Margaret CPA in OH

orioncarrier, I directed you there because your original post, in paragraph two, stated that you were accustomed to hand entering a reduction amount and referenced the numerator and denominator which would adjust the final figures. I've never had to do anything like that but was assuming that you knew what the outcome should be but not quite how to get there. If those adjusting fields cannot provide what you believe is correct, I honestly have no clue how else to get there. Perhaps try some figures and see what happens. You are correct that the average support person doesn't understand much at all. Sometimes, alas, even the the higher levels and programmers don't either so the burden is on us to know what the outcome should be and not rely 100% on the software - much as we would like to. Perhaps the most expensive software will jump through all the hoops for us but I doubt it. I think annually or so, some organizations presents a set of data for various tax firms and software to determine the correct result and rarely do they all agree. Do your best, sorry I couldn't be of more help.

I'm thinking browser, too. I have not had success with Firefox which is my default browser so have link on my desktop to E-services connecting through IE. That is the only time I use IE and I never use Edge or Chrome - well, almost never unless forced to do so.

I just checked a client's vouchers and both 1 and 2 show July 15, 2020. Maybe delete and reload the form?

So glad you found this helpful. I see you are from/in NY. I may call upon you for assistance should my one NY client return. This a such a great group.

All interesting discussion here. I wonder if OP will respond with more facts or any additional information. We are quite good at offering possible solutions to a sparsely described situation. I will be very interested in the whole story and correct tax treatment, if any. Always ready to learn more!

The Ohio school district return. SD100, is part of the Ohio state return, if applicable. If the state return is e-filed, the SD-100 goes with it. RITA is a pain. ATX charges extra to e-file, I think you have to purchase Ohio cities package to do that. I have 3-4 clients who have to file RITA returns. I print them out to mail. One client has hers prepared at the local office in her town for free - I encourage that. I am quite surprised that your federal letter says the SD-100 and the local returns are e-filed. I've never seen that in a federal letter for, lo, these many years. I wonder how that came about. Are you using ATX?

Have you entered this on the Input sheet for 1116? It looks as if there is a place to make the adjustment you need. (t) and (u) have lines for General Limitation adjustment to numerator and denominator. With the input sheet it appears that you have the ability to customize both for each item that you are listing. IF I understand the issue....

Christian, the housing allowance is excluded from income tax only (unless the documented expenses are less than that amount). The allowance is included in the SE calculation unless the minister is retired. IRS 1402(a)(8); Treas. Reg. 1.1402(a)-11(a); Flowers v. Commissioner, T.C. Memo. 1991-542. As mentioned in my earlier response, "Actual expenses can be supplies, maintenance, telephone, cable, etc." That would be on line 4d. So 4a would be the allowance, say, $5000. Probably 4b is blank but you have to ask. 4d. would be as mentioned and could add up to a fair amount. 4e is pretty clear but know what all the utilities are. It's quite likely that 4f then could be $6000+. Sometimes the utilities alone could be as much as the allowance. And often the FRV of the home is much higher than either the HA or the expenses. As Lion said then see that the lowest amount is the HA making none of it taxable for INCOME purposes. If the amount is higher than the others, the excess must be included on line 1 with wages. Click on that link and you will see Non W-2 Wages, Salaries, Tips, etc. line 16 Clergy excess allowance. This has happened to my clergy clients just once. It's hard for me to imagine an NOL without a Sch. C and I don't think any unreimburse employee expenses could ever by offset by the housing allowance which is just that - for housing. It may be that the prior preparer was trying to save the unreimbursed expense deduction when 2106 went away.

Church & Clergy Tax Guide is by Richard R. Hammar, J.D., LL.M., CPA with Church Law & Tax.

ATX does, indeed, have a proper worksheet to use for clergy called 1040 Clergy. It is pretty good, I think, and puts the right numbers in the right places. Schedule C is used when the clergy person has additional income from being a guest minister, is paid separately for officiating at weddings or funerals or other income sources not part of the salary from the church. Only those expenses related to that income are typically used to offset the income (mileage, other transportation, etc.). Typically mileage directly related to the performance of regular duties is reimbursed by the church as are other professional expenses - books, conferences approved by the governing body, etc. As ministers usually exempt themselves from SS and MC, they are subject to SE tax on the salary, any Sch. C net income, and the housing allowance. Only the housing allowance is not subject to income tax - unless there is excess. That is the minister must provide proof that the housing allowance was used in total for housing. In the case of your client, FRV means Fair Rental Value. A local realtor should be able to provide that by comparing a house of the comparable size and amenities to the market. Your client should also provide the total of the actual expenses and utilities. Actual expenses can be supplies, maintenance, telephone, cable, etc. This should exceed the housing allowance. If not, and the fair rental value does not, the excess is taxable income. I'm a long time subscriber to Church & Clergy Tax Guide, have had several clergy clients, and was church treasurer for many years. I won't say I know it all but do have resources available should you have questions. There are also a few others on this forum with a wealth of experience in this area.

Thanks, Lloyd Hudson, for clarification. I just know that I used Parsons for 1996 and moved on to Saber/ATX after that. At least I think so. In my old QB files I see Parsons Productivity software in 1999 and ATX 5 PPR in 2000 then Saber in July 2000. At $353 I'm guessing it was a renewal but in January 2001 I upgraded to MAX for $277. My descriptions of 'software' were less than complete back then - well, still are.

I use Backblaze.

Yes, my Personal Tax Edge software for tax year 1996 is from Parsons Technology. That was the first year on my own and affordable. Yes, it was bought by ATX which is why I switched and have been with ATX since through the succession chain of owners. It's the program I know best and with just a couple more years to go, the one I will stick with.

Oh, I stay informed by many means and agree that newspapers (I never watch news) are a bit behind in reporting but they do provide more in depth reporting and good local reporting. I am also aware of lots of electronic games but my eyes are not so great on those screens. So you keep doing you and I will keep doing my crossword puzzles in the paper and folding over the headlines by my coffee cup. Also, the paper has no glare and I can read it indoors or outdoors. It's so good to have options and I appreciate mine.

And I am a diehard newspaper fan as is my husband. I read enough stuff on a screen and do read e-books but news I like at the table with my breakfast and linger with coffee. Even though I already know most of it, the paper just feels right to me as does the crossword puzzle. I do have a Kindle Fire and love it for all the books I can carry on trips and read in bed. I can also watch lots of videos while on the treadmill. But I need my newspaper!

Lynn, I had one of those a couple of months ago but not for that far back. It turns out it was to e-file a prior year return but I did not receive an invoice or a notice that it was due originally. The person answering had to figure it out. I'm not one to constantly check my payment status as I don't do that much that costs extra and honestly did not recall that a py return costs $5. Just don't let $5 ruin your credit rating. Who knows to what lengths WK will go to get that money. I would call and complain but pay it if owed. YMMV

Ah, JRS, you beat me by 4 years but I was 46 then and had been a molecular biologist so second career for me. The Parsons I used was already on the compute (I still have the cd, think its worth anything?) , I never had to use carbon paper. Sorry for you, friend!

The program from Maine, depending on the year, could well have been Saber, the predecessor of ATX. Did it have a roar from the saber when it opened? Made me smile every time.

Before starting my own practice, I used CCH in the late 80's, early 90's. I began with the fill in sheets which had to be sent to a processor but my boss then had us hand prepare returns too to be sure of the amounts and results. Then CCH online. My first program for my business was the 1996 Parson's Personal Tax Edge costing, I think, $69. They either closed up shop or were bought out and I've been with ATX ever since, MAX most years. I haven't had nearly the issues that some experienced, especially in 2012, so have never felt the urge to change. With just a couple more years to go, I plan to stick with them.

The solution Max mentioned about a written forgiveness of the loan and converting to a contribution is what I have used with clients years ago. There were, I think, one or two small principal repayments but the balance was then forgiven. The church issued an acknowledgement at that time as the gift was as of the date the loan was forgiven.

Loved that roar! Still miss it...

Abby, I did this deletion exercise. It was a bit scary and some years seemed to be in different places. Alas, it didn't free up that much space but when I spoke about the YIKES! 95% full issue, he got in and removed a bunch of stuff, primarily the 'old' folder. He always puts nearly everything from my previous computer into this folder for a while in case I might need something. And this has saved my bacon more than once. But after several months, unless things are funky, it can go. And, of course, every upgrade (he's built my last 5 or 6 computers) has a substantial drive size increase. Anyway I now have 94 GB free. Thanks for yanking my chain!

I think this may be just what you need: https://www.webcaster4.com/Webcast/Page/1148/34796 Tax Obligations of U.S. Individuals Living and Working Abroad. A key phrase is 'worldwide income'. This webinar will cover the following: 2 hours free CPE!  Specify the U.S. income tax obligations of U.S. citizens and resident aliens abroad.  List the requirements for claiming the foreign earned income exclusion.  Summarize the U.S. employment tax obligations of U.S. citizens and resident aliens abroad.  Plus a live Q & A

Would this be helpful? https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Great, Max, and thanks. Knowing that 56 can be mailed with 8453 is a relief. Will do and breathe easier. Somehow it seems after more than 20 years of this, learning new (to me) things is still possible!