Kea

Just tried to create an e-file with a Schedule C. Business code = 999999 (unclassified). I'm getting a red error that says the maximum code is 999000. It gives that choice when completing the Schedule C, but then gives the e-file error. I've e-filed this client's return for several years using this code. (This is the only return I have with this code -- I can usually find something that works.) I wonder if TaxWorks always blocks this code from e-file or if it is just the TRX version. I did put in a code that might work. But I do find it aggravating that the program is giving an e-file error for a legitimate IRS accepted choice. It's nice that the program recognizes that it's valid for input -- so why not for e-file? I know this is a small issue in the scheme of things, but it should also be an easy fix. Don't get me wrong. I do not regret staying with TRX and saving the software cost. I really like that the zip code populates the city / state & gives lets you pick when there are multiple valid choices. (The one TRX used a few years ago never gave you a choice, so there were a few times I had to overwrite.) End of rant and back to work.

Yeah, I think we all do. It just comes with the business. But, I just don't remember ever putting those figures up there. Maybe they came in my 1st e-file packet with the stickers and display card? Not sure, though, because I think some of the non-efile preparers have those ceiling numbers, too.

I'm with Julie. I've only had a handful that didn't pay. I usually reconcile all my invoices with my Quicken log at the end of the year. If there is an outstanding invoice at that time, I include a copy of the invoice in my New Year's card and say I don't have a record of payment (and request payment or let me know if my records are wrong). That usually gets them to pay or keeps them from coming back. I did get an e-mail from a long-time client last month who apologized for not paying and asked if it was OK to pay last year & this year after they got their refund. They are really scrambling right now to keep from having everything cut off. I agreed. The amount of my payment will not "make or break" me like it will for her family right now. I might not do that for everyone, but I know they have paid a fortune in medical bills for their 5 year old son who has a birth defect that isn't covered by insurance.

I think you are doing it right. How can we be sure the education qualifies if the client isn't sure?

Thanks so much.

Client had extensive dental work done in Turkey. Her family paid air fare & hotel, so her only cost was for the dentist. Is there any reason this would not be a medical deduction due to being in another country? I can't find anything that disallows this, but I might not be checking in the right place. Pub. 502 says that your can't deduct the costs for drugs you bought illegally in Canada, but you can if you bring them in legally & they are legal in the US. So while that example is for medication (versus procedure) it is saying that the Rx is deductible even if from Canada. This procedure was $11,000 but would have been $50,000 in the US. Thanks so much

OK Non-resident can not be e-filed. It's an Oklahoma rule. I have one of these each year & have to paper file.

Thanks for the confirmation.

I mentioned this to one of my self-employed clients. They asked if that included supplemental Medicare premiums. Based on the above, I would say "Yes." Am I missing something? (OK, I probably am but I'm not going there right now. )

What, if anything, are you telling your clients about cell phones no longer being listed property? Great, we don't have the big documentation hassle to go through! But, if it is used for personal & business, how do you determine business usage without the log? Approximate guesses are now OK? I'm leaning towards not telling them & letting them keep their logs. After all, we already knowhow good most of those logs are anyway. Just curious what others are doing.

For the first part of your question, "Yes", they can get the full $800 even if only one worked. I had several of these last year. To check if either got the $250 Economic Recovery Payment in 2010, you can check here: ERP

Yes, that works, but isn't really accurate. I did e-file it today. It's still at IRS.

I've never seen one with non-deductible contributions. I would *think* the client would remember if they made and non-deductible contributions because of the extra effort involved in preparing the return. It seems like that would have been in the discussion. No guarantees though, given how much attentions some clients pay to what you say. However, I have a client who is divorced and she got 1/2 her ex's IRA. She has no idea if he ever made any non-deductible contributions. She's been divorced since the '80s and may not be able to get that info from her ex.

I updated to 8.11 before submitting & got the same message. Odd.

DonnaA That's good to know. I wonder what was different. The error message I am getting specifically says it will e-file with a specific date or "various." Which version of the program are you using? I'm using TRX Pro. Thanks

I talked to Tech Support and the software just won't let you e-file with "Inherit." If almost everything is e-filed and the software knows "Inherited" is a valid acquired date, I just don't understand why it's giving an e-file error. I have never had a problem e-filing a return with "Inherited" before. I'll keep this change to "various" because it doesn't change any data. Humm, any chance someone can get this "fixed" before I file my own return? I, too, sold an inherited house, and some inherited stock.

I thought inherited property always showed "Inherited" as acquired date. That way it is automatically Long Term (which this is, anyway). It also lets the IRS know that's how the property was acquired. But, I guess it wouldn't hurt to not show "inherited." I've never had a problem e-filing "Inherited" before. I also noticed I can't seem to edit this field. It won't let me delete "Inherit." So I guess I just have to re-enter the asset & delete the original. Not a biggie -- it's just one. (And, in this case, the date would be "various." She inherited 1/2 when Dad passed & 1/2 when Mom passed.) Thanks Edit: I could type a "V" over "Inherit" and it changed it. It was just the backspace that didn't work.

Client sold parents' house that she inherited. I entered "Inherit" in the date acquired field. (Actually, I just typed "I" and it auto filled the rest.) It knew to treat as long term capital loss. However, now that I have completed the return and printing it to send to the client, the Review is giving me a Red Error that the acquired date is not valid for e-file. It says I have to enter a specific date or "various." Has anyone else run into this yet? Is there a work-around? I guess I'll have to call tech support tomorrow. Because it is giving this as an e-file error, it is not generating the 8879. So I can't get the client to sign, even though everything on the return is fine. I guess I can change it to various just to generate the 8879. Thanks

I think it will also depend on the bank. The electronic deposit for IRS will be in both spouses names. If both names are not on the account, the bank may refuse it.

Brother is a disabled veteran receiving Social Security & VA benefits. He lives in the Philippines & has a Green Card. He is not a US Citizen. If I am reading the instructions correctly, he is considered a US Resident because he has a Green Card, right? So, I am OK filing the 1040 (not NR) and submitting the documents that Pacun listed above? I'm just getting a little confused by the terminology -- just verifying that he can state: “I am a U.S. lawful permanent resident..." when he doesn't live in the US. Thanks again.

Thanks Marilyn. I hope your client got her fair share. I knew my client didn't have to deal with the 2010 rule changes (and I'm not looking forward to dealing with that). And I knew everything was a nice, easy 5-way split. I was just trying to determine how aggressive I could be in determining what counted towards selling costs that could be add to basis. Thanks so much & good luck to your client.

Bump.

One minor correction. As I understand it, the files are held at TRX's "filing center," not at IRS. But, I haven't sent any so I can't see what's on the E-file screen.

Was the $1825 a "surrender charge"? If so, I think in would still be taxable.

In general, IRS does not recognize same-sex marriage. They have recently made a few exceptions for community property states that have legalized same-sex marriage. Texas is not one of those. So, if they are a same-sex couple (not specified either way in original post), they could not be common law married in Texas. Only option would be Single (or HOH). Texas does not recognize same-sex marriage by ceremony or common-law. (Granted, I'm not sure what happens if they married in CA or MA and then moved to TX.) I'm not sure how to determine the date of common law marriage. I think some states state that they have lived together for at least a year & hold themselves out to be married. The couple I had that was common law married had been together for several years, so I really didn't pursue the specifics.