Gail in Virginia

I needed to know as well, so I called the NC Dept of Revenue and asked. They told me that it did not need to be added back, nor could I find anywhere in the instructions where it told me to add it back. So I am agreeing with JohnH - don't adjust for the 2400 not taxed on federal.

:bday:

And yet, I saw a commercial just last night advising people to contact their Realtor for advice on whether they qualify for this credit. I may start running a commercial telling people to contact their tax adviser about whether they should invest in real estate.

I think the rule of thumb I remember reading is that if the school qualifies for federal financial aid (such as Pell grants, etc.) then the tuition and fees qualify for the education credit.

Only if the modeling school is an accredited institution, eligible for federal aid. Or, of course, if the daughter is now making lots of money she might be able to take this as a business expense against her self-employment income as a model.

Unless they are receiving a federal or state pension and did not receive social security so that they are entitled to the $250 credit through Sch M. This should be a very limited number of taxpayers.

If they are benefits received from the union because he is unemployed, they are included on line 21. Unless he contributed to a special union fund and the payments to the fund were not deductible, in which case the benefits received may be offset by his contributions and only the amount over that is taxable.

On the previous forum, someone posted this worksheet for truckers to help capture expenses. I wish I could remember who so I could give them credit. I hope that I am correctly posting this, and that you will find it useful. Truck Driver Occupational Expenses.xls

In 2005, according to PUB 17 for that year, the rate was $41 until 9/30/09, when it became $52 for the rest of the year for transportation workers. (p. 169, Pub 17 for use in preparing returns for 2005, from IRS website.) http://www.irs.gov/pub/irs-prior/p17--2005.pdf

That rate is a special per diem for transportation workers that does not require you to specify the cities. It is less than the rate for some cities, but you cannot pick and choose. If you use the standard rate, it has to be for the entire year NOT just when it is to your benefit.

You might try importing your .csv file into a spreadsheet in excel just to see if it works the way a csv file is supposed to.

Beginning 10/06 through 10/08 it was $52 according to the chart in NCPE's tax update book. I know the amount is listed in Pub 17 under the meals expense section of Travel Expenses deductible. I don't have it immediately available for the earlier years, but if you have trouble finding it let me know and I will look harder.

The driver is referring to a per diem amount for his expenses for meals and incidentals. For the transportation industry, inside the continental US, it was $52 per day from 10/08 through 9/09, and effective 10/09 it becomes $59.

:bday:

There should be some interest expense for the corporation and income for the shareholder, whether imputed or stated.

And many times the filing requirement is based on gross income, not net. If you have the information, why ask for extra headaches down the road?

Congratulations! An example we can all aspire to! :spaz:

:bday:

You remember rightly - he is too late on 2005 for refund, but it is never too late for them to collect if he owes.

I am preparing 1099's and w-2's for a corporation (not an S-corp.) One shareholder bought out the other shareholder's interest during the year. A publicly traded stock would report this on a 1099-B for the sale of the stock. This is not a publicly traded corporation. Is any reporting required by the corporation regarding the sale of the stock?

I haven't done one this year, but it isn't really any different than e-filing personal returns. I think the signature form is 8879-P, and I believe you do have to be signed up with the IRS for filing business returns. Other than that, everything is the same.

:bday:

Woo-Hoo! I know you are proud of her!

While a full power of attorney, as long as it specifically grants the power to sign tax returns, would be preferred, the form 2848 can be used in limited circumstances. One of those circumstances is if you are out of the country for a period of at least 60 days. Specific language has to be added to the 2848 if it is being used for this purpose. The instructions for the form are very clear about the circumstances under which it can be used, and the language that has to be included.

Regardless of the "level" of preparation you are at, there will always be details that somehow slip through the cracks and are forgotten. Too many aspects of the code are changed too frequently, or phased in, or just changed very late in the year, making it hard to always have every aspect foremost in your mind. I find myself that I sometimes lose sight of these details, and I don't mind being reminded of them. That is one reason I read every post to this board if at all possible.