Posted on 04/08/2021 3:16:11 PM PDT by catnipman
Bfl
Got my refund a few weeks ago and used it to pay my state taxes. None of these changes would affect me in any way. Will do an amendment if something DOES come up.
I am an Enrolled Agent for H&R Block. Our software was updated for the $10,200 unemployment exclusion per spouse in mid March. Another change is that the Marketplace (Obamacare) 1095-A Premium Tax Credit Repayment (form 8962) is being excluded.
Texas, Louisiana, and Oklahoma filing deadline is June 15. Filing deadline for the rest of the US is May 17.
I completed about 25 returns with unemployment before the $10,200 exclusion per spouse was in place. Many of those clients have received the original return refund. A few had a balance due on the original return and now have a refund. I contacted all of the affected clients.
We have been told not to amend the affected returns. The IRS will make the adjustment starting in May. They will first adjust Single/Head of Household and then Married Filing Joint returns. For the extra refund, not sure if they IRS will make a check or direct deposit it if the original refund was direct deposited.
So even if you file early, IRS is going to sit on it?
BKMK
Didn’t NY tax out of state medical personnel who came in temporarily to help with the Pandemic-con?
the real issue isn’t the $10,200 done a few days ago, but the increased amount of SSA and pension payments that are non-taxable ... THAT change JUST happened in the last few hours and probably affects FAR more people than the $10,200 ...
“It’s a trap, of course, since the democrats are going to raise taxes and tax the deferred amounts at 2021 and 2020 rates instead of at Trump rates.”
definitely ... probably shouldn’t defer anything that would be taxed in the 2020 12% bracket that might wind up in the 21% bracket in 2021 or 2022 ...
bmp
Yes.....
.
I ran yesterday’s update - it made a huge difference. Looks like I’ll be filing an amended return this year.
“I ran yesterday’s update - it made a huge difference. Looks like I’ll be filing an amended return this year.”
btw, i now STRONGLY suspect that the HRB update from yesterday also contains a significant erroneous side-effect when form 8915-E is used ...
comparing my saved PDF prior to the update with my post-update results, where in both cases i’ve declared part of my IRA distributions as “covid disaster distributions” on 8915-E, the updated HRB suddenly refuses to include my wife’s 401(k) distribution on line 5B on form 1040, whereas it IS included pre-update, even though in both cases i’ve declared NONE of her distribution as “covid disaster distributions” ...
i managed to get HRB to gen a trouble ticket today to bump this issue up to their tier 2 support, and am expecting a call-back next week ...
needless to say, my taxes are substantially less post-update, but i’m 99% sure that’s due to error on HRB’s part in not including my wife’s 401(k) distribution on form 1040 ...
Previous update had given the three year treatment. As near as we could figure - and I didn’t drill down - it looks like this one didn’t allocate any of the distribution to taxes this year - the difference seems to line up with the taxes withheld.
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