Pacun

If client used the standard deduction for 2007, 2008. He itemized for 2009 because he bought a house and paid points (Total Schedule A was 40K in itemized deductions). He comes to you and said that the State didn't refund him for 2007 and 2008 in time. In 2010 he got the refunds for 2007, 2008, and 2009. Will you include all those amounts in as taxable income in 2010 return?

If you are married with no dependents living with you, you have ONLY two choices MFJ or MFS. (that was a period). If you are not the preparer for the husband (on the second case), you don't have to worry how he filed. File as MFS and maybe she should itemize. "And really creates a burden on people like this client who cannot force her husband to divorce her.". She can get a divorce without forcing him. You are married until you get divorced in front of a judge, your marriage is annulled or your spouse dies. Time has nothing to do in this situation.

If filing jointly on global income, you can file 1040 without asking him for his visa type. If he choses to be treated as NR, you will need to know his visa and file maybe 1040NR as MFS for both.

Did employer pay a portion of the premiums? Were premiums paid pre tax or after tax?

Who is the issuer of the W-2? Do taxpayers have a social security number? What kind of visa do they have? How many days/months were they in the United States? What did they do in order to get paid?

How about if the client wants to pay all taxes in 2010 tax year? I have entered amounts on 1099-R line 1 and 2. On form 8806, line 2 and 7 are populated by ATX. If I check to top of form 8806 to state that I want to pay everything in 2010, do I need to do anything else?

HH overrides the itemized deductions requirement, in fact, there is no overriding since there is no such a requirement for HH by definition.

I wonder why this short answer to a legit question. Rfassett gave you a good answer. Keep in mind that the way the economy has been acting in the past 3 years, I don't think the IRS will challenge many businesses for not having a profit for the last 3 years in a row.

I paper filed 1040NR for J1 Visa holder who lived in Virgina the whole 2010. Previous preparer filed a 763 (VA non-resident) form. I believe that's wrong because he was non-resident for the US but a resident for VA. Forget about VA and tell me what would you do if you have a J1 visa holder who lived in your state for the whole 2010 and you filed 1040NR. Thanks.

Interesting. You could open an IRA for him before June 15th since that's their due date excluding extension.

Why don't you file jointly and request an ITIN for the husband? Keep in mind that Cambodia's per capita income is somewhere around 3K dollars per year, which is well under Nicaragua's and Honduras' (just a reference point). It might not hurt to ask how much the husband made last year and report his global income on a joint return. Credits available are: Making the work credit Extra Standard Deduction Extra personal Exemption Lower tax bracket. Husband will have an ITIN and then you can e-file MFS next year. If done earlier than March, You could able to open an IRA for him too for the years you file jointly.

The correct way is MFS and paper file it with a letter explaining the situation.

Is her taxable income high? Is her tax liability higher if filing MFS vs single? If not, I don't see a problem with single since MFS it will cause more headakes to you, to the client and to the IRS (you will have to paper file).

Nice info. For the east cost, do you know what time I should be looking up? (I mean to the east)

If the sale was added to his salary, use whatever was added to his salary as the basis.

Excellent question. Any qualifying relative living with the wife? Does she support her parents? When did she get married? You can file MFJ and request an ITIN for him but keep in mind the global income rule for both.

Go with Pro. Pro is for Pros. Home is for home users.

March 17, 2011 IRS Sends 200,000 Balance Due Notices by Mistake Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts. These notices were not to be processed in the middle of tax season, and instead should have been processed after the database had been updated to account for direct debit payments. The IRS has stated that if a taxpayer consequently pays twice using direct debit and check, the IRS will automatically issue a refund for any overpayment. It is important to note that not all taxpayers have received a Notice CP-14 in error. If the bank account listed on the tax return was listed incorrectly, a taxpayer would receive this notice. The IRS has posted Notice CP-14 FAQs.

March 17, 2011 IRS Sends 200,000 Balance Due Notices by Mistake Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts. These notices were not to be processed in the middle of tax season, and instead should have been processed after the database had been updated to account for direct debit payments. The IRS has stated that if a taxpayer consequently pays twice using direct debit and check, the IRS will automatically issue a refund for any overpayment. It is important to note that not all taxpayers have received a Notice CP-14 in error. If the bank account listed on the tax return was listed incorrectly, a taxpayer would receive this notice. The IRS has posted Notice CP-14 FAQs.

Is there a rollover code somewhere? You can change beneficiaries OR you can take out the money from one child to pay for college for another child who is your dependent.

It is deductible. You can deduct it from her restaurant allowance.

Let him call the IRS. If the efile was accepted, there is nothing you can do.

I had BK number 2 for lunch today. It was good.

I saw that another preparer put lunch expenses on form 2106. The taxpayer was a food runner and when I said "all restaurants I know provide free food for employees". Taxpayer replied "Yes, but I don't like their food". I asked him, "How many restaurants do you go to provide your services?". He said, "the company only has one restaurant, so I only work in one place". I said "Even if your employer didn't provide lunch for you, your lunch expenses are not deductible". I calculated his return using the standard deduction, told him the results and I handed his W-2 and wished him good luck.

I am pretty sure that Elfling was mentioning real estate taxes and interest so that we would understand that FMV of rent was on the parents side which in a lot of places inclines the scale to one side.