Unemployment voting

[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.

[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.

[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]

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

[Twin Turbo Z]

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

[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.

[BOB W]

What if the IRS automatically changes things themselves? Then you would be entering a deduction (up to $10,200) and then the IRS adjusts it again. So, it definitely CAN change depending on what the IRS instructs us to do.

That may be for already filed returns. Under our voluntary system of filing tax returns, I think any return filed after today would be checked for any offsetting entry.

[TaxGuyBill]

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. ..

What if the IRS automatically changes things themselves? Then you would be entering a deduction (up to $10,200) and then the IRS adjusts it again. So, it definitely CAN change depending on what the IRS instructs us to do.

[Twin Turbo Z]

Well it passed. Let the **** begin !!

[BOB W]

All great questions.... I have no answers.................... yet..

[Lion]

Is the $150,000 threshold with or without the UI benefits? How will the states handle it? I file returns in 13 different states. What to do about Kiddie Tax? Does Kiddie Tax apply on the amounts over $10,200? Or, do you still use $1,100 at 0% and the next $1,100 at 10%? I'm not filing UI returns today! (I'm preparing biz returns with a Monday deadline, anyway.)

[BOB W]

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...

[TAXNJ]

If the UI portion is passed by the House do we have to wait until the President signs it on Friday before we can file those backed up returns?

Is your software updated already to file the UI adjustment?

[BOB W]

Ouch!!!!!!!!!!!!!!

[TaxGuyBill]

If the UI portion is passed by the House do we have to wait until the President signs it on Friday before we can file those backed up returns?

You need to wait until it becomes law AND you need to wait until the IRS gives some sort of guidance for what to do. It could be several weeks.

And I heard it was passed by the House.