Yardley CPA

I'm not overly familiar with writing scripts but anything to save time is well worth the learning curve.

Overall...probably below what I would normally see at this point for my "regular clients"...definitely more new clients though. So, I'm happy about that.

Journal of Accountancy article: https://www.journalofaccountancy.com/news/2019/feb/sec-199a-qbi-deduction-form-201920659.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=18Feb2019 Taxpayers will file QBI deduction computation with IRS next year By Sally P. Schreiber, J.D. February 15, 2019 The IRS on Friday posted a draft of a form that affected taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A. Taxpayers who have QBI, qualified real estate investment trust (REIT) dividends, or qualified income from a publicly traded partnership (PTP) will use Form 8995, Qualified Business Income Deduction Simplified Computation, to report the computation. The one-page draft form contains the same computation that is found in the “2018 Qualified Business Income Deduction — Simplified Worksheet,” on p. 37 of this year’s instructions to Form 1040, U.S. Individual Income Tax Return. However, the worksheet is retained by the taxpayer, while Form 8995 will be attached to the taxpayer’s return and submitted to the IRS. The form contains lines at the top for listing the name, taxpayer identification number, and QBI or loss for up to five trades or businesses. Note that the form does not help taxpayers compute their QBI. QBI from the taxpayer’s trades or businesses is then totaled and combined with any QBI or loss from the prior year. The form also has separate lines for qualified REIT dividends and PTP income or loss, plus a separate line for the net capital gain limitation calculation. Sec. 199A allows taxpayers to deduct up to 20% of QBI from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust, or estate and can be taken by individuals and by some estates and trusts. The deduction is not available for wage income or for business income earned through a C corporation. The deduction is generally equal to the lesser of 20% of the taxpayer’s QBI plus 20% of the taxpayer’s qualified REIT dividends and qualified PTP income, or 20% of taxable income minus net capital gains. Deductions for taxpayers with taxable incomes above certain threshold amounts (which are adjusted annually for inflation) may be limited. — Sally P. Schreiber, J.D., ([email protected]) is a JofA senior editor.

How did someone say....this is an awesome redesign? Let's go with it!

Can someone kindly direct me to where I can see Federal Estimated Payments on the 1040?

Good to know.

Passing this along as an FYI. This chart provides a listing of States that still require a separate signature form besides just the Federal 8879. https://support.cch.com/kb/solution.aspx/sw37113

Schedule C with home office deduction (Simplified Method). Does the home office deduction have any impact on 199A calculation?. The Schedule C is an Information Technology Firm. They assist clients with technology-related questions and help install computer-related programs. Is this a Service Business?

Jack...what did you say that was censured??? Hmm??

I don't object at all. Thank you both.

Hi, JKL...I can understand if you don't want to pin someone's blog. Totally understand that.

Thank you!!! That's exactly what I was looking for.

Can we pin this site?

New client, MFS, had state tax refund last year. Where is the ATX schedule that allows you to input the previous year's Schedule A information to determine if the previous year's refund is taxable on this years return? I know Schedule 1 contains the line to input the refund, but when you jump to the corresponding schedules, I do not see anywhere to input previous years Schedule A information.

Article in the Journal of Accountancy offers information on the IRS's efforts to expand the Protection Pin Program: https://www.journalofaccountancy.com/news/2019/feb/irs-identity-protection-pins-201920605.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=08Feb2019&utm_content=button Identity protection PIN program expands By Sally P. Schreiber, J.D. The IRS is expanding to seven additional states its voluntary program for taxpayers who wish to obtain identity protection personal identification numbers (IP PINs) and are not currently victims of tax return identity theft. The pilot program originally involved Washington, D.C., Florida, and Georgia. IP PINs will now be available in seven more states: California, Delaware, Illinois, Maryland, Michigan, Nevada, and Rhode Island. Those states report the highest number of identity thefts to the Federal Trade Commission. An IP PIN is a six-digit number assigned to eligible taxpayers to prevent their Social Security number (SSN) from being used on fraudulent federal income tax returns. It allows the IRS to verify taxpayers’ identities when they file their return. This prevents a criminal from filing a tax return using the IP PIN holder’s SSN. The voluntary program permits taxpayers who last year filed a tax return from one of those states to obtain an IP PIN by using the IRS’s Get an IP PIN tool to authenticate their identities. To obtain an IP PIN, taxpayers must validate their identities through a two-factor authentication process called Secure Access. The pilot program will not have a manual option for taxpayers who fail to authenticate their identities. Any taxpayer in the listed states may obtain an IP PIN. The IRS will continue to issue by mail IP PINs to taxpayers who are confirmed victims of tax-related identity theft. However, these taxpayers may also use the Get an IP PIN tool to obtain an IP PIN immediately. Once the IRS determines its systems can handle the expansion of the program to the additional states, it hopes to be able to offer it to taxpayers in every state. The AICPA has long supported expansion of the IP PIN system and has urged the IRS to consider issuing IP PINs to all individuals. (See, for example, the AICPA comment letter to the chair and ranking member of the Senate Finance Committee dated Sept. 15, 2015.) — Sally Schreiber, J.D., ([email protected]) is a JofA senior editor.

Thanks, Eric...that's my issue. If I don't check "Service Business" nothing flows. If I check "Service Business" everything populates as I believe it should. I realize the Schedule E Rental is not a "Service Business" but checking that field is the only way to populate the figures.

Thanks. I didn't think so either at first but If I don't check it, QBI is not calculated

MFJ return. Wife works as a school teacher, the husband is a homemaker. He also manages their rental property, collecting rent, assisting the tenants, scheduling maintenance, dealing with vendors...etc. All in excess of 250 hours for the year. In reading through 199A provisions posted on this site, I believe they qualify for the deduction. In order for the deduction to calculate on the Sec 199A worksheet, both the "Qualified Business" and "Service Business" need to be checked. Just ensuring I'm not missing something or misinterpreting the provision?? QBI calculates to $1,290.

But you can now file your taxes on a postcard!

I'm having trouble customizing Schedule 6, Third Party Designee, of the 1040 Form. I would like any 1040 I open to have the Third Pater Designee checked with my preparer information included. When I go to customize this schedule, it does not allow me to check the boxes...it gives me the jump to arrow and that does not allow me to jump to any associated screen. Thoughts, please. I am in the Return Manager and click Forms, Customize Master Forms. I then navigate to Schedule 6. Thank you!

When I complete clients return, I provide them with hardcopy along with a pdf version of the "ATX Client Copy." Included with the information are copies of the ATX Tax Summary, Tax Planner, and Previous Year Comparison Form. Do you provide any other ATX generated forms/reports to clients?

It's going to take a little while to get used to the new "Postcard" 1040. Much harder to navigate the Schedules then when everything was presented on the two page 140. Where do you input the PMI on ATX Schedule A? Do you just add it to the mortgage interest without reflecting it separately? Last year it had its own line.

Wondering why you instructed him to withdraw it? I recognize he had no earned income and I can only assume he deposited the funds for the tax benefit...not to simply "save for retirement?" I'm not aware of any exception that you can bank on for this one. Based on the way the 1099R is coded, the penalty may stand. Maybe someone with more experience with IRA's will chime in.

We're not responsible to verify it, are we? If the client freely provides the information, great. If the client does not provide the information and we inquire..."did you make any tips?" and they say no, that's the extent of our "verifying?" No? I understand this situation is a bit different in that the client provided the information after the fact. I'm just looking to ensure we have no obligation to verify anything beyond making general inquiries to satisfy us?

Good info!