Lion EA

IL will tax the full amount, because it's issued by IL. However, they go along with the federal exclusion of $10,200, taxing only what appears on the federal return. The unemployment benefits continue to be IL-sourced income if they are from the IL Dept. of Employment Security or if they qualified for benefits due to employment in IL. Only if TN also taxed unemployment would you need to be concerned with which state was the resident state for how long. No 75% of anything unemployment related. IL doesn't care where you live re IL unemployment benefits; it's all IL-sourced income.

Yes. And, the Q&A states that UC that's "included in your federal AGI..." I was responding to your question about 75% IL residency. It's IL residency OR from IL Dept. of Employment Security.

I think IL unemployment benefits are IL-sourced income and reported on the IL return, but you may want to look deeper than just a Q&A. https://www2.illinois.gov/rev/questionsandanswers/Pages/101.aspx

I used to hit Staple's back-to-school sales for my tax folders at $0.05 each. We'd go after Sunday brunch when both kids were with us, each grab the maximum (25ish) in my color of the year, and check-out in four different lines. I'd add some fatter vinyl folders in my stack, and be set for the next tax season. I think hubby got a teachers' discount by showing his union card, also.

I let my clients choose between 15 April direct debit or use IRS's DirectPay at their convenience through 15 May. (I give them a payment voucher as a reminder, but write the link on it with a note to pay via DirectPay by 15 May and NOT mail a check.)

Just saw a Staples ad for Hammermill 10 reams $29.99

These family situations can go around in circles...

(Yes, I put this CT S-Corporation on extension by the 15th.) It works primarily in CT with a lot of time in NY. Received CA Form 592-B with $415.56 Total income subject to withholding and $29.09 Total nonresident tax withheld (excluding backup withholding) AND from the same Payer Form 1099-NEC for the same $415.56. CA Form 592-B lists the Type of Income Subject to Withholding as I Other NON-RESIDENT CORP. What would you do? What will CA do if the S-corp does NOT file a CA return? The S-corp bookkeeper did NOT allocate any 2020 time in CA. Travel expenses show January 2020 flights to/from FL and Amtrak re Washington, DC. And, how will this flow or not to the personal return, which is prepared by another preparer? Every. Single. Return. has something new this year! Please help! PS Just noticed that the 1099-NEC breaks out amounts as CT EARNINGS. Would you let CA keep $29 and make the case for it all being CT earnings?

Leasehold improvements?

Parents still own the building, not your client?

I've had good luck with Staples delivered, but the last three cases I got were pre-pandemic. Haven't seen any under $30 anyplace.

The IRS hasn't updated payment dates for e-filed returns. Probably few states have, either. Use a payment date by 15 April. Or give your client amounts and the link to IRS's DirectPay and your state's equivalent. Or, payment vouchers to mail in, as a last resort.

I don't tell them what to put in an operating agreement. I tell them to work with a lawyer so they can have an operating agreement that meets CT state law. I don't think anyone mentioned an LLC except for your mention of an attorney and an LLC. Lawyers have a strong lobby in CT, so I suggest a legal advisor to every biz who isn't a sole proprietorship. I also suggest a biz develop a good relationship with a friendly, local banker. And, a broker or someone who can administer a retirement plan. And, an insurance agent(s) for health, liability, etc. And, a professional organization in their industry. But most importantly, to keep me in the loop!

Was the partnership actually open for biz, available to do what it's in biz to do? Or, still getting it's location ready or certificates applied for or other pre-opening requirements?

Does she want it to do everything, because she'll be able to understand how to do everything? Then she can demo almost any payroll software to see which one works the way she works. Or, does she want it to do everything, because she does NOT understand or have time to train to do everything? Then, she should talk to payroll services who will do it for her. It's like a taxpayer choosing tax software or a tax preparer.

That's why I like the import. It includes everything, ties out to the 1099-B, isn't a problem to proofread, and looks impressive to justify my hefty fee! But a summary with your .pdf attachment would do the same thing. Those brokers on our clients' managed accounts make a ton of money, so I should get a piece of that. Love when a client complains about my $600 fee when they paid $1,500/Q to their brokerage. When I point out that my fee is only 10% of their broker's, they usually stop talking.

Did you read page 5. You might have to list the wash sales. I ask the broker for the gain/loss statement in a format that can be read by Excel and import it into the return. I've also attached a .pdf to an e-filed return. If you're lucky enough to have only covered sales with no wash sales or other adjustments to basis, you can just summarize on Schedule D. Read the instructions.

See especially page 12, and watch out for Wash Sales page 5: https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

ILLMAS, remember that parent can use 2019 earned income if higher than 2020 to qualify for both EIC and CTC, if that helps. HOH and EIC are two different things. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant https://www.irs.gov/help/ita/what-is-my-filing-status

Either way. Will one keep the spreadsheet or other records, collect rent, pay the bills (please open up a separate bank account), etc.? And, if one performs all the administrative duties, how will he be compensated? Will decisions be made by all four? What happens in a tie? What happens when one wants out? Or, the others want one out? I suggest an operating agreement even if they don't form a partnership. And, liability insurance.

Did you enter the parents' information correctly? And, that of any siblings? Step through the worksheet your software generates. Basically, the first $1,100 is excluded, the second $1,100 is at the child's rate (10%), and the excess at the parent's marginal rate. Did child have any other income? If parents' rate is low enough, capital gains can be at the 0% rate. Step through the worksheet...

Like telling teachers they can deduct PPE as their $250 above the line. I never met a teacher who didn't spent over $250 already, before PPE became a necessity. Politicians making their voters happy and leaving it up to us to explain how it doesn't benefit them at all.

The ID# is under your client's name, right? So, payroll will be under his name, too. The payroll reports should have ALL the payroll that's under his name. As far as wages/payroll taxes on each Schedule C, that would be the actual amounts attributable. Or, is he going to have one Schedule C with two DBAs? I guess that would depend on if he organized for the biz purpose of mowing or for any legal biz purpose. And, whether or not he needs to keep the two separate for liability insurance purposes. Have fun.

So, I DID remember it correctly, at least at one time, before "clarifications" and other interpretations! Probably read/heard it in an ARPA class shortly after the bill was signed.

I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429