RitaB

LOL. Yeah, and I didn't pick up on the "qualified distribution" part, either. Oops. Also, looks like the age 55 doesn't apply to IRA distributions, and I missed that entirely as well, and I swear I used to know that. And yes, LisaAnn, our brains are fried. I forgot the word "shoe" the other day. And, it was not related to taxes. I just wanted my son to pick up his shoes.

Yes, he can use exception code 07 on the 5329 to escape penalty on the $1680. They are just saying you can't escape the penalty for distributions that exceed your medical insurance payments. (Unless you have other medical, which your client does not.)

TP can escape the penalty on whatever portion of his medical/dental expenses exceed 7.5% of AGI. He does not have to itemize, but include the Sch A. All the medical, dental, eye, mileage, etc that qualifies for Sch A can be used for this purpose. So, if it makes line 4 of Sch A, you can use it on the 5329 with code 5. Does not matter that the distribution exceeded the expenses, or if he can trace those particular funds to a medical expense.

I do what I can. Whipper Snapper.

I'll do that, Sonny. Hey, where's my snuff?

Yes, ATX displays "LSE" IF it is beneficial to assign the income to prior years. I mail these, with the worksheets, cause the very first one I did 100 years ago, IRS missed it. I highlight the "LSE" too, as Taxbilly said.

Well, I told you I was aggravated. I looked at a LSE I did in 2008, and I put the fees on line 28. I dug out another client's 2003 return, and I put the fees on line 22 (it's 23 now). I had a reason for thinking line 28 was correct last year. Wish I knew what it was. Things like this drive me crazy. Crazy, I tell you.

Well, according to Pub 915, p. 15 this deduction DOES indeed go on line 23. I am now just aggravated cause I KNOW I had this all figured out. I am sooooo sorry.

Well, if that don't beat all. Never heard the like. Hmmm. So, Dan, see if these people were maintaining two separate households within one dwelling. Did I get that right, taxbilly? Seems like an uncommon arrangement, and not likely for this boyfriend and girlfriend. I KNEW I shouldn't have opened my trap on that question.

He can file as HOH if he paid over 1/2 the costs of keeping up the home and his child lived with him in that home for more than half the year. Will need to enter qualifying child's name on 1040, line 4. (Of course, child could not have provided over 1/2 his own support, and I don't think that applies, but thought I better cover my beep.) No, both cannot be "head" of household. (Two heads is always a problem.) If one paid over half, the other could not have paid over half.

You deduct the attorney fees that apply to the taxable SSA. In other words, if 50% of the settlement wound up being taxed, you deduct 50% of the attorney fee. Sorta like pastors not deducting the portion of expenses that apply to nontaxed income (housing allowance). And, you use line 28, so not subject to the 2% limit. You lost me on the medical fees. I would think any out of pocket medical expense is deducted, like always. (Well, you know, in excess of the 7.5% of AGI)

This is totally unrelated. Sort of. But, I have always wished we had a child care provider manager for the Form 2441. I said that one time on the old forum, and one of the contributors at that time who just wanted to "one up" everybody said I oughta have them all memorized cause I live in a small town. Precious memories. BTW, in my small town there are MANY child care providers. So there. Bert - I started thinking about it (duh), and realized it would be very illogical to only allow one 2106, when people can have more than one employer. I did get that message once this year (only one per taxpayer). I think. Not sure of anything at this point, though. LOL.

Well, I looked around a little, and I was wrong. I found where you could have no more than two Forms 2106 per individual if you are e-filing. So, I stand corrected, and I guess it is ATX, afterall. My bad.

I don't know if it's an ATX issue. I think that's the way you do it, one 2106 per taxpayer. I have no idea about the two PA UE deal, but maybe the diagnostic is right, and only one is allowed by the tax gods. I don't know, but it may be one of those things where ATX is just reporting the news, not making the news.

For existing GOOD clients, I charge $5 for each 1099, and $10 for the 1096. I mail all the IRS copies myself. I do not trust clients to handle it, and I sure don't want to be explaining how to mail, where, and when. Easier for me just to let my client at Something, Something, Mail Service ship them. I do about 200 1099's for 30 clients. Not tried the e-file thing. Selling points will be taken into consideration if you want to try to persuade me to get with the program. Now, if it's an existing client who gives me the info in "stages" or something, the price goes up. You know that client, brings you half of it so you can "get started". Meaning: "I can't get this together, but if I bring you SOMETHING, I will be top priority, and it will be your burning desire to finish on time. Who cares if you don't have what you need?" People off the street, I tell them: "Oh, you can handle this, and they have forms at Staples." If they REALLY want me to prepare them, I charge pretty good. Not my favorite thing.

Yeah, I told him I was plenty busy, whatever you wanna do, but that's my charge. My little attitude also said, "Tick tock, dude." (But in a sweet TN way.)

MY new client. Dude calls, moved here (TN) from NY. Describes his crap, wants a quote. I tell him it sounds like around $200, but I do not give quotes on the phone, and I can tell him for sure when he drops off. He comes in, has more crap than I thought (they always do). I tell him $250. He says, "Well, you told me on the phone $200." Me: "Yeah, you have more than you told me on the phone, and I'll betcha a dollar to a donut that the guy in NY charged you over $400 for this." New Client: "$450." Are you kidding me?! The guy is loaded, he's already saving $200, and he's haggling? Inquiry: Is that even how you spell "haggling"?

I agree with that. Just like our buddies who file tax returns late. Missing the deadline doesn't give them a pass. Yes, I am really grouchy...

Yeah, I agree with the date, and I guess the idea is to make the taxpayer recover the nondeductible part throughout eternity.

Surely not. I mean, the return didn't change, did it? That's my totally unresearched opinion, and worth every dime you paid for it.

Sounds like fun to me! Enjoy yourself!

Very good tips up there! I have an office in town, would lose my mind if it were at home, I'm fairly certain. Office hours 8 - 4, Monday - Friday. I generally accomplish very little during office hours, for the same reasons as you listed, MAS. Like others, I lock the doors and rip out the phone (OK, not really) after hours so I can get something done. One thing I will add, I pray for God to protect me from people who waste my time. I highly recommend asking for His help, if you are so inclined. I have noticed over the years, that people that waste my time often do so because I let them. So, now I don't let friends corner me at church or Wal-Mart. I tell them to call me at work. When I get a vib from somebody new (you know that vib, the one that screams: "This guy will be a PITA!"), I tell them I'm not able to help them. I wasted a lot of time 10 - 15 years ago trying to do too much for too many.

I had one today where the taxpayer had failed to mention that he received veteran's disability. Didn't even know he got the $250 till I called him this morning. Looked at bank statement, and lo and behold! Another one where the spouse had received SS benefits and never told me. Ever. (You know, I'm 63, and my SS benefits are none of your business, if I tell you, they'll be taxable.) Anyhow, no rejects till today, and then TWO of the suckers! Double whammy. But enough about me. Could the spouse have received SS benefits and neglected to tell you? Or, even veteran's disability?

After thinking about it, I have to repent. BAD, BAD thoughts. Back to the FTHBC mess. Just had a caller. Bought a house Sep 2009. Owned a "mobile" home (not a REAL home, mind you) for 8 years prior. I explain the bad news. "Oh, well, we didn't OWN the mobile home. We were just paying for it during that time." REALLY??????

Ah, yes, the "Grab Technique". Essential for your sanity. Here is another thing I do. I leave files in all the chairs in my office during tax season so they can't chit chat for too long in comfort. I swear, I have a few that would stay all day. Do you love it right now when they ask, "Are you gittin' busy yet?" Don't you want to do some damage when they ask that? Had TWO call me yesterday wanting to know when is the last day they can bring their stuff in and get it done before April 15. I told them after today all bets are off. What? Are you kidding me? Just get it together already. Is there a prize for "latest to bring in and still get it filed by the 15th"?!