TexTaxToo

Of course, those really, really special people who turn 65 on January 1, start getting the over 65 standard deduction the previous year, when they are 64 the entire year. Unless they died during the year, then they don't get the extra standard deduction. Unless they died on 12/31, in which case they do get the extra.

Pub 550

Have you reviewed the Proxy statement regarding tax matters for the merger: https://www.sec.gov/Archives/edgar/data/1732845/000110465924053001/tm243828-20_defm14a.htm#tMUFI

You must make taxable a part of the scholarship that was or could be used for tuition, in addition to the amount in excess of tuition. For example, if tuition was $24,000 and unrestricted scholarships were $40,000 ($16k in excess of tuition which was used for room and board). If you make $20,000 of the scholarship taxable to pay nonqualified expenses, that leaves $20,000 to apply to the tuition, and that leaves $4,000 of tuition available for the credit. The scholarship terms must allow that $20,000 to be used for nonqualified expenses and it would be taxable to the student. And pay attention to Slippery Pencil re. kiddie tax and getting an accurate statement of account - was the scholarship actually used for qualified expenses in another year, or was it for room and board in the current year.

Hmm. Pub 4012 is the guide for VITA/TCE. It says:

Note that this type of "theft" is not subject to the 10% of AGI+$100 reduction for casualty losses and should flow to line 16 of Schedule A (not line 15).

Rev. Proc. 2024-31 explains the QM PIN requirements. Manufacturers must label units with the QM PIN, or otherwise provide it to purchasers. They must at least quarterly provide the IRS with lists of the QM PINs they have issued which qualify. So the IRS will know which are legitimate. I think it is unlikely that there will be a generally available lookup tool, as there would be too much opportunity for fraud (someone could look up numbers until they got a match and use it on a return). "The IRS urges QMs not to place a product’s PIN on the exterior packaging of the product," presumably for the same reason. I wonder if there will be a new reject code "The QM PIN entered on the return has previously been entered on another return".

Judy, I disagree. Worksheets I and III should have 1 for the alternative family size (and that may be his problem), but Form 8962 should have 2. The example on page 44 of Pub 974 makes this clear. The example has one spouse with no dependents and one spouse with two dependents: Then on the worksheets:

Here's what I would get for Worksheet III manually: 1. 1 2. 41068 3. 14580 4. 281 5. 0.0524 6. 2152 7. 179 So my 36b would be 179. What did you do differently?

I'm not sure this is your problem, but a few more things to check: Line 10 should be checked 'No', and you must enter the monthly amounts on lines 12-23, not the annual amounts on line 11, even though all monthly amounts are the same. Columns a, b, f must be the amounts from the Form 1095-A line 35 is blank, line 36a=1, 36c=1, 36d=12, and 36b is your calculated amount The values entered on lines 12-23, column c, are all equal to your 36b calculated amount (the software may do this automatically)

According to the instructions for Form 8962, Line 28 (the cap on repayment): So it would seem the cap is available if income reported is less than 400% of FPL.

In the future the installer will have to provide a 17-char QM PIN (Qualified Manufacturer Product Identification Number) which is a unique number like a serial number that will be required on the tax return - eliminates any need to verify if it qualifies. For 2025, only the QM part of the number will be required. For 2024, there are a couple sites where you can look up model numbers to see if they qualify: https://www.regulations.doe.gov/product-lookup https://ahridirectory.org/ The first one is more official, but I have found it more difficult to find matches unless you have the AHRI reference number already.

I suppose it depends on what you mean by phaseouts - the starting point or the range - and do you mean this year or ever? The range doesn't usually increase, but the starting and ending points do. EIC phases in and out by income which is adjusted for inflation Income limit for IRA deduction phases out and is adjusted for inflation Income limit for contributing to Roth IRA phases out and is adjusted for inflation Income limit for taking student loan interest adjustment phases out and is adjusted Income limits for retirement savings credit phase down by percents and are adjusted Deductibility of long term care premiums phase down by age AMT exemption phases out by income which is adjusted The common phaseouts which are not adjusted are for CTC, ODC, CDCC, AOC, LLC, and tax-free SS.

To answer your first question, if one spouse had a family plan and the other spouse had a self-only plan all year, they are both treated as having had a family plan, and (assuming they are both below age 55) they can contribute a maximum of $8300 combined, but can allocate it any way they want between the two HSAs. In your case, assuming that the wife's excess contribution was subtracted from box 1 on her W-2, you will have to include it (and any earnings) as other income. It appears that she withdrew a bit less than the excess contribution. Why was that?

I agree with Kathy that it would have been better for the father to claim the child and get EITC for her. It doesn't matter that the grandparents provided most of her support. EITC+ACTC more than $4k. If the GP claim the child, you have a shared policy situtation and the 1095-A is reported on both returns - see the instructions for Part IV of Form 8962 - they can allocate the premiums any way they want. Was there APTC? If there was I am surprised that the GP return was accepted without reconciling the 1095-A.

A spouse can choose to treat the IRA as their own or to be treated as a beneficiary. From Pub 590-B, for a spouse:

As long as the terms of the scholarship allow it to be spent on non-qualified expenses (such as room and board), and such expenses were paid during the year, you can allocate the scholarship between tuition and the other expenses any way you want, regardless of how the scholarship money was actually used. Any amount you allocate to non-qualified expense is taxable. If the scholarship was restricted to tuition only, you cannot make it taxable by using it for other expenses.

Last week, the House unanimously passed H.R. 736 to delay the deadline for existing companies (started before 2024) until Jan 1, 2026. It is not clear when/if it will be considered by the Senate, where a similar bill S.505 has been introduced.

I agree that the return would be rejected if a return had already been filed for that SSN. However, there is something new this year for dependents. If the primary taxpayer has an IPPIN and claims a dependent that has already been claimed on another return, the return will be accepted. The dependency will still have to be resolved and the taxpayer should expect a notice, but they do not have to paper file. If the primary taxpayer does not have an IPPIN, the return will be rejected as in prior years. (If they want to e-file, they can obtain an IPPIN and re-submit.)

Just to be clear, there is one AOC per student, not per institution. You total the expenses for all instututions to claim the credit. There is room for two institutions on Form 8863 - add more if needed. For the LLC, there is one credit per tax return, regardless of the number of students or institutions. There is no choice as to whether someone can be claimed as a dependent - the support worksheet is needed. There is a choice as to whether someone is claimed as a dependent. The AOC is a bit unusual in that someone who can be claimed as a dependent but is not so claimed can still claim the AOC for themselves - at least the non-refundable part. For the refundable part, you must follow the rules for the kiddie tax, which are similar to but not the same as the rules for dependency. See the instructions for line 7 of Form 8863.

I think it's pretty clearly stated in the regs https://www.law.cornell.edu/cfr/text/26/1.408A-8 And the limits as stated in the regs https://www.law.cornell.edu/cfr/text/26/1.408A-3 refer to reducing by amounts contributed to traditional IRAs (as defined above). (But SEP/SIMPLE plan contributions are not included in the MAGI calculation.)

Superseding returns must be filed before the due date (including extensions). https://www.irs.gov/newsroom/irs-taxpayers-now-have-more-options-to-correct-amend-returns-electronically If the original return and amendment were efiled, I believe you can efile up to 3 amendments total.

Most sites or applications will accept passcodes from within some window of the current time (maybe the ones before and after as well as the current one). After all, it takes some time to type the code in and there may be network delay. But it is also a requirement that the same passcode not be accepted twice (so if you for some reason get logged out immediately, you might have to wait 30 seconds to get a new one to log back in).

This has not been updated for TY2024. There is now a field at the top of Schedule 1 for non-taxable amounts reported on a 1099-K - there is no need to report it and back it out. By "Block", I assume you mean the company formerly known as "Square" which runs the "Cash App" payment app. If the app is used for gifts or reimbursements among family and friends they shouldn't even issue a 1099-K. But if they do, or if these were for sales of personal items at a loss, use the new field: https://www.irs.gov/instructions/i1040gi#en_US_2024_publink1000131906

Authenticators are implemented with a hashing algorithm. They simply hash a "secret code" with a counter derived from the current time to get the 6-digit passcode. The "secret code" is obtained from the QR code or the equivalent string when you setup a site. Any authenticator initialized with that code will produce the same passcode at the same time. It doesn't even need to be connected to the internet as long as the clock is accurate. For those technically inclined, you can google or wiki TOTP (time-based one time password) for details. For that reason, you should treat the "secret codes" with care, as anyone who has them can set up an authenticator to mimic yours. Pasting them into a Word document named "Authenticator codes" is probably not a good idea.