Lion EA

You have to read the terms of each scholarship. Some are restricted to tuition only. Let's say your daughter has $10,000 in tuition and $10,000 in scholarships. That's not bad; a free education. But what if not all her scholarship(s) are restricted to only tuition; maybe $4,000 may be used for other expenses, such as room and board. Now she has $6,000 tax-free scholarships applied to tuition and $4,000 taxable scholarships at her tax rate of 0%-10% (does Kiddie Tax kick in over $2,200?). But you now have $4,000 paid toward her tuition for a full AOC of $2,500; a credit that's valuable at your typical marginal rate of 22% or 24%. You have to run the numbers to get the best outcome for the whole family, but there are possibilities to be a real hero to your clients.

I'd use Sche E when qualified to save SE tax. You can use any reasonable method to split the utilities, such as by square footage.

An LLC files only 2553. Make sure your client is running the business like a corporation, reasonable compensation on payroll, etc. (What's an LLC tax return?)

Extension. Tell minister to ask for a corrected W-2.

The IRS suggests this method. Read the sections on "Coordination." https://www.irs.gov/pub/irs-pdf/p970.pdf

I don't have a problem with EIC for a senior citizen under the new regs. I do have a problem with SS/Medicare withholding for clergy. Clergy are hybrid employees, employees for income tax purposes and self-employed for SS/Medicare AKA Self-Employment Tax purposes. Their returns typically include Schedules C and SE. This isn't my niche, so ask around and do your research. https://www.irs.gov/businesses/small-businesses-self-employed/members-of-the-clergy https://www.irs.gov/taxtopics/tc417

And, make sure you check out the separate TaxWise forum , or Drake forum, or whatever software you use forum, also, within this website. I don't use any of those, but I love the main forum - ATX Community - for tax help, practice help, help help, and good cheer. As well as putting up with my rants. With some of the best colleagues to ever meet around this virtual water cooler.

So, have them mail in checks this week? I'm so reluctant to have anything mailed. That is what I always did in the past, though.

I'm attacking extensions, more extensions than I've had, ever. Those that owe, I've sent to IRS's DirectPay and their state(s) equivalent sites to make a payment that also files an extension. But those have been just a couple who are computer savvy and are used to making their ES and other payments online. This year I have more, such as new clients I can't fit in until the summer. Would you send them to DirectPay + State? Then, I don't know if they did it, when, for how much, and most importantly, if they actually clicked on the right items to record a 2021 Extension. Or would you e-file their extensions yourself, meaning you need a signature for direct debit? I haven't even done that before, an extension payment needing a signature with an e-filed extension.

Each taxpayer should call the department responsible for issuing unemployment benefits in the state sending him Form 1099-G if he did NOT apply for/receive unemployment benefits. The IRS has been issuing guidance on this since 2020. cbslee said the IRS recently released revised FAQs for UCE. Here's an older one: https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits

You mean like Abby showed above?

Terry, I think you'll love TTB WebLibrary. You probably have prior years and All States and Tools and... Under Tools for Tax Pros, there's a WebLibrary Guide. Enjoy!

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/ppp-loan-forgiveness-statement/00/196854

I have TTB Web Library Plus, but don't open it first; though I'm getting better using it over time. Also have TTB Deluxe which I'm used to using after many years. But my favorite (and priciest, but I don't get all the bells & whistles) is CCH's AnswerConnect. It's freestanding AND it's inside ProSystem fx (ATX, also, right?) AND if I Google -- which is handy when I'm not sure of what search terms I need -- AnswerConnect links show up in Google searches (and Edge and IE and in other browser results). AnswerConnect gets better each year, and does anticipate what I'm looking for based on my stab at what search term I try. It has links to the tax code, court cases, practice tips, law explanations, states, charts, everything from one search.

And, those "simple" college kids' returns, don't forget kiddie tax! So, I can't complete any of the kids' returns until I prepare the parents' returns. So, a family of parents, two kids, and a trust for each kid takes days, not hours. Add a partnership or S-corporation to the parents, and it can be weeks to clean up the bookkeeping, drag all the missing forms out of the family, and prepare all six connected returns before those two "easy" kids' returns are complete. And, nobody remembers to give me their Car Tax.

Even decades ago at HRB Premium, my top day was 10 returns. 4-8 more common. 4 as the years went by, because none of my clients had financial lives that got LESS complicated. Now it seems to take 3 days for any return. Even the college kids of clients work in MA while at school, self-employed Schedule C at home in CT, and commute to NYC for an internship, then dabble in crypto (find out what "earn" means on her statement), has a K-1 from the trust her grandparents set up for her, and got her first installment on the Fulbright, oh and her FTC is over $300 so Form 1116, and unemployment; more fun trying to make her parent's health insurance policy that she's on (CT employer of parent) fit on her MA return. I can't read the required but teeny tiny DCN number on her NY driver's license that she texted me a picture; took two tries to get her to send the back side with the DCN and more tries to get readable texts. Taking her phone calls when she gets stuck paying 1Q2022 ES online to MA, where I have only two clients so have to look up the process again. If she wants a paper copy, there's printing/collating/packaging/mailing 150 pages. 20 of those easy returns take way more than 24 hours, so there's no sleeping at night or any other time! Extensions are my business model. I can make more money in 10 months than I can in the 2 or fewer months with corrected consolidated 1099s still arriving and Letters 6419 and 6475 still arriving and Forms SSA-1099 still arriving. My hold stack is huge! Besides, all my clients are in DisneyWorld or Costa Rica or someplace on spring break where they can't get me their missing documents until after 17 April.

I've been keeping them for my records, with any other due diligence. This is a one-year pass. The Schedules K-2/K-3 for S-Corps will be released by the IRS something like 22 June.

Been there, done that.

I don't use ATX, but can you enter via a Form 1098-C to make it flow? https://www.irs.gov/pub/irs-pdf/p4303.pdf

All I got last week was, "When will you finish my return?" I've written tons of emails re my backlog/why my backlog and haven't even started extensions yet. But more aware clients send me the WSJ/NYT articles about the IRS backlogs. And, I just got my first of this year "I'll pay a little more if you're able to get it done without filing an extension." I'm charging more this year anyway, hers is not an expensive return, so I don't think I could charge enough to make it worthwhile to move her up in my queue and end up losing another client - forever - farther down in my queue who gets tired of waiting. She did send me her fiance (how do you get the ' over the e?) with a new Covid biz who I told he's going on extension. Maybe between the two of them, I can charge enough...

No repayment re EIP. Lots of double-dipping scenarios for EIP. (ACTC does have repayment on the return, except for lower incomes qualifying for repayment protection.) Did child get RRC1 and RRC2 on his 2020 return? If not, and if he was NOT qualified to be claimed by his parents, you can amend 2020. And, now RRC3 on his 2021 return?

I would file. IRS computer may not note more than the proceeds. And, filing starts the SOL.

PTP K-1s are know for having all types of income/expenses; could it have flowed from a K-1?

By the way, is this thread really about entering Forms 1099-DIV like OP asked?

Both!