JJStephens

Right. It's not an age limitation but an 'other insurance coverage' (which is what Medicare is) that is the limiting factor. As I posted elsewhere, a taxpayer who does not sign up for MC at age 65 can continue participating in an HSA but needs to stop making HSA contributions at least 6 months before later signing up for MC because MC coverage is made retroactive for 6 months (or to age 65, whichever is later). I guess I must be a 'little old lady' magnet--seems like I have several of these (and a couple of them aren't ladies and a couple aren't old). I have about 6-8 clients who call me as many times each tax season as everyone else put together.

Client tells me she had an HSA from which she took several distributions to pay for med expenses. I told her I need Form 1099SA. Her plan provider tells her they don't issue 1099SAs--that all the info she needs is on her W2 (at 77 she's still working)! I told her we had to have a 1099SA. So she downloaded a blank from the IRS web site and sent that to me. She said she thought all I needed was a copy of one to fill out! This is one of my clients who calls me at least 10-12 times every tax season and then wants me to stay on the phone while she runs a few totals on her adding machine or she reads to me every word of a letter she received from a retirement plan provider (including the address header!)--just to make sure I understand what they're dong with her account. Arrgghhh!!!!!! I know I should fire her but she's a little old lady with no one else to help. I just can't quite bring myself to do it.

That's exactly what I say!!!

Is it just me or do the days seem to be getting shorter?!?!? I've noticed this phenomenon every April. Seems like the closer we get to the 15th the shorter the days become.

Wow! Let me jump on the bandwagon. Happy, happy birthday! Hope it's a blessed one!

Twice this year something that someone shared as a sad tale of client inanity happened to me for the first time ever within 24 hours of reading the post. Hope this one isn't #3!! People continue to amaze me . . . alas, not always in a positive way!! I still want to tear out my hair when I hear, "Oh, just put me down for the standard charitable deduction."

Tired of being tired.

The earnings on the excess are subject to penalty only if they are left in and become part of the subsequent year's excess.

She just called to tell me that she was mistaken. She's a non-resident alien here on a J (student) visa. Now I know what to do.

Just had a call that has me scratching my head. Hopefully, someone will be able to help. Caller is a resident alien. During 2012 she did a student internship with a business in the US, earning $7300. The payer was a university in China. They told her they considered her an independent contractor. My dilemma is how to treat that income. The amount is under the filing threshold for a single person but do we need to file anyway because that income must be treated as self-employment income? I know student income is treated differently but without looking up the regs I don't recall the specifics.

My phone is ringing off the hook . . . is it too late? Too late for 4/15? Yes!!! For an extension . . . can do. The only thing I can think of is that April 15 must have come earlier this year than it normally does

I'm fascinated by both sides of the debate (both here and on the larger stage) . . . but my guess is that no one's mind has changed. It kind of reminds of the 'does God exist?' debate. The bottom line is that both sides must either believe or doubt by the same thing: faith.

The excess contribution is subject to penalty (using Form 5329) for each year it remains in the plan. The excess contribution can be withdrawn or applied to a subsequent year, provided the taxpayer has not already contributed the maximum amount for that year. The earnings on the excess can also be withdrawn or applied--however that amount is taxable in the year constructively received (if it is included in the new contribution, it effectively becomes a wash).

The personal return I was working on simultaneously (to the Form 1120S--not 1065 as I previously stated) had just one omission--but I had to re-check every figure in the return just to be sure. I checked my preferences--still set to auto-save every five minutes (I have it set low because I don't want to take any chances). I opened and closed both returns a couple times this morning just to make sure they stayed intact. So far, so good.

Alas, I agree with John. There have been other issues in recent years with no filing deadline relief. With extending so easy--and with the guvment so revenue hungry (every late filing penalty helps!)--I don't see them doing something that makes sense.

Arrgghhhh! Eyes popped wide open at 4:17am. I'm beginning to feel it right about now. Staying up and watching the game last night didn't help either!

Same thing happened to me a couple days ago. It finally got through the whole thing. That was annoying. This is alarming. I opened a 1065 this AM that I had completed yesterday pending receipt of one item. When I opened it today, most of the entries I previously made were gone. I'm reasonably sure I saved it prior to exiting yesterday. I guess I've been fortunate that I haven't experienced the troubles many others have. Other than slow opening and printing, I've been reasonably satisfied (after the disaster I experience last year with TRX, I'd probably be giddy with a pencil and paper forms!). 12.13 did speed things up but I've also seen a couple disconcerting things like this. I hope that was a one-time situation and not the opening salvo of a major bombardment of problems.

Client turned 65 last year but is still working so she declined Medicare coverage. Since she was not covered by Medicare, she continued contributing to her HSA throughout 2012. On March 1, 2013 she chose to register for Medicare. At that time she was informed that her Medicare coverage was placed in force retroactively for 6 months (no option to decline the 6 month retro provision). (That was a new one for me: if a person does not enroll in Medicare at full retirement age, subsequent enrollment is back-dated to the full retirement age date or 6 months, whichever is less. That is a real 'gotcha' for folks making HSA contributions after they reach full retirement age--they need to stop making those contributions 6 months before they register with Medicare). Problem is, my client did make several HSA contributions after the retroactive effective date (Sept 1, 2012). So as to avoid an excess contributions penalty, I advised her to contact the HSA plan administrator before April 15 and request a refund of the excess contributions as well as the earnings on those contributions (and told her the earnings withdrawal would be taxable on her 2013 return). When she called the plan administrator (a large regional bank) they told her they don't do excess contribution/earnings refunds and suggested she just write herself a check on her HSA account for the excess amount and to estimate what she thinks the excess earnings would be (based on a rate of 0.5% APR). The bank CSR confirmed with her supervisor that was the bank's policy and refused to do anything else. I suggested she call the bank again and speak with an attorney or other senior manager in the HSA dept. She tried but was told (by a different CSR) that none were available and that the advice they previously gave her was their policy and would not be reconsidered. I told her to document the entire dialogue (names/dates/details) and to ask the bank for written confirmation that they would code her check as an excess contribution withdrawal (rather than as a standard withdrawal) and would report it as such. Apart from firing the bank, any additional ideas how to proceed?

A few of my parishioners seemed to think so!

Someone recently asked for my bio for a brochure they're doing. Here's what I sent (I wish the pic would have copied in--I used a photo of Millard Filmore): Jerry S is a world renowned chess master (to even the odds, he often plays with one arm tied behind his back!) and also was the first to ever scale Mt Neverest while blindfolded and with one hand tied behind his back. At the tender age of three he pioneered the one-handed method of playing violin (he plays the Minute Waltz in 53 seconds flat!). You’ve heard of the 1976 war between the US and Andorra? Of course not! Jerry single handedly averted it through a masterful combination of shrewd diplomacy and shameless pandering to special interest groups on both sides. He declined consideration for the Noble Peas Prize due to his distaste for legumes. As you have no doubt deduced, Jerry is an accomplished fabricationist and is also adept at abject obfuscation. He is a 98th degree holder in the mythic Order of Fahrenheit. He denies having introduced John to Yoko, but admits to playing a minor role in the demise of the Beatles by having failed to purchase the White Album. He was the first to envision the charismatic Amish movement now sweeping the region. He speaks, reads and writes ESL fluently. In his spare time he enjoys hosting outdoor ping-pong tournaments at hurricane parties and dabbling in neurological microsurgery. Fabulously wealthy by the age of sixteen, Jerry gave it all to charity and is now relegated to taking part-time jobs and volunteering at church food pantries (mainly to scarf leftovers at the free food centers). Jerry is married to the extraordinary Jeanie S. At last count they had five children and fourteen grandchildren, each of whom has accomplished exploits that far outshine Jerry’s. If you don’t believe it, just ask him. He’ll talk about his grandkids all day! If there’s anything else you need to know just call 555-1212 . . . ask for Jerry.

In addition to having sleep apnea, I have a condition called lucid dreaming. While I'm asleep I'm often consciously thinking. I've figured out several tax issues while asleep, I've done entire sermon outlines in my sleep. I was once having trouble setting up a computer network. Worked on it for three days. In my sleep I figured it out, woke myself up and in 30 minutes had it running. That little 'gift' comes in handy at times . . . but most of the time it's a royal pain! Sure doesn't make for very restful sleep.

Just installed the latest update. Seems to be quicker--though opening a return could be quicker. Printing was much quicker--that was my biggest peeve in previous versions. Acks were lightning fast. Saw some good comments on the other official board. Anyone else used it yet?

As I understand it, debt forgiven in a bankruptcy is not subject to tax. It does, however, reduce certain other tax 'attributes' like NOLs, AMT credits, the property's basis, etc. There is a strict order in which the cancellation is used to offset these attributes (see Form 982). The cancellation of mortgage debt does not always equate with foreclosure on the house. Sometimes the foreclosure occurs inside the bankruptcy but often it occurs later. Although the client would not have to pay tax on the debt cancellation, (s)he may have a taxable event when the house is foreclosed on.

Definitely NOT cottage Depends on what it's with. Asiago on some things, aged cheddar on others. Swiss on a ham sammy. Durn, now you made me hungry! Time for a snack break.

It's been a weird tax season. The first half of February was busier than I've had in years. Then late Feb & the first three weeks of March were kind of mild--I was starting to get a little worried! It finally started picking up again in late March. I average about 20 extensions--looks like I'll be just a couple above that range this year. This is the first tax season in four years that I haven't been dealing with my wife's serious illness (still sick, just not nearly as bad) so that has been a relief. I did leave the church last year that I had pastored for several years (partly to be able to tend to her) so that has also helped in terms of time I can devote to tax prep and the rest of my church/ministry consulting gig.