Author Topic: any accountants out there that i can ask a question?  (Read 337213 times)

Offline tavster

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Re: any accountants out there that i can ask a question?
« Reply #2180 on: February 07, 2022, 02:52:57 PM »
I want to apply for a ITIN number so I need to file a 1040NR alongside the W7. The 1040 is supposed to reflect any US income, and I read that selling a few $ on ebay qualifies..

On the 1040, where do I put this income? Is it line 8 'other income'?

Thanks

Offline Wizard

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Re: any accountants out there that i can ask a question?
« Reply #2181 on: February 09, 2022, 09:45:39 PM »
Called them up and got transferred like 5-6 times until I got a supervisor in the right department and he explained it's for CC referral bonuses (first they said was for points which didn't make any sense cuz amounts didn't correspond to points earned). I received 40K points for 2 Sapphire referrals (that was $400 income) and 10K for Freedom referral ($100) and I also got $150 from a Zelle sweepstakes so that was $650 which brought me over the $600 reporting threshold.
If you are trying to get my attention/assistance and I'm not responding, please feel free to PM me. :)

Offline peace123

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Re: any accountants out there that i can ask a question?
« Reply #2182 on: February 10, 2022, 05:13:04 PM »
Does EITC, earned income tax credit count unemployment income? I guess not cos it is the world EARNED and Unemployment is not Earned right?

I filed tax myself online, married jointly filed for the first time last year using the freetaxusa.com website as suggested by some of DDers. I didn't qualify for EITC cos my W2 income with unemployment income in 2020 was lot more then the $48,108 limit with one qualifying child.

This year I researched more about the EITC online and it looks like I should have qualified for it last year and this year too?

My w2 income in 2020 and 2021 is less then $40K. Also the pandemic  caused  temporary job loss for several months and reduced wage in 2020 and 2021.  We are low income family cos my spouse stays home caring for our special needs child.  Should I have qualified for EITC?

Also what about child tax credit? I did receive some extra $250monthly for few months last year.

Any other credits or deductions we can qualify for?
thanks

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2183 on: February 11, 2022, 10:20:51 AM »
Does EITC, earned income tax credit count unemployment income? I guess not cos it is the world EARNED and Unemployment is not Earned right? it counts as income but not earned income, meaning it can only phase you out but not help if you earned too little, also dont forget 10,200 was not counted at all in 2020

I filed tax myself online, married jointly filed for the first time last year using the freetaxusa.com website as suggested by some of DDers. I didn't qualify for EITC cos my W2 income with unemployment income in 2020 was lot more then the $48,108 limit with one qualifying child. doesn't sound like you qualified , unless you subtract the 10.2k

This year I researched more about the EITC online and it looks like I should have qualified for it last year and this year too?

My w2 income in 2020 and 2021 is less then $40K. Also the pandemic  caused  temporary job loss for several months and reduced wage in 2020 and 2021.  We are low income family cos my spouse stays home caring for our special needs child.  Should I have qualified for EITC? are you adding anything with this information?

Also what about child tax credit? I did receive some extra $250monthly for few months last year. https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

Any other credits or deductions we can qualify for? PUTPAC a competent tax preparer, you will likely come out much better than by doing yourself   
thanks

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2184 on: February 15, 2022, 11:45:59 PM »
Can one contribute to an ESA and a 529 for the same beneficiary in one year?
According to the book I'm reading (Income tax fundamentals) it is not allowed, but per google it is allowed.
Can anyone share a source?

Offline av83

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Re: any accountants out there that i can ask a question?
« Reply #2185 on: February 18, 2022, 09:55:56 AM »
Can I claim child care expense paid to my child (15 yrsold) The child earning the income would file their own tax return. But I would claim that child as dependent on my taxes.

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2186 on: February 18, 2022, 05:06:57 PM »
Can I claim child care expense paid to my child (15 yrsold) The child earning the income would file their own tax return. But I would claim that child as dependent on my taxes.
No.

ďPayments to Relatives or Dependents - The care provider can't be your spouse, the parent of your qualifying individual if your qualifying individual is your child and under age 13, your child who is under the age of 19, or a dependent whom you or your spouse may claim on your return.Ē


https://www.irs.gov/faqs/childcare-credit-other-credits/child-and-dependent-care-credit-flexible-benefit-plans/child-and-dependent-care-credit-flexible-benefit-plans-4
« Last Edit: February 18, 2022, 05:10:13 PM by Help »

Online ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #2187 on: February 20, 2022, 02:43:29 PM »
IRS instructions for form 8615 state:

Quote
Who Must File
Form 8615 must be filed for any child who meets all of the following conditions.

  • The child had more than $2,200 of unearned income.
  • The child is required to file a tax return.
  • The child either:
    • Was under age 18 at the end of 2021,
    • Was age 18 at the end of 2021 and didnít have earned income that was more than half of the child's support, or
    • Was a full-time student at least age 19 and under age 24 at the end of 2021 and didnít have earned income that was more than half of the child's support.
      (Earned income is defined later. Support is defined below.)
  • At least one of the child's parents was alive at the end of 2021.
  • The child doesnít file a joint return for 2021.

For these rules, the term ďchildĒ includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent. These rules donít apply if neither of the childís parents were living at the end of the year.

Support. Your support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your childís support, count support provided by you, your child, and others. However, a scholarship received by your child isnít considered support if your child is a full-time student. For details, see Pub. 501, Dependents, Standard Deduction, and Filing Information.

The question I am having is what reasonably constitutes "earned income that was more than half of the child's support"?

If a 23 year old student had $1,000 of earned income for the year, can it be argued that his earned income provided more than half his support? How about less, or more? Where does one draw the line? And if child chooses not to file form 8615 because he believes that his earned income provided more than half his support, is that an automatic audit trigger? (The unearned income in question is all from Unemployment)

What if he puts as his main occupation the source of his self-employment earned income, even though the bulk of his income was from Unemployment Insurance, and he was enrolled in Yeshiva and received a Pell grant?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline confu

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Re: any accountants out there that i can ask a question?
« Reply #2188 on: February 21, 2022, 07:59:44 AM »
A lot of people living abroad got child tax credit automatic payments in their U.S. Bank accounts. Do they need to give them back? (The letters from IRS said if AGI was under a threshold, they would not ask for repayment or non-qualifying children, but didn't mentioned non-qualifying parents.....)
Been getting asked about this a lot. Anyone with good info?

Offline yitzgar

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Re: any accountants out there that i can ask a question?
« Reply #2189 on: February 21, 2022, 08:04:15 AM »
Any way to get a child care credit without babysitters ss #?

Offline Joel

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Re: any accountants out there that i can ask a question?
« Reply #2190 on: February 21, 2022, 08:24:09 AM »
Any way to get a child care credit without babysitters ss #?
It will be reported as income so who says they want?

Offline yitzgar

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Re: any accountants out there that i can ask a question?
« Reply #2191 on: February 21, 2022, 08:52:47 AM »
It will be reported as income so who says they want?
Hence the question

Offline Barryg

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Re: any accountants out there that i can ask a question?
« Reply #2192 on: February 21, 2022, 09:08:16 AM »

Does EITC, earned income tax credit count unemployment income? I guess not cos it is the world EARNED and Unemployment is not Earned right? it counts as income but not earned income, meaning it can only phase you out but not help if you earned too little, also dont forget 10,200 was not counted at all in 2020

I filed tax myself online, married jointly filed for the first time last year using the freetaxusa.com website as suggested by some of DDers. I didn't qualify for EITC cos my W2 income with unemployment income in 2020 was lot more then the $48,108 limit with one qualifying child. doesn't sound like you qualified , unless you subtract the 10.2k

This year I researched more about the EITC online and it looks like I should have qualified for it last year and this year too?

My w2 income in 2020 and 2021 is less then $40K. Also the pandemic  caused  temporary job loss for several months and reduced wage in 2020 and 2021.  We are low income family cos my spouse stays home caring for our special needs child.  Should I have qualified for EITC? are you adding anything with this information?

Also what about child tax credit? I did receive some extra $250monthly for few months last year. https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

Any other credits or deductions we can qualify for? PUTPAC a competent tax preparer, you will likely come out much better than by doing yourself   
thanks

There was a look back to 2019 allowed to help ppl qualify for EITC in 2020 and AFAIK itís back for 2021. @ CGR - can you look these posts over and see if the info is accurate?

Offline cgr

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Re: any accountants out there that i can ask a question?
« Reply #2193 on: February 21, 2022, 09:16:29 AM »
Any way to get a child care credit without babysitters ss #?
Yes. If you did your due diligence and were unable to obtain it.

Offline cgr

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Re: any accountants out there that i can ask a question?
« Reply #2194 on: February 21, 2022, 09:17:48 AM »
There was a look back to 2019 allowed to help ppl qualify for EITC in 2020 and AFAIK itís back for 2021. @ CGR - can you look these posts over and see if the info is accurate?
You can use 2019 earned income to calculate your credit amount if your 2019 earned income was more than 2021, but you still need to qualify for EITC based on your 2021 AGI.

Online ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #2195 on: February 21, 2022, 12:16:34 PM »
IRS instructions for form 8615 state:

The question I am having is what reasonably constitutes "earned income that was more than half of the child's support"?

If a 23 year old student had $1,000 of earned income for the year, can it be argued that his earned income provided more than half his support? How about less, or more? Where does one draw the line? And if child chooses not to file form 8615 because he believes that his earned income provided more than half his support, is that an automatic audit trigger? (The unearned income in question is all from Unemployment)

What if he puts as his main occupation the source of his self-employment earned income, even though the bulk of his income was from Unemployment Insurance, and he was enrolled in Yeshiva and received a Pell grant?

I inquired today with 770 as to the amount they charge American students with Pell grant for room and board. I would assume that if my son reports self-employment income just over 50% of that amount, it can be safely argued that he provided more that 50% of his support from earned income and is therefore not required to file form 8615. Any CPA care to opine?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2196 on: February 21, 2022, 02:45:39 PM »
Yes. If you did your due diligence and were unable to obtain it.
Does that include if the babysitter doesn't want her SS# used?

Offline yitzgar

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Re: any accountants out there that i can ask a question?
« Reply #2197 on: February 21, 2022, 02:50:11 PM »
Does that include if the babysitter doesn't want her SS# used?
I would think so. But I imagine you'd have to give her name and address, so she might not be so happy....

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2198 on: February 21, 2022, 02:54:22 PM »
I would think so. But I imagine you'd have to give her name and address, so she might not be so happy....
Well, I wouldn't do that without her permission.

Offline David61

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Re: any accountants out there that i can ask a question?
« Reply #2199 on: February 23, 2022, 01:35:20 AM »
(1) If the characteristics of the work done qualify at 1099, can the owner of an S-Corp take out that income as a 1099, Or is that intrinsically not allowed?
(2) Can an S-Corp make an "employer contribution" to a solo 401K for 25% of "1099 compensation" or only 25% of "w-2 compensation"?
Sources would be most appreciated