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peterhawaii's Posts

This is a new client.  He will be liquidating his American Gold Eagles IRA Account.  This means he will be cashing it in.  Then he has to report it on his 2021 Federal and State tax returns.  Where d... See more...
This is a new client.  He will be liquidating his American Gold Eagles IRA Account.  This means he will be cashing it in.  Then he has to report it on his 2021 Federal and State tax returns.  Where do I report the transaction.
Taxpayer wants me to report it on Schedule D netting the losses from  the sale of numismatic coins. Somehow I think the IRA should be reported else where.  Where can I find the rules of how and wher... See more...
Taxpayer wants me to report it on Schedule D netting the losses from  the sale of numismatic coins. Somehow I think the IRA should be reported else where.  Where can I find the rules of how and where to report the liquidated IRA account?
I think the situation is fixed.  The Federal correctly taxes1/3rd and has no penalty.  On Hawaii you have to be sure to add back the full amount as it is all taxable to Hawaii.  I forget if the progr... See more...
I think the situation is fixed.  The Federal correctly taxes1/3rd and has no penalty.  On Hawaii you have to be sure to add back the full amount as it is all taxable to Hawaii.  I forget if the program makes the subtraction of the 1/3rd retirement income automatically or if it makes the additional adjustment for the full amount of the retirement automatically.  You just make sure those are taken care of when you make your pdf files for additions and for subtractions.
taxea  I am not sure what provision you want me to look at.
ProSeries Professional somehow knows that the retirement withdrawal is subject to section 72(t) and for the Fed automatically only make 1/3rd taxable the first year and even though there is a code 1 ... See more...
ProSeries Professional somehow knows that the retirement withdrawal is subject to section 72(t) and for the Fed automatically only make 1/3rd taxable the first year and even though there is a code 1 knows the withdrawal is not subject to a 10% penalty.  This is what section (t) says to do. The problem lies with the states which if code 1 is used makes the withdrawal 100% taxable.  If Code 2 was used then none of the withdrawal would be taxable.  Someone in the IRS has deemed that code 2 is for this situation.  If the institutions would use code 2 then none of this is taxable to the states.
The IRS went to a lot of trouble to change code 2 Exceptions to the 10% penalty, listing for 2020 instructions for 1099R code 2 is to be used for section72 (t). Section 72 (t) is the new COVID law ma... See more...
The IRS went to a lot of trouble to change code 2 Exceptions to the 10% penalty, listing for 2020 instructions for 1099R code 2 is to be used for section72 (t). Section 72 (t) is the new COVID law making only 1/3 taxable for each year and waiving the 10% penalty If the Form 1099 R had a code 2 then for Hawaii nothing is taxable as retirement is always taxable for code 1.  My customer now has 78864 taxable to Hawaii because the institutions filling out the Form 1099 R are refusing to follow the IRS guidelines for Code 2. This new fix is making the 1/3 portion of the retirement income not taxable to Hawaii, but then in another section of the Hawaii return it is adding back the whole 78864. Does anyone know who to talk to at the IRS to get the institutions filling out Form 1099 R to  use code 2 per the 2020 code 2 instructions for Form 1099 R..  The IRS has penalties of up to 1 1/2 million if Form 1099 R is not filled out properly.
Pro Series phone technicians say March 12.  The important thing is the code must be changed from 1 to 2, because code 2 is always taxable to Hawaii. The code 2 exception is the last one listed in wha... See more...
Pro Series phone technicians say March 12.  The important thing is the code must be changed from 1 to 2, because code 2 is always taxable to Hawaii. The code 2 exception is the last one listed in what can be code 2.  The provision the IRS uses is72 t.  This is the law that makes the pension 1/3rd taxable each year for 3 years and waives the 10% penalty. In correcting the Form 1099R also change the taxable amount to 1/3 of box 1
The trick is to get a corrected Form 1099R.  Change the Code 1 to code 2 and also change 2a the taxable amount to 1/3 of the box .  This is per federal 72 t which is the law on some retirement distri... See more...
The trick is to get a corrected Form 1099R.  Change the Code 1 to code 2 and also change 2a the taxable amount to 1/3 of the box .  This is per federal 72 t which is the law on some retirement distributions affected by COVID. Then we just have to wait for ProSeries to get rid of the error message.
When getting a correted form 1099 R to code 2, you should also get  box 2 a changed to 1/3 of the full pension. The taxable portion  under section 72 t of the law is now being deducted 1/3rd each ye... See more...
When getting a correted form 1099 R to code 2, you should also get  box 2 a changed to 1/3 of the full pension. The taxable portion  under section 72 t of the law is now being deducted 1/3rd each year for 3 years.
FIX: Have the Form 1099 R changed to code two.  Then Hawaii retirement will not be taxable. In the original E mail you will note the Federal provision is under section 2. In the IRS instructions f... See more...
FIX: Have the Form 1099 R changed to code two.  Then Hawaii retirement will not be taxable. In the original E mail you will note the Federal provision is under section 2. In the IRS instructions form code 2 says that  section 72 t gets a code 2.  I believe page 15 of the Form 1099 R instructions.
Hawaii says: "You Must Fix This Error   Hawaii Individual Retirement Exclusion Worksheet line 6, total exclusion. We're still working on updates related to Retirement Distributions that qualify fo... See more...
Hawaii says: "You Must Fix This Error   Hawaii Individual Retirement Exclusion Worksheet line 6, total exclusion. We're still working on updates related to Retirement Distributions that qualify for disaster or COVID relief.  You can keep working on your tax return and we'll remove this message when its ready."   This is very misleading.  A:t tax.hawaii.gov, Tax Law and Guidance, Digest of Tax Matters 2020, they are very clear that the Federal COVID provisions do not apply  (Look at pages 13, 14 and 15).  If I can figure out how to attach this statement I will attach it to this E mail. I have sent a letter to Senator Morikawa asking to make a law allowing Hawaii to follow the Federal COVID rules.  Also, since Hawaii law is that when ever there is a Code 1 the retirement is 100% taxable I have asked him to change the law so it is not taxable. The thing for Hawaii tax preparers is to be aware that as I see it, under current Hawaii law 100% of this distribution is taxable. To get the federal tax return to follow the COVID rules of only 1/3 taxable and no penalty, Scroll down in Form 1099 R worksheet and you will find a place to make this happen.             Subject: RE: Taxation retirement plans. Can Hawaii state legislators make a law that provides 2020 retirement plan to be not taxable to Hawaii or only 1/3 taxable each year over 3 years.     Presently “ the following provision is not operative for Hawaii income tax purposes.   72(t); non-code   Waiver of 10% Early distribution penalty   A 10% penalty applies to any early distribution from a qualified retirement plan.   The Act waives the 10% early distribution penalty for distribution related to the Coronavirus of up to $100,000.  The Act allows any taxable distributions to be Taxed ratably over the following 3 years.  Related to coronavirus includes Those diagnosed, whose spouse or dependent was diagnosed, and those who Experienced financial hardship from quarantine, furlough, layoff, or other indirect Effect of corona virus.   Effective for distributions made from Jan 1, 2020 through December 31, 2020.”     Hawaii residents can not take advantage of the 1/3 being taxable.  Also because there Is a code 1 on the Form 1099 R 100% of the distribution is taxable.   Can Hawaii make a law to follow the Federal rules and allow  only 1/3 taxable each Year for 3 years.     Better yet, because the code 1 10% penalty is waived for the federal tax return, can Hawaii law change, proceed as if there is no code 1, and make the distribution 100% not taxable. Presently with retirement income when there is a code 1, the retirement plan is taxable to Hawaii. If there were no code 1 the qualified retirement plan would not be taxable to Hawaii.     To get the above information I went to: Tax.hawaii.gov Tax Law and Guidance Digest of Tax Matters 2020   From Peter Goodbody [email address removed] Phone 591-0445   Sharon Y Morikawa is the Senator from  S District 12 Waikiki, Crestview. Manoa, Pearl City and Pacific Palisades                                                                                            
Solved. Go to homebase select details and all details show.
Solved.  Go to homebase go to details click and now all details showing.
All views only show customer names.  E file view does not let you up date or E file clients.
Fixed by saving 2019 tax return with a new file name.  Now I am preparing 2020 tax return.
How can I cancel the no overwrite allowed on a 2019 tax return I need to transfer to 2020.  This is for Pro Series Professional.
Now, unlike before the computer is correctly handling the situation. On Line 10A inside the computer reads "Enter the smaller of these tax contributions made or $3000 on Line 10b below if you  take ... See more...
Now, unlike before the computer is correctly handling the situation. On Line 10A inside the computer reads "Enter the smaller of these tax contributions made or $3000 on Line 10b below if you  take the standard deduction  ___500_______.   Box 10 b was now in pink (red) and I entered $300 and now the computer is properly handling the situation.
The only entry I made on Schedule A was a $500 contribution.  Nothing is flowing through to Form 1040 line 10 b. And for form 1040 line 10 b will not let me make an entry without over riding.
There is a new rule for 2020.  Above the line deduction up to $300 charitable contribution. The ProSeries professional program has a line for the deduction.  But it is a flow through line and the pro... See more...
There is a new rule for 2020.  Above the line deduction up to $300 charitable contribution. The ProSeries professional program has a line for the deduction.  But it is a flow through line and the program is not helpful in letting you know where to make the original entry. In 2020 you are allowed to make this deduction if you are not itemizing.
Solved. I went through all the forms and in the middle of the misc. section I found Individual Elections Summary