Janitor Bob

I think I understand this, but please read through and see if you agree. Client is age 21. Did not live with his parents and received no support from them....he provided 100% of his own support. Has education expenses. Since cannot be claimed by parents, he can claim the educations credits...correct? Client's girlfriend, age 19, lived with client all of 2010. She also received no support from her parents. Girlfriend had zero income, but had education expenses. Client should claim her as a dependent and claim her education expenses as well....correct? Oh...and on top of this, they have a child and get EIC

This is only acceptable if your client is Gene Simmons

I staple everything....and I will continue to do so until they can convince me that they will not seperate pages and W-2s

I would keep his address as his permanent home address (not school address) for the full year. College is normally viewed as a temporary absence...not a change in address. retaining his home address, I would file the normal Fed and Ohio returns and possibly the locality. is his school address in a district that has an ohio school district tax? If the UnivHgts is a local/city tax, I would go ahead and file return with that city (again using his permanent home address) so they can see that locality taxes were properly withheld from his pay

I have added the 1310 and will have the son sign the 8879 and write "Executor" after his name. Will e-file and see if it goes through OK...I received no errors when I created

If the refund is going to the estate of the deceased, do I need to file a form 1310? The estate has a checking account where the refund will be deposited into. It seems like the executor (the son) could just sign the 8879 and this return could be e-filed like normal....correct?

previous client calls me up and tells me that she had no income in 2010 because she was laid off from her job in late 2009. Continues to tell me a sob story about how she is broke because she forgot to file for unemployment (how do you "forget" to file for unemployment?)and now it is too late to file for it. Anyway...She heard from a friend that she could get that earned income credit thingy and get a few thousand dollars. I told her that in order to get the EARNED INCOME credit, you needed to have earned income. "Well just because I did not get paid anything in 2010, does not mean I did not earn it. I'm working now...does that help". "Not until next year", I said. "I'm sorry, but if you had no income in 2010, I cannot do anything for you." "Well, I'm going to someone that can" "Good Luck with that." My patience with clients is wearing thin these days

I have only had this problem once....not sure why it happened on this SD-100 and not on others....the only thing I could do was delete the SD-100 and open a new one...then it was fine.

I have one too....mom passed away and son is the executor. Deceased mom will get small refund. Can these be filed electronically? Enter son's name as personal reepresentative on 1040 EFINFO?

It would be considered retirement income to the client. She would have had the option to send it dirctly into new or existing retirement account, but she took the cash disbursement .. The client found her 1099-R. Listing the full amount as taxable, but no penalty. Disbursements due to QDRO is exeption from the 10% penalty on early withdrawals.

Client received half or her ex-husband's retirement (Ohio Deferred Compensation) in divorce settlement and she received a check for $24,000.....according to the check stub, Federal and Ohio taxes were withheld. I cannot remember....will she receive a 1099-R?

Make sure that on the 8889 Statement Page 1, you enter the amount of the distribution that was used for medical. If it was all for medical, then none of it will be taxable.

For 12 years I have been a sole proprietor....no employees...just me preparing taxes. Every year, I see and hear of people forming LLCs. What would be the benefit to me? I know it is simple enough to do....It cost some, but not a lot and there would be some added forms. but would it be worth it? In what scenerio would being a LLC protect me? I do not own my home (I rent my home/office)or have a lot of assets to protect. Any wisdom is appreciated.

Added

Hey everybody! How much do you pay each year for E & O insurance and what is your limit per occurrence?

For protection I have my neighbor Irv...he tells me he is a third level master of the garden hose....I'm not sure what that means, but its nice to know he has my back The poll is a great idea...any idea how to make one?

New client....from his hand-writing on his box of stuff, I'd say his name is gorthop. He tells me he is going to file as "no longer married" needing clarification, I asked if he had been married and if he was now divorced. Gorthop said well, I aint seen no fancy lawyer, but ever since I pissed on the dog, I have been considered unmarried. I lost it I laughed so hard I shot diet coke from my nose. Gorthop said "Yep....I thought it was funny too, but Ma and the dog didn't....some folks just don't git what funny is."

Wow...I am learning a lot today! I was not aware you could "un-do" the conversion to Roth...I will let the client know. Danke

Stupid moment....I was thinking that 1/2 would go on the 2010 return (filed now) and 1/2 on the 2011 return (filed in 2012) Thanks to you, I now see that it will be 1/2 on the 2011 return (filed in 2012) and 1/2 on the 2012 return (filed in 2013). Gracias

Client converted 100% of his IRA ($45,000) to a Roth. Now (even with half claimed as income this year and hald next year, the client still owes over $7,000 to IRS...not to mention what he owes Ohio and School district.....and he will owe likely the same amount next year. Client swears that nobody at the bank explained that he would owe taxes on it now.....Just that if he converted to Roth, he would not be taxes when he withdrew from Roth later in life. In your experiences, is there any way to help this client (other than applying fore installment payment)? Client did not have any non-deductible contributions in prior years.

I wondered that myself...The only thing in box 12 (a) is what client put into his 401k...denoted with "D" I looked at his returns from prior years and his W-2s did not have the "V", but has always had the "K" in box 14

I received my annual renewal notice for my E & O insurance through Norman-Spencer. I currently pay $185.00/year for a police that covers $10,000/occurrence, $20,000 aggregate, Disciplinary Proceedings I would like to lower my cost and/or increase my coverage. How does this compare to what you folks have? Can you give me name, phone number, web site of your insurance company? Thanks,

It is definately box 14

EXACTLY what I was thinking Jack!

All Taxable...no Fed or Ohio withholding....Client also lives in an area with a school tax.....so he owes additiona $1,900 to Ohio and $700 to school