taxtrio

click on add forms, and type in "elections" or "statements" and add it to return. Go into elections, choose 1040, (tab at bottom). a whole new world of statements, and elections will open up to you. Go exploring... you'll find lots of new things.

If a person is receiving a disability pension, with Code 3, and they are under retirement age. You input the 1099R exactly as I have described. The disability pension will show up as wages on line 7 of 1040 (as it is supposed to), and that would be qualifying "wages" for the EIC. I have several clients that qualify ... they still have qualifying children at home.. Makes a BIG differnce in there refund. ATX does it quite nicely... it just doesn't understand that I can still subtract it as a pension on Michigan. (override). Hope this helps.

Stimulus Rebate will not be sent to you until you file your 2007 return. They will start sending out check in May, June, July... but they can send them out until 12/31/2008. After that date, they will become part of your 2008 refund.

Doesn't your client have a Power of Attorney from prior years giving her power over tax matters? That should be sufficient. It should still be in force.

Look up "income in respect of decedent". If you receive income for a deceased it can be reported as IRD on line 21.

If you put code 4 on 1099R, no penalty.

I know what you mean. I've never had that one happen, but I have had others the have "transformed themselves". So I know at least look at the refund/bal due on the 8879 they bring me back and make sure it matches the return before I efile it. Quick, and easy way to confirm that it is the way I left it.

You have been very fortunate... Michigan does send out challenges to the CR, asking for documentation for everything. They want to know "how did you live last year on so little income". These examinations are painful, detailed, and usually take months, and months... be glad you have never had to help a client with one.

Was this a QDRO order?? (Qualifed Domestic Relations Order)... If so he should have presented the order to his pension people and they would have sent her the check directly, and sent her a 1099R in her name and Soc Sec #.. This is a fairly common mistake that people in a divorce make. They just want it over with and take the distribution and give the ex-spouse a personal check.. OOPS! Now he has a taxable distribution, (and maybe a premature distribution penalty, code 1, if under age). If ex-spouse get's distribution directly from pension-- no code one due to QDRO, no penalty. Usually he is just stuck paying the tax. Ex-spouse got a break. I suppose you could try to fight it out with IRS, send a letter with attached court order, you never know, it might get him out of it.

Thanks for the info... RDP's... interesting... one more anacronym to remember... We tax preparers could hold a whole conversation without using an actual word!! I think our families would agree, they think we speak jibberish as it is.

To claim the interest a person has to be liable for the debt, and have paid it. Are these two "a couple". as they used to say? And living together without benefit of marriage... as is so common today? In Michigan you might have a problem as it is "illegal" to co-habitate without the benefit of marriage--- old law, still in force, and IRS district here says they will enforce it and disallow dependent exemption as something illegal in Michigan. I know a lot of people take the exemption in Michigan anyway... but technically not correct.

No, look at your rules. Must be dependent now to be HH. Should be able to find it easily in TAXBook, or even Pub 17. this rule is a couple of years old at least. Not like the good old days!!

No 8453 for any signatures this year. Even personal rep's and POA's can use the pin and sign 8879's this year. 8453's are only for sending in documentation to IRS> Bring one up and look at it. Such as Statement for Sch D. You will also see the box to check for using a statement to attach to Sch D when there are hundreds of stock sales all detailed on the broker' statement. Then you can put the totals ST and LT on sch D and attach the broker's statement to the 8453. More accurate, less input time, and more reasonable fee can be charged the client.

I efile them all the time. Just enter the information shown on W-2 in appropriate places. Usually code "M" in box 12a, and the amount below, and code "N" in the next box 12a and it's amount. it should charge them the uncollected SocSEc and MEdicare tax on page two of 1040... no problem.

Not subject to 10 percent penalty if withdrawn AFTER the date he was declared disabled by Social Security. Often a person receives their determination from social security and it is "retroactive" to the dated deemed disabled and they get a catch-up check. So you need to know both the dates of the distributions, and the date of his determination of disability by social security to answer your question. Yes you can ammend back into a prior year to recover the 10 percent penalty if it goes back into prior tax years.

I AM talking about clients I have already done... seniors who's social security is not taxable, but have other investment income that requires them to file. And according to the IRS the investment income won't qualify them for the rebate, must be earned income, or soc sec, or disability va benefits. Many of these seniors end up with very little tax liability- if any. Any if ATX hasn't sent the worksheet information with the federal I already filed for them, then they won't get the full 300.00 rebate they are entitled to. I'm not worried about people calling on the phone.. I believe in giving good service to the clients I already have, they rely on me to advise them on tax matters... Hey William, can you answer this question... what information get's to the IRS??

Thought I'd post this in both forums. Do you think that the earlier return we efiled for seniors, with box 20a blank--(per IRS instructions)... Do you think the IRS got the Social Security Information included in worksheets?? Will they get rebate? Or do we need to ammend and show SS on 20a. Food for thought.

Normally, the IRS directions state that if Social Security is not taxable, to leave line 20a blank. So that is what ATX has always done. Of course we have input the information in the worksheet, and in Michigan it flows over to the Michigan 1040-CR. Now the IRS says for seniors to file their federal return WITH the Social Security received IN box 20a to get their rebate. The Question: Atx now showing social security in box 20a.. Good.. But what about the earlier returns we filed that didn't show it in box 20a??? Did the IRS still get the information from the efile, from the worksheet??? Do we need to ammend these returns??? Just what we need, more questions...

You have to have at least one dollar of income for it to efile. Non-taxable social security will qualify them for the rebate, but to efile you have to put in one dollar of "interest" or "other income". to efile. No tax anyway. No harm, no foul. If they mail it in the IRS says they need to write in their social security on line 20a and zero on 20b. (even though the instructions say to leave 20a blank when it is not taxable.) So if they mail it in, this is what they need to do: Name, address, SS#, put soc sec on line 20A... and sign and mail.... simple right?? But the question is... how do they let all these seniors know they need to file?? That's the big question.

I like the Caribou Idea... besides here in Michigan the Tiger is already taken!

Me too!!!

Was the difference really interest? But you do need to do a Sch D and show the amount from the 1099B sale "gross proceeds" and then compute the basis. If the difference (2487) is interest, you would think there would be a 1099-INT for that separately. Are you sure the bond didn't sell for more than it was bot for? If so it would be a cap gain. LT> I think the 1099B should have been for 1,000. then you would have a sch D 1,000 in and 1,000 out. no gain. But if that is the interest, and you put it on sch B, then your basis on sch d would be the 1,000 + 2487.00 taxable interest. still zeroes out. 3487 in 3487 out. I would call the broker.

I also leave my information as preparer on all returns, even family no charge returns. I efile all returns and I think it needs to be there for that. But if I wanted to, I'm sure I could just "override" those blocks where my information appears and leave them blank on that particular return. But I think they would have to mail it in. (if you do this, make sure you get it ALL deleted, everywhere!)

I had a client similar situation last year. Filed them MFJ, but without SS# or ITIN# had to mail. Completed the form applying for ITIN (W-7?) if memory serves me. Read instructions for w-7, they specify address to mail w-7 with return and documentation required. It took about 6-8 weeks and they got a letter saying the ITIN was issued and that the return was filed and was being processed. Now client has ITIN in hand, no problem filing this years return (except no EIC allowed with ITIN)... Might as well bite the bullet and get it done, if you don't help them now, it will be same problem next year. P.S. If I had filed client MFS last year he would have owed. MFJ at least they had a refund.