TAXBILLY

5 years not 8. taxbilly

Been using the program for years after my computer guy told me about it. It's a good way to clear unwanted cookies. taxbilly

Welcome to the club, #8. As low man on the totem pole, you are in charge of the party. What time should we show up? taxbilly

Are you sure? What did the W-2cs say? taxbilly

Since it is an IRA and the taxpayer is under 59 1/2, the bank puts in Code 1 and doesn't know whether any or all of it is taxable. You put in the taxable amount. Form 5329 would be needed if there is an exception to all or part of the distribution. Did the client use some of the money, for example, for education or medical expenses or buying a personal residence? taxbilly

May you have many more! taxbilly

Is it an IRA distribution? If so, were there any non deductible contributions? taxbilly

Pacun: You are too serious! Taxes should be fun. :~) taxbilly

Perhaps they had different mothers? :~) Pacun said his mother not their mother. This is fun! taxbilly

>>An elderly parent in a nursing home<< Let's see, Mark the son is 20 yet you believe his mother is "elderly"? That would make me at 65 super elderly! taxbilly

May you have many more! taxbilly

Congrats. taxbilly

Trust the form. They would be entitled to the $800 even though she did not work. taxbilly

Thanx for the info. taxbilly

Unless there is a monetary advantage to amending 2008 you are probably better off putting it in the 2009 return. taxbilly

Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income. taxbilly

The 940 is an annual report, not a quarterly report and that's why it is in its proper place ... in the 2009 program. taxbilly

New Tax Break for Contributions to Haiti Earthquake Relief A new tax relief law allows people who contributed in 2010 to charities providing earthquake relief in Haiti to take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return. This means you can receive an immediate tax benefit, rather than having to wait until you file next year’s return. Certain requirements apply: Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. You may deduct these contributions on either your 2009 or 2010 returns, but not both. In addition, the general rules about tax deductions for charitable donations apply: You must itemize your deductions on Schedule A; those claiming the standard deduction, including all short-form filers, are not eligible. You must keep a record of any deductible donations you make. For donations by text message, a telephone bill will meet the requirement if it shows the name of the donee organization and the date and amount of the contribution. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution. Contributions to foreign organizations generally are not deductible. Make sure your contribution goes to a qualified charity. Most organizations eligible to receive tax-deductible donations are listed in a searchable, online database available under Search for Charities. Some organizations, such as churches or governments, may be qualified even though they’re not listed on IRS.gov. Related Item: Publication 526, Charitable Contributions

Be prepared for the unhappy clients who gave and then we have to tell them it's not deductible because they don't have enough to itemize. taxbilly

It was signed last night (Friday). taxbilly

Another group to watch out for are the Federal retirees who don't draw Social Security. You may also have some former clients in this group that haven't been filing because they are below the requirement but should file to receive the 250. taxbilly

I stand corrected. taxbilly

They do NOT have to itemize. The law changed effective 2008. See Schedule L. taxbilly

May you have many more! taxbilly

What problem are you having? Maybe we can help. taxbilly