RitaB

Crying. You can't make this stuff up. If they only knew the things in the thought bubbles over our heads.

Is it hot in here or just you guys? Just kidding, just kidding, just kidding, just kidding, just kidding

Hahahaha, well, I did recall after I posted that a jack@$$ smacked a body part of mine in Wal-Mart one time. I was so shocked I couldn't do anything. He continued on his way with a big smile on his face. It was a very brief encounter and I escaped unscathed. So did he. I am laughing so hard right now. I cannot wait to meet you, too, Gail! And everybody else! I hope everyone is bringing family, too. My kids are gonna love this.

I believe Judy was just clarifying for the folks who were sad for BHoffman or angry at her doofus client in her first post. I know Tom almost wrecked my world the first week of star search by posting a sad face. I still love him; things happen. BTW, I actually agree with a lot of what you said, but I'm pretty sure your stats are off, because I can honestly say I have not been mistreated because I am a woman, nor do I hope to be. There are stupid people who mistreat everybody, but smart people ignore that as much as possible.

Oh. Well, I'll assume it was a Traditional IRA contribution then because of the amount. If he qualified to make a deductible contribution of $6500, put the $6500 on the bottom of Form 1040. If he did not qualify to make a deductible contribution, I believe you can handle it in Part I of Form 8606.

Part III of Form 8606

Only qualified expenses paid with after tax funds can be used for education credit / tuition and fees deduction purposes. That is correct. I figure out what qualified expenses they paid with after tax dollars (yes, there are strategies) and enter that number in the input sheet in Box 1 "payments received" if it's tuition, or at the bottom for fee and books. I am not doing what the worksheets want me to do, but I know what I'm trying to say on the tax return.

This is a shot in the dark, but if you have dependent living with taxpayer less than seven months, that might be the problem.

Male client who just picked up said, "Love you, Sara." I've been called worse. Not a bad Wednesday so far.

Don't listen to her.

I'm sorry, Gail, yes they do. See page 8: https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/feguide.pdf S-Corps are not tax free in TN See page 8: https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/feguide.pdf And Sch J3 and Sch J4. https://www.tn.gov/content/dam/tn/revenue/documents/forms/fae/fae170_2018.pdf We do have an individual tax. I pay it. The earnings from construction would not create a filing requirement. https://www.tn.gov/revenue/taxes/hall-income-tax.html You got me on payroll. They'd owe unemployment tax, but I figured the payroll tax issues were long since gone.

No.

I had one guy say, "Oh wow, what a coincidence. The lady I've been emailing at Jr's school is named Bursar."

Can I interrupt this thread to say that education credits are the biggest time suck of my entire practice? They NEVER remember the Bursar's Statement. I have copies of a sample statement in my top drawer and pull one out as soon as I see the 1098-T. It's as if I pulled a unicorn out of my, ahem, left ear. The second biggest time suck is: "This is my W-2 (it's a 1099-R), this is my husband's W-2 (it's a 1099-R), this is my pension, this is my husband's annuity, this is this, and this is that, and here is my bank interest, I don't know it's enough to count (yeah, if you bring it to me it's going on the return), BBFB. (Blah, blah, freakin blah.)

Exactly. And if it happens again next year, and the issuer is a business, I might hand her a 3949-A. Just kidding. Maybe.

Well, he may just not know. I mean, we do have the question here from a tax pro. He may have been given bad advice from his attorney or barber. For all we know, he paid an accountant to prepare the form. Of course, you are most likely correct, but this can be handled with a Sch C or a letter in response to a CP2000. Either would be more efficient and cost effective than going back to court. And she can smile sweetly and wave at him knowing he looks like a fool and she doesn't.

Oh, &^%% to the no, that's the only way I can find it when I need it. One more year, $%^&*#.

Since I wouldn't know what option to check in part I of Form 982, I'd go to the line 21 worksheet, enter the amount there, and then subtract it on the same worksheet with an explanation.

"The crime had not been especially well thought-out, she said. Most of the group paid with credit cards, including the man who stole the napkin dispenser." Crying.

He told me to put down the same as last year. But Rich didn't put anything, so there ya go. Look at your returns, people!

I'm wondering, too. If the numbers on the 1098-T pan out (they probably will not, in my experience), and the excess is $8603, there would be no credit.

You are killing me with that sad face, @BulldogTom. I can't wait to feed you some BBQ and give you a hug.

Ah, so Kiddie Tax return is not done in this case, and niece may NOT have investments. Thank you. Nice catches.