Tax Prep by Deb

Does Medlin import into Quickbooks or do you have to manually enter it? I'm in the same boat. The cost is outrageous and nothing has really changed with the program except that they are wanting everyone to go online which in turn would cost each of my clients more than what I am currently charging. Seriously thinking about an annual software surchage for each client that will help me with my costs and overall help them with their costs if I have to move them to online.

Just need someone to check me on this. My client recently paid off her home that had a Reverse Mortgage on it. It has accumulated over the past 12 years approximately 144000.00 in interest. Am I right in assuming that none of this interest is deductible because it is considered home equity? It looks like it cannot be grandfathered in because it was not used to buy or improve her home. Hopefully someone with more experience on Reverse Mortgages can chime in. Thank You in advance!

My client sold his business, however the new owner does not own the type of license required and must work under my clients license who in turn has to spend a certain amount of hours per quarter with the new owner to keep the license active. He receives 1000 per month for this purpose. I feel it should be classified as self-employed income (perhaps consulting fee). Does anyone have any thoughts? Thank You in advance!

I have a client who received a 1099 Misc and when I asked her what it was for she said that she is paid to manage the apartment complex she lives in. This is by no means her full time job, but I'm not sure how to report this. I feel it should have been a 1099NEC but she was issued a 1099MISC with the amount in box 3. Do I still report this on Schedule C or as other income? Thanks in advance! Deborah

They are created on the federal worksheet. It's below the federal part of the worksheet. Search for es in the form search bar.

Is anyone else waiting for forms to be released so we can file California returns?

Yes, e-file will be open for all current e-file years

But the trigger for the 1099 is when payment is made. Correct?

I've been using Fujitsu ScanSnap for several years. If it died today I would immediately order another one. It has been one tough scanner.

Yes. Enter all the info and the allocation worksheet.

On policy allocation put his or her at 0 percent.

I'm with Drake and are having the same turn around. I have been swamped all year but a real strong push this week so I'm sure their servers are being flooded right now.

Finally figured it out! Thanks

Does anyone know how to enter this in Drake so that it will flow to the appropriate line. I cannot get it to give me credit for the withholding. Any help would be greatly appreciated.

Does anyone have a work around for the following e-file error: 2847 CA 568 Depletion, Depreciation, Amortization Depletion, Depreciation or Amortization information has been entered for an LLC form 3885L is not supported for efile in this package at this time. Doesn't seem right to me. Prior tax preparer with other software had no problem. Anybody know a work around?

It's a new client I inherited and the previous preparer (different software) was able to thru their software. Anyway I am just going to go thru the FTB website.

I have been trying for the past couple of days to set up an automatic withdrawl for an S-Corp (California) to have the 800.00 franchise tax fee taken out, but I must be doing something wrong. Can someone walk me thru the process? The voucher is created, and all the banking information is inputted, but it does not show it is set up to come out. Any help would be greatly appreciated.

Released today! Thank You!

Anybody have an idea when the CA 540NR form will be released for e-file? I have three that I need to send but are on hold for now. Thanks, Deborah

I have some going back to February of last year still processing.

Me three!

Looks to me like they applied the ctc for the child under 17 (2000.00) first to the taxes owed, then the balance owed to the dependent over 17 (120.00) leaving the tax at zero and no refundable credit.

Thanks Tom, I just had a client get more money and I thought it was a mistake, but your explanation explains the whole thing. Thanks!

My client went ahead and paid what was owed, then about two weeks latter she received a check for exactly what we were expecting as well as for what she had paid. I was able to reconcile it to the penny!

I also have a client in the same situation. For now all I could tell her was to go ahead and pay the small amount owed and hope IRS takes the payment into consideration when refunding. My fear is it will take them way to long to straighten this out that she will keep getting letters and finally IRS helps themselves to her money. All I can say is what a mess!