Pacun

Am I correct assuming that you are reliquinshing the server, and client setup? If I am understanding correctly, you want to have two different computers, (without communicating to each other) and run ATX on both computers. If that's the case, do not touch the server which is working properly. Don't fix the server in the middle of tax season, PLEASE.

If you have removed ATX, rebooted the computer, then reinstalled, you have covered your basics. I just checked my XP registry and there is no easy way to completely remove ATX from the registry. I was hoping ATX was like all other programs when it comes to the registry but I am sorry, I cannot help. I would removed the program, then delete the atx2009 folder from c:\program files and then reboot. Then I would reinstall. For testing, I would create a new account and then test it when I am log on as the new user. I would log on as the admin to the local box, back up your data and delete your profile. Then I would log in as you and move your data back. If you don't feel confortable with what I have said, don't do it. If that doesn't work, you might need to call tech support.

If only one parent worked, brother is not going to have more income than the working parent. How does this work on the community states where the non working parent will get half of the income?

The best weather men are here in the Washington Area where salaries are better. lol. They predicted correctly this weekend.

If the bank issued 1099-A, you have to deal with it. You can file sch D.

I read it was that you don't have to file if you made less than $1,000 AND you claim 1 exemption on your federal tax. In this case the student is claimed on the parents return, so he must file.

I am not from Indiana but I prepared a sample form. It seems that you cannot efile non resident filing. He is required to file IN and since he didn't pay any state taxes where he lives (since he made little money), he doesn't get any credits (that's the only credit I saw that he could qualified). Also, his tax will be no more than $34 and he already paid $19, so it might not be worth it a time consuming research for such a small amount.

Open Schedule A form and open the very last bunny and uncheck Ln 40a.

It seems that ATX doesn't have a safeguard for mistakes made LN 4 Calc Alloc Credit worksheet. If you Go to LN 4 Calc Alloc Credit worksheet and enter the cost of the house on line 1 and you enter $8,000.00 on line 5, the 8K will flow to the 1040. If the IRS rules say that you can allocate between spouses in a fair way, your client deserves the $8K and going to that worksheet will be the answer.

Save yourself a nice headake. File MFS and get TP 4K. Then file MFJ and let the IRS keep the other 4K (plus $400 of work credit) to cover the debt. Next year you continue doing what you have done in the past. "Even so, one question I still have is: if her name is nowhere to be found on the paperwork, can she even apply for the other $4000 of the credit ? When the HUD statement is attached and mailed in, her name won't be on it." You will send a copy of the marriage certificate and a nice letter explaining the situation.

Married couple purchased a home in 2009. They qualify for the credit. The house cost $70,000.00 (contract sales price) and with other charges (surveys, pest inspection, title insurance, attorney fees, appraisal fees, inspection fees, settlement fees and $3,000 mortgage insurance) the cost becomes $81,000. What amount should I use as the purchase price for this house? For a house that costs $160,000 (contract sales price), do you think the IRS would like you to include other costs or they will be happy with $160,000?

Because you never mentioned that you could file jointly. File jointly and end of conversation, then. AND they will get extra 400 for the making work credit.

That's the answer to your question. Since your client is filing MFS, the credit for this tax payer will be the smaller of $4,000 or 10% of the cost of the house. No way the credit will be bigger than $4,000. Wait for the divorce and claim the 8K next year when TP files single.

The way I see it is that the taxpayer will only qualify for 1/3 of the 8K. Parents will sign the HUD-1 and the IRS will get a signed copy of it, correct?

Can I conclude that it would be reasonable for the TP to therefore claim the full $8000 credit ? Or am I missing something ?

Go to LN 4 Calc Alloc Credit worksheet and take out the entry on line 1. If you discarded the form and made only 4 entries on the new form, you should be OK.

Please make that their visas were active at the time they were working. If they violated the visa rules, they didn't have a visa anymory and they must pay taxes.

By Denise Lavoie, AP Legal Affairs Writer BOSTON — The U.S. Tax Court ruled Tuesday that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation, a decision that could have broad implications for transgender people. Rhiannon O'Donnabhain (oh-DON'-oh-vin), who was born a man, sued the IRS after the agency rejected a $5,000 deduction for approximately $25,000 in medical expenses associated with the sex-change surgery. The IRS said the surgery was cosmetic and not medically necessary. In its decision Tuesday, the tax court said the IRS position was "at best a superficial characterization of the circumstances" that is "thoroughly rebutted by the medical evidence." The legal group Gay & Lesbian Advocates & Defenders, which represented O'Donnabhain, said the ruling could potentially affect thousands of people a year in the U.S. who undergo similar operations. "I think what the court is saying is that surgery and hormone therapy for transgender people to alleviate the stress associated with gender identity disorder is legitimate medical care," said Jennifer Levi, a GLAD attorney. IRS spokeswoman Michelle Eldridge declined to comment on the ruling. In a 2007 interview with The Associated Press, O'Donnabhain said she underwent sex-reassignment surgery at age 57, after a tormented existence as a father, husband, Coast Guardsman and construction worker. She wrote off the $25,000 in medical expenses on her taxes, but the IRS disallowed the deduction, ruling that the procedure was not a medical necessity. O'Donnabhain, now 65, said she brought the lawsuit in an attempt to force the IRS to treat sex-change surgeries the same as appendectomies, heart surgeries and other deductible medical procedures. "It is not OK for them to do this to me or anyone like me," she said. O'Donnabhain's lawyers argued that because gender-identity disorder is a recognized mental disorder that is generally treated with hormones and surgery, the costs are legitimate medical deductions. The tax court agreed.

I checked 2006 and you should be good for all years for which a refund can be requested.

You should be OK with the big EIC amount. You should amend at once since your time to claim the extra money is running out.

Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0002 If no check is enclosed.

If I am not mistaken, these are new rules. In 2006, a brother could not qualify you for EIC.

Since they have the forms already signed for the years to come, the father should be OK claiming the child every other year. Mother qualifies for EIC every year if otherwise qualifies because the child lives with her. HOH is another ball game. She can claim HOH if she supports the child more than 50%, which could perfectly happen every year. Father would not qualify for HOH ever in this situation, unles he has another dependent. Pretty much the same thing that KC said.

Since it is a rental property, debt forgiveness will not be cancelled because he was insolvent. He will have debt forgiveness to report and a business loss.

Notary public fees go straight to line 21 with a notation.