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a week ago
1 Cheer
In MY INFO when it asks for your zip code, just click "Continue". Next it will ask for your state of residence. Scroll all the way to the bottom and select "Foreign or U.S. Territory"
a week ago
@guywong wrote: Several posts here suggested to have the estate pay the tax due on the $2,900 1099-DIV income. Treas. Reg. §1.662(a)-2 specifically prohibits that as the income was distributed i...
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@guywong wrote: Several posts here suggested to have the estate pay the tax due on the $2,900 1099-DIV income. Treas. Reg. §1.662(a)-2 specifically prohibits that as the income was distributed in 2023. But then it could be totally irrelevant......... Yes, that is, indeed, totally irrelevant given the the length of time the estate was in probate as the fees and expenses incurred are almost certain to exceed the relatively small amount of dividend income. The best course of action would to be to simply file the 1041 which should wind up with zero tax liability.
a week ago
Hi, I have contributed $9500 excess (employer part) to solo 401k account. I have filed extension for my returns but I have already filed my return few days ago. My CPA said, taxes are paid on $9500....
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Hi, I have contributed $9500 excess (employer part) to solo 401k account. I have filed extension for my returns but I have already filed my return few days ago. My CPA said, taxes are paid on $9500. Can I let the amount remain in 401k account and consider that toward next year contribution? or What corrective action can I take? Thank you in advance.
a week ago
About the idea of using investment losses. You can only use 3,000 net loss each year. The rest you have to carryover to the next year. Unless you have more gains you can offset first.
a week ago
1 Cheer
Yes you can use any Desktop program. All the Desktop programs have the same forms. You just get more help and guidance in the higher versions. And in Desktop it’s called Premier, not Premium. Pre...
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Yes you can use any Desktop program. All the Desktop programs have the same forms. You just get more help and guidance in the higher versions. And in Desktop it’s called Premier, not Premium. Premium is the new name for the Online version that combined Premium and the Self Employed version. You will need Premium for K-1 in the Online version.
a week ago
SteamTrain is right. I had misread some info, leaving me with the impression that deductions could bring down that Medicare income number. Thanks!
a week ago
Several posts here suggested to have the estate pay the tax due on the $2,900 1099-DIV income. Treas. Reg. §1.662(a)-2 specifically prohibits that as the income was distributed in 2023. But then it...
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Several posts here suggested to have the estate pay the tax due on the $2,900 1099-DIV income. Treas. Reg. §1.662(a)-2 specifically prohibits that as the income was distributed in 2023. But then it could be totally irrelevant as the legal and accounting fees, property taxes, etc. paid in 2023 probably exceeded the $2,900 income. On top of that, the estate has a $600 tax exemption. 26 CFR § 1.662(a)-2 - Currently distributable income. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute Also mentioned was IRD. IRD is totally irrelevant since your parents passed away in 2020 and we are now concerned about a 2023 Fiduciary income tax return. Besides, IRD only adds to taxable income. Do make sure you file the 2023 final Form 1041 and the state equivalent fiduciary income tax return ASAP. The executrix is personally liable for the tax, if any. Any late filing and late payment penalties are based on the income tax due. If the profession fees paid and other deductible expenses exceed the $2,900, then there will be no penalties for filing late. If you're not comfortable preparing the fiduciary tax return using TT Business, then hire a knowledgeable CPA or EA to prepare them. It's well worth the headaches. Good luck!
a week ago
1 Cheer
@c0ach269 wrote: 1. Depreciations: 5 yr -> cost basis $20K. Current depreciation without bonus depreciation calculated by TTX, lets say $10K 15 yr -> cost basis $6K. Current depreciation ...
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@c0ach269 wrote: 1. Depreciations: 5 yr -> cost basis $20K. Current depreciation without bonus depreciation calculated by TTX, lets say $10K 15 yr -> cost basis $6K. Current depreciation without bonus depreciation calculated by TTX, lets say $500 Let's say Form 3115 has the section 481a adjustment as $35K. How do I calculate how much I need to fill out in the 'Other expense under 481a adjustment'? 1. As it meaning the whole $35K When entering the assets, you need to tell TurboTax that you took Bonus Depreciation (that is effectively what Form 3115 and the 481(a) Adjustment are doing). Because the year 2021 had 100% Bonus depreciation, most likely you won't have any current-year depreciation for the 5 and 15 year assets. At any rate, you enter the entire $35k. The current year depreciation has no effect on the amount of the Section 481(a) Adjustment (assuming the 481(a) Adjustment was calculated correctly).
a week ago
I will need to input from 4 passive K-1s into my personal return. It sounds like Basic/Deluxe/Premium on the desktop will likely do it, but I just wanted to confirm.
a week ago
Deluxe to Premier upgrade system error issue per Tax Expert I called yesterday. Took her an hour to correct it. It overwrote original return instead of amending it. Instead of $1230, I'd have owed $9...
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Deluxe to Premier upgrade system error issue per Tax Expert I called yesterday. Took her an hour to correct it. It overwrote original return instead of amending it. Instead of $1230, I'd have owed $910 had it been received on time. Original return won't reset to $1230 even though the K-1 was removed. System glitch. The $1212 was carried forward as capital loss balance since I maxed out at $3000 for the year. I owe nothing.
a week ago
1 Cheer
It's a little more complicated than that. Or, another way to say it is "it doesn't work like that". *
$9013 + 6950 = $15, 963 can be considered earned income for purposes of the student-depend...
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It's a little more complicated than that. Or, another way to say it is "it doesn't work like that". *
$9013 + 6950 = $15, 963 can be considered earned income for purposes of the student-dependent's standard deduction. So he gets the full $15, 750 standard deduction, not $16,413 (the standard deduction is earned income + $450, but no more than the regular standard deduction of $15,750).
For purposes of the kiddie tax, the full $6950 + 187 = $7113 is considered unearned income and is entered on line 1 of form 8615 and income subject to the kiddie tax is calculated, using the $2700 deduction ($1350 + 1350). But then the taxable income, from form 1040 (after the $15,750 standard deduction) is entered. The lower of the two numbers is actually subject to the kiddie tax. Only $400 will be taxed at the parent's tax rate ($16,150 - 15,750 = $400).
Q. With no taxable income, no kiddie tax is due. TT files Form 8615 to show that, right?
A. Yes, if the student files. But, in most cases they don't even need to file, with no taxable income. Technically the filing requirement is total income of more than $15,750. Taxable scholarship is considered earned income for purposes of the $15,750 filing requirement (as well as for the standard deduction calculation).
*Technically, taxable scholarship does not become unearned income at some $ limit. It is earned or unearned income depending on what you're doing with it, on your tax return. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows (but not undergrads), scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.
a week ago
In order to be able to efile, I "backdoored it" by entering a dummy 1099 called adjustment whereby I put in equal offsetting numbers in the amount of the discount with a negative number in regular i...
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In order to be able to efile, I "backdoored it" by entering a dummy 1099 called adjustment whereby I put in equal offsetting numbers in the amount of the discount with a negative number in regular interest and a positive in US Treasury interest. So for example, if there was a $1,000 discount, then -1000 in regular interest and +1000 in treasury. They show up as two lines on the Sch B worksheet but do not change the total. Then the correct amount carried over to the Michigan and I did not have to override. This enabled me to efile. I did this because I had had already paid the file fee prior to me finding out that it would not let me efile with an override. Return was accepted, so looks like it worked.
a week ago
The IRS status page indicates that they are about 2 months behind on processing paper Forms 1040, so it's unlikely to be processed before September: https://www.irs.gov/help/processing-status-for-ta...
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The IRS status page indicates that they are about 2 months behind on processing paper Forms 1040, so it's unlikely to be processed before September: https://www.irs.gov/help/processing-status-for-tax-forms
a week ago
Don't know about most of your question but the Standard Deduction for 2025 for Single is only 15,750 not 15,963. The 2025 Standard Deduction for an individual for whom an exemption can be claimed...
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Don't know about most of your question but the Standard Deduction for 2025 for Single is only 15,750 not 15,963. The 2025 Standard Deduction for an individual for whom an exemption can be claimed on another person's tax return is limited to the greater of: …..the minimum of $1,350 or …..Your earned income for the year + $450 (but not more than 15,750) So you would get a minimum of $1,350 to a max of 15,750.
a week ago
TurboTax gets no information from the IRS after you file your tax return. Only the IRS can tell you what they are doing with your return. You can watch for information on the IRS refund site or c...
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TurboTax gets no information from the IRS after you file your tax return. Only the IRS can tell you what they are doing with your return. You can watch for information on the IRS refund site or call the IRS yourself. If the IRS wants any additional information from you they will send you a letter to request it.
Once your federal return has been accepted by the IRS, only the IRS has any control. TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.
You need your filing status, your Social Security number and the exact amount (line 35a of your 2024 Form 1040) of your federal refund to track your Federal refund:
https://www.irs.gov/refunds
Call the IRS: 1-800-829-1040 hours 7 AM - 7 PM local time Monday-Friday When calling the IRS do NOT choose the first option re: "Refund", or it will send you to an automated phone line. So after first choosing your language, then do NOT choose Option 1 (refund info). Choose option 2 for "personal income tax" instead. Then press 1 for "form, tax history, or payment". Then press 3 "for all other questions." Then press 2 "for all other questions." - When it asks you to enter your SSN or EIN to access your account information, don't enter anything. - After it asks twice, you will get another menu.
Press 2 for personal or individual tax questions. Then press 3 for all other inquiries It should then transfer you to an agent.
a week ago
In Florida
a week ago
@Hal_Al You've said taxable scholarships are a hybrid between earned income and unearned income. My question concerns when they flip from one to the other. My college student is applying for anoth...
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@Hal_Al You've said taxable scholarships are a hybrid between earned income and unearned income. My question concerns when they flip from one to the other. My college student is applying for another taxable scholarship, which could kick their total earned income above the dependent/standard deduction. Is that the trigger? (And which is correct below?) a) With no taxable income, no kiddie tax is due. (TT files Form 8615 to show that, right?) $9,013 net earned income + $6,950 taxable scholarship (earned income) = $15,963 earned income + $187 unearned income (529 taxable earnings) = $16,150 total income – $16,413 (dependent deduction: $15,963 + $450) = – $263 taxable income (no taxable income) b) But since $15,953 (or is it $16,150 or $16,413) is > $15,750 (2025 standard deduction), is the $6,950 taxable scholarship now considered unearned income? So, that’s $7,137 unearned income ($6,950 + $187), and the first $1,350 is not taxed, the next $1,350 is taxed at the dependent’s tax rate, and the last $2,700 at the parent’s marginal tax rate? (Or thereabouts?) Thanks for your help.
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a week ago
Sorry I have the same Q. The link you posted is not working. I just formed an LLC taxed as sole proprietorship. My trading activities would be under the LLC business brokerage account. If I'm getti...
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Sorry I have the same Q. The link you posted is not working. I just formed an LLC taxed as sole proprietorship. My trading activities would be under the LLC business brokerage account. If I'm getting it right, I would still receiving 1099-B for tax filing. But how would I be able to put those trading profits/loss as my business profits/loss? Thank you in advance.