in this 5th year? Parents were eligible to claim AOTC the 4th year but couldn't because of income being too high. Does that 4th year count as four years of AOTC or can daughter now claim the 4th year of AOTC since it was actually only taken 3 years?

How did you find that? I think it is 50 pages long. I eventually found the reference to 1231. Thanks.

Thanks.

Form 1065 with rental property. One property was sold. 1231 gain but some was recapture. The ATX K-1 statement input sheet has a line for Sect 1231 loss but not 1231 gain. There is a line for ordinary gain. Is the 1231 gain considered investment income and not business income for QBI purposes? Would the recapture portion be considered ordinary gain and considered business income for QBI purposes?

Do they still have credits for purchase of a new electric auto? I thought there was some limit on each make and model at the manufacturer's level. Where can I find if a particular make and model still qualifies?

If there's an EIN, I recommend filing a final return just to close the EIN with IRS.

Doesn't the K-1 come with some additional pages and supplemental info? My experience has been these pages and instructions walk you thru what to use as basis and where to report different numbers.

I did just this a couple of years ago. Included comments on the K-1 showing the 1099R info for payer and tax ID. I entered the amount as retirement income on the Fed 1040 and included that form showing diff between K-1 and 1040 entry. There was no change in the Fed 1040, just showing on a different line. But I wanted it to flow to the Ky return as retirement income.

I'm hoping this is the last season with the pandemic tax provision stuff. Stimulus, advance credits and all that. Maybe much smoother next year.

My case is a little different. Client received the stimulus which was included on the 2020 return. But did not receive the rest of her refund, a refund that would have been if there were no stimulus. That's why I'm wondering whether to file an amended 2020 return.

I have a client whose husband died in early 2020. I had $3600 included in the 2020 return to receive both stimulus payments for both. She later called IRS and IRS eventually sent her $3000 but said she was not eligible for the $600 for her deceased husband. But she never got the rest of her refund ($614) which would have been her refund without stimulus money. I'm wondering if IRS closed her 2020 account after giving her the $3000. I'm wondering if I can file an amended 2020 refund claiming the regular refund of $614. I'm thinking IRS would check the amended return and what they gave her and agree that she is due another $614. Any thoughts on amending 2020 in this way?

My biggest problem with extensions is the local governments (for businesses and that includes rentals) require their separate extensions with some payment.

Thanks all.

Am I missing something? I think the rules have changed. I thought in the past the gain was prorated. The ATX unput sheets for partial exclusion is excluding the whole gain. 425 days owned and lived in home out of two years (730). Gain of $30k is all excluded. Is it the whole gain up to the percentage of total exclusion (in my case $145k out of total $250k).

Not sure if it was Mark Twain, but the quote is: Better to remain silent and thought a fool then to open your mouth and remove all doubt.

I selectively print worksheets. Different for different clients. But I don't just print everything.