taxtrio

Amen to the "empty" PDF file....

Re: Michigan Another time waster... the MI 1040D and MI 4797. Neither are needed unless you have sold something that was owned since before Oct 1, 1967. Very rare these days.... So, ATX should not be adding these forms to Michigan just because there is a federal Sch D or Federal 4797. I am continually deleting these forms from the Michigan.... Adding these forms should be done by the preparer in rare cases where required. Re: Charitable donations over 500.00. Terrible input on that form!! Was better when we could input directly on form. What happened! Taxtrio

Good... I've got some issues for you. Proforma issues: The 1099G with State refund amount proforma's over the amount; but won't pass efile diagnostics because the zip code doesn't proforma over with it... Time waster have to always go back and enter missing information on 1099G. Another proforma.... Sch A Land Contract or other mortgage interest with no 1098. Proforma this year just proforma's the Name and EIN # ... but missing address-- then again won't pass efile diagonistics until you get the name and address from the prior year return and input it.. It should proforma all information needed to efile... Time wasted.. annoying. Prior Year Comparison Worksheet is wonderful... But it should have a tab for the State Income Tax not just federal. (This would be very helpful especially for us in Michigan... we need to know more than just the amount of the Michigan refund We need to see the breakdown... was some of it from the rent credit...? some from the energy credit? etc.) This one is my largest complaint over the years.... There is no link between the Return Manager and the Efile Manager. There should be an indicator in the return manager that shows "efile complete" or something that indicates the return as been efiled. I am a small business with no time to waste. doing everything myself. The only real way to check and make sure everything that needed to be efiled--- was actually efiled-- is to print out both lists and compare them looking for who's missing on the efile list. This would help to provide better and more timely customer service to the clients if it could be readily seen who's missing from the efile list. I know many people have manual checking systems that work for them... just as I have a system to varify efile; but irregardless... we need this feature! Printing labels: We need to be able to choose a different size of label. I have be able to change it to any other size of label and some of my clients names and / or addresses are too long to fit on the same label. I've learned how to transfer the information to excel, then convert to word and choose a better format or label. But why can't we just choose a different label size in ATX? If they can fix any or all of these this year it would be a great time saver... and would be greatly appreciated!

Amount of top of SE should be same amount as line 29 1040 page 1. The rest flows to sch A. And you need the SE in the return. Still getting message that SE will most likely reject due to IRS problem with SE in return that shows under 400.00 of se income... I have client with BD with this situation. I'm having him pay bal due with extension and I will efile his return when IRS get's it fixed.... Or you could have them paper file. ATX is giving a warning (blue notes) when you run check return/efile. Hope that helps. Taxtrio

I understand all that... and we all have our ways of keeping things in order. But all these things take up precious time. And I for one, need all the time I can get to get returns done and returning client's calls etc. I would be a real time saver for me if I could just "filter" returns in the return manager to see who's been efiled and who hasn't... I'm sure it wouldn't be that complicated for the programmers to allow the efiled status to "crossover" to return manager. Or at least give us an easier way to compare the return manager with the efile manager. The only real way to compare and be sure everything has been efiled is to print them both and compare by hand. The way I keep control of things is this. My paper file (8879 and copies of W-2's etc.) stay in the file next to my desk. Every Sunday afternoon (the only time I don't have a client in front of me) I pull out the paper files and look it up on the efile manager. If it's accepted, it's marked complete and put in the "to be filed pile". It doesn't get filed until both federal and state show accepted. I find this easier than comparing the managers to find who's missing in action. Taxtrio

I have made this suggestion many times over the years.... I would like to see "efile Status" on the regular Return Manager.... Then it would be easier to keep track of returns that have not been efiled... Why can't the two managers "share" information? What say you all?? Taxtrio

Twice this week I've gotten new clients (referrals) That are former Turbo Tax users... One client came in to see me and said she was "nervous" about her tax return. When I asked her "why?" She replied that turbo tax said she owed money and she couldn't image that she would owe. I completed the return and she was getting a refund. She was greatly relieved. I asked her how much Turbo Tax said she owed. "over $9,000.00". No wonder she was nervous... She agreed that she must have done something wrong.... She says from now on she'll leave the taxes to me and she'll stick to what she does best! So much for their GPS system! Taxtrio

Quick Alert today says IRS will have this issue fixed 2/14/2011 at 6pm drain.... It makes you wonder what is so complicated in fixing this issue?? Oh well, just have to wait. Taxtrio

What is unemployed students relationship to the taxpayer? Taxtrio

IRS Reject Code 0204. EIC, no children, low income, 64 years old in 2010. ATX computing correctly. IRS Computer thinks client doesn't qualify.. thinks client is 65 years old. IRS E Help desk says they are aware of it and working on it. Computer must be comparing 1946 - 2011 and gets 65 years old.... Wrong!! No word on when it will be corrected. Help desk says it may not be a high priority as it doesn't effect many people. Just keep sending until accepted they said; or paper file. Taxtrio 1/22/2011

If you are having a problem with shared secrets on MI efile Info screen check the general forum.

Michigan Efile issue found yesterday. Proforma clients.... the shared secrets are brought over to the MI efile info screen. BUT, it puts the refund/bal due in both places... So you have to check last years return to see if it is a Refund OR Bal Due and delete the amount in the wrong box. The program should know if it is a refund or balance due and just put it in correct box!! Can't be in both.. It says "Or". It also does the same thing with the box A ... AGI OR Household Income.. puts the same number in both boxes.. then we have to delete one or the other.. But the most inconvenient one I've gotten is a senior citizen who has to file a michigan but had no refund/ no bal due last year. So the proforma comes over as a "zero" in both boxes. It doesn't matter what I do ATX won't recognize the "zero" as a number. Keep getting a diagnostic.... Enter refund or bal due. Called ATX... Rep had me send the return to him... Then he told me he had a quick fix for me... just check the other box on the screen and you won't need the shared secret.. I told him... thanks but I already know that.. but I will have to call the client back to sign a MI8453 and keep it in my file for years... I can do that, but I shouldn't have to. I got him to send it on to the programmers to hopefully fix this. I guess I'll have to have everyone sign a MI8453 just to be safe for a while... Taxtrio

"Rule of thumb" is that the Shareholder doing the work should be (must be) drawing a salary for an amount the reflects the amount of work he does (commensurate). Usually the IRS expects the salary to be at least 50% of the profit of the 1120S; or they can come back on him for employment taxes.... Taxtrio

Document Manager allows you to scan client source documents and attach them to your client's file. "paperless office" (almost!). I find it much easier when clients call in the offseason and need help to simply bring up their records in document manager. Less filing, less filing cabinets, less labor to have someone help me file stuff. And easier to find their file.. nothing more frustating than trying to find a file that has been "mis-filed". The easiest way to use document manager is to create a PDF file of your clients return from the print manager at the same time your are printing their return(this automatically creates a file for them in Document manager.) Then I choose their file in Document manager and scan their source documents into the document manager. Everything all in one place. I did not choose scan and fill because I would have to review everything that scan and fill did anyway. Didn't think it would save me all that much time.. But I don't have the time to deal with all the filing anymore. Business has grown and it was cheaper to get Document Manager than to hire someone to file for me. Just make sure you have a scanner that is compatible with the program. Taxtrio

Another thought, many businesses are now running checks received through their credit card merchant for "e" processing. These are also being run thru the credit card companies-- so those "checks" would be treated just like a credit/debit transaction and included in the 1099 issued from the credit card processor. Taxtrio

Interesting twist on the 1099 reporting requirement...think about this: to 1099 someone you need either their SS# or EIN#. If you don't have (or can't get) the number then back-up withholding of 20% is required to be w/h from the payment and sent into the IRS... So if ATT or Verizon or whomever doesn't provide their EIN # then I am supposed to w/h 20% and sent to the IRS?? How long will I have phone service if I do that! I understand the IRS is looking for input from us on how to implement this mess. I have clients that commonly pay a lot of their busines expenses on their credit card. But the credit card companies will be issuing 1099's on all money they process for each merchant. So how do they keep from getting the money reported twice? Once from the credit card company, and once from the business that made the purchase. It has been suggested that the rules for implementing this could stipulate that you only 1099 the amounts NOT charged on credit cards! That would eliminate the double reporting; BUT then all business would have to keep their records showing how much they purchased from each vendor AND keep separate totals for credit/debit transactions versus cash/check purchases. I don't see how they will let this stand. Something has to change. The old saying "be careful what you wish for" could apply to this law. Maybe the IRS thought they would like a better way to tract income.. but can they handle all the paper this will create! Hmmmm. Taxtrio

Interesting twist on the 1099 reporting requirement...think about this: to 1099 someone you need either their SS# or EIN#. If you don't have (or can't get) the number then back-up withholding of 20% is required to be w/h from the payment and sent into the IRS... So if ATT or Verizon or whomever doesn't provide their EIN # then I am supposed to w/h 20% and sent to the IRS?? How long will I have phone service if I do that! I understand the IRS is looking for input from us on how to implement this mess. I have clients that commonly pay a lot of their busines expenses on their credit card. But the credit card companies will be issuing 1099's on all money they process for each merchant. So how do they keep from getting the money reported twice? Once from the credit card company, and once from the business that made the purchase. It has been suggested that the rules for implementing this could stipulate that you only 1099 the amounts NOT charged on credit cards! That would eliminate the double reporting; BUT then all business would have to keep their records showing how much they purchased from each vendor AND keep separate totals for credit/debit transactions versus cash/check purchases. I don't see how they will let this stand. Something has to change. The old saying "be careful what you wish for" could apply to this law. Maybe the IRS thought they would like a better way to tract income.. but can they handle all the paper this will create! Hmmmm. Taxtrio

The Taxbook, page 12-3 says "Taxpayers can use payments made by their dependent to claim an education credit, including payments by third parties treated as paid by the student. 2nd column says" Students who qualify to calim and education credit can use payments by their parents or third parties to claim education credits. Payments are considered gifts to the student. So, whoever qualifies to claim the dependent (The Parents or the Student themselves) gets to claim the college tax credit. Credit follows the dependent exemption. Doesn't matter who actually paid it. Even the laptop bought by gramma for the college student would count as "course Materials" for the credit... Neat Huh!! Taxtrio

In Michigan to get the Michigan and the Homestead Property Tax Credit to efile you have to have at least one dollar of income on the federal return. So I just put in 1.00 of interest income and it efiles just fine. No tax on the federal for just 1.00. If you want to efile the Michigan only you need to mark it MI only. and choose the MI 8453. It usually goes just fine. Taxtrio

Sounds like that might be a good option.... The document manager program costs 305.00 by itself... Hmmm. Taxtrio

Just got the 299.00 special price email from TRX. Offering the TRX PRO TW premium version for the 299.00 by May 1st. Called and was told: Not ATX, Not Tax Wise... No CCH products thru them this year. Too many problems between them and CCH. They have signed up with Tax Works (Red Gear) product for that price. Problem for me is that HRB purchased Red Gear a couple a years ago. I looked at the software then, didn't like it. Probably hasn't changed much since then; and I don't like the HRB in the back-ground--- used to work for them years ago--- don't want any thing associated with them any more. So I'll wait and see what offers I get from ATX and Drake this year. Discount was nice for the one year but I knew it couldn't last. Taxtrio--- Well, back to work!!

My understanding is that if he is a 2% or more owner then he cannot draw unemployement benefit in Michigan... even though we have to pay the unemployment tax on the wages anyway. Taxtrio

Deduction for repayment of amounts under a claim of right if over 3,000.00 Claimed as Misc Itemized Deductions Not Subject to the 2% limitation. Page 4-23 Taxbook. Also see Tab 3. page 3-21 "repayments". For detail. I'm sure it's also explained in Pub 17. You have a choice of Sch A, or Refigure tax from the earlier year without the income that was later repaid. Subtract the regfigured tax from the tax shown on the original return. Enter the result on line 70, form 1040and enter IRC 1341 next to line 70. Taxtrio

This week I was given a box of Godiva Chocolates (Yum!) and then a couple of days later a box of Sees Chocolates!! I can see I'm not going to loose any weight this tax season. Taxtrio