Lion EA

Ditto. We all understand, but we know your client doesn't always understand. Apologize for being rushed, but don't apologize for giving a too-simplified answer while rushed. Because, human...

Same EIN? Yeah, go back to employer.

Hubby could claim one child and still get the credits, because he didn't claim the child last year. Obviously, claiming both children will get him more! If wife's income is high enough to have to pay back, try each with one child to see if the household as a whole does better. We're spending more time on each client. I'm going to get some pushback on my fees this year!

They might be eligible for the non-refundable portion of AOC if they meet all the other requirements. Or, the LLC. If they can get the same amount from the LLC (it'll come down to tax liability of the student, which might be small) save the AOC for another year, because it expires after four uses per student. You know the family's situation, so do the best for the family as a whole.

If your client had only one employer who withheld SS, then he must go to his employer. If he had more than one employer that withheld SS, the excess is claimed on his return, as you say.

Wait, now the $600 charitable deduction is reducing AGI? Wasn't that 2020 only for a maximum $300? Doesn't the 2021 charitable deduction NOT reduce AGI?

I look up each state's filing requirement, and then let my client make the call. This gal invested a lot, so I expect some of the states to be substantial. And, when clients sell and have profits in a few states, they'll be happy with their former loss carryforwards. A few of these PTPs have NY nexus, so my NY commuters must report to NY; I don't let them make that call.

Form 8915-F when it's available.

Do you have any clients owning EDP? Or any of those energy companies with multiple passive activities and multiple states? (I used to, but not for a long time.) How much more do you charge due to the EDP K-1 -- new forms, schedules, states, etc., needed in the return -- than without that K-1? I have a client who wrote, "stock that generates a K-1. Do you charge to do the work for a K-1?" Less than your financial advisor!!

That's all correct, Randall. Someone else can confirm how the repayment protection plays out in ATX.

Years ago, when People's Bank started online banking, they offered a nickel for every online transaction, maybe for a year. I made some money paying all my bills online and transferring between my savings and checking accounts, probably for direct deposits, too. And, I saved monthly fees for decades by having direct deposit (you could also eliminate monthly fees by keeping a certain balance and maybe another option or two). But more recently, People's added a $3 paper statement charge, so I now download my monthly statements also to avoid that charge.

Wait, it has no effect this year? But Tax Day is NOT Friday the 15th of April but Monday the 18th of April, so that seems like a 3-day effect to me. Anyway, I was just bemoaning CT no longer filing via Andover so losing Patriot's Day and the move to Tuesday the 19th of April for a couple northeast states, but not for CT.

DC's Emancipation Day moves Tax Day to 18 April 2022. If you file in MA, such as MA and ME, then Patriot's Day moves Tax Day to 19 April 2022.

Maine and Massachusetts this year get 19 April. CT used to file via Andover and got the MA holiday, but no longer.

Had a grown child (parent had been my client, not grown child) call me frantic, because in her mother's (now deceased) retirement community apartment that "the kids" were cleaning out there were multiple IRS letters that said she hadn't reported her winnings from Mohegan Sun a few years before she died. But mother had stopped coming to me a couple years prior to her winnings, apologizing but saying she really didn't have to file any longer. "The kids" had already divvied up mom's bank accounts and things. How were they going to pay for that, the GC whined. I no longer knew mom's tax situation, but if she'd been filing returns it might've been past the SOL. No longer my problem. So, make sure your non-filer clients didn't take up gambling as a retirement hobby!

Some of those old-timers are still positive they are getting a huge deduction on their itemized deductions, that currently-not-available-to-most-employees Form 2106.

Low income seniors might qualify for a little EIC now or the RRC3. Some of the towns around me offer a property tax discount or credit or rebate for seniors with low income; some need to take in tax returns every year or every other or every third year. Some of my clients need to show a couple low-income years after a high-income year (sold house, maybe) to get their Medicare cost back down. As you say, some state filing thresholds are lower than the federal. Start the SOL. So many reasons to file.

How much do you charge to write them the letter? Do they qualify for RRC3 or EIC or...?

Filing starts the SOL running. Why would you not file?

Yes, but the cap was raised. ($10,000?)

With the ACTC, the double-dipping issue is solved by the person who does not qualify on his 2021 return having to pay it back -- unless they qualify for payment protection due to low income. He had a chance to opt out and did not. For the EIP/RRC, there is no pay-back provision. So, dependents going back and forth due to a divorce, for example, can create an EIP for one parent and then an RRC for the other parent. Our tax dollars at work.

At least it's long-term capital gain. Is their income low enough that they could be in the 0% CG bracket? Otherwise, any chance for an unforeseen circumstance? An expensive lesson to call you BEFORE making any large financial moves.

Is a K-1 expected? What does your client (or his broker) say that income is from? Did the account balance at any time during the year trigger any foreign income/assets filing?

As much as I thought it was a horrible idea, security-wise, I was trying to find some time to do it myself. I got kicked out of eServices years ago when they updated and we all had to update our registrations. There is "something in my file" that prevents me from verifying my identity online or via phone. The code they promise via mail never arrives, no matter how many times I request it. The nearest IRS walk-in (appointment, really) center is a few towns away, so hadn't found a free day to make that trek, and then Covid shut down the in-person Centers. ID.me was my last hope!!

It's listed by the IRS as a draft form, but it does list a posted date of 02/02/2022.