BulldogTom

Not a good idea in CA. The FTB collects the $800 per year until properly dissolved (including notification of the CA SOS). There is a method for dissolving without following the steps, but it takes years and lots of notices from the FTB. Better to just file the paperwork to close the business and then file your final return than go through the hassle in CA. Tom Modesto, CA

@Tracy LeeDo you have Max? Or just the 1040 program? It is in Max. You can also do a pay per return with ATX if this is your only 709 for the year? Tom Modesto, CA

I have been hesitant to use the feature but I am ready to do this (good client, will still love me if I screw it up). Anything I should know about the process of efiling the amended return? Anything to watch out for? Thanks in advance. Tom Modesto, CA

Thanks for the lively discussion. I am taking the position that the tax home did not change, and therefore this is temporary work. But I still have the same question from the OP, (based on the presumed fact that this is a temporary work location), is the weekend travel from the temp location to home and back again a deductible expense? Thanks. I really do appreciate this feedback. Tom Modesto, CA

Taxpayers do not have to repay any of the advanced premium tax credit they received for their health insurance in 2020. Tom Modesto, CA

I am having a brain cramp. This is for state only. CA never conformed to the TJCA provisions for eliminating employee business expenses. Client took a temporary job (4 months, paid on a W2) in another city. Too far to commute daily so he stayed in a hotel Sun-Thur every week and then drove home Friday, returning on Sunday. 200 miles each way on the weekend. Is all this mileage deductible, or does he only get one trip there and one trip back. Thanks in advance. Tom Modesto, CA

So, now I have to wait for guidance from CA. We have our own CA ACA form with its own calculations and it interplays with the 8962. I have a client who owes APTC for Fed but is due additional CA PTC. CA is driving me nuts this year. Texas, Nevada or Tennessee are looking better and better to me all the time. Tom Modesto, CA

STOP JINXING US.....let the sleeping dog lie. Tom Modesto, CA

Except CA, as of this minute, is following the original guidance from the IRS. Because of the provision of the American Recovery Act that says you cannot lower taxes, CA is not finishing up legislation that would have made the forgiveness tax free in the state. They are negotiating with Washington to see if they can get a waiver for conformity legislation. So they are doing nothing until then. I have to put it on for CA (or extend and hope for legislation and guidance). I double checked this answer from the President of Spidell (CA tax experts where I get all my CA CPE). Tom Modesto, CA

I don't know what to say. Been there....feel for you....wish I could send you some chocolate. Tom Modesto, CA

Good Question. I think it still needs to be reconciled .... but what do I know? This year I have had curveball after curveball thrown at me. I am not guessing anymore. Tom Modesto, CA

Except for states like CA that are taxing the loan forgiveness..... Tom Modesto, CA

@Possi How did it go? What did you override and were there any issues with e-file? I am starting to get a few piled up and I would like to get them off the pile. Tom Modesto, CA

Yes. Tom Modesto, CA

NO. IRS says it is forgiven at the end of the year regardless of the state of the application. See the conversations in the Covid19 forum about this. Tom Modesto, CA

If you go to Staples the back of the receipt normally has a $10 off coupon on your next in store visit. Go get 1 case of paper, get the receipt, put the paper in your car, come back into the store and buy another case for $10 less. I won't say how I know this, but I know this works.... Tom Modesto, CA

Thank you all for this topic. Did my first PPP M-1 yesterday. It was cool to know that I know what to do even before I opened the software. I put this post in my back pocket a couple months ago exactly for this client. Appreciate you all and your willingness to participate. Tom Modesto, CA

I am on the other side. A repair is a repair and deductible in the year it happens. So long as they do not extend the useful life of the property, deduct in full. I am not afraid of an audit if I have the code and documentation on my side. Tom Modesto, CA

This just came in from Spidell. CA (and other states that treat UI as community property) give an advantage to taxpayers. Here is the quote from the article: "If a married couple’s combined AGI (calculated without any UI compensation) is below $150,000, then MFJ taxpayers may exclude up to $20,400 of unemployment income even if one of the spouses had less than $10,200 in UI and the other spouse had more than $10,200. That is because California is a community property state and the Tax Court has recognized that UI is treated as community property. (Calhoun v. Commissioner (1992) 64 TC 222) However, your tax software may not properly split this income, and could improperly limit the exclusion if one spouse received less than $10,200. Tax professionals need to watch out for this and apply a manual override in this situation." Tom Modesto, CA

Have you tried the override and then create the efile? Any Errors? I don't know if there is a good reason to wait, but I am. We only have 3 with amounts due, and since they are going to get something they did not expect, I think a little patience until the software is updated is OK. But if it works for you I might get them out the door. Let me know how it works. Tom Modesto, CA

@Possieeeewwwww! This is what I thought I was reading. Thanks for your confirmation that I understood the changes. I think if someone goes for the super-duper Platinum plan they still have to pay the difference between the SLCS and the plan they picked, but they still get 100% PTC regardless of income. Tom Modesto, CA

I was doing a Spidell webinar yesterday going over the changes from the ARP law. Under the topic of Premium Tax Credit, the materials says... "For 2021 and 2022, the Premium Tax Credit is significantly expanded by: Deeming taxpayers who received at least one week of UI benefits during 2021 as having received income of 133% of the poverty level for purposes of determining the amount of their Premium Tax Credit for 2021 (even if their income was actually higher) (ARPA §9663). The new law also changed the household income contribution percentage for 133% income range to 0%. The way I read this, if you get UI for even 1 week of 2021, you get health insurance from the exchange for free. Am I interpreting this change in the law correctly? Tom Modesto, CA

ATX will automatically apply the available credit and carry the rest forward to the next year. It is pretty simple and painless in the software. Tom Modesto, CA

Sweet. But watch your state. California requires a manual adjustment on Schedule CA to bring back the excluded federal amounts. Tom Modesto, CA

Hi Bonnie, Sorry to hear you caught the bug. Get well. If you just want to tell the guy off, you could blame that on Covid. No one would fault you for chewing him out, making a video of it, and posting it on YouTube. Then charging him 3X in advance if he decides to stay. Just saying. Tom Modesto, CA