Dave T

Yes, they paid me.

I had a somewhat similar situation last year. I had prepared a return and clients went somewhere else. I gave them them their documents back as well as a bill. To my surprise, they came back to me this year.

Also, there was no job offer rescinded nor was there any quarantine.

No, the 2020 IRA distributions were sporadic and not equal throughout the year. Interesting second question. In 2019 I prepared their taxes but before I e-filed the return I was told to hold off until I heard from them. They had already paid the financial services company a flat fee to consolidate all investments and the co. also included tax prep in their fee so they went with them. I assumed I wouldn't be doing their taxes this year but to my surprise they came back to me. I don't man to be obtuse about this but it's the timing of the layoff prior to Covid that makes me wonder if the penalty can be abated.?

I should have been more specific on one item. The retirement rollovers occurred in 2020 not 2019. It still may be Covid related as you say but the IRA distributions weren't part of funds rolled over.

Good question. Do mean like travel restrictions or any other type of deterrent?

T/P is 59 years old,. He received his termination notice in December 2019 but was technically still on the books until March 2020. He rolls his retirement accounts without tax ( Code G on 1099R). During the year he takes 4 distributions from an IRA totaling $50K ( taxable ) and at year end gets a 1099R with Code 1, early withdrawal no exception and thus $5K penalty. I call client to tell them of this and they say financial advisor had told them there would be no penalty due job loss. I don't see this as Covid related and they don't meet another Covid requirement so I think the penalty stands unless I am missing something. Any thoughts? Thank you.

T/p is 61 years old. Code W ( contributions to an HSA ) on his W-2 is $7,,705 Line 3 of the 8889 shows $7,100 Shouldn't this be $8,100 since he is over 55 years old? Thank you Dave T

This board provides such a valuable service. Over the years I have learned so much and so many folks are so very generous with their time to answer questions and give counsel. Eric, thank you especially for helping make this forum so worthwhile. I wholeheartedly agree with the encouragement to support with a donation.

Thank you

So I would leave boxes 5 and 8 unchecked in order for the full amount of $1,800. Thanks very much

Sorry to be obtuse about this but this is the first credit I am doing and am a bit confused. 22 year old student was claimed by his parents in 2019 but not in 2020. He did not get either stimulus payment. ( I don't believe he would be eligible for the first ) I believe he would be entitled for the second one but when I go through the worksheet it shows him getting $1,800 in Recovery Credit. Am I correct that his credit should be $600.00? Thanks very much

Yes, tax payer felt preparer was too aggressive in his approach to this. That an inquiry from NYS questioning the item didn't help.

Perhaps i am overthinking this or maybe underthinking it or maybe not thinking at all. Financial advisor tells me he is going to refer a new client to me and gives me a bit of a heads up on their prior year return. Tax payer bought a pickup truck in 2019 for a side business and prior preparer took section 179 for entire amount. Assuming he is still using the truck for business and he provides me with mileage, how do I report this? Of the .$.56 per mile rate, $. 27 is related to deprecation. Do I take the difference or does he have to calculate actual expenses? Thanks very much.

If she is a single member LLC it is considered a disregarded entity and she will continue to report income and expense on Schedule C.

Thank you and sorry for the misspelling on my part s/b Federal and not Feral :}

Lion, Yes, I entered the $300 from 10b on Federal into the IT-558 for same amount but still get the error message. On the IT-201 the amount on 19a (Recomputed AGI) agrees with Federal AGI but I believe the error check is comparing line 19( Feral AGI) instead of the recomputed amount. Thank you

Just doing a proforma return and encountered an error. Line 10b for above the line charitable contributions I entered $300.00 but when doing and error check it said the AGI on Federal return does not equal AGI on New York State return by the $300.00 I know it's early and probably not doing actual returns yet but just wondering if anyone might have encountered this with NYS or any other state? Thank you Dave T

Max - just wondering, did you submit them to the IRS or just retained for client's future reference? IRS says they can assess penalty for not filing form when necessary. Thanks Dave T

I think I know the answer to this but just looking for confirmation. Client recently informs me that he neglected to tell me that he had made traditional IRA contributions for last several years. Turns out that he made too much each year so they are all non-deductible. I think I just need to amend the three years in question and include an 8606. The form says that it can be filed by itself but am not sure if that is the right approach in this situation. Thanks in advance Dave T

Thanks Abby. I should have been more specific in that it was the supplemental schedule that showed his zero basis and that it was disallowed loses that had been being carried forward. He sold his share at the very beginning of 2019 . Thanks again.

A relatively new client sold his interest in a partnership at the beginning of 2019. His adjusted basis in the partnership, per the K-1 provided by another CPA, shows as zero. He had never contributed any capital and was brought in due to his knowledge of some very high tech equipment. The K-1 also shows that the partnership had been carrying some disallowed losses. I know his basis can't go below zero but I have two questions; would any proceeds he receives be considered long term capital gain ( he has had this several years ) and do these loses then get distributed to the remaining partners? I've never encountered this before so any help would be appreciated. Thank you Dave T

Gail - that was my thinking as well. Thank you

I never renew early. I always wait until the fall and then call and negotiate with the sales rep.

She is self employed. and receives a 1099 Misc. Non- Employee Compensation. It was not an alternative fuel car. She provides them the mileage, both business and personal and they compute the income portion. Aside from the gas, all other expenses are paid by the MLM.