Yardley CPA

I have a client who lives in Honduras. She lives with her husband (who is a resident of Honduras) and 4 children (all US Residents). Her only salary income is foreign income from the school she works at in Honduras. She has a small amount of dividend and interest from US sources. In calculating her return (including form 2555) it indicates she is entitled to the Making Work Pay of $400 and Additional Child Tax Credit of $2,103. I don't believe she is entitled to the Making Work Pay, but is she entitled to the Additional Child Tax Credit? Thanks!

What do you keep in your file, a paper copy of your clients return or do you save a pdf version or maybe both? I've always kept a paper copy of the return along with any back-up information such as W2's, 1099's, etc (my filing cabinet is starting to burst at the seams). I find it would be too time consuming to scan all the back-up, but I'll admit, I haven't really looked into any scanning solutions and I'm sure there are packages out there that provide an easy means of accomplishing that. Just wondering what each of you does?

I've prepared several New Jersey returns and the Property Tax Deduction amount is only appearing -- and correctly so -- on line 36A (I did note this year you are requried to check the box of Homeowner, Tennent or Both in order for the amount to appear). No amount is appearing on line 33, Health Enterprise Zone Deduction.

About 15 inches here in Yardley, PA which is about 30 minutes Northeast of Philadelphia. The forecast is calling for more midweek.

2009 Seems to have flown by...Welcome 2010!!

I renewed through TRX this morning. I still have a bit of a queasy feeling but hopefully everything will work out.

Braeden, If we were to renew our ATX program through TRX, would we still have access to MYATX.com and the Efile center?

George...you raise very valid points which I am also concerned about. I plan on renewing my ATX program but at this point I am not sure if I will do that directly with ATX or via TRX.

Let me also add my thanks to each and everyone of you. It's comforting to know that you are all here. I appreciate all your valuable input.

I have a long time client who always ends up being one of the last to call. She phoned yesterday and left a message wondering if "I could help prepare her taxes this year." I phoned her back and let her know that she would have to get me the information, which she did. I prepared the return last night and noted she withdrew $43,000 from an IRA (She is only 50 years old). That resulted in her owing just under $7,000 to the Feds and $1,200 to New Jersey. I phoned her this morning and let her know the outcome. She tells me she had "a lot of termite damage to her home and needed to take the money out to fix that. Her one friend from Merrill Lynch told her that it would all be deductible on her taxes." My response, "Next time you have termite damage and want to repair it by taking a withdraw from your IRA, try calling your tax preparer first to find out if it's "deductible," because it's not." She responded, "why would my friend tell me that then?" I told her to ask her friend that question. She phoned this evening and said, please file an extension for me. I informed her, it's an extension of time to file...not to pay. "Oh, I didn't realize that" she says. "Let me call you back. I have to try and find the money." I don't expect to hear from her.

Happy Easter, Everyone!

And rightfully so, Sasha. Your job shouldn't be to help a preparer "complete" the form...it should be to make sure the form and program are working correctly. As for 2012, we're simply looking to you to make sure the project looks more like ATX than Taxwise. :D

Yes, Happy Birthday to the ATX Community. Our little home away from home. I too plan on donating. After all, Eric does one hell of a job with this forum and it's only right that we all chip in to help it continue. Thanks for all your fine work, Eric.

I join in wishing KC a very Happy Birthday and many, many more!

"Something on the slate for release in 2012?" Come on, Sasha...you can't totally leaving us hanging like that!!!! Give us a little more!

LOL...true, Catherine. I believe you're right...but was hoping she could give us even a little feedback. ;-)

Yes, welcome, Sasha. I'm curious as to what the folks back at CCH think of this forum? Obviously they are aware it exists. You're proof of that. Is it ever talked about? Is CCH committed to ATX for the long haul?

If memory serves me, last year I efiled a return with a balance due on April 15th. I entered 4/15/08 into the payment field on the Efile Information Tab and it was accepted with no problems. The amount due was pulled from the clients account the next day. Never heard a word from the IRS about late payment or anything.

BSD, thanks for the 8453 info. Appreciate it. Client is eligible to itemize deductions, so they are able to take the donation.

Thank you.

I have a client who donated an auto to "Kars 4 Kids." Client brought me a copy of the Official Receipt that indicates Kars 4 Kids sold the auto at arms length to an unrelated party for $700. My questions: 1. How do you report this on Schedule A? Do you need to complete 8283 or is there another way to report this? There is a spot on the non-cash donation worksheet that references 1098 C. 2. Do I need to attach a copy of the Official Receipt to the return? How do I do that if I am Efiling? Thanks!

Each year I use the "Planner" and try to project the following years tax. Just to give the client an idea, if all remains relatively equal, what their next year tax will be. This way we can plan for anything "new" that they may know is coming. If they owe a bunch, I compare the two years returns. I also look to see if their withholdings on their W2's decreased. In most instances, baring any type of large additional income or loss of deductions, the W2 withholdings dropped from the previous year.

I believe the only thing the IRS is looking for is a proper routing number and proper account number. So if you supply correct information on the Efile Information Form, it should be pulled from the account without any problems. I'm not suggesting that in this case it's proper to pay in this fashion (boss paying for his employee), but I don't think the IRS is scrutinizing the information you provide on the Efile information form....as long as the routing and account number are correct.

I prepared a Federal 1040 for a MFJ couple who live in Florida. Return was efiled and accepted on 3/31/2009. Refund should be deposited into couples bank account on Friday, April 10th. My question...Mrs. Taxpayer passed away on Friday, April 3rd. What type of issues does this cause from a refund standpoint? Since the return was filed and accepted while she was alive, I see no issue with the entire refund being deposited but just wanted to get others opinions. Thanks!

KC...thanks so much for the info. This is exactly what I needed to know!