Gail in Virginia

Well Done, Kea!

IMO, Roth is definitely the way to go since the contribution will be non-deductible. But if they insist on using a traditional IRA account for non-tax reasons, remember that the 8606 is required not just this year, but every year from now on to track the basis that they have in the traditional IRA.

Way to go, J-Ron! I am sure the compliance will be no problem for you.

I have tried that too, Randall, but invariably that turns out to be a mistake because this is the year the person who has always filed a short form turns out to have a mess. But sooner or later we manage to wade through it all! :spaz:

Good to "see" you again, and we completely understand why you can't be with us as much as you used to. But please post something once in a while just so we can be sure that you are alive and well, and stiil the kc that we know. We miss you, and wish you and Don well. Love, Hugs, and Prayers.

It will not increase the tax liability if you complete form 8889 to show that the distributed amount was spent for medical bills. The fact that contributions almost entirely offset the distribution is irrelevant to the taxation of the distribution.

If you claim credit for taxes paid to another state on the Birginia return, or if you exclude non- Viginia income, Virginia is going to insist on a copy of the return filed with the other state showing the raxes paiid or income reported. Usually if I e-file, I fax the copy of the other state.

I agree with Margaret. Most LLC's are either partnerships or single member, so I would tend to send an LLC a 1099 unless I had evidence to the contrary. I feel much safer sending an unnecessary 1099 than in not sending a required 1099 (after all, these companies report all of their income regardless of whether or not they receive a 1099).

I do too or they don't stay my clients!

If state boards are required as a conidtion of receiving your degree (such as an associates degree for a dental hygienist) can they be included as part of the education fees for the American Opportunity Credit? The way I read it, the fee would have to be paid to the college instead of the state licensing agency but I wondered if anyone had a different opinion. The college will not graduate the student until they pass their boards.

This is a forum for tax professionals who use ATX software for preparing returns for other people. From your question, I am guessing that you are using a do-it-yourself software for your own return. In entering your information into the tax program, you should not change the information provided on source documents such as W-2's or 1099's unless you are a professional and understand the consequences and meaning of such changes. So the short answer to your question is enter it just like you got it - do not mark it corrected.

Personally, I think Chardonnay makes a nice flotaion device - and if it doesn't work, you don't mind so much.

If you check out the ATX home page, under Find Forms, you can look at what forms are currently available, and which ones are pending approval, etc. and their approximate release date. As far as the 1116, that is showing installed on my program.

I haven't done any from NC yet this year, but I had the exact same problem with VA for about the first week or 10 days of filing season and it finally went away with one of the updates. I always use the manual update, but I don't know if that makes a difference. Good luck!

We deduct it annually. Even though it will run indefinitely on our computers, the main use of it is in one year, and it must be replaced every year (if not with ATX, at least with some tax product.)

I am not sure anyone changed their mind about the security or lack of it in email, but it is an interesting discussion nevertheless and I feel like I learned somethings from the posts, both pro and con. And it was at least a civilzed discussion, which i think we need more often!

As long as he remains a US citizen, he will pay US taxes on his worldwide income regardless of where he lives as I understand it. And that would seem to me to include 401(k) distributions.

I have only used the per diem for truck drivers when they are away from "home." I don't know if it would apply to someone who works in the same place every day, even if they fall under the DOT rules. Maybe someone with different experience will post to your question.

We will all miss KC, and not just for her tax knowledge! But I know she will not regret the time she spends with her husband, and I hope she will stop by to say Hi once in a while.

It's not just KC - I haven't seen taxBIlly for a while either. i miss both of them and hope they are all right, just too busy to "play" with us.

I don't have a Square, but my hairdresser does and uses an iPad instead of a smart phone. Those of you with tablets and iPod touches may be able to use those for accepting credit cards through Square as long as you have an internet connection wherever you are accepting the card.

Me neither! Although I am starting to feel like one with all of the questioning we are expected to do to satisfy due diligence...

I believe that was 2009 but I am not sure. Memory can be a tricky thing, and all these tax season have started running together - one doesn't stop before the next one begins!

I can't remember seeing any posts from Taxbilly in some time. Does anyone know if he is okay?

Jainen is right that one of the seven tests for material participation is past participation. But depending on how long he has been unable to actively participate, if his daughter has been doing all of the work for the last six years he might consider filing a Farm Rental schedule, form 4835. I would at least read the insttructions for that farm if it has been several years since he was able to actively participate and see if that meets the situation.