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https://www.irs.gov/taxtopics/tc510 Depreciation Generally, the Modified Accelerated Cost Recovery System (MACRS) is the only depreciation method that can be used by car owners to depreciate any car placed in service after 1986. However, if you used the standard mileage rate in the year you place the car in service and change to the actual expense method in a later year and before your car is fully depreciated, you must use straight-line depreciation over the estimated remaining useful life of the car. There are limits on how much depreciation you can deduct. For additional information on the depreciation limits, please refer to Topic No. 704. Publication 463, Travel, Entertainment, Gift, and Car Expenses explains the depreciation limits and discusses special rules applicable to leased cars. This may not answer your question, but there's another link on that site.

If Older is still a full time student for any part of 5 months of the year, and not self-supporting, Parents still claim him. He can file a return to get his withholding back without claiming his own exemption.

It depends on how the money was spent because if it was saved, it doesn't count as the dependent's contribution. If it went in the general household budget, it counts as the dependent contribution to his/her own support. Most of the time, SS payments to children don't knock them out of dependency. I only have one where that would have happened if the foster mother (Aunt) hadn't saved the SS for the child's college. (Child's parents died tragically) The others I have don't come close. 4. Support In this case, the support is not the expenses that parents paid to take care of a child. Rather, it refers to the child's income. The youth must not have provided more than half of his or her own support for the year. For most families, this is not an issue. However, if your kid is the next American Idol winner and rakes in beau coups bucks from the new-found fame, then your child could have a problem meeting this test.

No, I have been using TaxWise my entire career. But with your help, I can tell if they qualify and contact TW if it's the program. Thanks, and I'll email you tomorrow. I'm [email protected]

I have a client who moved to LA from VA last year. She told me about the tax credit for private schools. I have looked it up, and it's very clear that they qualify for the credit. What's not clear is the way to enter this. My software is 99% correct and I trust it. So, when the credit didn't populate from the worksheet, I pulled an E into the program. Still, it wouldn't populate. I tried running down any dis-qualifiers. Researched online, The Tax Book, LA tax site, google. I'm lost. Could someone help me with this? I've spent hours on it.

That's sweet! TaxWise doesn't do that.

Taxwise does it automatically... just sayin..... Taxwise is created for not-so-smart tax preparers.

I called again today. We are still holding. I sent an email to a very popular local newscaster. I hope something breaks loose soon. Here's one thing; I did a return today and her itemized deductions are only $600 away from her HOH standard. I could choose to itemize and let it fly. It would save her almost $500 in taxes, net. I wonder how many federal returns I have filed and should have done this. I hope not many. This really un-nerves me. I need to calm down, I know. But I've sent federals and will need new sigs for all these states, even if there is no change because of the dates. Sure as I let them fly as is, the standard will change or they will allow the A whether or not it was used on the federal. Ok, rant over. I feel better.

I am the red-headed step child using TaxWise, but I will look into this. Thanks!

Thanks!

Is that a special FORM?

I have a new client coming in today. She is selling hand-crafted jewelry out of her home. Her husband is not a US citizen or resident. He lives in (I don't remember) some other country and he isn't required to file a tax return. She has not been required to file a return until this business took off. They have a college age son (20). Dad completely supports his family financially. Dad visits but can only stay for short times as his VISA or whatever card allows him. Can you tell I'm really disinterested? But a real good client referred her, so I need to at least entertain the thought of doing this return. If I file her as MSF, I would need his SS number, and he doesn't have one. So, what do I do? Other than sending her away, can anyone help me?

I'm so sad. I don't sleep for cryin'.

This might help, if you can access it. https://www.natptax.com/TaxKnowledgeCenter/IRS Tax Resources/NATP 199A Final Regs Summary.pdf

It seems clear as mud to me. It won't make a lot of difference with my clients, but it will some... so, I'm still looking. Maybe NATP has something I can understand.

Thanks. I got it.

He did this himself. Opened the IRA just before we did his taxes. Took it out right away, long before the 4/15 deadline. It was a "stand alone" account, so I wouldn't think he needed that verbiage. Opened, closed, never on the tax return. I will gather all the documentation NOW! Thanks!

There was nothing earned. It was only there for a minute. And yes, it was never deducted. Was it "coded" incorrectly? Or is there an exception code I'm missing for the 5329? Or, maybe I should be using the 8606 to take it out of being taxed all together? Thinking out loud. Of course I use the 8606. None of it is taxable. Geez Thanks so much for the light switch flip. I advised him to withdraw it because there is a penalty for funding a traditional IRA if you don't have earned income. He was getting hit for it. Am I wrong?

Last year, my client put $6500 in a Traditional IRA with no earned income. I did his tax return and told him to take it out before I file the tax return. I hope I told him the right thing. Now, I have a 1099R for $6500 coded 1. I have looked for an exception to the penalty but I can't find one. This should not be a $650 mistake on his part. Is there any grace that I can't find?

I agree. I can efile the federal and when GA has posted the changes, I can send the state as un-linked. I might do that. I'm going to check with TW and see how long I have to send the state after the fed has been ack'd.

Christian, I just called again. TaxWise will allow me to e-file VA, but I'm not going to send any until after General Assembly is out. I'm afraid they will change the standard deduction for those not itemizing. Nobody knows. What are you doing? How about you, @Gail in Virginia?

If all else fails, I always go online and download an updated driver.

Who's yo daddy?

My client used "most of the HELOC" to make improvements on his home. How do I deal with that one? While I'm asking, if a client (because I know it's coming) refinanced their home, and the new loan is considered a home equity loan, is it completely deductible?

Go right down the dependency test. I think you will find that they are not related to him and did not live the entire year with him. Game over.