Yardley CPA

lbb...I believe he is referring to the Student Loan Interest deduction.

Thanks, TaxBilly.

I have a client who received a 1099 MISC - Other Income from Corporation for National Community Service for $4,725.50. He informed me this was sent to him in recognition of his time in AmeriCorps back in 2002. The funds were sent directly to Sallie Mae to pay off his student loan. Is this simply "Other Income" on 1040 line 21 ?

Was there any type of 1099 issued to him?

I'm using a Lexmark T644. It's been a total work horse and has not give me any issues.

Does this have something to do with faxing it from your computer (via a RightFax) and then you deleted the file? Because like the other posts state, how can you not have a copy if you faxed it from a conventional fax machine?

Hi Judy, I prepare a fair number of NJ returns. I no longer prepare the NJ8879. I'm not suggesting that is the smart thing, but since NJ no longer requires it, I just prepare the Federal 8879. As for efiling with ATX, I would try it and see if it's accepted. I'm not sure why they would accept an ATX business return but not a personal. Whatever the reason, I would try and see if it goes through. Just my opinion. Good luck!

Does anyone know if the tax planner has been updated to reflect the AMT patch for 2009? Based on the Planners I've prepared, it looks like the patch is not reflected yet?

In looking at the Social Security website, you are right...http://www.ssa.gov/payment/. Looks like all SS recipients will receive the $250.

I use the "Client Copy" watermark on the return copy I give to the client for their file. For those of you who also use this, do you notice a fading to the wording on those pages that do not have the watermark but in the location where the water mark would have been reflected? The "Client Copy" watermark prints on every other page for me. On those pages without the watermark, there is a fading in the area where the watermark would normally be. Just wondering if anyone else is experiencing this?

It's unfortunate that Company's take such positions. The fact is, they sold you a defective product. Why should you pay to return it? It was of no use to you and was not what it was advertised to be. Had they advertised defective products and you purchased it, well that would be on you. If they stood behind their product, they should also pay to ship it back when it's defective.

I don't see how it could mess anything up if your client truly has 50% equity in the property. I believe by you inputting 50% it should properly calculate the income and expenses and reflect the correct amounts on Schedule E. I think that's the way to go.

If you complete Schedule D, Line 8 input screen and indicate the transaction type as a "Personal Sales," it does not calculate and carry the loss. I believe that is what I will do. Thanks to all for responding!

I was considering overriding it and posting it on Schedule D, Line 8. Just not sure of the ramifications of that.

I have a young married couple who, back in 2006, considered moving from New Jersey to Texas. They went so far as to purchase a home in Texas in September 2006. Shortly after purchasing the home, a new job opportunity caused them to rethink their plans and they decided to stay in New Jersey. They never moved to Texas and never occupied the Texas home. Since they planned on moving to Texas, they sold their primary residence in New Jersey for a gain that fell under the exclusion rules. They ended up living with the wife's parent's (I give them credit, I couldn't have done that) for almost a year until they found another home to purchase in New Jersey. During this entire period, they paid a mortgage and real estate taxes on the Texas home. In early January 2008, they sold the Texas home for $7,500 less than they paid for it. My clients received a 1099-S reflecting the selling price. I realize there is no opportunity to deduct the loss on the sale, however, in reading IRS Publication 523, Selling Your Home, it indicates the sale must be reflected on Schedule D either line 1 or 8. When I complete the tab on ATX's Schedule D - Sale Principal Residence, it does not carry the information to Page 1 of Schedule D. Is that correct? Should the information flow to Schedule D, Page 1, Line 8 (as Publication 523 indicates?) Any suggestions?

It is a nice summary. Thanks for posting it, TaxBilly.

I believe the status changes once the drain takes place. I find that can be anywhere from an hour to a few, depending on when you efile the return. Take a look at Publication 2043 which will supply you with an efile Refund Cycle Chart.

If you answer "yes" to question 2, "Does your tax return include a valid SSN for you and, if filing a joint return, your spouse?" you are instructed to skip questions 3 and 4. So you shouldn't have to deal with the military question at all. Right again, KC.

Good to have you back, Wayne.

MCB...in checking the IRS site, it indicates he received zero last year, that he didn't qualify.

I have a client who is divorced and, as part of the divorce decree, is entitled to take his daughter as a dependant every other year. He did not take her as a dependant last year, but is entitled to do so this year. When figuring the Recovery Rebate Credit, I used the irs website and verified that he did not qualify for any stimulus payment last year. His ex wife, who took their daughter as a dependant last year, also did not qualify because her income level was too high. In completing the worksheet for the Recovery Rebate Credit, it automatically shows his daughter as a "qualifying child" (since she is listed as a dependant this year) and that results in a credit of $400. Is that correct...is she a qualifying child this year? Even though she was included on her mothers return last year? Just not sure about this one. Thanks!

I recognize it is still relatively early in the season, but I was wondering your thoughts on this year's ATX program? How is it working for you? Any issues? Have you needed to contact Customer Support? If so, how did that go? From my end: so far, so good. The program has worked well. No major issues at all and things have run smoothly (I don't mean to jinx myself here.) Haven't had to call customer support yet but I have noticed in increase in their communications (emails) to make us aware of various issues/topics. I think that is a positive over last year. I hope that trend continues.

TaxBilly...thank you. I also had a couple other members try and none of the faxes came through. I have "Identaring," basically two numbers coming through one line. The fax ring is suppose to go to the fax while the regular ring goes to my answering machine. Seems both are going to my answering machine, so I have to work on that. Thanks for your help though.

Thanks for your thoughts. Appreciate them!

Long time client passed away. Her sister (who also happens to be the executrix) brought me the information to prepare the Estate Return. I am not very familiar with nor do I prepare many Estate Returns, and I informed her of this. But she asked that I please prepare it for her. The deceased had a son who received the home he lived in with my deceased client and an automobile. The sister/executrix received the deceased's pension. Both the son and sister received approximately the same value. The Estate income was limited to about $350 in interest and dividends and $500 from life insurance proceeds in the name of the Estate. Expenses included: Funeral amounted to $9,278, lawyer fees of $5,000 and accounting fees of $510. I believe a K-1 is required but wanted to make sure. Would both the son and sister/executrix receive a K-1? Would the income and expenses be included on the K-1, with 50% going to the son and 50%% to the sister? The entire expenses are included on the 1041...which then flow to the K-1's? Any help would be truly appreciated.