Unemployment voting

[TaxGuyBill]

I think any return filed after today would be checked for any offsetting entry.

LOL. Why would you think that? And it isn't even technically a law yet. Unless the IRS tells you to do an offsetting entry, why would they look for it (especially if you are using the current forms, which will likely be changed in some way to reflect the changes)?

It is quite possible that the IRS may start rejecting returns that have unemployment, until they have everything figured out.

[Twin Turbo Z]

Best to wait for the "ifs and buts" to be spelled out. You dont want to cause more work on yourself.

[BOB W]

Just sent my first NEGATIVE unemployment entry to offset positive entry...

[Rapid Robert]

This is just for the unfiled returns on my desk, about 30 of them.

Don't know about Bob W, but I imagine many tax professionals are experiencing revenue delays because of various unresolved tax issues on top of the major delay in the start of the filing season. (Assuming that like H&R Block, for example, the tax prep fee is not collected until return is actually ready to sign and file.)

Last year at this time, revenues would have been normal for midway through the tax season, because coronavirus restrictions were just beginning. But this year they probably lag quite a bit.

[BOB W]

Yup cash flow is p..s poor right now but will catch up next week. My solution is Negative Entries and let the chips fly/fall where they may.

[MAJ]

I'm waiting to hear from the IRS or the Software vendor. They'll have to create a new form, get it approved. IRS is doing it - so, my best guess would be late May for the form to be released. Then the software vendors will need to make the change.

Or, Are we going to trust the IRS to do the math on this one? Pun intended.

[New York Enrolled Agent]

Just sent my first NEGATIVE unemployment entry to offset positive entry...

And you know for a fact, New York will conform to this change???

What is the rush? Mountains out of molehills. It seemed to me your haste is leaving due diligence in the dust.

[ruthc]

No.. But I can just make a separate negative entry for the whole amount, or if over $10,200. just the $10,200. In the end it should be a no change regardless of any special instructions. This is just for the unfiled returns on my desk, about 30 of them.. Already filed returns will have to wait...

Where are you putting the separate negative amount?

[BOB W]

My program (Ultra tax) has multiple lines for unemployment income. I use separate lines for positive and negative entry. So within that section, the bottom line will be the net results of that subtraction. Can or should it be spelled out differently to limit IRS matching problem? Probably... Give me a direction.....

[BOB W]

I just reviewed available input to record a negative UI entry and it looks like the old line 21 would be the best for a negative entry. Rapid Robert brought this up in a earlier post that I, respectfully, discounted but now seems to be the best way to avoid IRS matching issues. Adjustment has to stay above the line so line 21 is best.

[Bucky]

Hold your horses Bob! Don't you have other work to do. I greeted the delay with open arms. Swamped and behind so delay works for me.

[ATSMAN]

What I have done to get an estimate of the revised tax calculation is use 10,200 as UI repaid in the current year. It appears the calculation is correct unless the fine print of the law says AGI before reduction by the exempted amount.

[BOB W]

Hold your horses Bob! Don't you have other work to do. I greeted the delay with open arms. Swamped and behind so delay works for me.

I have one $18,000,000 corp return to wrap up by Monday. After that I'm moving on to deal with my backlog and new appointments.

Hopefully I'll finish that NYC S Corp by tonight. Lots of ELF signature forms to get signed plus Auto ELF deduct Estimates to 3 Agencies for 4 qtrs and current balance dues.

[BOB W]

What I have done to get an estimate of the revised tax calculation is use 10,200 as UI repaid in the current year. It appears the calculation is correct unless the fine print of the law says AGI before reduction by the exempted amount.

Yes, there are unanswered issues with the $150,000 AGI. Anyone that close will remain on hold until more info is published.

[Anarchrist]

Where are you putting the separate negative amount?

Where it doesn't belong. You're a fool if you follow his example.