Randall

Ins agent sent me some info. One piece pointed out that the LTC was an exception to ACA. IRC 9831(c)(1) and 9832(c)(2). It appears to be so. But the agent was wrong about deduction by the corp. Still must be added to W2 Box 1 and then 1040 p1 above the line deduction. And limited to the LTC premium limits depending on age with excess deducted on Sch A. Anyone agree or disagree with this?

I'm not sure about the peace of mind part.

Sometimes I break the ice and say 'let me see that' and then reach for the whole stack, then say something like 'I see, looks like everything's here, anything new or different from last year?'

I won't login on behalf of clients. They have to login and retrieve the documents. Or have the broker send me directly.

If I recall, the extension was that the penalties would not be assessed. But I don't think that meant the treatment of the tax position was extended.

Client is telling me his insurance agent says the LTC premiums can be deducted on the Corp return. My understanding is that LTC is treated like other health insurance. Under the old rules, added as compensation to W2 and deducted on 1040 p1 to the extent LTC premiums allowed. With the new ACA rules, S Corp has other employees and the plan doesn't comply with ACA, then the premiums cannot be deducted by Corp, shareholder deducts on Sch A similar to the other health insurance premiums. Is there something I'm missing. Just wanted to run this by the forum before I go back to client.

This is what I was thinking too.

We discussed this last year with the S Corp shareholder health insurance. With ACA, Corp not paying the insurance, shareholder is paying from personal funds. W2 showing same amount in boxes 1,3,5. The question is can the shareholder still qualify for the 1040 page 1 deduction as self employed health insurance premiums. Are there any cites or references? I can never seem to find something that specifically mentions this.

Probably Fed but I don't know about PA. I couldn't with KY. ATX told me I could since the modified system started. But the KY returns still didn't go thru.

Some say the way to make a small fortune is to start with a large fortune.

I've found out that the scholarships are allowed to be used for other than tuition such as room and board. Can we assign the scholarships to room and board, apply payments and loans as parents education expenses for purpose of taking the education credit on the parents' return? Then report the taxable scholarship on the student's return. He has no other income and the scholarship amounts minus standard deduction results in no tax (no tax at state level either). Is this allowable? It doesn't seem right? Scholarship amounts are reported as W2 income. Would he be subject to SE tax?

Yes, KY. I'm near OH but the adoption is in KY. I have the question out to the client for him to contact his attorney. Thanks for the replies.

This works both ways. Some people just can't save money and a nice check each year is good for them. Even at no interest. Others who have to pay, whew. How do you get them to have more withholding or make ES payments. I have a few clients who don't do this year after year. And they wonder why they have to pay so much.

I give paper copies in a nice folder. It's just as much of a hassle for me to put things on a CD or flashdrive. I have a few clients who don't want the paper copy. I load it on my Sharefile site and they can get it there.

I give the client paper returns. Review it with client. Some clients, very brief, usually just mention similarities to prior year, nothing in particular to point out. Unless there is something to point out. Some might ask some questions, etc.

Thanks.

Any comments?

Court hearing for adoption finalization occurred in 2015. But still waiting on paperwork from State. Can the adoption be considered final in 2015 or do we have to wait until 2016 when paperwork is received. I'm assuming the court made a ruling and things would be dated as of the 2015 date.

It was a little convoluted getting to it. Login to eServices. Left side: Application; Services: efile application; choose existing name; Select EFIN status.

Jack, was the problem you've been experiencing fixed?

I'm a CPA and I just checked mine.

I've updated. I usually like to wait until the 2nd day. Yes, still a little cautious.

Anyone update to 15.5 yet?

Thanks. I will check with parent on what each scholarship allows. There are 3 different ones listed. No Pell grants though.

Am I correct? Tuition and other qualified education expenses charged on student's account. Room and board amounts also charged on student's account. Scholarship and grant money deductions and parents' payments shown on student's account. I must assume the scholarship and grant money applies to the tuition and other qualified ed expenses while the parents' payments apply to the room and board. Therefore, no qualified ed expenses available for the education credits.