MAMalody

I am unable to find an example on point. In reference to premature distributions from a qualified retirement plan to pay for unreimbursed medical expenses. I understand the distribution from a qualified retirement plan to pay for unreimbursed medical expenses TO THE EXTENT they exceed 7.5%, regardless of whether or not the participant itemizes deductions. The questions is, taxpayer has $10,000 in unreimbursed qualified medical expenses. The 7.5% is around $4,000. If a premature distribution of $5,000 is taken, is it fully exempt from the penalty? Does the date of the distribution play any part in the determination or is the distribution applied first regardless of when the expenses are incurred or paid? I must have looked too fast because this cannot be an unusual situation, even though I have never seen it.

In reference to tax books, I do like Hammer as an all-around book. I also try to augment that by denominational specific books. I have found that Hammer and Busby seem to write the ones I have come across. There are some questions I ask every pastor: (1) Are you commissioned, licensed or ordained? (2) Do you have an approved Form 4361? (3) Does your church have an IRS approved written accountable reimbursement policy? (4) Do you have a housing allowance? and (5) Was it designated before it was paid to you? There are obviously more questions to ask, however, since I am called to use due diligence and not audit the return (except for EIC) I generally take the pastor's word for the answers. If they are not clear on the answers, then I pursue that are more vigorously. In reference to documentation for the housing allowance, it is not required to be reported on any current IRS form, therefore, you simply need to use some discretion. I have asked for documentation from the church based on the dollar amount and whether this is a returning client, etc. I have never had a probelm getting any information that I needed. I have found that the pastors I have dealt with only want to have their return done correctly and to receive the tax benefits they are entitled to.

I agree with Dave T, kcjenkins and Chadlonetree that these are professional expenses. Unlike chadlonetree, I work exclusively with clergy. Now, don't get the wrong idea, I don't know all there is to know about clergy taxes....but I have, also, dealt with this issue for a number of years. Lynnjacobs, sorry, however, I do not know of a tax guide devoted exclusively to Jewish clergy taxes.

12.8.214.4

I wonder when we will be able to do estimates. I have always done them with the return and given them to the client with the return.

Jeez. I just sent Jack a personal message to see if he could help out. He helped me with another problem 3 or 4 years ago.

Is anybody having any trouble importing returns. When I have a return sent from a different computer via e-mail attachment I am not able to import it.. I get a message that says the file is corrupted. Have tried it a couple of times. Same message.

Thanks. I'll give it a try.

Windows 7

For a minister who is subject to social security and medicare tax earned income includes wages, value of parsonage and/or parsonage allowance, and Schedule C net honorariiums. less adjustment for one half of self-employment tax (form 1040, line 7). I am not sure why your have that error coming up. Not enough info for me to figure out. So far all my clergy W-2s have come through okay (all I do is clergy returns).

I have tried two .pdf printers to no avial. One I used last year with ATX, the other is the ATX provided printer this year. They both will not generate files without some letter distortion and separation. What am I missing?

Harold, how are you doing, guy.? It is good to hear from you. I will have to tell Kaye. Oh, yes, thanks for setting me straight (along with the others). Jainen, I guess I just found another way to date myself. Thanks for the input.

I don't usually deal with this item (last time was 12 years ago), however, I have a disposition of a rental property in 2012. Depreciation and rental began at conversion from a personal residence in 2008. I seem to recall that you don't take the depreciation in the year of dispostion, however, I can't put my finger on that. Do I remember correctly? Can somebody give me a quick answer and maybe a source so I don't have to ask next time this comes up? Sorry to ask such a basic question, however, my mind (such as it is) seems to be stuck. Please advise.

My issue was a form I developed that helped me do the work, in detail, for the clergy worksheets. I could link the worksheet I did to the clergy worksheets and it made my life a lot easier. Now I will have to do the worksheet on the outside and then transfer the answer. Not a killer in itself, however, when I could put the worksheet in the program and adjustments to the worksheet would automatically flow to the worksheets and tax return. Oh, well. I will just have to deal with the reality of where we are.

I must be doing something wrong, however, I am unable to add a custom form as I have done in past years. I also must be researching wrong, because I cannot find the directions. I have not checked the video tip section, however, does anybody know where to find how to add a custom form?

It is interesting to note the above response did not indicate getting hold of JJ or a refund was forthcoming.

I transferred my office to paperless and don't worry about it.

This reminds me of the bedroom I paint one four year period. It had four walls and I paiinted one wall each year. Hey, I got it done didn't I? My New Years resolution is to not paint anymore bedrooms...its just takes too long.

Cool. Careful, I understand there is some resistance to overt missionary work.

Hey, what are you doing in India? Checking up on tech support:>)

Most churches very simply issue a W-2 to their pastor at the end of the year. Although, not required, most tend to put the housing allowance in box 14 of the W-2. Your ATX software is designed to handle it in this box. The church puts the cash salary in box 1 of the W-2. Generally boxes 2-6 are left blank.

The US Government accepts donations all the time. I have a client, who a couple of years ago, was told by the IRS he did not have to pay a certain tax because the statue had expired. He paid it anyway as a donatiion and the government freely accepted it. If Buffet wants to make a donation to the government, they would accept it.

Tom, I believe this is sometimes referred to as a uterine cancer. KC, you are in my prayers. Keep us posted on how to most effectively pray for you.

If the OP situation was in effect when I operated from my home, I would not have produced or cooperated with them in any way. If the IRS wanted to reveiw what I did, let them. I did have one IRS office review about 15 years ago. I think it was for e-file purposes, but don't really remember, and it was during fiing season. They sampled 10 returns, tried to indicate that I was under Cir 230 rules when, at the time, I was not. They finally figured this out. The took a list of returns I had prepared, left and that was the last I heard.

AOL: Version 9.6 Revision 4340.168