Randall

That's what I was thinking too. I have a client whose payroll service insists they don't have to do it that way. I have to prepare corrected W2s for the two shareholders every year. Sheesh.

Is this still the proper way to show S Corp shareholder health insurance? Not an expense on corp. Added to W2 for income tax purposes, not FICA tax purposes. Deduction on 1120S as Salary. Individual shareholder shows higher W2 income, then takes the SE Health insurance deduction on his 1040. This has been my understanding. I know some things changed with Obama care. But even with a 'group' plan, I thought the shareholders still had to report it this way. It makes no sense since the net effect is the same.

I give the client paper.

Yes but the other party probably wouldn't paper file because of the time. They need to get in there fast and first.

Don't you have to answer the 2nd question. I think the 1st question populates, then you click on the 2nd question and the rest populates.

I use Quill (owned by Staples now). Delivered, 10 reams a case, 92 bright, last case $29, March 10. It's their 'Quill' brand and I pay an annual fee to be in their 'club'. I'm not sure if that's a bargain or not. Supposedly special prices. Ha.

I thought the May 17 was official for paying as well as filing. Can't your clients wait until May 17 and mail a check. I think the original post was for the automatic debit to be taken out beyond April 15.

I looked on irs.gov. It seems you can get a pin for a dependent. I didn't try myself. I think it might be new. ATX has a place for a pin on the dependents worksheet. I wouldn't count on IRS sorting it out for future years. Another client, grandparents with two grandsons (son died, mother is out there in drugville). Every year their return is rejected, mail the paper returns. They get their refunds and acceptance of the dependents. But there's no hold on the mother doing it again and again year after year. This was my initial question, why can't IRS put a stop on the person claiming the dependent. But if the dependent can get a pin, that may work for future years.

I'm not sure if this applies to you. But 529 qualified expenses includes much more than the AOTC qualified expense. Room and board. Even if they're living at home, I think there's a chart for the school area you can use for 'room and board' expense.

Are you talking about direct payment? I just put one in to pay April 15. But my letter is showing May 17 now.

Thanks.

Client has legal custody of grandchild. Efile rejected due to dependent ssn already used. This will happen every year. Is there a way (a form) to inform IRS to only accept this ssn with the grandparents?

Thanks Pacun. This is what I got from my reading. It's just one of those situations that seems too good to be true and I guess I was trying to cover myself from the diligence point of view.

So Pacun, in my case, my 20 year old natural father (living in same house with natural mother (not married), their baby and parents of the natural mother) can claim the child, and qualify for EIC. I've been looking for references and can't find any specifics. So if they're all living in the same household, they can pick and choose who claims the baby? I believe the natural father's earnings are over 50% of his own support. But the main support of natural mother and baby are coming from the grand parents and their house.

Interesting. I have a little different situation. But I'm wondering if you can pick and choose if they're all living in the same house. In my case, natural father of baby, living with natural mother (not married) in mother's Mom & Dad's house. Much more beneficial for natural father of baby to claim baby, qualifying for EIC even when under 25 age (with child).

Does a person have to make an election in the prior year (by April 15) to claim trader status and allow the wash losses? It seems the instructions to make this election has to do with mark-to-market, claiming the gains & losses as ordinary. Can one just claim to be a trader and put these on Sch D as capital losses? Client had about $10k in the account, 1099B proceeds total 35 million. Disallowed losses show him with a gain of $28k.

So I guess ATX is doing it correctly, just adding back the 10,200 on the SocSec worksheet to what the 1040 lines add up to.

I thought IRS changed their interpretation of the law so the 10,200 was not added back. I'm really confused now.

They should move the filing date back to the year 9595.

It's not just the elderly. Many get confused with the more recent payment and forget the first. I usually tell them to track it down because it is very unlikely they would get one and not the other. One lady insisted she did not get one, looked at her bank accounts. Then remembered her nephew scared her with 'end of the world' stuff and remembered she cashed the check and put the cash in a safe. Ha.

Ha ha. You're trying to make it harder.

This thing just keeps getting better. Household, father & mother. Daughter has a baby. Father of baby also living in household but not married. Daugher's income is low not enough to claim half of her support. Father of child income is low but high enough to claim over half of his support. (His parents not claiming him, they are not my client). I was going forward with father & mother (grandparents of baby) claiming both daughter & baby. Father of baby claimng himself only. But if father of baby claims the baby, he not only gets $1400 additional child credit, $1100 stimulus, but now qualifies for EIC (under age 25 but with a child) of $3400. A bigger benefit than grandparents claiming the baby (by about $3000). My question is can he claim the baby in these circumstances. Lived in the same household with the baby.

Thanks for that. I must be bug eyed. I read that several times and was thinking Do NOT. Sheesh. And ATX concurs.

I'm not sure if I'm reading this correctly. Person under 24 provides over 50% of his support. Rule 1c. But when answering the questions, both ATX and IRS 8863 instructions, question 5 seems to contradict things. Was your earned income LESS than half your support? If I answer no, this means it is greater than half. But it tells me to stop, you canNOT take the refundable part of the credit. If I answer yes (which is inaccurate), it tells me to continue, then with a living parent, not filing a joint return, it again says you don't qualify for the refundable part of the credit.

Just did one with UE and SocSec. Worksheet for SocSec in ATX adds back the $10,200. Looked on irs.gov and their worksheet just says to add the amounts on 1040 p1. ATX took that number and added back the 10,200. I'll put it on hold until ATX updates.