Pacun

Correct, visit to mother doesn't change the fact that she lived in OH because it was not the big Sidney.

Reece Jr. Thank you for your call. The pdf you emailed is great. Thank you again.

As long as the bank takes the direct deposit, there is no problem. If the bank refuses, the IRS issues a check next Friday automatically. The client orders you, "I want my money to be deposited to this account" and signs. As long as that account is not yours, there is not a problem. Most of the time, people bring a piece of paper with routing number and account number and I enter that information and end of the conversation. Remember that it is their refund and they can do whatever they want with it.

I thought estate meant "whatever was yours at the time of death". My only property I have is a bike and that's my estate if I die tonight. "there was no estate" seems to be the wrong answer. The gross estate of an individual includes the fair market value of all property owned at the date of death, whether or not in actual possession of the decedent. This includes any accrued interest in property or income owed to the decedent at death, as well as any loans due the decedent. The gross estate is defined broadly to include the following items as well:  Life insurance proceeds if the policy is (1) payable to the estate or (2) the decedent had significant incidents of ownership at death (i.e., a power to change the beneficiary, a power to borrow against the policy, etc.).  Life insurance proceeds (full face value) of a policy that the taxpayer transferred to another person within three years of death.  Any property transferred within three years of death in which the taxpayer had a reversionary interest.  Gift taxes paid on any gifts made by the decedent within three years of death.  Any property that the decedent had a general power of appointment over.  One half of jointly-owned property with a spouse, including community property.  Value of jointly-held property with a non-spouse (as reduced by the percentage of total cost contributed by the non-spouse co-owner).  Accrued interest and declared dividends (even though not received

I agree with Jainen... two jobs in a row went bad for him. He also did a bad job securing a good insurance for his dangerous job.

You have a lot of time for tax planning. The distribution paper will be issued in 2011. Ask him to put whatever his is willing to repay on an IRA and he will mitigate the taxes he will be paying next year.

Go below line 7 on the 1099-misc input screen and dump it to line 7 on 1040 or Sch C.

That late 1099-misc should make his day after he was beaten in court. Make sure you make it for the 7K since she should have issued him a 1099-misc for 3K.

I always say this... a little event can change your life for ever. If he did a good job for the lady, maybe he would be OK and working. Back to your question... I think Legal Fees are "professional fees" and the $7K is "returns and allowances" if there were no punitive damages.

Nice info. Thank you for sharing.

How much did you know when you prepared your first 1040? How about when you prepared your first Schedule C, D, E? Don't worry, just take your time. He has a personal exemption and he paid you to prepare his taxes last year, which is an itemized deduction item. He should get a refund.

File it. The IRS is expecting that return. If you feel sorry for him, charge him half of his refund. The IRS will be OK with it in this case.

How about this: Who is the husband working for in Japan? Is a US Company or Japanese all the way? Since the United States and Japan have a tax treaty, husband needs to file a return in Japan and take a credit of taxes paid in Japan on his 1040. (Just a thought). Now the question comes, do you have a choice when to deduct $92,900 if you lived the whole year abroad and when to use form 1116? Do tax treaties have something to do with this? It seems you are dealing correctly with the rental property since that's what the treaty reads.

He is not a green card holder anymore. Yes, there are many benefits of being a green card holder but he is not.

Marco, Print it and give it to your client to read. http://taxprof.typepad.com/taxprof_blog/2011/04/former-tv-anchor-.html

You ONLY need to file Fed Sch C and D-40 (you know what do to with Fed). Do not file in MD nor devide the income. If he doesn't have a couple of employees, DO NOT file D-30 and discard it before efiling. For VA, DC and MD we have a reciprocity agreement and individuals (self employed too) pay taxes on the state where they live. If taxes were withheld on the other states, we file a non-resident form and request all money. If he moved between this states within the year, we allocate the monies and file part year returns.

Now, let me add a twist to this. Do you know that the police pants are regular, blue, dress pants? The same is tru for most restaurants, they buy the shirts with logos and they wear black pants, what do you deduct for those restaurant workers?

If single owner of a C corporation, has a W-2 showing: Box 1 100,000 Box 2 (fed Withheld) 5000 Box 4 and 6 combined 7650 box 17 (State withheld) 2000 Imagine that this is the only info you have, based on this information, how much could the company deduct as "Compensation to Officers" on Form 1120?

"Doesn't seem to fit the "not suitable for street wear" description." Sun Taxman You seem too conservative with this one.

Notary Public income is reported on line 21 with a notation. I believe the program is correctly rejecting the return.

If parents have other dependents, check the social security number on their 2010 return. ATX keeps the old social security number on many instances. Ask him to call 1-800-tax1040 and report identity theft. Call first thing Monday (maybe IRS has not sent the refund to the other filer). Paper file his return or follow the advice from the IRS about filing.

KC posted the latest IRS position on this forum (about 2 months ago).

No, the person still here and will be here for the next couple of years. I thought I was going to file 1040NR for 2010 and 1040 for 2011. (I made a correction to the correction).

"The advisor told them to make sure they extended their 2010 return, so that if the value of the converted Roth's decreases you can take advantage of that" I don't understand that and would like someone to explain it if possible. Check their tax liability for 2010. If it is around $4K, you should apply the refund to 2011 and it should cover the penalty. Since the rollover already happended, there is nothing you can do now.

Pull out your crystal ball and choose between paying all taxes in 2010 OR splitting it between 2011 and 2012.