HV Ken

Military employee has been in NY at West Point for all of 2010. The W-2 he received from DFAS showed his state as TX, which is home base. He came to NY during 2009 for a 2 year stint. He said he was told that you pay state tax to your home base, in this case TX - with no state tax, and not the state you are temporarily stationed in. His wife is a civilian and had NY state W-2 income. I don't think I file them on an IT-203 (part-year/non-resident). Does he qualify for the S-18 subtraction (Include military pay you included in your federal adjusted gross income that you received for active service as a member in the armed services of the United States in an area designated as a combat zone.) on line 31? Is being stationed at West Point considered a combat zone? This is a new one for me. Not sure how to file this, or if the assertion that your pay based on your home base and not where you are stationed for state tax purposes, is correct. Would appreciate any help and guidance on this one! Thanks.

Thanks all - I know how to get rid of it via the Print Manager (even more unproductive clicks in what is probably the worst part of the ATX software) or tossing it into the shred bin (toner, paper, and then shredder waste). It is just one more LITTLE annoyance to deal with, and why would it start all of the sudden in April ????? Just was wondering if other NY preparers saw the same change happen to them....

NY preparers: It seems all of the sudden the NY IT-201 Cover Sheet is printing. Since we e-file everything, there is no need to print this for our clients. Does anyone know of a way to suppress it? (And I wonder what caused it to all of the sudden start to print)

Yes, I started using it last year. Clients like it cause now they get an itemized list of their transactions in an easy to follow format, rather than a one line consolidated and attach the statement to the 8453. Lord knows there is no way I am typing every one of those in one at a time!

His 2007 1099-R had: Gross Distribution $3861 Taxable Amount: $3731 Distribution Code: 7 His 2008 1099-R had: Gross Distribution $4284 Taxable Amount: $4142.40 Distribution Code: 7 His 2009 1099-R had: Gross Distribution $2618 Taxable Amount: UNKNOWN Distribution Code: 7 Note: Paid to Annuitant Prior to Death It didn't matter in 2009 how much of the gross was reported as she had no taxable income after standard deduction and exemptions as the return was MFJ. For 2007 and 2008, the taxable amount was 96.7% of the gross. Are you suggesting to use the same percentage against the 2010 gross distribution?

Recently widowed 69yo client (spouse died in 2009) received Survivor Annuity CSF 1099-R for the first time from the Office of Personnel Management. Box 1: Gross Distribution $8219.00 Box 2a: Taxable Amount UNKNOWN Box 7: Distribution Code 4 - Death Benefit Box 9a: Total Employee Contributions $3659 Instructions with the form said to check Pub 721 to determine taxable amount. I confess I am trying to follow this pub, and the instructions have me jumping all over the place. Can someone help break it down into plain English? Is the entire distribution taxable, or can some be recovered? Hopefully I posted enough information for someone to offer some guidance. Thanks!

Thanks to everyone for their help! I love this community!

Thanks! I never noticed that. Still wondering - won't the IRS still be contacting the client to offer proof that this was indeed a rollover? Or do we attach the confirmation statement copy to an 8453, for example? I see now how we can tell ATX to make the amount go away, but it seems like there is still an open issue to close from the IRS point of view. Or am I missing something?

Client took a distribution and received a 1099-R code 7. Money from distribution was then put into another retirement account within the 60-day window - in other words, it was a rollover. We told client the 1099-R should have been issued with code G and to call the issuer to get the 1099-R corrected. Issuer told client they don't do this and all the client has to do is attach the confirmation statement from the new custodian that shows the transaction occurred within the appropriate time frame. So how do I report this on the tax return? I have a 1099-R with code 7 and this is generating a taxable event. What do I do to show on the tax return this was really a rollover? The client called the fund company multiple times, and the fund company said they do this all the time (issue 1099-R code 7) and there is never a problem proving it was really a rollover. Thanks for any help with this!

Here is the trick to do this: Mark the returns in ATX2010 Rollover Manager you are interested in. Go to ATX2009, and magically they are all marked in the Return Manager there exactly as marked in your ATX2010 Rollover Manager. Then you can print the list from the Return Manager from ATX2009 - I just did this the other day!

Since I am also a member of the ATX Client Advisory Board, hopefully I can get some visibility into these things. That new forum is great for me, so I can gather other ideas and speak to them on the next Kennesaw trip.

michaelmars told me about a new Enhancements Forum in the ATX Online Communities over at the official MyATX site. I just went wild posting a bunch of enhancements I have accumulated and submitted via the Suggestion Box over the years. Go over and let your voice be heard!

I believe the matching is done by SSN and first 4 chars of last name. While unfortunate, seems logical that it would go through with the mis-match you had on your return.

Hi Michael - I called the number you sent me privately and I got some Spanish speaking person...??? I will send you my cell on the private convo we started yesterday.

Hi Mike! Nice to hear from you! No, I don't think I have your number - can you send it to me in a message here (*not* post to this thread) ?

I have two (no relation or connection to each other - pure coincidence) new clients that came in this week with this scenario.... New client works for "The City of New York", but lives locally (about 70 miles north of Manhattan). However, W-2 reports no local (NYC) wages or local (NYC) withholding. We have other clients who work in Yonkers, for example, where there is local wages and withholding reported. The 2 pages of NY NYC-1127 instructions make it seem like any nonresident employee of the City of New York needs to file this form and is subject to this tax. If client was subject to this, wouldn't it make sense that there was local withholding on their wages during the year and reported on their W-2? Right now, if we file this form, they are looking at over $2,000 in local NYC taxes to pay. On the surface, something doesn't seem to add up. Are there any City of New York experts out there that can help?

I do it the same way that Pacun does (enter the erroneous return, using overrides if necessary, then using the amend feature and making the amended return correct). The amended return is so easy to create with the ATX amended return feature. One of the features of ATX I absolutely love.

Other things she is telling us Block is deducting for the other bus drivers is all their daily mileage. For example, driver heads to the lot to get their bus. They have a break during the day before the afternoon runs. They are deducting all their personal mileage the drivers are driving in their own vehicles during the break as unreimbursed job expenses. They are also taking $80/week for driving to work, $750/year allowance for soiled street clothes since they get dirty by the diesel fumes, etc. I am ready to say come get your papers and take them to Block then.

Nope. There is, apparantly, a whole garage filled with bus drivers filing this way right now for tax year 2010. Can anyone say Form 3949-A ?

The Pub has the answer right on page 8! Example 2 — child who is not qualifying person. The facts are the same as in Example 1 except your son was 25 years old at the end of year and his gross income was $5,000. Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. As a result, he is not your qualifying person for head of household purposes.

Our bus driver client is getting advice from all the other bus drivers in the garage about her eligibility to file Head of Household status. Are we missing something here? Single woman. 28 year old son lives in her home with her. He had $4,100 income on W-2. Head of Household requires: 1) unmarried = YES 2) > 50% cost = YES 3) "qualifying person" = ?? Look up "qualifying person" in Pub 501. See Table 4. Two options: 1) Qualifying child 2) Qualifying relative We pass the Dependent taxpayer, Joint return, and Citizen tests. For Qualifying child, go to Exemptions for Dependents. Next there are 5 tests: 1) Relationship = YES 2) Age = NO > 24yo 3) Residency = YES 4) Support = YES 5) Joint = YES Since he is over 24yo, he fails the Age test and cannot be a Qualifying Child. OK, then on to the Qualifying Relative (from Table 5). 1) Not a Qualifying Child = YES 2) Relationship = YES 3) Gross income = NO > $3,650 4) Support = YES Since he made more than $3,650, he fails the Income test and cannot be a Qualifying Relative. At this point, it would seem that the son does not qualify his mother for HOH status. Have we concluded correctly, or are we missing something? The other bus drivers are telling our client they went to H&R Block and Block filed them for HOH in similar circumstances. Thanks!

3 users is correct, but the 2nd id is created when first entering the ATX program, before you get to any of the managers. Make sure you installed following the network installation procedure on the computers.

Client, MFJ, lives in PA and both TP and SP work in NY. Both have NY taxes withheld on W-2. When filing out the PA 40 return, on the Sch G-S, when I click on Filer the values that go into Part I number 2 column A are the combined for TP and SP. Same is true if I click on Spouse. When I click on Joint, column A boxes a-c go blank. The return appears to be correct if I check either the Filer or Spouse box, but intuitively I would expect only to see the TP values when I click on Filer, the SP values when I click on Spouse, and the combined values when I click on Joint. Is it correct to merely click the Filer box, since the return is correct, and submit it that way? Or is there some subtle program usage that I am missing to get what would be expected with the Joint box? Thanks.

Wondering if anyone else is experiencing this. A recent update modified my Preferences! Examples: * My zoom setting was changed. * I am using a couple of customized fields in the Return Manager, and they were de-activated. I had to re-activiate them and place them back into the spot where they were placed previously. Was this just me, or have others also experienced this?

I use the "STATUS" field on the Return Manager to help with this. When I receive the signed 8879, I change the status to "e-file". Now I leave the Return Manager and work begins in the E-File Manager. The Federal is in the "Created" state and the State is in the "Held" state. For the E-file filter, I use Created and Held, so these are all I see in the display. I e-file the Federal returns that I changed the status to "e-file" for. When they are accepted, the state moves from Held to Created. Transmit those. When they are accepted, I mark the Complete box for Federal and State in the E-file Manager, then I change the Status field in the Return Manager to "complete" and mark the Complete box in the Return Manager. Have not missed an e-file following this procedure for several years. Hope this helps! p.s. Here is the complete list of STATUS values I use: have entered need info printed assembled e-file complete