Gail in Virginia

It is strange. I have the new version also, now, even though I had tried about 4 times to update this morning and nothing had changed as far as the program. And I could not find any place on the support site that actually told you what the current version should be. I hope whoever is watching will keep it up.

Just wondering - MY program version is 2010.3.6 Does anyone have a later version?

I have not been able to create an e-file for 4868 either, but had assumed I was just to early this year. I update manually every day on my computer, and the other two do the automatic update whenever they sign on. But it has been a long time since I have been told that they update requires me to restart the program. I am concerned about that.

I am doing a return for a North Carolina resident. According to the instructions, private retirement benefits included in federal taxable income that do not exceed $2000 are deductible from NC taxable income. My taxpayer took an IRA distribution and rolled it over into a ROTH IRA. The total amount is less than $2000. Is this is excludable on the NC return? He also has a small amount from a settlement on a mutual fund formerly held in his IRA. If I am reading this correctly, since he cashed the check instead of forwarding it to his IRA trustee to be put in the IRA, he must pay tax and penalty on this amount. Is this excludable from his NC income?

This is a hard field to compare value. Most preparers, me included, don't like to give prices over the phone because that simple return isn't, and unless someone you know recommends their preparer to you, I can't give you references that you can contact because I can't give out the names of my clients. And a lot of it is taken on faith - someone can sound knowledgeable, but unless you are equally educated in that field you really can't judge. And if you are equally educated, you would probably be doing your own return.

I have never been able to, but I think that is because I have not had the correct EIN for the W-2. And if I am not mistaken, you have to wait until April sometime even if you know that a w-2 is not forthcoming.

I am glad that the challenge came out the way that it did, but I would personally have been curious to have also compared an experienced, unenrolled preparer's fees and out come, and would have loved to have seen a mention of Enrolled Agents as an option.

Technically, it is a wash sale, but since all of the stock was sold you add the cost of the shares involved in the wash sale to the basis and end up at the same place as if it weren't a wash sale because it all was sold. I am assuming that more than 30 days has passed since the sale and the taxpayer did not purchase this stock again. At least, that is the way that I understand this.

No. The state is not accepting any pass through entity filings electronically at this point, and the list of software vendors approved for regular C-Corps is short, and ATX is not on it. You can upload the Virginia K-1 through Virginia's website if you wish, but that seemed like more trouble than it was worth to me.

Kea, I never assume they can actually count pages, or identify form numbers. I make a separate e-file for documents to be signed that just contains the 8879 and VA 8879., Then I create a file with the rest of the tax return in it. This does not eliminate the ones that print both files and get confused, but it helps.

Return must be paper filed. In addition to the HUD statement, I recommend sending paperwork showing a utility bill sent to the new residence and a copy of the driver's license with the new address; this helps demonstrate that the taxpayer lives there and this is his principal residence. Taxpayer should also be prepared to wait.

That was great! Sounds like some conversations that I have had where I finally tell them I will write a letter that says nothing, and they think that is wonderful.

You can also just type over the name on the return manager to change it.

SaraEA, I think you may have misunderstood. The sales tax on a new car is no longer deductible by itself - you cannot add it to your standard deduction or add it to the state income tax deduction on schedule A. However, you can still add the sales tax paid on the purchase of a vehicle, boat, etc to the amount of sales tax deductible according to the general sales tax tables in determining the amount of sales tax deductible instead of state income tax. And unlike the stand-alone sales tax deduction that was only available Feb. 15, 2009 through Dec. 31, 2009, this does not have to be a new vehicle, it can be a used vehicle.

But apparently it is happening. I just checked on the one that I have already e-filed - accepted 2/17, and refund can be expected 3/15 according to website. Ridiculous!

If they withdraw it by the due date of the return for the year for which it was contributed, I don't think there is a penalty. But they must withdraw both the contribution and any earnings on the contribution. Then when they get the 1099R for this withdrawal during 2011, the code will indicate that the earnings were for the previous year.

And yet, the American Opportunity Credit has a box to check making the credit non-refundable if the parents provided the student's support but the student claimed him or her self. Why is that even an option?

You still use 8879; the 8453 is now only for transmitting documents to the IRS.

If you have self-employment income, isn't the filing requirement $400? After that point, you might be liable for some self-employment taxes.

I use ArkWorks because it lets me create passwords on any documents that I email clients. When we first started it, It copied all the client names from ATX and created the subfolders for years and then under that for Return, Correspondence, Supporting Documents, SIgned Documents (whatever you tell it you want.) I don' t know if they can copy over your manual system, but they respond well when I have a question by email. On the other hand, if you system is working for you and you are used to it, why spend the money for a document manager?

:D

My concern would be that even if there is no taxable amount, there is a gross amount and most filing requirements are based on gross amount. However, I am not sure what would be filed either. If the annuity went into the grantor trust upon the death of granny, then the trust might have a filing on a 1041 for the surrender of the annuity. To whom is the 1099R addressed and does it have granny's SSN or the trust's EIN? If it is granny's SSN, and the taxable amount is zero, then including it on her final return won't hurt her and might make the IRS happy because everything matches. I hope someone with more experience answers as well. I don't do a lot of trust work.

Your reasoning is fine. ON the Global Info tab for the Sch K-1, there is a heading for Weighted Average Percentages. If you check the box under this heading and put the date in, then I think you put the individual percentages for each partner between those dates on their input or detail form. I have not personally done any this way, but it looks like it would work. Good luck!

From way back when I took the test with pencil and paper, i remember the basis questions as being among the trickiest. Most of the questions did not seem to have any relationship to the world I actually work in, but I did learn a lot studying that section before I took the test. In the pencil and paper days, the test was two days and four parts. And you could not do any of the parts at your own pace - you started when they said start and could leave if you finished early but you could not move on to the second part. Nor could we use even a simple calculator - pencil and paper was what they said, and that was what they meant! Then you waited from the time you took the test in October until sometime in February to find out if you passed. Usually by January, NATP and NAEA had the questions and answers available so if you had a record of your answers or could remember (ha!) how you answered all of those questions you could make a guess as to whether or not you passed. This is not a fun test and you are to be commended for being so proactive in taking it before actually being required. I have no doubt that you will pass the one part remaining with a little study time - not easy to come by this time of year, but soon! Congratulations on passing the two parts already! And on trying all three parts in one day - that makes my head hurt to think about!

Are you sure the VAGI is such that they have a filing requirement or tax amount due? My link This link gives the filing requirements for the year, and points out that the Virginia Adjusted Gross Income is after the subtraction for income earned in another state.