RitaB

17 hours ago, Terry D said:

 Two days go by and she calls and says: I found the papers you need when can you come get them? Me: Please mail them to me. Her: I'm sick and cannot leave the house so you have to come pick them up. Please call before you come to be sure I am here. With stupid looks on my face that she can't see, I'm thinking if you can't leave the house to mail the *&%^)))) document why should I call to be sure you're there?

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   

35 minutes ago, Gail in Virginia said:

Rita, I am pretty sure that someone who mistreated you would soon find themselves "hugged" and in the back 40.  I can't wait to meet you in person in June.

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.

5 hours ago, Edsel said:

Sorry Judy, I didn't realize this was a vote for some kind of star.  I didn't really expect a chorus of support from anyone, especially wimmin folk.  Obviously, I'm not trying to win anything - wouldn't know what to do with it anyhow.  I'll stay out of "star" threads hitherthence.

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.

12 hours ago, Chris R said:

I have looked at that part but it says Distribution from a Roth which this was not. 

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.

27 minutes ago, Chris R said:

Client made a 2017 contribution in May of 2017 then took it back out before the year was up. Received a 1099r with $6804 in box 1 and $304 in 2a and coded 1 and 8.  As I understand it she should get the 6500 back tax free but should pay tax and possibly penalties on the earnings of $304. The software is making everything taxable and subject to penalty. How do I fix that? Is there some box I need to mark that I am not? Thank you 

Part III of Form 8606

3 hours ago, giogis245 said:

If I enter form 1098 with tuition paid and scholarship received, american opportunity credit is being given.  Is this correct?  I thought it was for tuition paid out of pocket?  Thank you for clarifying! 

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.

15 hours ago, RitaB said:

No.

Don't listen to her.

16 hours ago, Gail in Virginia said:

I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year.  I would not worry about individual taxes but know nothing about TN corporate taxes.  Does he have a filing requirement for Tennessee?

I'm sorry, Gail, yes they do.  See page 8:  https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/feguide.pdf

8 hours ago, Edsel said:

This is a minimal amount, and the crew was probably not in the state to create a requirement.  However, in a multi-state allocation, if the S-corp created a payroll in Tennessee, or accounts for destination sales in its allocation, there could be a requirement.  Additionally, Tennessee would not require a K-1 to non-residents since Tennessee does not recognize S corps.

Even if Tennessee were allocated some money, under no circumstance would any shareholder be required to file a Tennessee return, as there is no personal tax here.  However, the allocated amount would require a C Corp Tennessee return (it's called a Franchise and Excise Return), as this state does not recognize tax-free S Corporations.

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.

1 hour ago, Gail in Virginia said:

I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year.  I would not worry about individual taxes but know nothing about TN corporate taxes.  Does he have a filing requirement for Tennessee?

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.)

10 minutes ago, Gail in Virginia said:

But it would not hurt for her to just politely tell him that he should not report alimony on a 1099, and that if he is concerned that former spouse will have records showing a different amount, he is welcome to send her a letter stating what his records show.  Then he will still do whatever he wants, and so will she.  That is, if they are being polite to one another and can speak without an arbitrator.

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

9 hours ago, Jack from Ohio said:

The payer is being an A _ _ H _ LE!!   The payer should be dragged back to court.

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.

3 hours ago, BulldogTom said:

Damn, Sara is on a roll....cussing on this site is now an event that can be sanctioned!   I need Judy to go back and change the title on my post about the iterative method of determining the SE HI deduction before I lose my license.

Tom
Modesto, CA

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.

2 minutes ago, Richcpaman said:

He told me that he had an offer that I couldn't refuse....

1 hour ago, ILLMAS said:

http://chicago.cbslocal.com/2018/02/23/napkin-dispenser-thief-walks-it-back/

"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.

1 hour ago, Richcpaman said:

Had Al Capone just put down something....

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! 

1 hour ago, JACKSORH said:

Daughter is in her 2nd year of college with income of only $160.00. She received a scholarship of $55,000 and her education cost box 2 is $46,397. Her parents is claiming her as a dependent  and claiming the AOTC.  The parents AGI is 73,173.  What do we do with the excess of 8,603.   Parents stated that daughter used it for room and board off campus.  So is the excess taxable to parent or child.

53 minutes ago, jasdlm said:

Are you adding the scholarship income back in to the parents' income so you can claim the AOTC?  I'm not sure I'm following your post.  

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. 

27 minutes ago, Hunter L said:

The p

Double check... One of the filing requirements is  "At least one of the parents have to be alive at the end of 2017."

Also, Rita, distributions on a 1099-R count as "unearned" income for the Kiddie tax.

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