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Tax return....

GM-GUY

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I have had the same problem with my 91 yo mother. She has not had to pay any taxes for most of the last 10 years due to medical bills (her services in her assisted living facility count towards this since she is disabled). But I can't efile her return because of some discrepancy between the IRS and SS. I just paper file for her. I keep telling her to call SS and she says she will but she never does ("They always put me on hold.").


I did that game and when I got to speak with someone, the only way to fix it is go in with three forms of ID (DL/Passport/SS card) then they can speak with her to even find out if they are wrong.
 

Tinkermatic

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Today’s life pro tip.
Take out subsidized and un-subsidized loans for a degree to the tune of $13k a year and get a $2500 tax credit!

The wife claims zero, I claim 1 and it typically evens out with maybe a few hundred in returns total. It covers the excise tax that comes right after. This year it covered a new 10mm as well 🙄. So much for paying the premium down as much this year. Meh, all the accrued interest is still frozen due to wu-flu and, I really wanted it.
 

free

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Today’s life pro tip.
Take out subsidized and un-subsidized loans for a degree to the tune of $13k a year and get a $2500 tax credit!

The wife claims zero, I claim 1 and it typically evens out with maybe a few hundred in returns total. It covers the excise tax that comes right after. This year it covered a new 10mm as well 🙄. So much for paying the premium down as much this year. Meh, all the accrued interest is still frozen due to wu-flu and, I really wanted it.
Sorry, thats not a pro tip. That $2,500 is a deduction, not a tax credit. Big difference. Plus, while you can deduct that $2,500 from income, you also paid/spent that $2,500 (or more) in the first place.
 

Tinkermatic

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Sorry, thats not a pro tip. That $2,500 is a deduction, not a tax credit. Big difference. Plus, while you can deduct that $2,500 from income, you also paid/spent that $2,500 (or more) in the first place.

Sarcasm appears to be lost on you.
Additionally, the AOTC is indeed a tax credit.
 

TrackDayRdr

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I did that game and when I got to speak with someone, the only way to fix it is go in with three forms of ID (DL/Passport/SS card) then they can speak with her to even find out if they are wrong.

The IRS gets your birthday from the Social Security Administration. If you want to fix this issue, start there. SSA.gov.
 

free

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Sarcasm appears to be lost on you.
Additionally, the AOTC is indeed a tax credit.
I stand corrected and am sorry. I was thinking of 1098-E interest and was not even thinking about the AOTC.

I was so quick to think you were wrong and stupid that I made a mistake in posting. It turned out that it was I who was wrong and stupid. I apologize.
 

Tinkermatic

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I stand corrected and am sorry. I was thinking of 1098-E interest and was not even thinking about the AOTC.

I was so quick to think you were wrong and stupid that I made a mistake in posting. It turned out that it was I who was wrong and stupid. I apologize.

I’m entirely unsure how to react to a level-headed response such as this. You’re by no means stupid. The AOTC is somewhat obscure (unless you’re a 30 something going back to college) and a-typical in it’s reducing actual amount of tax owed versus amount of taxable income. It can only be claimed twice.
I was merely making light of my going in to debt at a most undesirable rate and misappropriating some of said funds for a new 10mm (and ammo).

Cheers to you, Sir.
 

TrackDayRdr

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If you have filed your 2020 individual income tax returns already and had included unemployment income, know that in their infinite wisdom Congress has exempted $10,400 of that income. In the fkn middle of tax season. There is zero guidance at this point on how to report the exemption. If you filed already you may need to file amended returns. MA is not expected to follow the Federal treatment of this income.
 

Broccoli Iglesias

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If you have filed your 2020 individual income tax returns already and had included unemployment income, know that in their infinite wisdom Congress has exempted $10,400 of that income. In the fkn middle of tax season. There is zero guidance at this point on how to report the exemption. If you filed already you may need to file amended returns. MA is not expected to follow the Federal treatment of this income.
Interesting. I will check with the accountant.
Maybe he already excempted that. I didnt check how much she collected in unemployment. I think she was on it for 2 months, maybe 3. So I doubt it was over $10,400.
 

TrackDayRdr

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Interesting. I will check with the accountant.
Maybe he already excempted that. I didnt check how much she collected in unemployment. I think she was on it for 2 months, maybe 3. So I doubt it was over $10,400.

No he didn't. The bill was just passed. And it's up to $10,400, not the excess of $10,400. It's very likely you paid Federal tax on money that you no longer have to.
 

TrackDayRdr

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FYI, from the "2020 Rescue Plan":

From Act Sec. 9042

In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.
 

Broccoli Iglesias

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FYI, from the "2020 Rescue Plan":

From Act Sec. 9042

In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.
Random numbers...

What if the combined gross income is $160K.
Let's assume the man makes $100K, woman $60K and the woman received $3K unemployment.

Does unemployment get calculated in that case?
 

PaulR

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If you have filed your 2020 individual income tax returns already and had included unemployment income, know that in their infinite wisdom Congress has exempted $10,400 of that income. In the fkn middle of tax season. There is zero guidance at this point on how to report the exemption. If you filed already you may need to file amended returns. MA is not expected to follow the Federal treatment of this income.

These EXACT words already came out of my mouth to a client.
All this stimulus crap is driving me BSC.
I've got a newly divorced woman peppering me with 9000 questions about income, kids last year, kids this year, double counting kids for the stimulus, waiting to file....<head explodes>
 

pastera

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First year not claiming the kids (oldest graduated and youngest has one year left)
I get to pay $3k and they both get the stimulus now (with express conditions that the money goes directly to their school debt)

No stim bucks for me and my fed tax amount would choke an elephant.
Amazing how fast deductions disappear when the wife goes back to work and the kids age out.
 

FPrice

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Next year, unemployment isn’t taxable - they stuck that in the bill. Up to $10,200 of unemployment per person not taxable in 2021.

Darn. Maybe I should hope that my contract is not renewed so that I can get me some o dat free money.

[/SARCASM]
 

GM-GUY

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I didn't release that - I was relying on reporters. I might have to recalculate my taxes as my wife had some unemployment this year - I'll let TurboTax recalc it and see about a different refund amount.

Nope - AGI over $150K
 
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TrackDayRdr

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I didn't release that - I was relying on reporters. I might have to recalculate my taxes as my wife had some unemployment this year - I'll let TurboTax recalc it and see about a different refund amount.

Nope - AGI over $150K

Trusting the word of reporters? Really!?!? I think that is grounds for revocation of your NES membership.

It is too early to recalc your return. The change happened this week and the hows are still being translated so it is far too early to assume Turbo Tax has had the time to incorporate that into a software update. Hold your horses and do not file your return until you see how this thing trickles down.

If anyone has unemployment and has already filed their returns, an amendment is going to be in order. You and thousands of other people sending (most likely) paper amendments into the already over burdened IRS. Good luck waiting for that refund.

What a mess...what a mess...
 

GM-GUY

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The IRS hasn't even admitted they received the return I mailed on 2/22 yet. The IRS isn't going to expedite returns at all at this point - they will wait till mid April as those are the ones with checks enclosed. They will assign extra people to sending out free money though.
 

AHM

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It is too early to recalc your return. The change happened this week and the hows are still being translated so it is far too early to assume Turbo Tax has had the time to incorporate that into a software update. ...
I just did a TurboTax update, and merely freshening the software
made no difference on our Federal or Mass returns.
 

FPrice

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I just did a TurboTax update, and merely freshening the software
made no difference on our Federal or Mass returns.

Good to know that. I just got an update for HRB and had already sent in my returns (processed and refunds received) and was wondering if it would have affected any calculations.
 

AFAR/PFAR

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Owed a bit less than 5K federal this year on top of what was already withheld. A lot less than 2019.
Will likely owe similar next year as I'm pulling long term investments for real estate transactions.

Gave 350 to NH for partial year I&D tax.
 
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