Tax Prep by Deb

That's what is so great about this board. We all learn and I truly appreciate anyone who responds. In this case I can actually go back to 2006 and ammend, and it represents alot of money. I just don't want to go against the rules, but everything I see leads me to take it. Deb!

Support is not an issue for claiming EIC. No where in the instructions, or the web site that IRS has asks about support. All the other credits, including HH require the support issue, but that I have been able to see, it doesn't apply to EIC. Deb!

Yes! The exception might be if they were on disability (SDI) and then went directly to unemployment, then it is possible that the disability would be taxable. Just talked to a client about this the other day. Deb!

Does anyone have a though? Jainen, I assume by you only quoting me, that you are saying go with what the worksheet showed? Deb!

I just tried and was able to connect without any problems. Have you tried recently? Sometimes they are just busy and it may take a few tries to get connected. Deb!

I have already looked at several documents regarding the EIC rules, I just want someone to comfirm my enterpretation to make sure I'm on the right path. I have two clients that are brothers and they live in the same house and have for several years. Brother #1 is 45 and totally and permantly disabled and is receiving disability through SSA, also a small pention coded 3 for disability, and then this year he has a w-2 for a small amount of work. (I'm going to reconfirm that he is totally and permantly disabled). Brother #2 is 41 and has earned income of about 8,000.00. In the past when I filed his return I filed it with him claiming the EIC only for himself. After reveiwing the info I'm not sure if I've done this correctly. It seems based on the IRS site, Do I qualify for EIC that because brother #1 is disabled that he could be considered a qualifying child for EIC purposes, thus giving brother #2 a larger EIC. Anyones take on this? It didn't seem to matter when I did the questionaire online that brother #1 was older than brother #2. It just seems odd, but then again I've never come across this before. Any thoughts would be greatly appreciated. By the way, brother #1 diffently has more income with ssa and pension than does brother #2 so I'm not interested in the HH question because it really wouldn't make a difference anyhow, I'm just interested in the EIC aspect. Thanks! Deb!

Something else to consider would be the timing of everything. I have clients who went out and purchased a second home (lesser value of course) then went into default on the previous residence. One client stayed in the old residence until they were told to vacate then moved into the new residence. Another client moved into their new residence and then allowed the foreclosure to occur on the old. For the one that was living in the old residence at the time of the foreclosure I can definitely see the COD being excluded, however what about the client who had already moved into their new residence? Also, California is not going along with COD being excluded from primary residences this year, which means if you can't show insolvency, there could be serious tax consequences for the state return. Deb!

I just received a quick alert concerning problems they are having with returns being filed with schedule M. Depending on how you have checked the boxes or entered amount received for the retirees, and those on social security it is causing the returns to be pulled for further review. It's possible that this too may account for it not showing up. Deb!

One would think, however I had a client call me on Monday and I went to the IRS website put in the info and it said that it was scheduled for Tuesday the 26th. As to the problem the original post referred to, it can mean that IRS site is temporarily down. I had the problem last year and it corrected itself after a day or two. Deb!

Thanks for your imput. I did ask the client to go back and get signed copies, however I can hear the reply a mile away. The Settlement papers you got is all that is needed! I've also instructed my client to bring me their packet from title company as I know there is something in there that will have both signatures, at least I hope. When my parents have sold things we usually only received copies of the documents we signed, I don't really remember seeing anything with the other party signed, but then again it's been a long time ago. Again thanks for your imput! Deb!

I have a client who just closed escrow on their very first home. They are eagerly waiting to get their $8,000 credit and I have just taken a look at the new form and the new instructions as to what we attach to the form. It states: Attach a copy of your settlement statement showing all names and signatures, the property address, the contract sales price, and the date of purchase. In most cases, your settlement statement is your properly executed Form HUD-1, Settlement Statement. I have seen many of the HUD-1 Settlement Statements since I've been doing taxes, but never have I seen one that is signed by all parties. Have any of you? If not what are you doing about the signature requirement? Any thoughts would be appreciated! Deb!

That's what we get for living on the West Coast! Everyone East of us gets to eat first! Deb!

It's threads like this that I learn so much! Deb! :scratch_head:

I know I do things backwards, but I actually cut them a deal. I emphasize the importance of resolving this issue, and I will help in anyway I can. Everyone I have done this for has come back year after year knowing they have someone on their side. I usually get good referrals too! I do however emphasize that this is special pricing just for them, and then I tell them what my usual fee would be. Most of these that I have done are very simple in nature and usually are not during the busy tax season. It's usually towards the end of the year when IRS starts sending notices and starts the levying process. Just my thought! I do appreciate however KC's comment about getting paid for each year and doing one at a time. If I'm going to get stiffed I want it to be before I put out the work! Deb!

They e-file with no problem. I agree they look funny but as long as California accepts and acknowledges them I'm happy. I am a creature of habit and with the state form being basically unchanged for many years it does take a little while to get use to it, but as long as it works I'm happy. Deb!

Thanks KC! I actually received one of these e-mails and it really looked legitimate, but I am so cautious and felt that if this was truly from Intuit that there would be some notice from within the program itself and not through an e-mail. I was going to research it, but because I'm in the process of upgrading I thought I would just wait. Glad I did. Deb!

California also does not tax unemployment. In the past the program has always made the correct adjustment. Deb!

So far the answer is no! But we still have a budget mess and the state made some changes last year that will effect those who are filing this year. So far the ones hit the hardest are those with dependents and those who have cancelled debt due to a foreclosure or shortsale on their primary residence. The last couple of year 07, and 08 the state went with fed's program, not so this year. So I know we are going to have some verrrrrrry unhappy people this year. Deb!

It's on your preference tab. The very last option at the bottom. In your case you will need to put a check mark on the box to update upon opening. Hope this helps yous struggle less! Deb! :rolleyes:

Still waiting for California acks to come in. According to ATX site, they will begin posting today. I was concerned about a couple of mine as they are still just showing transmitted to EFC. These were the first two I sent and all my others show transmitted to agency. I posted on the other community and someone gave me another way to check so I will post the link for any who want to know about a return e-file to California. https://webapp.ftb.ca.gov/getack/ack.aspx I couldn't get the link on the other community to take me there, but I cut and pasted the address and got right in. You will need SS# and e-file DCN. Hope this helps to relieve someone elses stress! So far so good for me! Deb!

It's found under your preference, and I believe it's the last thing on the menu. I'm not sitting with the program right now, but I think it says automatic updates, click onto it and uncheck the box. Deb!

KC, California is a direct state, no piggyback. This happened last year and it took them forever, with their usual excuses. I was wishing it would be different this year. Deb!

Make sure you have included the birthdate for the filer and spouse. I had one that I didn't have the birthdate for and it showed that the dependent didn't lived with them, very strange things this year. Deb!

A point well made. Boyfriend earns well ov 40,000.00 per year, has no savings, but uses his money mostly for the support of girlfriend and children. Even my client and her boyfriend will conceed that he provides over 1/2 of the support for the total household. I'm quite sure as you stated that she documented a lack of support when she filed for welfare, but that's between her and the state. This is why I'm being very cautious on the dependent situation as I am afraid it will send all kinds of flags. Deb!

Head of Household was never an issue. She clearly would not qualify for this because her boyfriend clearly provides over 50 percent of expense. The only question had to do with claiming the children as dependents. Deb!