Tax Prep by Deb

I just set my appointment. I'll be taking the test on the 28th. Time to hit the books, practice the online pub 17, ect...... Deb!

Everyone who is subject to the new testing has to do the continued education this year regardless of taking the test or not. Continued education begins in 2012 and all subject to the new testing must complete (and pass) the test by December of 2013. Deb!

But keep in mind that 21 days has come and gone. I have a client in exactly the same situation. Refund was scheduled, then changed, then went to "we have received your return and it is being processed". I called the hotline, the agent looked up the info for me ( I had checked me as third party designee) found in her file that she needed to call a special number. I tried to call that number for her, was on hold for 1 1/2 hours the first attempt, 45 minutes the second attempt. I finally had the client call the special number, but the computers were down and they told her to have me call the next day. When I did finally get to talk to someone I was told that the problem had been resolved two weeks earliers and to allow another 6 weeks for the refund to process. This was last week, checked on where's my refund and finally have May 31. We will cross our fingers and hope for the best. I honestly think this just got stuck in the system. When we called the number they didn't have any explanation, except they wanted to know if I had prepared her taxes this year and last year. Last year I filed her jointly as surviving spouse, this year as single. Maybe the switch in status did it, we will never know. Deb!

I love the fact that by April 15th I have my entire year's budget set. Anything that comes in now is gravy, and I usually have several who can't find anyone else around after tax season that have multiple years to file. Now I have time to breath, think, eat, sleep, ect..... Today I'm enjoying the quite! Deb!

Just wanted to put in my thanks as well. It's been a very busy season for me, and I am soooooo glad that it's over. Now I can start thinking about takeing the test so I can keep on doing this for many years to come! Deb!

Again, Jainen, thanks for such a clear explanation. Again I totally agree with everything you said, but your last reply gives me a easy way to explain it to him. Deb!

Jainen, I looked up a summary of SB401 but all I could find is how it pertained to mortgage debt forgiveness. I would love to have something in print to give this guy. Do you have a link that will take me to the part that speaks about the medical deduction? Deb!

Thanks again Jainen, It confirms my opinion! Deb!

Thank Jainen, I feel the same way. There is absolutely nothing I can find that leads me to believe it is deductible. All that I see in my research is opinions, nothing in the tax codes for California. I told my client I would check around, but I've prepared him for the no answer. Deb!

He does have a prescription, does this change anything Jainen? Joann, how do you make the adjustment?

I have a client in the office who has a prescription for Medical Marijuan. His question is can it be considered a medical deduction for the state of California? We know it is not on the federal level, but I haven't found anything sayings yes or no for California. Does anyone have info on this that will help? Thanks in advance. Deb!

I'm leaving on May 7th for a week in San Diego. One of my clients gave me a week of her time share for taking care of her cat a couple of times last year! Sure looking forward to no calls, no problems, ect.... Deb!

I still don't know exactly what has taken place, however I did look at my return again, and it appears that maybe what they refunded was the penalty for underestimating my taxes. The penalty is exactly the amount they refunded. I looked at the worksheet again and I feel based on it I did owe the money, but for now I'm going to cash the check and if I get a notice reversing it, I will pay it back. It's only 11.00 but it still puzzles me. Deb!

But my return did include the adjustment. However I received a refund. The adjustment is exactly the difference between claiming the federal amount less any adjustment. So did CA make a mistake on my return?

I had a client in the office this week who I had already prepared his return. He came for me to help him send the payment. His return was filed back in February. When I went to reprint his voucher's the state amount had changed. I looked and looked and finally found the California return made an adjustment to the amount that was deducted on his 1040 for 1/2 of his self-employment tax. The best that I could tell is that it adjusted it to compensate for the 2% stimulus, however instead of deducting it it added it. I over rode the adjustment so that his payment would match what had already been filed. I didn't think any more about it until I looked at mine. Likewise it made the same adjustment. I Tried to reason it out but it made absolutely no sense to me, but figured if he got a notice that we made a mistake I would take care of it as it wouldn't amount to a hole lot. When I got home today, I had a check in the mail for my own California income tax return. They refunded me 11.00. Thinking it might be due to the adjustment made in error (which I honestly believe is an ATX error) I pulled up an ammended return of my tax return, deleted the adjustment, and guess what? You're right, the difference was 11.00. So look at your self employed returns and see if CA is adjusting it. If so I believe you may be getting a call from your clients, at least they should be happy that it results in a refund. Deb!

Glad to know I wasn't the only one! My entire month of March was extremely slow even though dollar wise I was ahead of last year. Now everyone is in panic mode! I too believe it's going to be a busy last two weeks, but I'm rested, so bring it on! Deb!

Catherine, I sent my personal taxes off on Monday and stated for them to take the money on Tuesday. I just looked at the 9325 and it is showing that my payment also was rejected, however I checked my bank account on Tuesday and they had already pulled the money. So I really don't think that means anything. Deb!

Go to add forms, and type in the search MFJ vs MFS and pull up that form. Hope this helps. Deb!

Thanks to all who chimed in. I had a strong suspicion about this particular client. Turns out she received a letter denying her the loan and asking for the repayment immediately. ( I had already told her that she did not qualify for the 7500 because she purchased her home a few days before the start date) I had even prepared and sent her an ammended return to file and pay the money back, however she chose to ignore it. She just informed me this afternoon that last year they kept her refund and that was what she expected this year. Which is fine, however I cannot file the return without putting the correct repayment figure, so she is calling to try and get that for me. As to using the 5405, I knew that normally it wasn't required and so it was not a part of this return originally. So I will wait until I hear back from her, but my gut feeling is that we will have to paper file this one. Thanks again to all who chimmed in! Deb!

She received a letter last year, however I haven't seen any letters for any of the paybacks. Has anyone else seen letters this year?

I had already tried that, however it says it can't give me any information. Deb!

I just had a return reject because I included on the return the 500 repayment amount for the first time home buyer credit for a home purchased in 2008. We paid the 500 last year, however when I try to include the 500 this year it is rejecting with an error code MEFFDF1040-394 Form 1040 line 59b first time home buyer repayment amount must not be greater than the first time homebuyer credit amount in the e-file data base. Any idea's? Thanks, Deb

Support not an issue with EIC, at least the last time I looked. Deb!

Same thing here. I don't think it's a bug I think it's fine to send. They will use social's to match up to return. From what I've been noticing is that the doc control number isn't playing much of a role these days except that it is a time stamp. I plan on sending mine in as is. Deb!

I have a group accepted on February the 2nd that still do not show up in the IRS Where's my Refund. Some I know haven't received their money because they called me, but most have not contacted me, so I'm assuming they did receive theirs. Deb!