For a given tax year, if a taxpayer is not required to pay alternative minimum tax (AMT) but did pay AMT in a previous year, they may be able to claim a minimum tax credit against their current year taxes. This credit may be both refundable and nonrefundable, that is,…

For overview information about the Schedule K-1 (Form 1065) please click here. To enter a K-1 (Form 1065) in Keystone Tax Solutions from the Main Menu of the Tax Return (Form 1040) select: Federal Section Income Menu Other Income K-1 Earnings – Select ‘Begin’ next to Schedule K-1 (Form 1065)….

The District of Columbia First-Time Homebuyer Credit was available to residents of D.C. who purchased a main home from 1997 to 2011, subject to certain qualifications. The credit expired for homes purchased after 2011, however taxpayers still carrying forward any unused credit may claim it on Form 8859. To access…

Qualified tax credit bonds are bonds issued under IRC Section 54A. The holder of the bond is generally allowed an annual income tax credit instead of receiving periodic interest payments, and the nonrefundable credit functions as interest paid on the bond. The bonds that qualify for the credit have been…

Form 1099-Q is provided to a taxpayer who received a distribution from a qualified tuition program (a 529 plan) or a Coverdell Educational Savings Account, or when funds are transferred between accounts. The form is provided to the taxpayer by the plan administrator or bank, and the information is also…

Qualified electric vehicle passive activity credits that are allowed for the current tax year are calculated on Form 8582-CR, Passive Activity Credit Limitations (for individuals, estates, and trusts). The credit allowed for the current year is entered on the first line of this form. To access the Qualified Electric Vehicle…

Form 5695 is used to calculate the nonrefundable credit for residential energy efficient property. For tax years 2006 through 2017 it was also used to calculate the nonbusiness energy property credit. This latter credit has expired. Not all energy-efficient improvements qualify for the credit. The manufacturer’s tax credit certification statement…

Distribution Due to Death of Plan Participant When an individual taxpayer inherits a traditional IRA from anyone other than their spouse, the taxpayer cannot treat the inherited IRA in the same manner as they can treat an IRA that they own otherwise. Moreover, an IRA which is inherited is subject…

To enter a Schedule K-1 (Form 1041) in Keystone Tax Solutions ProWeb, from the Main Menu of the Tax Return (Form 1040) select: Federal Section Income Menu Other Income K-1 Earnings Begin next to Schedule K-1 (Form 1041). The Form 1041 K-1 Edit Screen has two sections;  Part I –…

Form 1099-Misc is used to report any miscellaneous income to a taxpayer that would not be included on a Form W-2.  This income can be for services, rents, royalties, prizes, etc.  Generally, any amounts in box 3 of the Form 1099-Misc can be reported as Other Income on Form 1040,…