Lion EA

Yes to prior year. And, to mark-to-market. I don't have any trader clients, so can't think through how that flows on a trader's return right now. Someone will jump in to help you with planning for next year. I think you're right about wash sales not applying if you elect to use mark-to-market. https://www.irs.gov/taxtopics/tc429

That's a great way to phrase it, Pacun.

cbslee is right. I haven't had a Single or HOH ITIN holder (no spouse on return) with kids, so hadn't remembered that correctly. There has to be one spouse on the return with an SSN, but other spouse can have an ITIN; then SSN spouse and all kids with SSNs get EIP/RRC. If they'd been disqualified from EIP1, then they now can get RRC1. So, giogis' situation will get no EIP and no RRC.

Oh, yes!

Yes, the ones with SSNs. So, your taxpayer will get $1,400 for each dependent with a SSN but nothing for him/herself with an ITIN. For previous EIPs, a taxpayer with an ITIN would disqualify the whole family. If married couple where one had SSN, could file MFS with the kids with SSNs with the parent with a SSN and file the ITIN parent MFS by him/herself. Now, you don't have to play games.

The custodial parent (IRS's definition, not the divorce court's) signs 8332 to give the dependency to the noncustodial parent, in your case every other year. The custodial parent is and remains HOH every year.

Yes, I have clients who were sure I didn't need to know about EIP2 because it arrived in 2021, and others who gave EIP3 amounts, and others who are sure they never got anything.

Our tax dollars at work, ha!

Gee, did the daughter get unemployment, too, and the boyfriend get APTC, and the parents had a Covid-related IRA distribution, and the baby has a bank account/kiddie tax, and dad worked in NY or another state that decoupled from The CARES Act, and...

Wow! I want free money...

Thank you very much!

Yes, employer will cover 50% and withhold 50% from employee starting in April. Thanks cbslee. Anything else I need to know and any leads for me to research? I don't do payroll, so this is a weak subject for me. Will his gross pay will be a deduction for company as wages and then the company paid part as employee benefits?

https://www.irs.gov/retirement-plans/ira-deduction-limits Check to make sure your client qualifies for a deductible Traditional IRA. Also, see if the Saver's Credit is available?

Yes, read about Cost, Adjusted Basis, how a disallowed Wash Sale loss adjusts basis, how to code adjustments to basis, etc. And, use your software's Help, Knowledgebase, Chat, Support, whatever features to learn how to do the data entry for the rows and columns on that 1099-B. I suggest taking a simple return with smaller numbers and preparing it by hand on paper forms to understand how the numbers flow from one form to another. When you know where all the numbers go, enter the same return in your software to make sure you understand the data entry needed to get the correct results. Then you'll feel more confident with larger numbers &/or more complicated returns.

A Roth IRA contribution is not a tax deduction. Does he qualify to make a deductible Traditional IRA contribution?

Also, where can I learn about employee healthcare plans, but not more than I need to know?! I just want to be able to answer Paychex's question about is her amount w/h for healthcare pre- or post-tax.

S-corporation has had part-time employees who either didn't qualify for health plan or waived it due to spousal coverage being better. S-corp paid premiums for shareholder-employee/family. New employee wants health plan and qualifies for 50% company coverage. Is that pre- or post-tax. What do I need to know? Payroll is via Paychex, not me. And, existing health plan is via United Healthcare/Oxford Plans. Why does he ask me HR-type questions? Help!

Study Form 5695 and read its instructions to learn where to carry forward the unused credits: https://www.irs.gov/forms-pubs/about-form-5695 Also, check with your software company (or use Help features) about data input.

Enter the 1099DIV information for Schedule B and the 1099B information for Schedule D via Form 8949. Do you understand those sources of income, how the information flows on the return, etc. Will you be able to proofread/review the return for reasonableness and accuracy? The IRS instructions for Schedule D are helpful and thorough: https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

https://future.aicpa.org/resources/download/state-tax-due-dates-updated-for-covid-19-relief?fbclid=IwAR2xIFUAaxT1r6fM-aoOz0UUhdg_GXr3_glvX1krgjJ78inVLa8Snr5I9Ak (It's outside AICPA's firewall so was shared on FB) Oops, this is re deadline and not unemployment. Judy please move or delete. Thanks.

Per a class I took, the only two 2020 changes for personal returns are unemployment and APTC repayment. EITC changes are for 2021. And has some tricky changes: For 2021 only, no children, 19 eligible for EITC and no top age. Under 24 and AOTC eligible (student at least 5 months) single EITC eligible until age 25 or no longer AOTC eligible. Investment income $10,000 adjusted for inflation every year (permanent change). And, on and on.

I'm not a CPA and have my EFIN and my PTIN so I can prepare and e-file returns. From the IRS: 8. What is the difference between a PTIN and an EFIN? Does a preparer need both? (revised 10/15/20) A Preparer Tax Identification Number (PTIN) is a number issued by the IRS to paid tax return preparers. It is used as the tax return preparer’s identification number and, when applicable, must be placed in the Paid Preparer section of a tax return that the tax return preparer prepared for compensation. There is a fee of $35.95 to obtain a PTIN for 2021. Note: There is no fee for 2018 -2020. An Electronic Filing Identification Number (EFIN) is a number issued by the IRS to individuals or firms that have been approved as authorized IRS e-file providers. It is included with all electronic return data transmitted to the IRS. There is no fee for an EFIN. Preparer Tax Identification Numbers are issued to individuals. Electronic Filing Identification Numbers are issued to individuals or firms. Most preparers need both. 9. If an employee of a business prepares the business’ tax returns as part of their job responsibilities, do they need to obtain a PTIN? (revised 9/28/10) No. An employee who prepares his employer’s federal tax returns is not required to sign as a paid preparer. Accordingly, unless the employee prepares other federal tax returns for compensation, he or she is not required to register and obtain a PTIN.

Is Connecticut income tax liability impacted by the exemption from income of the first $10,200 of unemployment compensation in the American Rescue Plan Act? (added 3/16/2021) The starting point in determining an individual's Connecticut income tax liability is the individual's federal adjusted gross income. There are no Connecticut statutory modifications that require this new federal exemption amount to be added back on Connecticut's return. Therefore, the excluded amount is not subject to Connecticut income tax.

Do you have your PTIN and EFIN?

If spouse died in 2018, then the two 2020 RRC1 and RRC2 would be based on just the surviving spouse, so $1,200 + $600. Same with EIP3 $1,400 that will be reconciled on the 2021 return in 2022. Surviving spouse may have received more than entitled to if EIP1 and EIP2 were based on 2018 return, but that doesn't change his/her 2020 return.