So there is lots of chatter about holding returns to wait until IRS forms have been upgraded to accommodate the new $10.2K exclusion. I doubt if anybody on the forum has any insight as to when the IRS may update a form(s) to accommodate the exclusions? Are we looking at a few weeks, a few months? Anybody with what they think is an accurate estimate?
Yeah, I've been holding all my unemployment clients. Could be a week (if passed) or could be a month or longer. I dont think anyone really knows. Plus it will take awhile for Intuit to pass their testing. That scares me more than IRS.
Hi Lisa. I thought about doing that. The only issue would be if the IRS decides to make the corrections on their own which is one of the options they are thinking about. That means I would be writing a lot of correspondence and clients would be receiving checks they are not entitled. Of course, if I knew they were going to update the 2020 forms, I would wait. Of course last year they didn't come out with the residential energy credit form until nearly after the entire filing season was over. Thank you Lisa!
Thursday night's speech would be a good time for the President to announce a new filing deadline for everyone of June 15. Tomorrow morning's White House press conference would be even better.
What's significant about your question is that you mention IRS twice and state ncome tax not at all,. Are you fortunate enough to live in a state with no income tax, or one that has already decided not to tax unemployment?
My guess is two weeks for IRS to issue a worksheet for computing the exclusion and change its programs for processing e-filed and paper returns. Remember how they waited until February 12, to make sure they had all the changes from the December 27 law? Then another two weeks for Intuit and other software developers to change heir programs. But state revenue departments may need two or three months, whether or not they conform.
Hi Bob. Yes, I am in Texas. No state income tax. Seven of the nine states without income tax are red states. (Just thought I would throw that in there). I appreciate your reply. Hopefully, you are accurate with your two week prediction. Thank you Bob. Take care.
I just finished a return for a client in Texas. On a $500K home they pay nearly $10K in property taxes. The same home here in Arizona would be taxed at about $3K. And we have year-round electricity and running water here. Of course, we're not as close to Cancun.
At least Illinois has a rebate for some people. I don't remember the details, because the retired client in Evanston moved to Texas. But different states have a different mix of taxes. If the property tax is above average, the income tax and sales tax are probably lower than average. Government collects and spends the same amount per capita in most places, except where education and teachers have no value. A few are better at taxing nonresidents, if they have resources like legalized gambling or fossil fuels.
Show me a state with high sales tax and high property tax, and I'll show you one with little or no income tax. Arizona's sales tax is way too high, but still lower than many places in Texas. Illinois has high property tax, but doesn't it still cost less than $100 to register a 2021 Lamborghini? That would set you back a couple thousand here. Each year. It goes down about 15% as the car becomes older.
"Illinois has high property tax, but doesn't it still cost less than $100 to register a 2021 Lamborghini?"
Hahahaha!! I would not know what a '21 Lambo would be. But we'd get smoked in sales tax on that kind of purchase. But your point is taken. I believe our registration is $151/year.
Illinois is creeping up there. Our general sales tax rate is 6.5 and then increases based on county and municipality. The R/E tax is fairly high in throughout the suburbs of Chicago and I'd be willing to guess our income taxes are about average to the rest of the country.
I would say New York, New Jersey, California, Pennsylvania all have sales taxes and property taxes fairly comparable to Texas and then of course they have their State income, local income tax, school district income tax, city income tax...am I missing anything?
Bob, I have to differ. I lived in Maryland for my first 18 years, Louisiana for 4 years (went to LSU) and have resided in Houston since. I love living in Texas and Louisiana. Low taxes, low prices, great real estate for low prices. Where do you think we are getting short changed in Texas?
Bob, you are talking about ONE week. And $10,000 electric bills? I don't know where you saw that. Probably an anomaly due to the winter storm. At least we don't have constant rolling blackouts like California and New York. I was without electric for 11 hours. That was the extent of my damage. I was lucky. But you are talking about a freak storm. Now if you want to talk about Hurricanes. That's a good reason not to live in Southeast Texas. But I lived in California during the 80's and I would take a hurricane anyday over earthquakes. Take care Bob. It was nice chatting with you.