Pacun

You are correct, I don't want to do that and that's why I politely ask "How many nights did your child slept under your roof?" if the number is at least 183 for regular years and 184 for leap years, I would tell that parent, yes, you can claim it. Since I want to cover all angles, I should ask "how many nights did your ex slept under your roof and how many night was your child present. As you will understand the last question, while unlikely, is a game changer. Let's say that the child slept 200 nights at the custodial parent's, but the custodial parent ALSO slept 100 nights with the ex and child (all three under the same roof), and the child slept 165 days on the non-custodial parent (just the two of them under the same roof), then the NON-custodial parent will call the shots.

It is simple, before the IRS, the parent where the child sleeps more than half of the year calls the shots. If that parent wants to claim that child every single year, he can and no one can overturn that for that particular year. The other parent (who was defeated in court and doesn't want to go back to it) has the only choice to go and beg the judge to hold the other parent in content or to change the custody and give primary custody of the child. As you know, this will take effect in future years AND not the years passed. Having 8332 has no meaning. I believe that form was created when the rules for dependency were different and now it is only used to balance the dinner table. So if a custody parent comes to me and says... it is not the year where I should claim my child but I want to do it anyways. I would tell her/him, "sure... how many nights did the child slept at your home" and if the number is 183 on regular years or 184 on leap years... that's ALL I need. Keep in mind that I CANNOT and SHOULD NOT give legal advice and say something like "well, let me see the divorce decree?" After reading it and interpreting it (to which I don't have competence), I will say something like "You can be held in content for not following a court order"... I AM NOT a lawyer.

Any one?

Are they high school drop out?

A high school drop out can be 40 years old, quit his job, move with his parents, pass the GED, start his bachelors degree and parents can get AOC.

Auto repair was sold for $40K. What they were selling was the equipment they had and possible some good will from their few clients. I have about 4 machines and about 6 other equipment being depreciated and they will be sold at a profit. I have been checking the bulk sale tab and I was hoping that I would have the 10 items listed and I would just say "I sold these 10 items for $40K" and the sale was going to be reported to 4797 and Sch D, but I think I have to list one by one. Any guidance will be appreciated.

Before I send this return, I want to double check. As of right now, I cannot deduct Mortgage insurance on schedule A, correct?

Full dressed, I charge X, without shirt, I charge 2X and naked, I would charge XXX.

Forget about age, look at income. YES to all your doubts. (Dependent, AOC on parents' return).

If they are not unincorporated, then they are incorporated and they need to file D-20. So, they are unincorporated. The question is: Do they have to file form D-30? Maybe not. As a solo Tax Preparer, I don't file that return even If I made $50K. I think I will have to file it if I have employees. I file several D30s for people that rent their houses or basements as long as they make more than $12K a year. Remember that this is before depreciation and expenses. Most people end up with negative numbers and they pay the minimum required by the return, which is $250 The fact that you have a huge refund on one and a huge bill on the other, means that they are linked. If I make $100,000 and I have $10 in withholding for DC, if $80,000 of my salary goes to D30, then my D40 will have only $20K in income and I will get back almost the whole amount of withholding but the business form will have a huge bill. After I have determined that this person doesn't have to file D30, I delete everything related to D-30 and everything is transferred back to form D40.

all of you who have problems for more than 30 minutes or a few hours after rebooting, you need to do one or both: 1.- Use your machine as a working tool not something that you use for facebook or for watching cool and funny videos. 2.- Buy a new computer with a decent amount of memory.

No name matching... only make sure the numbers are correct. Have you ever deposited refunds on someone else's account? My client gave me his cousin's account one year and the following year he said... everything is the same and signed. He was checking his account and the IRS never deposited his refund. About 2 months later he called, I check and told him the account and he went to his cousin to get the dinero. My brother was dating a girl one year and he deposited his refund on her account. Next year he said, "my bank account is the same". He was not dating that girl anymore. Same thing, he was checking his account and the IRS never deposited. I told him and he had to call his ex girlfriend and collected his money.

I guess I am getting your clients. lol.

Agreed. I wonder how other software companies are doing it. If it is a command from the IRS, I like it. I can see that most dependents will make a mistake when preparing their taxes even when careful.

Send them to HRB and sleep well. I wouldn't do that return because one of the spouses was claimed wrongly.

Good to know and good planning tool. So, each December 31st buy a Mercedes, gift it to the student under 24, register it under his name, use the unified credit and you can claim him.

Student got 4K scholarship to cover his tuition at a local university. 1098-T form reads: Scholarship $4K, Amount paid $4K, amount billed $4k. Student has 0 income. Parents make 60K and they support the student. Support for the student totaled $30K, which was paid fully by parents. Parents qualify to claim student as a dependent and they want to get AOC. You must make the scholarship taxable in order to claim AOC. On what return do you make it taxable? Keep in mind that the scholarship was given to the smart student and not to the "smart" parents.

Which return are you doing? It is clear that this arrangement is for the benefit of the employer so if you are preparing the return for an employee, I would just ignore it. Now if you are preparing the return for the employer, you do need to research it.

Sounds funny but what was the intent? So, I am a student and for my birth day, I get a car. That's not support, that's a gift. To make it more interesting, once it is clear it is a gift, I can use the car for transportation and that will count of my contribution to my support. Let me add another twist, you cannot use $4,500 for this year but rather they have to use the depreciation portion for that year. Better yet, ask for the logs and use the mileage.

Based of the information and the status of your client, nothing might be deductible. Most married people paying interest on 200K, don't make it even close to use Sch A. So with the new rules, he will deduct the interest on the 75K which might not qualify him to use any of it. For the state it might help.

Age is not considered when checking for HOH. He qualifies for HOH on the info you provided.

Most likely the client will get the refund requested since the numbers are not the same. You don't have a choice but to pay the older taxes before the new ones. Blame it on the statue of limitations.

If taxable or if you want to make it taxable, then AOC is in order.

Whoever changed the title on this post... THANK YOU. Very helpful!!!!

I meant to say this and I forgot. Thank you Lion. DO NOT prepare the two returns and see who gets more benefit. START by determining who can claim the "exemption" for the student. If the rightly owner of the "exemption" doesn't not claim it, NO ONE can claim the "exemption" of the student and REMEMBER that the refundable credit follows the "Exemption". I was hoping Lion was going to say if a student with living parents, single 19 years old, who provided more than 50% towards his own support qualified for the refundable portion. My clients (sorry to say... latinos like me), seem to qualify for the refundable credit as long as they provide more than 50% towards their own support.