Pacun

Let's keep it within our business. She has a 1099-R with code 1, which means that she has to pay Federal and State taxes in addition to the 10% penalty. That's all we need to know. How SHE defaulted to the loan is "Beyond the 1040". The ex didn't default, most likely, SHE was the one that got fired and didn't have the money to repay the loan. Remember she was the ONLY one that could request the loan, she is the ONLY one whose pay check was going to be reduced and she is the only one the IRS will go after if she is filing MFS. Most of the underlined is just my assumption but we don't need to dig because the 1099-R has better communication skills and its owner.

Thank you for the extra mile, I have both, K1s and Gain/Loss Report from Charles Schwab... and I have regular 1099-div and 1099-in. So out of the three sets of documents, I only have to report ONLY the 1099-div and 1099-Int and NOT the K-1 and Gain/Loss because both are IRAs. Correct?

Client rolled over IRA in 2017 and now it is on the stock market. I have the Gain/Loss Report from Charles Schwab with short term gains and long term gains. It is my understanding that IRAS don't have to report gains but at this point I need to double check.

Don't worry about that case. Take it out of your mind. We all make mistakes. EVERY SINGLE year we make mistakes. Just be nice to them and go the extra mile for them in the next few years and everybody will be happy. When I realize that I made a mistake one year, I make sure those clients are treated nicely and I double check their future returns to make sure I covered everything for them.

Margaret, You are a nice person. I wouldn't return any money if I am the one discovering the error, but I always amend for free if I made a mistake. So, you should amend their return for free.

I had two people that got their refund withheld until they went to the local office. They had to send the W-2 anyways, so it is not worth to efile... but you might be luckier.

My approach is not about rejections or letters.... it is about the rules of efiling. If the social security on the W-2 doesn't match the SS card, then you have to mail that return. For ITIN, no problema.

I completely forgot about cancellation of 1031. This makes things simpler. Thank you again.

Sorry, you are right, but all the time I thought he was a dependent. If parents don't want to claim him, he cannot claim himself and therefore the IEC is not in play. You are right, if he can claim himself (he provided more than 50% of his own support), then he will get EIC. The older will qualify for EIC even if parents supported him 99%. He is not a dependent at all. My previous answer concentrated on the second little child. Sorry.

Yes, they both qualify. The requirement is high deductible plan and in this case they are both in the same plan, so if one qualifies, the other qualifies.

A while ago, if we liked something posted, we would reply and write "I like it". This would cause posts with dozens of entries and few answers. Now we don't have to type but just to click. Have you donated lately, if not PLEASE donate while supplies last. Eric deserves a token of appreciation. On this post, please don't use the new features, but rather reply with a "I will donate now" or "I don't have much work so I won't be able to donate"

Client had a truck that cost $30,000. We have depreciated about $10K and he went to the dealer and exchanged it for a better, brand new truck that costs $60K. I have the old truck listed as "used" asset with a cost $30 and now it need to became a "New" truck with a cost of $60K minus $10K of depreciation taken. How do I do that in ATX?

There is another post about the same question and it was answered with graphics for people like you and me who spent a few minutes locating something on the first page.

Let's keep it within our business: We are suppose to be able to file the taxes for the capo if he escapes prison and walks to our doors and states that he made a few millions last year... CORRECT? We are supposed to file the taxes for the prostitute in the corner and I normally don't issue 1099 to her nor do I have her on my payroll, DO YOU? As state before, as long as they don't hit the sweet spot for EIC or as long as they don't want to make their return look better as requested by the realtor, I add their cash and I like those type of clients. Send them my way. (I am talking about this paragraph, not the two examples above)

I agree, if there is no W-2 or Schedule C on the return for either spouse, they shouldn't contribute to an IRA. Technically, you should ask them to take out those $1K and earnings before April 15 because they made a "not permitted transaction".

If little children are 28 and 30 and NOT disabled, EIC doesn't come to play. Yes, medicare might be an issue if parents claim the "child". As for ACA (if you decide to claim son on parent's), all you have to do is to check the box "all of the them had insurance" and don't worry where the insurance came from. If son made $1,500, claiming himself or NOT claiming himself will NOT change his refund (you mentioned he would get a bigger refund if he claims himself).

Paper file per instructions and you don't have to worry if they correct it or not. BUT ask your client to let the employer know that a correction is in order.

That's one more reason to use the "duplicate return" choice from the "file" pull down menu. By doing that, you leave the original filing intact. This is what you can do if having two returns causes you confusion: 1. Open the original return which is name John Smith. 2. Pull down the file menu and select amend return. This will create Copy 1 John Smith 3. close both returns and rename John Smith to "John Smith Original" and the other you can rename it "John Smith Amended" 4. Open the "John Smith Amended" return and make your changes. 5. Next Year roll John Smith Amended. Once you have in ATX2019, rename it to John Smith to avoid future confusion. I do rename after the roll over because I don't want to think that we have amended in future years. I know that some of you create a PDF of the original return, which is a good idea but I don't do that. The above instructions always work for me.

Witaxlady. Bulk sale seems to be easy. You open the first Asset and select Bulk sale, then you create a new entry. I called it SOLD ITEMS and you enter the selling price and 1245 and answer all the few questions. Then you move to the second asset (same type, 1245) and you click "bulk sale" then select SOLD ITEMS and a few question and you do that with every single item. Everything flows to 4797. This is the answer I got to my question which is very good for a sole proprietorship: "the sale is treated as the sale of the separate and identifiable assets of the business. As such, the $40K has to be designated to inventory and other items sold (if applicable). This allocation must match Form 8594, which is the Asset acquisition statement. The sale of inventory would be reported on Schedule C, assuming this is a sole proprietorship. Report the sale of the business assets on Form 4797"

ILLMAS... ask about vacation the parents took in 2018 and ask where the children were when one of them was on vacation. Whoever took vacation solo, will lose. Whoever took vacation with the noisy children will win. I thought you could not get a divorce unless one of them moved away, especially when there are minor children.

Yes, you can add both amounts on 8962. I did that a few years ago but I don't remember the details.

I would ask the student if they spent any money from their pocket to buy books or other stuff that can be added. Let's say that the student spent $200 in books, I would take only $3,800 for AOC and add $200 as book expense.

I always use it and I don't mind the duplicate. 99.99% of the time, it wouldn't matter which one is rolled over, at least on my practice.

I would ask them to sign the form, scan it, and email it to you. Then ask them to mail it to you. I would file with the scanned copy if that's my client from previous year(s).

Will the estate or if the person were alive owe any taxes to the IRS or the State?