kathyc2

Doesn't on mine. Are you using PS Professional or one of the lesser versions they came out with?

Don't forget the dang sticky notes. Sorry, you don't need to write me a note that your W2 is a W2!

I encourage clients to start paying charities out of IRA's at age 70 1/2. Not only are they getting money from IRA tax free, it will lower RMD's when they set in.

Absolutely not true. I use Pro and have one that paid full price. If I don't enter amount on 1095A w/s for SLCSP that I had to look up, no 8962.

Taking it a step further, they also don't qualify to take the premiums on Sch A, since it was paid with tax free money.

3. If you paid full price and are sure you don't qualify for the premium tax credit You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes. Keep your Form 1095-A with your other tax records. https://www.healthcare.gov/taxes/marketplace-plan-without-savings/#:~:text=If you paid full price and are sure you don,with your other tax records.

I don't think so. I just amended 2022 and 2023 returns for client that had 1095A paying full price. The previous preparer did not look up SLCSP to give them the credit. IRS isn't going to be looking up info that's not on 1095A to see if there should be a credit.

It comes down to a matter of conscience. If you didn't know they received payment from union, you would have entered the 1095A, looked up SLCSP and credits would be generated. However, since you know someone else de facto paid it, would you feel right signing the return with credits? As far as the 8962 goes, you can either not input the 1095A or not enter the amounts you needed to look up for SLCSP on worksheet in Pro.

If they are paying premiums with tax free money, I don't see how they can make a claim for credit. This isn't anything official, just my logic, but if they would make the entire amount from union taxable, then take credit. I doubt they would come out better that way though.

Gal that I've prepared returns for year generally has a hand full of small W2's and gets huge refundable CTC and EITC. She dropped off her info and no W2's. I text her and ask her if she forgot to include. No, she didn't work this year. I ask what she's living on. Answer is her parents are supporting her (live out of state). I tell her that with no income, there is nothing to file. Her answer is she still wants to claim her kids. Again I tell her no income nothing to file or claim. She wants to know why she can't claim the money parents are giving her as income. Thank goodness it's Friday!

You wouldn't put anything from union on the 1095A worksheet. Since there wasn't advance credits, you aren't required to reconcile the 1095A. What is the criteria to determine how much the union pays? Is it a set amount? Bases on their net premium? Something else? Did they get a 1099 or such from union for the amount they received? Or, is the amount they received tax free retiree benefit?

Interestingly I'm working on one today. Her only income is SS disability. He had house before they were married and she was never added to deed or mortgage. Sch A total is less than 29,200, but with pushing it all to him on MFS other than small charity in her name, they come out better MFS.

I've seen a few 1099R's with an accompanying letter stating the QCD, but never on the actual form. What box # was it reported in?

It won't happen but it should. Ridiculous that someone needs to be certified to give a manicure but anyone can hang a sign and say they are a tax preparer.

There are quite a few deductions/credits not allowed on MFS student loan interest deduction being one of them. State income taxes go to each from their withholding on W2's. If only one spouse is on mortgage or deed, then all goes to the named person. If only one spouse is on a charitable receipt, that is the person it goes to. For joint mortgage, receipts etc. you can either split 50/50 if payment came from joint account or prorate according to income. For example if combined income is 150K and one spouse is 100K and other is 50K then items would be split 67% and 33%. Same for interest, investment accounts, etc. If both on account either 50/50 or prorate. You should use same method for both income items and deductions. Sounds like this may be a situation where they are separated. If so, present options and then they need to fight it out and both sign off on the method used.

There is a new line on Sch 1 to report 1099K personal items sold at a loss.

Child is QC for both son and GP. For qualifying relative (other dependent) the person claiming needs to provide more than 50% support. For QC the rule is child did not provide more than 1/2 of their own support.

Maybe I'm reading something wrong here. I'm understanding it to be: GP's, son and baby lived together all year. Son had 9K earned income, while GP's income was significantly higher. GP's claimed baby for 2K CTC. Son is filing single and not claiming baby. If son claims baby he would have around 1K CTC as refundable and another 3K in EITC. While EITC and CTC can be split between parents, I don't think they can be split between GP and parent.

The Code W on W2 includes both employee pretax contributions through cafeteria plan and employer contributions. It doesn't matter the mix between employee/er. As the Box 1 W2 income is already reduced by the contribution, it shouldn't be entered anywhere else. IF the employee makes additional AFTER TAX contributions, that is entered on Line 2 of 8889. The max for 2024 is 9,300 if over age 55 and family coverage for full year. Something seems askew with what you are saying.

As well it should. Scumbag!

This is no longer a tax issue, it's a legal issue. She should also be talking with an attorney instead of you. Quite conceivable she could be interviewed by feds.

Ooops!

You said split instead of divorced. If divorce was not final by year end there are very limited circumstances where MFS can receive any credit.

If it's been the 21 days and client calls me about their refund, I'm going to tell them to make phone calls to their Rep and both Senators.

That is exactly where the liability would come from. If S/H runs out of money to pay for care, they can certainly look back to see if shares were properly valued.