Tax Talk

What to do if client can't remember how much they received in 2 EIPs?  If I leave input field blank will IRS make correction?

Any idea of when the forms will be updated? Is there a work-around? I checked irs.gov and couldn't find anything on it.

I had a return changed after it was accepted. The change negated the amount from the Recovery Rebate Credit Worksheet. The client did not receive either stimulus money, 1st or 2nd. I can't find any guidance as to why? Any info would be appreciated. Thank you.

Supposedly can deduct up to $5000 for home schooling due to pandemic. Where do I deduct that?

I have only 10 part-time employees whom I've employees since Mar, 2020. Can I take the ERC?

https://procedurallytaxing.com/biden-administration-floats-refundable-pet-tax-credit-idea-to-boost-child-tax-credit/ 

I am looking for direction as to this question. I see for #3 this year, they qualify, but cannot put my finger on rules for stimulus #1 and #2.  Thank you

An adult child age 28 lives with his parents.  The parents income is too high to qualify for EIC.  The child's income is low enough to qualify for EIC.  It used to be if more than one person in a household it went to the one with the higher income.  I have read and read and can't seem to find anything concrete on this.  Anyone else have this situation or know for sure? 

Has Intuit said what date MA Individual will be updated with new due date? Grazie tres mucho

I have a client with 900+ pages of  transactions. Is it legal to summarize the short-term and long-terms trades on their own lines when the form has reported wash sales? In the end they are matching numbers and these are also covered transactions reported to IRS already.

My client didn't receive a 1098-T for 2020 and gave me the following information:"I didn’t attend school in 2020. My last attendance was Spring 2019.  The GI Bill didn’t pay my full tuition for Spring 2019.   USD did an audit January 2020 and billed me for the remainder that the GI Bill didn’t pay.  I paid the remainder February 2020. " Since he didn't receive a 1098-T for 2020 can he claim the tuition deduction for what he paid in 2020? 

Client became unemployed in Colorado and received a 1099-G from Colorado and thereafter moved to Kentucky where he remained unemployed but collected the UC from Colorado. Should this be apportioned or is it all taxed to Colorado? This is especially important this year because Colorado will not follow the federal law allowing $10,200 to be excluded where applicable. I found the following at this link:https://www.denverpost.com/2021/03/18/unemployment-tax-break/Will Colorado offer the same tax break on unemployment earnings?No. Colorado tax law does not allow the state to incorporate federal changes that are enacted after the last day of a taxable year, Daniel Carr, spokesman for the Colorado Department of Revenue said.

I have correctly entered SS# for partner on K-1. Receiving error msg that "must either enter a valid EIN, a valid SSN, etc.". I have checked for new updates in case there was a glitch and there are none. I have confirmed that the SS# input is correct. 

Hi, I am working on filing the 2020 tax return for client (Parent 1) who is not married and has a child with (Parent 2). The child was born in 2020, can both parents claim the Recovery rebate for the following (EIP #1 $500 and EIP #2 $600). Parent 2 has already filed their 2020 return and claimed the child as dependent and got the EIP payments for the child as well.  I've been looking all over and can not find a straight answer. Thanks in advance. 

lacerte tells clients they must pay by April 15 wasnt this extended?  Why cant they fix this?? being lazy? 

NY does still tax unemployment so why doesnt Lacerte update this to add it back?? 

I have a new client this year that (unfortunately) filed a DIY return for 2019.  She started a bookkeeping practice in 2019 and checked "accrual" instead of cash on her first Sch C (probably because as a bookkeeper, you're mostly thinking in accrual terms).  She wasn't aware that was a "big deal" for tax purposes until after filing, she received a notice from the IRS that more info was needed to process her 2019 return and got some outside help (me) to look over her originally filed return.  We gathered up the requested info, she sent it into the IRS with explanations of changes that should be made, and after 7 months of supplying that info to them the return is still "in-process."  With the info she sent in, she did send in a Sch C of what "should have been filed" and that was marked as "cash."  So now I feel like we're kind of in limbo for 2020...Without knowing what the IRS is going to process/accept for that first Sch C, do I run with "cash" because that's

How do I report a rental property that was taken over to be used as primary residence. Property was acquired by an inheritance (base 230,000 ) and rented for 5 years and 5 1/2 months.  Owner lost their job and sold their primary home in a different state and moved into the rental property and made it their primary. Depreciation deduction was taken for 5 years on prior tax returns 100% business use. There was technically no sale of the rental property. Due to Covid 19 rent was only collected for 3 months of the year but was occupied by tenants for 5 1/2 months. 

Client turned his detached garage into a rental property. For sch E, what would the cost be. The garage was built with house.

You think you have problems dealing with IRS?This guy has problems dealing with IRS.https://www.wjhl.com/news/regional/tennessee/hes-not-dead-east-tn-widower-trying-to-get-2020-tax-refund-despite-irs-error/ 

Regarding the $10,200 unemployment tax exclusion under the American Rescue Plan....Since Michigan works off the federal AGI, the tax benefit follows through to the MI1040 tax return.My question is about the MI1040CR for property tax refunds....Are we to record our full unemployment received or the amount after the $10,200 credit has been applied?  

there is some court precedent for the value on the day the shares are issued but irs disagrees and says it is zeroanyone dealt with this??...how did you report???thanks & regards bob

Do I need to pay tax on $10,200 from EDD 

At one time there was some kind of credit for first responders, such as fire fighters, possibly some type sch A credit for Medicare or something. I believe it was for active not retired people. Does anyone recall it and if it's still available. I can't find any reference to it. Thanks

I've been presented with an interesting situation for a client and I'm wondering if this is something I can work out for them. My client needs a Sch C filed for their income and they live at home with their parents, whose name is on the deed to the house, however, they are the ones paying for the mortgage on the home. Since it's not in their name, they can't claim the Mortgage Interest on their return. However, what I'm looking to learn here is if they claim the Home Office deductions for their space and what they use, can they claim the equal portion of their Home Office from the Mortgage Payments/Interest?