jklcpa

Thanks, I stand corrected. I hardly ever see returns with EIC.

It's in the Accessories. From the Start Menu, click on All Programs and then Accessories.

The first part of your answer related to the older brother claiming the dependent exemption of the younger disabled boy. There is no requirement in the qualifying child tests that the person claiming the exemption that support must be provided at all. The requirement in the QC tests is that the dependent not provide more than 50% of his own support. The second part of your answer is that you think the older brother can't claim the EIC because he isn't providing the household for his brother. Providing the household and paying more than 1/2 of its costs is one of the rules for HOH status, not a requirement for the EIC. They only have to live together. What might knock the brother out of claiming the EIC is if he isn't yet age 25 himself, but we don't know that, only that they are both in their 20s.

No, it's not. OP stated that both boys are in their 20s, disabled boy is the younger of the two. At that age, being a student or not wouldn't matter. From OP saying "I would like brother to also be dependent of M&D, but I think he has to file on his own" leads me to believe that he is single. I'll take that at face value.

No, disabled son meets all the requirements to be a qualifying child his older brother, so disabled son can NOT be a qualifying relative on parent's return. The rule for qualifying child only states that the dependent not provide more than 1/2 his own support. Yes. OP didn't ask about older brother's filing status, so I'd assume no help is needed there, but you are correct. Older brother will file single (presumably single, OP didn't say), claim disabled younger brother as dependent and claim EIC. For this, please don't bring hypotheticals into the discussion at this point. Let's concentrate on the facts of the case as they were presented. Thanks.

John, the notes aren't within the program. The sticky note might be on top while the program is open, close the program and the note is still there on the desktop. When other programs are running, clicking the sticky note icon on the taskbar will toggle it to the top, clicking the icon again will hide it. Iirc, they remain on the desktop after shutdown and restart; the user must delete them.

Knew about this, never use them. If you right click on the note, you can change the color too.

Huh? That would depend (see what I did there) on which type of dependent exemption you are referring to.

A brother does meet the relationship test under the rules to be a qualifying child

I wanted to add that the Industry Specialization Program (ISP) published by the IRS does say that a website development should be capitalized as an asset and amortized (depreciated) over 3 years (exactly like software). That being said, I still think that it may depend somewhat on the actual business itself and the character of the expenditure in relation to that and the ultimate use of the website. In this case, the business isn't developing the website as a means of advertising and promoting its product or services, or a means of customer contact, the product itself is the video blog.

^^ YES! Note - new members are required to include their state; existing members would need to edit their profiles to have that appear below the avatar in posts.

No, the partnership continues to file using the same EIN because the entity wasn't terminated, it continues to exist as a legal entity. This was only a technical termination due to the amount of ownership interest that changed hands. The instructions from 1065 say that the proper reporting would be: On the final return involving the dad, check boxes G2 and G6 that indicate "final return" and "technical termination. On the subsequent return with the daughter-in-law as a partner, check boxes G1 and G6 that indicate "initial return" and "technical termination"

Mod Note: I started a new topic for a discussion of website development costs so that the question and its answers don't derail this topic. Thanks.

I quoted the post above from another discussion and started its own topic so not to derail the other one that started as uniform and clothing deduction. Hahn1040, in your client's case, because this is a new business with the end product actually being a video blog, I'd probably be inclined to say that the initial web development costs to get the site up and running are start-up costs. Thereafter, any additional costs of maintaining the site, hosting costs, internet access would be considered ordinary and necessary for your client's business and would be current deductions. The IRS doesn't provide clear guidance on website development costs because this type of expense can fall into different categories depending on the method and extend of work involved in creating the website, type of business it represents, and the status of the business. I did a quick Google search and came up with a handful of blogs or posts on larger CPA firm sites, all saying the same thing, actually word-for-word that were apparently copied from the same source with several having updated the stated deduction limits. Here is a link to one of those: http://www.duanemorris.com/alerts/alert3149.html . Obviously, you would have to substitute and use the current year limits instead of those mentioned in this article.

I didn't take it as a slight at all, and there are many times I also write my answers to address a wider audience than to only the one posing the question. I was simply trying to end the disagreement between you and MaxW over the voiding, which isn't part of my client's problem and which you never brought up. As for the moderator part, I'm not any more special here than any other tax preparer, but I do have more editing and monitoring functions at my disposal for the good of the forum.

Adding to what Joan said, it was also because there were over 700 prior complaints and McDs settled many of those for a few hundred dollars each and did nothing about the temperature of its coffee, and some of those people also had 3rd degree burns as well. McD's coffee was served at ~ 180-190F, and home brewed coffee is typically about 40 degrees lower than that. After the case, that McDs in Albuquerque lowered the temp of its coffee to around 158F. This wasn't just some burn that irritated the lips and mouth that people typically recover from fairly quickly and without complication. Third degree burns damage or destroy the entire layer of skin to its full depth and possibly that of underlying tissue. http://www.lectlaw.com/files/cur78.htm

Client got back to me late last week with the final pieces of other information so I haven't yet finished the returns. Bookkeeper that prepared the 1099s insists that the box was marked as corrected on the red filing copy for the 1099 reporting the lower of the two amounts. She provided us with the payer's copy that shows the box as being marked, but it was blank on the recipient copies. She would have marked it after taking the copies apart. Client and I don't really believe her. I guess they'll be waiting and hoping that they don't receive a notice.

No, because your client is a nonresident. https://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements and the FBAR reporting requirements are for "United States Persons" defined below:

On this IRS page for tax preparers re: identity theft, the third bullet point in the section "Did someone file a tax return or W-2 using your client’s SSN?" says: To inquire about specific client return information, you must have a power of attorney on file, and you must authenticate your identity with the IRS customer service representative.

Have your step-father call the identity theft phone number, 1-800-908-4490. I had my first ever id theft issue with a new client, and she called on a Saturday and got through in a short amount of time, was able to verify her identity over the telephone, and the agent confirmed that someone had tried to file a return with her SSN. In your father's case, the IRS system may have picked up on something on that 1040A that stopped the processing of the fraudulent return. They will still have to paper file, but hopefully this will not be that difficult to resolve.

The taxpayer must have a net profit from the business in order to take the SEHI deduction. The loss does knock it out and cause the reporting to be on Sch A. Sorry.

Yes, Lion nailed it. This is exactly why we shouldn't help the public with their questions. They sometimes ask questions that they are not informed enough to understand the question not to mention the answer. Also, often times they will not provide enough supporting information for us to begin to answer accurately.

I agree. You should have claimed the short gap exemption for the 2015 year. Then, those months are taken into account in 2016 so that the short gap exemption can't be claimed again for the spring period because the consecutive months of lack of coverage at that point in 2016 does exceed 2 months.

From the #s you provided, this couple's share of the premium they paid was $2349. That is from the annual premiums 15885 less the subsidy received of 13536. I think you are agreeing with that. Based on the information on the return, the PTC payback will be 163, meaning that effectively they will have paid $2512 toward the the premiums. That is the amount I am getting as a calculated amount for the SEHI for line 29 deduction. Odd return.

John, this was always a weakness of ATX, in my opinion. Other software products handle the out of state credits, but ATX required manual entries or overrides, and this was a new feature they dangled. Tax research is going away too. I remember using links back to the nonresident forms on those resident forms that required manual entries for the out of state credits so that if I later changed a number, that I wouldn't have errors in the credits, then I think there came a time when they got rid of the ability to use those links too. Each year they are charging more for less product. Remember, ATX also used to include the payroll that is now a separate module also.