Tax Prep by Deb

Go back and re-answer the SRP questions especially #3 I have missed this several times, but if anyone had coverage for even one month the answer to this question should be yes, then it should calculate correctly.

My thoughts as well, basically it really doesn't matter tax difference if I include it or leave it off as there income is low enough they would not owe anything. But like I said it was a new one for me.

That would be correct! As long as he had insurance even for one day in a month it is considered coverage for the whole month. So he only missed December and thus qualifies for exemption type B marked December and your good to go!

From what I know so far, Mother is not a US citizen nor was the asset a US Asset. I'm going to have to check on Country but my current guess would be Portugal.

I have a client who inherited about 10,900 us dollars from her Mother's estate in a foreign country. How do I determine if it is taxable in the US?

Because he was without insurance for more than 2 months (short term gap exclusion) he will be subject to the shared responsibility penalty for the three months he did not have insurance unless he qualifies for one of the other exclusions.

Thanks Jack, I do appreciate that. We tried to get the number but the IRS site didn't recognize her so we couldn't complete the process. She was going to try again tomorrow, but I think I will just have her call instead.

That's what we are afraid of. Any idea how to proceed?

I received a rejection last night for a client I've done for years. It said she needed to enter her IRS pin number. She didn't receive one. We can't even get thru to request one. I'm at a loss as to what to do here!

Yes, I have checked and rechecked it and everything is marked to be filed separate, it even reminded me of the need for the income allocation 8958. Funny thing is we were working on this last night and didn't get this warning, I wonder if they changed the form today. I will have to look into that.

Hope someone can help. I have a client who is separated from his wife. They had a shared policy thru Covered California. They will be filing married filing separate and we are trying to do the shared policy allocation worksheet. Everything is to be split 50% and because they are filing separate they do not qualify for the credit and must pay back the advance payment. When I do an error check it is telling me that the Shared Policy Allocation section should not be completed unless the policy is being shared with a taxpayer not included on this tax return, please remove the information from Part IV. The only thing I can see is that I have to include her Social Security number and name as Married filing Separate. I don't see any way around this. Anyone else have a thought?

Not unless she has a qualifying child.

Same here! I posted on the other board and was told it would be fixed on the next update. I was told until then to increase the time set on auto save. I did that and so far it seems to be helping.

February is always my longest, shortest month! Only 10 days in and I'm so looking forward to April!

Enter all the info on the dependent tab on the 1040 and check not to claim this year, then check the box qualifies for EIC. Keeps all the info off the 1040 but shows up on the EIC schedule.

There is a difference. I messed up on that last year and client got a letter asking us to look it over. Turns out I included the non taxable part of SS to help figure the penalty and wasn't suppose to. It is only required to calculate the credit.

Trust me on this, DO NOT CHANGE UNLESS IRS TELLS YOU TO! Still working out this mess for a client whose previous preparer not only took it upon themselves to use 941 instead of 944 as required. We have refiled the 941 numerous times and somehow IRS still can't get it fixed. This goes back to 2008 and 2010.

Had one last year that got a lump sum payment from Social Security that triggered the repayment. So like Jack said it's going to be common.

Yes, that ship has sailed! I also had a client in the past that we did that for and everything was fine, but the law changed when they made the tax credit permanent last year.

Had that happen to a little dog three years ago. Me and my mom were so heart broke and lonely that 10 days later we went in search of someone to love and got our Mickey Boy! Best decision for us. It didn't take away the hurt but it gave us something to channel our love to and he in turn has given us so much love. He is very affectionate so we gave him a middle name. His full name is Mickey Valentino (Mickey, after Mickey Mouse because we are great fans and associate him with happiness, and Valentino after the latin lover because of his kisses)! It takes time, but eventually life will go on and the motivation will come back, but I truly do sympathize with you. Having to put a pet to sleep is very difficult but is sometimes the kindest thing we can do for them.

No problem so far here either

Amen!

She can file Married filing separate. To efile there is a special allocation form that has to be included in the return. The allocation form is 8958.

That's what I thought. So I will file the daughters return and have her claim her own exemption and mom will claim her only for EIC purpose. Thanks for the confirmation!

I have a client who has a unique situation. She has a daughter who is 20 and was a full time student last year. They lived together all year and would qualify for EIC. The wrinkle is the daughter provided more than half of her own support. From what I see she would still qualify her for EIC purpose., as support is not a requirement correct?