Journal of Accountancy Article on new bill

[BulldogTom]

10 minutes ago, TAXMAN said:

 cannot find where we do not have to pay back excess health premimun credit. Is this so?

Here is the section of the bill that says you don't have to pay back the APTC.  The underlined portion (my formatting) refers to subparagraph (A), which in the original law gives the secretary the authority to collect any excess APTC from the taxpayer.  

SEC. 9662. TEMPORARY MODIFICATION OF LIMITATIONS ON RECONCILIATION OF TAX CREDITS FOR COVERAGE UNDER A QUALIFIED HEALTH PLAN WITH ADVANCE PAYMENTS OF SUCH CREDIT.

(a) In General.—Section 36B(f)(2)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:

“(iii) TEMPORARY MODIFICATION OF LIMITATION ON INCREASE.—In the case of any taxable year beginning in 2020, for any taxpayer who files for such taxable year an income tax return reconciling any advance payment of the credit under this section, the Secretary shall treat subparagraph (A) as not applying.”.

(b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2019.

Tom
Modesto, CA

[BulldogTom]

24 minutes ago, TAXMAN said:

Does the 10400 ui apply to each spouse for a total of possibly 20800?

Here is the section of the bill on UI.   Underline is mine.   "I think" it is $10,200 each, but I will wait for someone with more authority to say my interpretation is correct.

“(c) Special Rule For 2020.—

“(1) IN GENERAL.—In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.

“(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and

“(B) without regard to this section.”.

Tom
Modesto, CA

[Abby Normal]

1 hour ago, BulldogTom said:

received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.

Why can't they write these things more clearly? A simple "per taxpayer" at the end, would make this really clear.

[jasdlm]

19 hours ago, Possi said:

Last year, I notified my clients that I had zero intentions of working past June. Fortunately, I have very good clients and they trust me when I say something. 

I will be selling my business after this tax season. 

Possi, are you serious about selling?  Don't leave us!

[Abby Normal]

18 hours ago, jklcpa said:

Today I feel like giving up. For every 3 returns I work on, it seems that 2 are put on hold.  I could have a second career if only SNL would hire me to reprise the role of Debbie Downer. 

Wah wah.

[Possi]

1 minute ago, jasdlm said:

Possi, are you serious about selling?  Don't leave us!

I'm seriously selling, but I'll still be working! Even if I wasn't, I would still stalk y'all and try to help. 

[Abby Normal]

16 hours ago, Pacun said:

It Is interesting that now EIC is from age 19 to 116 years old without children.  Students start at 24 to 116 years. I guess those retires who make $3K a year and we have been telling them that they don't have to file, they should because of the EIC. 

Excellent point! I hadn't even considered this new dynamic.

[Abby Normal]

16 hours ago, BulldogTom said:

@Abby NormalThank you for pointing that out.   I had not heard much about it either, but one of my clients just saved 10K.

Tom
Modesto, CA

Woo-hoo!

[Slippery Pencil]

39 minutes ago, Abby Normal said:

Why can't they write these things more clearly? A simple "per taxpayer" at the end, would make this really clear.

Per taxpayer would mean limit of $10,200 on a MFJ.

[Abby Normal]

2 hours ago, Slippery Pencil said:

Per taxpayer would mean limit of $10,200 on a MFJ.

No, 10,200 per taxpayer means 20,400 on joint but not more than 10,200 for each.

[Bart]

7 hours ago, TAXMAN said:

2 Questions please. Does the 10400 ui apply to each spouse for a total of possibly 20800? Read down through bill and cannot find where we do not have to pay back excess health premimun credit. Is this so?

2nd observance wonder if the portal will require all the verifications required to check your EIP amounts?

UI does apply to each spouse but the exempt amount is 10,200 each for a total of 20,400.

 

[Pacun]

It could be per return since most places mention 

"the first $10,200 of 2020 unemployment benefits nontaxable."

It would be nice if they would say $10,200 per tax payer for a max of $20,400 for MFJ or they could say $10,200 per tax return.

 

[TAXMAN]

AS the world turns. I guess we wait.