Marie

Today, a mennonite client called and had received $1800 for recovery rebate credit. I had failed to put this on his 08 tax return. He said he had not received anything last year, which was correct, I checked. Why wouldn't he have got somehting for his two kids? I didn't do his return last year, but he's a farmer and had gross income. He asked if this was a government hand out and was wondering about keeping it. I feel it was a payment based on income tax, not SE or social security. What do you think?

No, husband has wages of 30,000, so there should be no issue on that. I was just surprised the software didn't show availability of putting in a ROTH. I know it's not deductible, no credit available, but I do believe it is allowable.

Gross income is under the amount, and they are drawing out of IRA's and some other retirements so credit isn't available. They are allright putting money in a ROTH, aren't they, even though I can't make the worksheet work? Would that keep the efile from going through?

My clients are over 701/2, but are putting money into a ROTH IRA. When I go to the IRA worksheet, it shows the limits to be 0, but I read that it doesn't matter how old, as long as there is earned income, and they can put in $5000 each. I don't think I have to put in their contributions since they aren't deductible anyway, but I was wondering if the worksheet just isn't working, or I havent put something in right? Anyone else looked at this?

PLease, I need some imput. Does the alt minumum NOL add back in to take away the reg NOL I had to add in. What is the difference between a regular NOL and an AMT NOL?

My clients have been taking NOL's over the past 15 years. Now they sold their farm, received money in all one year. AMT has come up, adding the NOL's into the income. Granted, it's lower that if there had been no NOL's, but I'm stuck on the alternative tax net operation loss deduction. I gather that would be a subtraction to get back some of my NOL's I'm losing on the AMT form. I haven't been figuring AMT NOL's for those past years. I'm not sure I know how. I've read the instructions and am just as confused as before. Can anybody help me?

When I rollover, the NOL's aren't rolling over, and I have to put in some years, the last one was just 2007, but earlier returns I had to put in most. Anyone else having this trouble, am I not doing something right, or is this just the way it is?

Ray, thank you for your imput. I thought I was right, but needed confirmation. I worked thru the worksheets and it's pretty specific about exempt income from SE not qualifying. Now I'm dealing with a preparer who is giving the Amish the add'l ctc, they are getting refunds, and worried they will have to pay back and coming to me to amend. I just wanted to be sure I was right. If I need you, I will specifically ask for you, thanks

I'm getting some new clients from the mennonite community, and most of them are 4029 exempt. ATX software has a 4029 box to mark and after that no EIC or Add'l Child tax credit is figured. I think this is correct. A competitor in the next town is giving these exempt people the add'l child tax credit. I'm getting calls wondering if she is correct and if not they want me to amend their tax (and say they will be back next year). My question - am I right? is the ATX software right? how come her software isn't doing the same? Last year she used TaxSlayer, I'm not sure about this year. I have some of her last year's and she gave add'l CTC then, too. Does anyone else have some experience with this? I think I'm right, but when someone else is doing it different, I start doubting myself. I know this is getting long, but, as long as I amend and they pay back by April 15, there shouldn't be any interest or penalty, right?

Thanks, I hadn't found it yet. What attachements need to be sent in with the KY return? Federal? MO?

I did pull up the KY efile form and that's where is says there is no refund or balance due. If part year can't efile maybe that's why when I try to create it doesn't come up. I'll try to check the instructions. thanks

Client has both MO and KY income. He has moved to KY so I'm filing as part year resident. I have filled out the KY part year resident form and he is getting a refund, but when I do the efile form for KY it says he owes nothing and getting no refund, and when I create the efile, KY does not come up as a state. What form am I missing, or what box might I have failed to X or whatever. Any help would be appreciated. I guess I could paper file KY, but efiling would be easier.

Is there a way in the ATX software to find returns with a specific form. I want to look at all my returns with Sch F's. Is this possible?

Do we have to use the new tables? It's only to get money in the taxpayer's pocket and if they don't care or still want the same taken out as before, is that allright?

Efiled fed and first state went thru fine, now I want to send the second state. In the efile section, on the second state, it shows the refund, but not whether TP is getting direct deposit or paper check. I went back and checked the efile form and I have it direct deposited, but it doesn't show up on the efile side. Is it all right, or do I need to fix something. I don't want that refund drifting around out there some where. The bad part it is a KS refund and I hear they aren't coming out, but I want to send it to the right place when it does.

This year some of my dairy farmers are getting a domestic deduction from their dairy coops. Form instructions say that to be entitled to the coop deduction under these circumstances, the dairy farmer does not have to have employees. Do I have to fill in the income and deductions attributable to the dairy farm too. I've put the deduction on the form (it's down toward the bottom) and it flows to the 1040. I just want to do it right.

I'm back in the office. There was some gain on the goodwill. 86% of the payment went to that part of the installment sale. We reported as income on 6252 and flowed to Sch d. I assumed goodwill was a committment not to compete against or do business with the businesses that were associated with the buyer (who purchased the equipment)- all the same sale. Now that the buyer has defaulted, isn't the goodwill gone and worth nothing to anyone? I've done and redone the worksheets in Pub 537. If equipment FMV is still $10,000 and we actually received only $630, but reported the $10,000 (because of deprec), would my only taxable gain be $630? If so, how is this reported on the form? Repo'ed property - long term or short term gross sales price?, basis. I was hoping when I woke up this morning I would have a revelation - didn't come.

It's not a corp, client just sold off part of his business in another state. If goodwill isn't worth anything, then there would be no gain, correct? How could goodwill be worth anything back in the hands of the owner? Equipment might be worth a little less than what he received for it. Does that consitute a gain and then we start depreciating it again? It looks like he is paying on the equipment twice to me. Once when he sold it and now again repossessing it.

I understand dividing in two separate sales. But what worksheet do I use for just a personal property repossession? I shouldn't be this complicated, I just can't seem to get it straight in my head.

Installment sale was set up for equip and goodwill. Equipment that has been depreciated has to be reported in year of sale even if all the money was not received. The payments were made in 2007, 14% was equip, the rest goodwill. But I reported 10,000, the full amount, on the equip because is was all ordinary income, so really not an installment sale for equip. Only 86% of the 2007 payment was reported to goodwill. In 2008, 14% of the payment would not be taxable, because already reported on, and 86% would be put on goodwill installment sale. If equipment is still worth $10,000, is that a taxable gain of $10,000? He's already paid tax on that amount last year. I can't find any info to clear this up for me.

Every time I work the repo worksheet, it comes out with a gain of $10,000 on the equipment - using actual figures of money received or figures that we already paid tax on (the full 10,000). How can he have a gain of $10,000 when he paid tax on that amount? If it is a gain, is it taxable? I thought I could put the equipment back into his depreciation schedule and start over since he paid tax on that amount. If the goodwill is not worth anything now, there is no gain, correct? Who would the goodwill be worth to, and what would the FMV be? Please, I need some guidance. Thanks

Client sold equipment and goodwill on installment sale. Because equip was depreciated we reported the whole sale in the first year, $10,000 (as is required, I believe). He only received $630 for equipment. Goodwill was reported on installment. Buyer has defaulted on sale. How is this reported? I've done the worksheets, but come up with $10,000 gain on repossession, and I don't understand why. I put in the amount we received(360), not the amount we reported.(10,000) If I put in amount reported, there would be no gain, but can the client, who is putting the equipment back into his business, depreciate it at FMV? Wouldn't his basis be FMV, and no gain on the sale? Where and how do I report the repo on a form? The goodwill is not worth anything now. The worksheet figues gain and loss on the sale, does that equal taxable gain? I've got Pub 537. but doesn't specifically say what goes where on the forms. Please help

I update every day, and efiled it yesterday, what else should I look for?

I had a return reject because of something to do with the IRA . Is the worksheet not ready for efile and is there a way around it? There is no reason why she can't take the IRA

What is with the additional dropdowns on the ATX assest entry? What have I missed? There are extra farm asset choices. I hadn't look down any farther from what I usually used. When would I use these extra choices?