Lion EA

I'm a lot like Joan, so as this whole pandemic lasted longer last tax season, I thought I'm not affected by Covid. But two clients died. Two great friends died, so I lost two days to attend outdoor funerals. And, a handful of my clients who were affected, furloughed mostly, asked to pay me in installments. I did receive the final installments from everyone by December. But my software renewal was August, my remote IT guy is on a monthly retainer, taxes/licenses/SOS report/etc. at various times during the year, so I ended up using personal funds for biz at a couple times last year. Now, I think I really AM affected by Covid. I'm also older than 59.5 but did take my RMD, couldn't skip it, needed it for biz and personal. Don't know if I'll spread it over three years, because our income won't drop because hubby started SS this January. But it's a case-by-case decision re qualifications, projected income, working with what each client did or didn't do during 2020 (most times without asking us), and we have to spend time explaining to every client who might qualify for various Covid-related benefits.

Not until/unless Congress votes...

Did your client keep a log, daily or by session?

Did you include Form 8915-E?

Form 8915-E

Thanx, Judy!

How long are we supposed to keep Forms 8879? I have some older years not scanned. When can I shred them?

I don't have to push my clients earlier; I have to push them later, spread them out over the year. They'd all want to file 23 January if they could, if they had all their documents. But I can't complete all those returns in two months. I'm preparing partnerships and S-corporations now, so will have only one month for personal returns. My choice is to make much less money or work more months. My hubby works all year, so it fits our schedule for me to work much of the year. We schedule our own vacations, days off, mental health days.

I read that if you look up your amounts on your IRS MyAccount, that each spouse has to look in their own MyAccount to get the two amounts to add together. But I didn't think 1444-B did that. One more thing to worry about.

I am for clients who agree. I hate amendments, especially during tax season.

Anytime there's a new tax law after the year begins, tax preparers get to deduct all the chocolate they want as a business expense. Or wine. Or liquor.

I love extensions; I hate breaking stride to work on extensions, calculate payments, e-file, etc. Wish the extension was truly automatic. Wouldn't mind too much the payment date of 15 April as long as no actual extension had to be e-filed. Although, I'd like it even better if the payment date were later, May, June, or July would be great. But if I were king of the world, there would be no new tax laws during the year in question; laws messing around with 2020 taxes would've had to have been law by 31 December 2019. Let us help with year-end planning. Give us time to learn the new laws. Lockdown Congress and make each one prepare his/her own tax returns with pencil and paper and maybe a calculator with the instructions and wait for forms that aren't final and instructions that haven't been revised. Don't unlock the building until everyone is finished. Staff, interns, everyone.

Isolate for 14 days, please.

Definitely unethical and illegal for a child/student to claim his own dependency, get EIP/RRC, etc., IF HE CAN BE CLAIMED BY ANOTHER. As you point out, a high earning child could be providing more than 50% of his own support, so it is possible, ethical, and legal IF YOU KNOW HE CANNOT BE CLAIMED BY ANOTHER. Have parents and child fill out a support worksheet with you, and keep it in your files to document the outcome. I have one coed angry with me, because "all her friends are doing it." But her parents are happy to keep the education and other credits, and they DO qualify to claim their daughter. Don't forget that the student can get the AOC WITHOUT CLAIMING HIS OWN DEPENDENCY if his parents do not claim him, even when qualified to claim him. He won't get the refundable part of the AOC, though. I have high-income parents who can't claim education benefits but have a college kid with a tax liability who can use the nonrefundable AOC. That is perfectly ethical and legal. We don't write the laws, but we do have to work within them.

I can't get into eServices, either. When they redid it years ago, they decided that my cell phone that I've had since the early 90s or earlier is NOT in my name. AT&T tells me it's in my name; my name is on the bill, also. IRS claims that AT&T told them it is NOT in my name. They will not snail mail me a code, because "there is something in your account that prevents..." I cannot use eServices, sign up for an IP PIN even though my SSN was used to file a federal income tax return a few years back (yes, I mailed in Form 14039), use MyAccount or GetMyPayment or any of the online services because of "something in your account..." They'll stop me from e-filing next.

I was thinking as I was donating that maybe I should increase my token amount. I had thought with 2,800+ members and 1,700+ online, that if we each paid a token that Eric would be good. But you're suggesting that only how many actually contribute financially to this board? Please let us know, because I have no problem with donating more, more often, more money.

https://www.irs.gov/e-file-providers/modernized-e-file-mef-internet-filing

An S-corporation would report all worldwide income on its Form 1120-S. (Tax-exempt income, such as a forgiven PPP loan, might appear as Other Income-Nontaxable and would appear as an M-2 adjustment.) If you need to know what a "Management Expense" deduction is, you can ask the corporation's tax representative or look at their management contract or invoices. The S-corporation owner(s) should be receiving reasonable compensation via payroll/Forms W-2. In addition, the owner(s) would receive Form K-1. And, they might be taking distributions.

If he can NOT be claimed by his parents in 2020, he qualifies for both RRC1 and RRC2.

Did you try what Abby said about creating a duplicate?

You have a compound issue. Can her son be her qualified dependent/qualified relative? Then can her filing status be HOH? And, can son claim his own dependency exemption? We need more information.

I've seen similar when a client purchased PTPs via his broker. He eventually receives the Forms K-1, but also had the "Other" reporting on his Consolidated 1099. In those cases, I report from the K-1 ONLY. I have NOT had it where the partnership was Canadian, though.

Did you enter both spouses' 2019 in your 2020 return?

One professional development course can cost over $250, and all my teacher clients took courses in how to teach remotely.

Have the student get you the bursar's statement to use, not Form 1098-T.