Terry D EA

I looked at mine again. This return was rejected due to no total income. The decedent and spouse had SS only so there is no total income so I guess the only option here is to paper file. I told the TP this needed to be done to report to the IRS that her husband was deceased and therefore the IRS would not be looking for any tax returns in his name. First year they went on total SS as well.NC accepted the return but Federal did not which is weird as well.

I have this same issue with the TP who died and didn't remember ever having to paper file because a spouse or TP died. So, is this a change or a OneDesk issue and I am using OneDesk.

Thanks Judy, I guess in the grand scheme of things, the loss reduces the income to zero and it is the remaining loss that carries either back or forward. Last year we carried a loss back to 2011 and used it all up because it was small. This year it is different and now with some rest, it is easier to understand the logic behind it.

Yes they do have to cash it in. I have had personal experience with this. Medicaid does require the surrender of life insurance policies. Any amount that is in excess of the basis of the policy will be taxable but in your original post the owner of the policy is not clear. This is not a death benefit payout. The surrender value is the amount paid for the policy plus any interest earned minus fees for surrendering the policy. Medicaid wants the patient virtually broke and they cannot have more that 1500.00 in any kind of asset. When it comes to medicaid, anything of value is to be sold or liquidated down to 1500.00. If the family chooses to put funds at the nursing home for hair cuts; etc that amount is part of the 1500.00. Whose name is the 1099R in? Code 7 is a normal distribution from an IRS, annuity etc. Some of this information seems unclear

I gotta stick with KC and Lion on this one. Also the clients should request to amend and they don't have to if they choose not to. However, it is the right thing and I like the idea of documenting this and having them sign that you advised them to amend the returns.

Isn't the wording "enrolled at least half time"?

JB you are correct as Jack states and follow his direction on this.

I have a client who is a used car dealer with an LLC taxed as a disregarded entity on Sch C. This was setup by another CPA which I have no problem with. This year they are showing a significant loss of 150K. This loss completely depletes any income on 1040. Is the total amount allowable? I have calculated a NOL but am stuck with my thinking that the loss should be limited to income. Should the entire amount of the loss show on the 1040? Tired and can't think straight. Looked at the instructions for Sch C and couldn't find anything. Yes, all investment is at risk to no at risk loss limitation and this is not farming losses so no rules there either.

Thanks Judy, I have gotten used to input driven programs and not forms driven. Back when I left ATX, I did have some difficulty with switching but now not so much. I think I will try it after season. I learned TaxSlayer Pro on the fly in 2012 with the TRX issues and don't want to do that again.

As I understand it, the amount not spent on education is the amount to report on line 21. If any of those funds were used for tuition and fees then that amount is deducted from the total with the remaining amount on line 21.

Good question. I can't get return phone calls from Dan either. So, maybe something is up. No ads or quest to renew for next year either.

Glad Dan talked to you. I have left three messages within the last two weeks and no return phone calls. Still can't do the MFS/MFJ right and yes it is a joke. What do yo think about sending the election statement in with the 8453?

Did the employer add the tuition in their wages not subject to FICA taxes? Were the amounts listed in box 14 of the W-2 or somewhere that validates the amount paid for tuition? I agree the taxability of the funds received is handled as a scholarship but I would like to know how it was reported before I determine what to do with it.

I would think the best thing to do is to get a money order. With cash, there is absolutley no proof of anything. The cost of the money order is somewhat of an insurance policy.

The only part of this that maybe taxable is the amount received on the cash payout that exceeds basis. If the children are the policy owners and they cash it in, then any amount over basis would be taxable to them. I know medicaid rules are crappy at best but are the kids possibly beneficiaries and not the policy owners? If the parents are the policy owners then this would be a taxable event to them.

I will have to contact OneDesk tomorrow. I can't find anything on the De minimis rule, statements or anything relating to it. I plan on checking out Drake again this year in the off season. I have found too many areas where OneDesk falls short including some areas where calculations are not accurate such as the MFS/MFJ comparison for filers who claim intemized deductions. Also, the program incorrectly calculates estimated taxes adn gives no options of overriding. Yes, I have checked and double check all other calculations that are used in the returns I prepare. They do not have a good fixed asset manager but at least it is accurate. Judy how much of a learning curve am I facing with Drake? I've used several different softwares over the years.

I have filed some NC 2013 returns and have gotten acceptances on them as well.

Does anyone know how to make this election in OneDesk? I know we have to create a statement and attach it to the return. How do we do this electronically?

How is your software handling this election? Are you attaching the statement to the return indicating the De minimis election is being made? Does it electronically file with the return? The only way I can see to do this with OneDesk is attach the election statement to the 8453 form for individuals who have rental property and my rental partnerships as well.

I will be interested to see what others say here. I have one of these coming in tomorrow. Mine will have PA, Del and NC.

Not complaining at all but it does seem like this year is busier than normal and clients are later than normal. Every time I think I am gaining of the pile, more comes in. Some of these will not get completed and one I am picking up tomorrow will hit the extension list. Nothing like rfassett but still steady for me.

I agree but the other problem is those who won't report a life changing event that affects the PTC.

No one said the wife was a dependent. "For most people, a household consists of the tax filers and their tax dependents." In the original post the wife would be filing her own return which makes her a filer in the above statement and therefore her income is figured in household income.

I'm not so sure I agree. Jack didn't say anything in the original post about the TP citizenship. You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return

Love the goat scream. Can't stop laughing