The board is still waiting for response , at least, to the Unemployment forgiveness questions. Nothing is shown in NEW section of TTB. Can you please segment out Unemployment rules?
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What do we know? $150,000 is the magic number. Is that for MFJ? What is the number for S or HOH? Does the $150,000 threshold include the unemployment $$ for those borderline returns in calculating threshold? How and where are we to report the reduction in unemployment income on the tax return? There are more questions but these are the primary issues.
Another question regards how States will handle forgiveness.Last edited by BOB W; 03-13-2021, 11:15 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Any updates will probably be posted at TTB weblibrary under "tax industry news".Originally posted by BOB W View Post
What is the point of rushing to put out a document that says, "we are waiting for further IRS guidance"? Speaking of which, from this morning's press release.
"The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.
The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance."
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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RR you are correct as always, just sit and wait. It's up to the IRS to move forward now. Thanks!
I read one comment on a google search where they suggest that IRS could extend filing date to June 15th.Last edited by BOB W; 03-13-2021, 01:00 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Here is an update to the form instructions from IRS, but if not implemented yet in your software, I wouldn't efile (because the correct notation for the adjustment won't be in the efile data, and the state return most likely won't be correct either unless your state has total conformity to fed).
"Note. If your modified adjusted income (AGI) is less than $150,000,the American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020. For married taxpayers, you and your spouse can each exclude up to $10,200 of unemployment compensation. For example, if you were paid $20,000 of unemployment compensation and your spouse was paid $5,000, report $25,000 on line 7 and report $15,200 on line 8 as a negative amount (in parentheses). The $15,200 excluded from income is $10,200 for you and all of the $5,000 paid to your spouse. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. Use the Unemployment Compensation Exclusion Worksheet to figure your modified AGI and the amount you can exclude.""You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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To ALL, Sorry for being an over zealous and often rude in my quest for answers that weren't there yet. I promise to better control myself going forward.This post is for discussion purposes only and should be verified with other sources before actual use.
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Thanks. Don’t think you are alone. Many are waiting.Originally posted by BOB W View PostAlways cite your source for support to defend your opinionComment
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I just made up a document for e-mailing my clients from various sources that lists the salient features without getting into all the fine print. I will discuss all that when I do my tel conference or Zoom meeting with them.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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I just completed my "data mining" feature in Ultra Tax for a list of unemployment entries of completed and uncompleted tax returns. It spit out 47 returns so far. What a mess going forward.. O Well..
From that list I was able to call 2 clients and tell them they don't qualify for the reduction due to incomes being too high without looking at unemployment addition. So I printed and packaged their returns.Last edited by BOB W; 03-14-2021, 01:30 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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