Pacun

You don't have to benefit from the debt to be responsible once you signed the loan documents. What the 1099-C reads is that you were responsible for a debt and that the bank forgave that debt because it was easier to let you go vs trying to collect their money. I am surprise the bank didn't go after the co-signer since he/she is solvent and if I were your client, I wouldn't call the bank to re-open the case. You must be insolvent in order to use the 982 shield, so your client most likely is liable for the tax.

As soon as the tax payer got a better paying job, he should have informed the exchange and let them know that he was out of range and therefor he didn't need any help paying full price. He has to return some or all the money that was sent to the insurance company by the exchange. I just had a client who was paying $800 through his employer, he went to the exchange and now he is paying $600 and the exchange another $600. He is married and files jointly and they make about $60K. I think they don't qualify for the exchange but they claim they took their taxes (they always make $60K) and they told them that the exchange was going to help them with $600 every month. She has $40K on a 401k and she separated from service. They want that money now and even with the $60K in W-2 they would have to return the money and now we are talking about $100K.

Your cousin is NOT a related party. Your cousin is nothing more than your friend.

I just had the same experience. It is not the ATX program... it is the dumb user (in my case) who assumed that by entering the zip code the program was going to enter both city and state. It has been only a few years that we have the convenience of enter only the zip code on Tax payer's address and the program correctly type the city and state. How easy we get used to convenience?

I think you will to use Sch D but before that need to enter the basis of the property. Don't forget to include 1/3 of the land that was not depreciated.

Check the address on 1040, maybe you have an error there. I don't check for errors, I create efiles and that takes care of any errors. If 1040 address is correct, I would take out the educational forms and see if you get an error. You said that the dependents are of the right age, the only age requirement is, I would say, 8 years old and maybe 70 years of age to qualify for the credits. "An 11-year-old California boy donned a cap and gown on Wednesday — to receive a college degree. Tanishq Abraham is the youngest person to graduate from American..."

0031-17023607-0000000228- is the control number and this is the verification number 9cef-7f57-2a9b-631b

It is a hex number and this is one that I have changed three digits for other three digits 377A-1E2F-B5E4-4768 AND 9cef-7f57-2a9b-631b

Who is your client? A friend of the child, a cousin of the child, an aunt of the child, a sister of the child, etc. I am going to assume your client is the mother of the child, she can file as single and qualify for EIC provided the child didn't provide more than 50% of his own support. If the mother provided more than 50% of the child's support, not only does she qualify for EIC, but she also qualifies for head as house hold. As Jack said, the above is correct even if she is not claiming the exemption for the child.

Double amend will become more popular since now the IRS is not accepting a second 1040 before the end of the tax season.

If you are not a preparer, you need to sit down with one and explain your situation.

Will the tax payer have any benefits when that number is issued? The IRS will only issue number when there is a tax need to obtain one.

It is a hard question but if you want to be safe, I would ask the person to contribute only 10K.

"($85000) which were taxed on PA returns when put into IRA". If he was taxed when money was put into IRA, then he will pay taxes only on the interest earned, correct?

When I paper file a part year return, this is what I include: 1.- Part year return for that state with all information forms needed by the IRS, which includes but not limited to W-2, 1099 forms, etc 2.- Part year return for the other state 3.- A full copy of the Federal return. Just for the record, I have not filed paper returns for part year for a few years since I send everything electronically whenever possible.

You will need to use depreciation 40 years straight line.

I have not checked but I wonder when will DC be ready to accept efiles?

You don't qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. 1. You were: a. Under age 18 at the end of 2017, or b. Age 18 at the end of 2017 and your earned in-come (defined below) was less than one-half of your support (defined below), or c. Over age 18 and under age 24 at the end of 2017 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). 2. At least one of your parents was alive at the end of 2017. 3. You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2017. END QUOTE

Take the deduction as insurance. I wonder if with the new ceiling on mortgage interest on the personal level starting with tax year 2018, people will have 50% of their homes as home offices. I normally don't like to take home office deduction because of the regular and exclusive use rule but some people will benefit if they hit the mortgage ceiling.

I guess this post is only for CA preparers since I don't have any of these issues.

Education credits follow the exemption (at least until 2017). There is no room for negotiation when it comes to the exemption so no need to compare who will get the most benefit.

I am preparing returns based on the current laws so I am efiling and telling them that as of today, there is not credit for mortgage insurance. I do have one that I might hold it because he pays a lot on mortgage insurance but when the time comes, I will just file with or without that credit.

Without researching, it is my understanding that if there is a gain bigger that the depreciation allowed or allowable, the whole depreciation is taxed as ordinary income, which is consistent with the benefit received when the depreciation was allowed or allowable.

I have been entering that data when available. It means that I actually saw the W-2 and I didn't e-file with the last paycheck stub. Are you sure it is an algorithm or simply the payroll companies add that hex number and then they transmit it to the IRS? I have the feeling that soon it will be mandatory that we enter that information. Maybe it has something to do with the fact that without a reason, IRS employees cannot search for SS numbers but they could easily search for that number.

I like the first solution.... don't click on any survey.