Randall

I'll have to check out those examples in the IRS Pub. But I don't see how you can create your own excess. If the scholarship is for the tuition, I think the tuition is gone for AOC.

That's what I thought, not 404.

A recent update in ATX has added input spaces specifically for these three items. Their 199A worksheet auto fills the Sch C profit and you have to manually input the amounts for these three items. Then the ATX worksheet deducts them before calculating the 20%.

They are not deducted on Sch C. But for purposes of calculating the QBI, half of SE tax and SE Health ins and contributions to qualified retirement plans under IRC Sec 404 are deducted for QBI purposes. Reg 1.199A-3(b)(1)(vi) I was asking about traditional IRA and HSA in this context which I don't think are deducted.

I think we've discussed this. Half of SE tax and SE Health ins deduction and contributions to SEP, SIMPLE plans come off the Sch C profit in calculating QBI. What about Traditional IRA and HSA contributions. Client has no W2 income or spouse with earnings. My latest PPC references just says the above 3, doesn't mention Trad IRA or HSA. Looking for confirmation.

Yes, I've heard of this. But this still sounds like the traditional way of scholarships, that is, if the scholarship exceeds costs of tuition, a way to get around the child paying tax on the excess as income. I think the scholarship would have to be very specific in wording to NOT apply to tuition to get around everything so the parents can claim AOC.

No, nothing done in your program. Go to ATX site, under Efile status, search for the client, you'll see an option to 'Rehang'

I've heard of this strategy but it sounds bogus to me. It seems the scholarships pay the education costs and reduce qualified education costs eligible for the credit.

Mine are going thru slowly. They will show status as Transmitted to EFC, then later come thru as accepted, never showing the status as Transmitted to Agency. Wouldn't rehanging them be better than duplicating the return?

Just did my 2nd deceased return. On the first one, I wondered why the Deceased date didn't show up at the top. It did on my state (Ky). I now noticed (with this 2nd one) it is at the bottom of 1040 page one. Not the bottom of the page but at the bottom of the printed portion (mid page). I think someone else wondered about the notice not being there so I wanted to post this.

That's what I've been doing.

I see that now I'm in a 1065. I don't think the 1120S had it. And the 1120S had the total at the top. The 1065 total doesn't show a total. Ugh.

Mine are going thru now.

I only scanned thru the instructions so I may not have it right. But under IRAs, for multiple 1099Rs, it seems to say put the gross amount on line 4a and the taxable amount on line 4b. It seemed to be saying the same thing for pensions and annuities. If gross and taxable amounts are the same, line 4a is blank. If all 1099Rs are marked the same, the software puts the total gross in line 4a and the total taxable in line 4b. I was thinking with the two lines combined into one line, and the 1099Rs, some IRA and some not, ATX just missed something. I was wondering how other software was doing it. Any Drakes users reading this?

Does not a long journey begin with a small step?

Just discovered ATX has a summary of the unadjusted basis of depreciable property. It's under 4562 statements. I was working on an 1120S and calculated the amount manually, then saw this statement. Same amount as I calculated so I must be doing it right.

Is there a delay in efiling at ATX? I have several from yesterday that still shows sent to EFC, not transmitted to agency. I didn't see a notice on ATX website.

My taxable amounts have flowed thru ok too. But sometimes gross amounts are smaller than taxable amounts. Jasdlm, are you saying that's the way it's supposed to be? If gross and taxable amounts are the same, line 4a is blank. But when gross is higher than taxable, and with multiple 1099Rs, some IRA, some not, that's when I have the same situation as Christian.

Or on page 4, Schedule K, line 17d, click in the gray box. Takes you to the same worksheet.

For ATX: LLC 2 members. Both commercial and residential rental activity. My understanding is you can aggregate the residential properties together and the commercial properties together but you cannot aggregate the residential with the commercial. So I will have two activities. On the Sch K, line 20c input sheet, there is one line for code z. Should I type in on the lines below separate descriptive info for the two activities? This will show Code AH and populate in the K-1 Sch Statement for each member. I don't see a way to have more than one line for more than one activity.

If a grantor trust, shouldn't the income been reported in the grantor's ssn (child or parent)? Since the income was reported in the trust EIN, shouldn't the income be reported on the K-1 schedule in the beneficiary's ssn?

Does an extension MFJ cover both spouses if they decide to actually file MFS?

Yes, him and everyone else in the tech business. Too much turnover, new versions, paying for it over and over. I think all updates should be free for at least 5 years. QB can only go back one version for Accountants Copy. A new version every year. Sheesh. More whistles and bells that most people don't need. An army of programmers thinking up more and more stuff.

None so far.

The new standard deduction helps out a lot on this. But in Ky, charitable deductions still count, ugh.