Lion EA

Good point, Patrick Michael. Now you can check on CEs uploaded to the IRS. Which reminds me that I haven't done that in a long time and should do it. Of course, keep your paper/electronic certificates, also. Look for the CE inside a square and the words IRS-APPROVED CONTINUING EDUCATION PROVIDER when registering for a course. But as PM says, make sure you know the provider or look them up to be sure. Also, CE usually means IRS/EA CEs while CPE usually means CPA CPEs, but that's just a clue.

This topic is about post-season activities, and mine are still preparing returns on extension and taking webinars. I've been enjoying meeting and learning from tax preparers all over the country. That's how I manage working in a home office by myself, interacting with all of you and others online. But, I did want Sara to know how much I enjoyed meeting online and learning from VASEA members, such as Knox, Eric Duncan, and others, and hope she takes time to meet them at live functions now that she's in VA or even online.

Gee, I'm up here in CT and have taken multiple VASEA webinars these last two years. They do a great job. I'm a fan of Knox Wimberly. That's been a benefit of this long-lasting pandemic, that there are great instructors, great courses, being offered online. So, we can take a class that might be too far away &/or too expensive (hotel room, meals, travel, etc.) if it were held in person, learn from an instructor who might not travel to our area or be too expensive for my budget. Over the last 15 months, I took courses where I wanted the topic but knew little about the instructor; but I was willing to give it a try for the small price (sometimes free). I've found instructors that way who I really, really like, great teachers with great handouts and great at reading all the pages of new laws and outlining them so I can understand. Knox Wimberly, Kathy Morgan, Tony Nitti, John Sheeley and any panel he gathers.

But they don't do that for personal income tax returns you e-file, do they? I don't put payor EINs on Schedules C, B, D, F, etc., just totals or a list, as appropriate.

That's because the payor files Forms 1099-NEC with the IRS.

If your client is reporting less income than the total of all his Forms 1099-NEC, he will get a letter. Enter his total income.

https://www.irs.gov/newsroom/irs-treasury-announce-families-of-88-percent-of-children-in-the-us-to-automatically-receive-monthly-payment-of-refundable-child-tax-credit

TN and WV are beautiful. TX has a lot of variety, but it's hot and humid. Visits to NV don't have me wanting to move there. And, I know nothing about ID.

That pretty much sums it up for me, too! Stay well.

Yep, $150,000 cliff for every return. So, if one or both spouses can get below $150,000 by filing MFS, then one or both spouses can exclude up to $10,200. Of course, then they pay you for two sets of returns and pay the higher MFS tax rates and could lose a tax credit or two, so you have to run the numbers (and charge them for your research!) to see what gives them the best overall family outcome. This is one of the many reasons that it's taking me more time to prepare EVERY return this year!

1041 returns and extensions were due 15 April. Only the 1040-series was postponed to 17 May. If it's a first-time estate (not trust) will choosing a fiscal year help in any way? Maybe first short year had no income/expense and no filing requirement...

If the IRS used their 2019 filing and it qualifies them for EIP1-2-3, then what more do you want? Did they receive EIP3 yet? If not, you might want to wait to file 2020 if 2020 income will disqualify them from EIP3. What are you saying will "be included in his income"? Not EIP1 or EIP2, no claw back. Don't think we have all the details yet of EIP3 being reconciled next year. Not unemployment benefits, if they qualify for the exclusion.

If he qualifies, he can make a pre-tax IRA contribution or after-tax IRA contribution or Roth IRA contribution through Monday 17 May 2021 for tax year 2020. He can do the same for tax year 2021 through next 15 April 2022.

https://www.irs.gov/pub/irs-pdf/f4852.pdf If your client took all the steps possible to obtain his W-2, I'd probably do whatever I could to e-file and keep very, very good notes.

And, I can get the $800 the client expects using the IRS method. Sometimes it's NOT a blessing to have smart clients! Using what CCH told me (use a biz % override) I can get no closer than $799 or $802. I already have a note to preparer in return that will roll over next year and a piece of paper in their paper file and opened a client2021 folder in their computer folder with a note. I'm finishing proofreading this afternoon and sending to them to eSign. Thank you all.

I was including "simplified method" in everything I could think of, such as OIH simplified method for part year and simplified method OIH for less than one year, that kind of thing, and just getting IRS articles about using the sq ft no more than 300. Prorating the sq ft seemed like a clunky workaround, but it works; and knowing the IRS cites the average for the taxable year means I'm comfortable with the method and have no problem with this client who'd worked out the total to use in his own way. I'm alerting him that he'll see 160 on the worksheet instead of 240. And, I'll get this off my desk for him to eSign Saturday.

I Google but use the irs.gov finds and the AnswerConnect finds, but that means only one search to get all those. Well, as many searches as I can think of combinations/permutations of search terms.

The unemployment cliff is $150,000. If he can't get RRC1 and RRC2 and EIP3 because his income is over $75,000, does his spouse qualify for those? Run the numbers. Let your software do the math.

But does that get one under the $150,000 cliff so the unemployment is not taxable? And, get one RRC1 and RRC2 and put them in line to get EIP3?

You know, I searched the IRS website for a very long time last night, and found lots of articles about the Simplified Method for OIH, but not a one mentioned less than a year, a biz starting or ending. Many of them discussed what to do for 2020 if the Simplified Method was or was not used in 2019. My search terms (and I used several combinations) never took to me to a Q&A page. That's why I love this forum: multiple sets of eyes, multiple ways to look for information... Thank you.

Thank you, all. My client had the grand total all worked out -- correctly -- but I couldn't see the right data entry to show the detail without prorating the square footage. Now I can show him that the IRS instructions DO match his computation. (This is a client who never told me last April that he was starting a biz then, so Surprise! as I started preparing his 2020 return last week. In response to my requests, the expenses dribbled in. Want to get this done today.)

A client started his business in 2020 and wants to use the simplified method. Do I prorate the simplified method for eight months? There doesn't seem to be an entry for start date when not depreciating.

Did you compare MFS with MFJ?

Well, you could see if the operating agreement gives the newcomer a 35% capital stake but 0% income/loss. But if that's a different class of stock than the original owner, then the company might've lost it's S election.

What would be our due diligence? What do we ask for re value of house, ownership, mortgages, etc.?