Margaret CPA in OH

Yes, the instructions state, on page 7, to complete Part III to figure the taxable part, IF ANY (my emphasis), of your 2009 Roth IRA distributions. There is more but you have to put in the basis to prevent taxation on the distribution. I had 2 this year that would have brought up the 5329 except for the input of the basis on the 8606. Someone else may elaborate and/or correct me, but it works.

Per Quickfinders, If paid by self-employed person, the premiums (subject to the age limits) are eligible for the self-employed health insurance deduction. up to 40-$320, 41-50-$600; 51-60-$1190; 61-70-$3180; 71+-$3980.

Ahh, reasonable, how refreshing! Would that all tax law and regulations were reasonable, eh?

This is an interesting situation. If the credit is split, would that also require that the purchase price be split according to some formula? If so, wouldn't the applicable credit possibly be limited by the accompanying cost? Maybe the cost is high enough to accommodate without an issue but how would the cost be allocated? By contributions towards downpayment, relative income, other? Just curious... And I hope I never see another one of these. Bad experience from the first one...

I switched to TRX with ATX and have experienced no problems whatsoever with support, such as it has become since CCH takeover. My account number and MyATX access stayed the same. Except for the mailing I received to renew, I have had zero contact with TRX. Chances are pretty good I will return to ATX but we'll see the cost for MAX.

I can't explain why that happened but you can highlight each column (see the downward pointing arrow) and drag it to wherever you want it to go.

I have a handful of W-2 folks with side businesses. Often they are reimbursed some expenses, say a plane fare to give a lecture. When the reimbursement is included in the 1099, it is absolutely proper to list the expense which generated. I wish the 1099 issuers would distinguish between reimbursed expenses and fees for service but it is the responsibility of the recipient to claim the expense. Feel good about this!

Since I went with TRX this year, I wonder if ATX will offer me anything. I wouldn't expect an early renewal offer since I would technically not be renewing, at least from this year, but a nice offer to come back home, Little Sheba, would be appropriate, I think! We shall see...

I got a call last week but couldn't talk then. Yesterday a flyer arrived. I'm thinking about it more seriously after reading these comments. I will also ask for a demo before committing. I hate to lose $299 if I can't work well with it but I also hate to spend $1000 unnecessarily. Change is not my favorite thing.

Thanks, KC, for your usual clarification. I don't always write all that goes through my mind. I was actually thinking of Line 21, but I think your suggestion to link to Line 7 is the better option. Still learning... Edward, I am sorry that I didn't specify Line 21 which is what I was thinking. In this case, you are stating that this individual did not engage in this as a trade or business and I think KC's clarification was on target.

I think - always dangerous - that it is correct in Box 7. There are some people who actually make a modest income by being guinea pigs, if you will, for scientific and medical research, not unlike those who give blood for money on a regular basis. You definition states 'prizes and awards...' not compensation. I think this is compensation not a prize or award.

I'm there - just tell me when and where. This has been one of the worst!

Jainen, I just noticed that you are now a Guru! We've known it all along but I just noticed. Congratulations even though it must have happened a day or so ago.

I agree with you, Jainen, regarding the need to "properly file her 2009 return". I think it will be a real challenge to get the proper figures without having the prior year figures carried forward for balance sheet purposes, at least.

Congratulations on the pending wedding! My only child, my son, got married last May. It was such a very big deal in our lives and so exciting. It cost more than I could imagine but was well worth it in time, energy and money. And we don't miss it now, for sure. They bought a house 3.7 miles from here so I get the granddog about every other week and am so anxious to have grandchildren if and when. Keep us up to date with the plans. At least I am interested! And good luck!

:bday: and many more!

Thanks, Jack, for following up. I no longer have any nonresidents that have to file so wasn't sure about the current situation. I do know some other states do not allow, yet, part year residents or nonresidents to efile.

Thanks! I printed it out and it goes on my wall of funnies - prominently. The next time someone even hints, well, you know. By the way, my part timer had her daughter enlarge and print out that dependent defined flow chart from tax-charts.com. If you think the 8 1/2 x 11 is confusing, the enlarged 30 x 30 version boggles the mind. I'm looking for a great place to hang it.

I assume that you are talking about the IRA/Roth worksheet. Does it show the maximum amount that can be contributed on the Contributions tab? Form 8606 is only for Nondeductible Contributions (Part I), Conversions (Part II) and Distributions (Part III). If the contribution was nondeductible, there would be no change on the 1040. If deductible, the worksheet will show the amount allowed.

Ohio does not have a signature form for efiling. In the past, nonresidents were unable to efile but I don't see that in the current year instructions. I hope it works for your client!

Gail is correct, according to Church and Clergy Tax Guide. In fact, I don't believe the housing allowance is ever included in the W-2 wages, rather is an item in Box 14 although not always listed.

:bday: and many more!

:bday: and many more!

This is very interesting, indeed. I just wonder how "the funds would be made available ... without restriction" when the check was not even prepared until January. Would the client have been able to appear at the office and demand the cash in December? Scratching head here...

:bday: and many more!