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Monday
2 Cheers
also keeping software from 2019 onwards won't help unless you keep old computers running too, it won't activate older than current tax year and 3 prior years (currently 2022-5).
Monday
The original question was whether TurboTax can handle the entry of a permissible QCD. The answer is Yes, if entered properly.
Monday
im trying to apply for the flex loan but as soon as i try to upload last years tax return it gives me a error code?
Monday
There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC bu...
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There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
He lived with the parent (including temporary absences such as away at school) for more than half the year
So, if you are over 18 and not a full time student, you cannot be a QC. There is a $5200 income test that determines if you can be claimed as a qualifying relative dependent. The $5200 is not limited to earned income.
This question usually comes up in determining who gets to "claim the 1098-T" for the generous education credit, because of a special rule that limits college age students from claiming it.* The simple answer is: you get to claim it (even if you are under 24) since you are not a full time student and do not qualify as your parent's dependent.
*There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit.
You cannot claim the (up to) $1000 refundable credit if you are, or can be, claimed as a dependent by someone else.
Reference: Line 7 instructions for form 8863.
https://www.irs.gov/instructions/i8863#en_US_2024_publink53002gd0e674
https://www.irs.gov/instructions/i8863
Monday
1 Cheer
Yes pay directly online at irs.gov, avoid mailing checks/vouchers if possible. Be sure to designate it as 1040-ES for the correct tax year. When you file under Deductions & Credits there is a secti...
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Yes pay directly online at irs.gov, avoid mailing checks/vouchers if possible. Be sure to designate it as 1040-ES for the correct tax year. When you file under Deductions & Credits there is a section to input any ES paid. But just paying one-off ES in November may not protect you from a penalty at this point, or may not even be needed depending your situation. See Form 2210 Lines 1-9 for the safe harbor calculation, you need to have paid (via withholding at any time during the year, or "timely" ES - usually quarterly) - the smaller of 100% of your 2024 tax (110% if AGI > 150k or 75k if filing MFS), or 90% of your 2025 tax. If you've already met the safe harbor thru withholding for 100/110% of your 2024 tax then you don't need to pay ES regardless the size or timing of your gains, and just owe the balance of the 2025 tax due in April. If you do owe ES to meet the safe harbor amount, then by default it's due in quarterly installments so a one-off payment will be considered largely late; it may stop the penalty accruing further but won't eliminate it. If the income occurred unevenly thru the year and in particular later in the year, you can try to reduce the penalty when you file using the Annualized Income method on Form 2210. When you first put your return together TT will calculate the default penalty, check line 38 on your 1040, then you can try and reduce it thru Other Tax Situations / Underpayment Penalties. The other option to avoid ES penalty is to increase withholding to cover the safe harbor amount, it doesn't matter the timing, but it's probably too late in the year for this to have much impact via W2. See this recent thread for more on the same topic https://ttlc.intuit.com/community/taxes/discussion/re-paying-capital-gains-tax-on-stock-investments/01/3712059#M1374470
Monday
@superlyc yes, you can just pay online. Quarterly payments are due by January 15, 2026. if the capital gains occured after August 31, 2025 and you pay the estimate by January 15, 2026, that solv...
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@superlyc yes, you can just pay online. Quarterly payments are due by January 15, 2026. if the capital gains occured after August 31, 2025 and you pay the estimate by January 15, 2026, that solves a lot of issues. if the gain occured prior to Sept 1, the answer is alot more complicated, and in that case, pay the estimate TODAY.
Monday
This appears to be what I was looking for: Treasury Reg. §1.121-1(e)(1) says: If a taxpayer uses property partly as a personal residence and partly for another purpose, the exclusion applies ...
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This appears to be what I was looking for: Treasury Reg. §1.121-1(e)(1) says: If a taxpayer uses property partly as a personal residence and partly for another purpose, the exclusion applies to the entire property, except for depreciation allowed or allowable after May 6, 1997.
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Monday
I have a tax return from 2024 I did not put in correctly and now I need help to delete (get rid) of the 2024 rejected return
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Monday
@user17632779997 from what you wrote, by 'state tax paid' do you mean the tax liability? maybe best to use line numbers from the tax return so that there is no misunderstanding. https:...
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@user17632779997 from what you wrote, by 'state tax paid' do you mean the tax liability? maybe best to use line numbers from the tax return so that there is no misunderstanding. https://www.ksrevenue.gov/pdf/k-4024.pdf Line 12 is the tax liability. It is what you owe Line 19 is the non-refundable credits. It can reduce Line 12 but not below zero. Line 28 is the refundable credits. It can reduce Line 12 and go below zero. (if below zero, that is the refund on Line 34, if not below zero that is the Amount Due on line 29) what is the specific non-refundable credit that you see TT using? When you state that a Tax Refund can be greater than Tax Paid, what two lines are you referring to? Tax Refund is Line 34. But there is no specific line item called "Tax Paid". Do you mean the Tax Liablity on Line 12 or do you mean the sum of the W-2 withholdings (line 20) and estimated taxes paid (line 21)?
Monday
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Monday
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Sunday
Thank you. I found the IRS provide direct pay online. In that way, I don't have to mail it right? And as long as it is done before the end of the year, it is good, right?
Sunday
I agree and I stated that in my message I was validating whether a state tax refund can be > state tax paid. That's when I read what you replied with. So, I started investigating and that's when I ...
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I agree and I stated that in my message I was validating whether a state tax refund can be > state tax paid. That's when I read what you replied with. So, I started investigating and that's when I spotted that TT was using a non-refundable tax credit. My question would then be what next? Fix it or Roll the Dice... Seriously though, I wanted to first make sure I was correct in my interpretation and now I'm going to find it again so I can fix it.
Sunday
1 Cheer
Yes. Send the completed 1040-ES Form with your check to the IRS. There’s nothing else to do. The TurboTax program has an area in the program for you to report your payment and the program puts that a...
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Yes. Send the completed 1040-ES Form with your check to the IRS. There’s nothing else to do. The TurboTax program has an area in the program for you to report your payment and the program puts that amount in the proper line in your return. You don’t have to do anything else.
Sunday
So, I should choose 1040 ES? How should I report this with Turbox then? I never did this before so. Is there a tax form to upload to Turbox after I made this estimated tax payment?
Sunday
1 Cheer
Financial institutions have removed 2024 data from availability to import into tax software now that it is mid-November. In late January or February, they will have 2025 data available for import....
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Financial institutions have removed 2024 data from availability to import into tax software now that it is mid-November. In late January or February, they will have 2025 data available for import. Sorry---you waited too long. You can get the statement from the website and enter your information by keying it in. Depending on the information, you might need to just enter summary information.