About syoung123

syoung123

Hello, we inherited a brokerage account in late 2019. In 2020, the brokerage firm sold some stocks that resulted in close to 90 transactions. The 1099B (subsitute form that lists individual sale transaction lines? It does not look like the 1099B form that I found on the IRS web site) from the brokerage firm, Merrill Edge, showed these transactions in two categories with these headings - "short term capital gains and losses, 1099-B line 2, box 6 net proceeds, covered transactions, cost basis reported to IRS, form 8949, part I, (A)"; and "long term capital gains and losses, 1099-B line 2, box 6 net proceeds, covered transactions, cost basis reported to IRS, form 8949, part II, (D)". The 1099-B shows line item amounts under the columns - proceeds (1d), cost basis (1e), and "gain or loss" There are no adjustments under column (1f) and (1g), these columns show zero dollars. The Schedule D instructions appear to say if the categories are box (A) and (D), and there are no adjustments, that I can just put the short term gain/loss totals as one line on Schedule D line (1a) for short term gains/losses, and long term gain/loss totals as one line on Schedule D line (8a) for long term capital gains/losses. And I do not need to fill out Form 8949. Is it correct? And if I don't need to fill out Form 8949, do I need to attach a copy of the 1099B from the brokerage firm with the tax return for mailing? I am using TurboTax to do the return, but I am goint to print the return to mail. I ask a couple of local CPA firms, and they told me I would still to fill out Form 8949. Please advise. Thank you.

syoung123

Thank you for the information. I have one more question. I am a Michigan resident and I am filing the South Carolina return as non-resident, because I have a rental property there, that had a net loss on rental revenue. Since the unemployment income was from Michigan, I assume that it would not be taxable for South Carolina. How would I fill out the non-resident return to account for the federal $10,200 exclusion? On the SC schedule NR, there is a line 13 unemployment compensation and line 15 other income. Since the unemployment income was from Michigan, it would not be taxable for South Carolina then? Thank you.

syoung123

Hello, do you have information on whether Michigan and South Carolina have the same unemployment compensation exclusion as Federal? Also, is it correct that both Michigan and South Carolina extend the filing deadline to 5/17/2021, and it is done automatically so I don't need to file any extension form? Thank you.

syoung123

Thank you again for your reply. Line 3 of the SS benefits worksheet indicates only the Form 1040 lines (1,2b,3b,4b,5b,7, and8). It does not say to use any lines on Schedule 1. And line 8 of Form 1040 is from line 9 of Schedule 1, which now includes the 10,200 credit. But I think you are right that the taxable SS income would not take into consideration of the 10,200. It is just that the Exclusion instructions are still not clear to me. So to summarize, please confirm the followings: - social security taxable income - do not include the $10,200 credit; the $ on line 3 of the SS benefits worksheet generated by TurboTax is correct. - passive income limit - do not include the $10,200 credit; the $ (MAGI) on line 7 in Form 8582 generated by TurboTax is correct - taxable income to determine QBI deduction - includes the $10,200 credit since it is based on the adjusted gross income on line 11 in Form 1040 (which is lowered by the $10,200 credit); so the taxable income on line 11 in Form 8995 generated by TurboTax is correct. Thank you.

syoung123

Also, what about the following: 1. passive income of up to $25,000 allowance on line 7 of Form 8582, Passive Activity Loss Limitation - Would the $10,200 credit be excluded in calculating the MAGI on line 7 (So the MAGI would be higher)? 2. the taxable income used to determine the qualified business income deduction on line 11 of Form 8995, QBI Deduction Simplified Computation - Would that include the $10,200 credit? Thank you.

syoung123

Thank you for the information. Per the excerpt from the link, "New Exclusion of up to $10,200 of Unemployment Compensation", the SS benefits worksheet line 3 says to add Form 1040 line 1,2b,3b,4b,5b, 7 and 8. It doesn't say from schedule 1. Also, line 8 on Form 1040 says "other income from schedule 1, line 9", which would include the $10,200 credit/tax break. I agree that the $10,200 should be excluded from calculating the taxable SS income based on your reply and other posts that I saw, but neither the SS worksheet, nor Form 1040 appears to indicate the $10,200 needs to be excluded in this link. Please advise. Thank you. When figuring the following deductions or exclusions from income, if you are asked to enter an amount from Schedule 1, line 7 enter the total amount of unemployment compensation reported on line 7 (unreduced by any exclusion amount) and if you are asked to enter an amount from Schedule 1, line 8, enter the amount from line 3 of the Unemployment Compensation Exclusion Worksheet. See the specific form or instructions for more information. If you file Form 1040-NR, you aren’t eligible for all of these deductions. See the Instructions for Form 1040-NR for details. - Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet)

syoung123

Re: the social security benefits worksheet, line 3 of this worksheet in the 1040 instructions book says to add Form 1040 line 8, which is from Schedule 1 line 9. That includes the $10,200 unemployment tax relief (exclusion), which needs to be added back on line 3 of the worksheet to calculate the taxable social security. So the amount on line 3 would be $10,200 higher. The TurboTax program actually added the $10,200 back on the worksheet, so the amount shown on line 3 is proper. it is just the line item label was not changed. I was hoping the taxable SS would be lowered by the tax relief. Oh well.

syoung123

someone gave me the following link which says the taxable social security calculation excludes the unemployment tax relief. "https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/unemployment-exclusion-and-social-security/00/145352"

syoung123

Thank you. So the instruction on line 3 on the social security benefits worksheet is not correct, and I need to exclude the $10,200 to determine the amount of line 3 (which will be higher by $10,200) then.

syoung123

I just found the same issue that you said on the SS benefits worksheet. How do you override the worksheet?

Date Registered	‎December 13, 2020 10:38 AM
Date Last Visited	a week ago
Total Messages Posted	61
Total Cheers Received	6

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