Lion EA

Pushed Enter while I was still typing.... At least, the URI "transactions" showed them retaining the $5,000, not distributing it to the student or mom, so that helps with the paper trail. So, the potential $5,000 income goes away. I hope. I know they'll get a letter, and I'll have to explain this coherently a year from now. I think I have my head wrapped around it. And, think I have the data entry straight. Mom gets no education benefits, but we'd discussed this last year and she'd increased w/h, just not enough. Daughter has no income nor deductions relating to URI. And, daughter has a full-time job near mom and everyone is living happily ever after. Mom increased w/h again due to losing daughter as a dependent for 2016.

Thank you, Grace. Student loan interest is lost, but that's small as repayment was deferred until late in 2015. Between looking at URI transactions from them and talking with mom, there really is NOT excess scholarship. It was a state of RI scholarship. When URI billed tuition in 2014 for 2015, they excluded the $5,000 they expected from the state from the amount mom had to pay by 31 December. Then, in 2015 the RI money arrived at URI and was retained by URI to cover the last $5,000 that had been billed in 2014. I REALLY HATE THESE FORMS.

Any wiggle room on 1098E if mom had to cosign? You summed up nicely what I was trying to put together from lots of info. Thank you, Grace, and everyone who's helped, today and all season, all year long. If , as I suspect, the scholarship was retained by URI to cover tuition, then I make it zero out on mom's (daughter's?) return? If excess scholarship, just report on daughter's return, deduct her smallish 2015 expenses against it, and excess to line 7, right? (Waiting for mom to call back. Thought we were so good with transaction report from URI, but no!)

1098-E in name of daughter, daughter paid it, but daughter is a dependent and cannot deduct it. Is it lost? Can mom deduct? 1098-T is in daughter's name, tuition was paid prior year 2014 for 2015, only possible expenses during 2015 are books and some utilities toward off-campus housing, room was paid in 2014 for 2015, board/food was paid monthly during 2015. So, maybe $900 in expenses against $5,000 scholarship. But, still a dependent. (Mom earned 5X daughter, owns house the two live in, daughter had temporary housing on and then off campus paid semester by semester, daughter paid close to half of college considering her student loan and scholarships, but not even close to half when considering home, car, medical insurance premiums, clothes, family trips, etc., that mom paid. Daughter will be independent for 2016 with her higher full year income.) I'm calling mom now. It doesn't look like, from the transactions provided by URI, that it was distributed to the daughter to use for her living expenses. If I find it was retained by the U to use against her 2015 tuitions that was paid in 2014, maybe because they were expecting it..., then I can zero it out with tuition? Again, due to dependent status, daughter can take now of these benefits. But, daughter will take any excess scholarship on line 7. And, mom can or cannot take student loan interest that daughter paid? I was trying to prepare a couple of easy returns last minute. First I tried lives in a state that requires DL and she discovered hers expired over a year ago and wants an extension until she can take her driver's test !! Now this mother daughter who's been easy, because the mother is so organized even with multiple investment accounts and education benefits. But, it was graduation year, and it all looks different to me! Help! And, huge thank yous.

Does he qualify to make a deductible IRA contribution to lower his AGI? Or, HSA or....?

Is daughter going to owe Kiddie Tax on the $5,000 because it's not earned income?!

Part II: Daughter started repaying her student loan during 2015 when she was still a dependent. She can't take that adjustment, correct? Can mom take the student loan interest with the 1098-E in daughter's name and SSN? (Told you I'm vague about all this. Most of my clients are older with very grown kids, not recent grads.)

I always struggle with the education credits, and just haven't had this situation lately, or maybe at all. Single mom, daughter graduated 2015, still mom's dependent, but all the big stuff was paid December 2014. In the past, mom had education expenses. 1098-T in daughter's SSN with $5,000 scholarship. Transaction history from U. states that no tuition paid during 2015, that some loan funds arrived at school, and the $5,000 scholarship. So, $5,000 taxable to daughter? Where on return? She can't use books, fees, living expenses, food, against any of it, no? Mom had increased her withholding as we planned for no education benefits, but she still owes. Just starting daughter's returns. She got a full-time job, but that extra $5,000 is going to hurt. They've gone from single mom raising daughter who always got refunds with a daughter who worked through HS and college and got refunds to a couple of women who both are going to owe, even after increasing mom's w/h by $100/paycheck to plan for last year. Dad was my manager at HRB, my mentor, and a big brother figure to me; passed away when daughter was seven. So, I'm taking this one personally. Lost $2,500 in education credits but increased w/h $2,600, and who knew daughter would find work so fast.

Thanks all. She discovered her driver's license expired over a year ago, and I guess she has to take the written test, road test, and whole shebang, but is glad it came up in our conversation about car taxes. She now credits me with keeping her out of jail !! I think that could be my new company slogan.

He'll have a traditional IRA contribution for 2015 and one for 2016. Sounds like non-deductible. He can contribute to 2015 through Monday, as long as Edward Jones designates it as 2015. Then, at any time, but I like before any earnings attach, he can convert each one to a Roth. If he has IRAs with and without basis, it's a bit more complex. But, from your viewpoint, on his 2015 income tax return, he's making a non-deductible contribution to a traditional IRA. You won't see paperwork showing Roth balances until his 2016 paperwork comes out next year.

That's what I determined last year, but I did NOT write a note in her folder so was doubting myself. I'm writing it down now. Thank you.

Colorado Registration/Ownership Tax Receipt: what amounts, if any are deductible on Sch A as taxes paid? Own Tax $3 Lic. Fee $77.97 Road Fee E $23 Bridge Fee $18

I usually return emails fast. Now, I'm returning emails really late at night before getting some sleep, and returning phone calls by email the same time. If I had all those minutes back from telling the naggers I'm filing extensions and then completing returns in the order received, I'd have another half dozen returns complete. But, I've had to put something in front of my phone to block the blinking light !!

Make sure the POA is specific about signing tax returns, the more detailed the better. Or, if she's still able to sign at this time, have her sign Form 2848, if that fits your situation. Is there any issue with being the preparer of a return and also the POA signer?

I have a LOT of extensions to file. Saturday. And a couple siblings with kiddie tax to proofread Friday, one sign/pick-up Friday (which means I have to shower and dress!), and maybe the family in Singapore to dig into Friday and try to complete by Monday. If I can squeeze in any little ones (I don't have little ones, especially in April) Sunday and Monday, it would stop some of the phone calls. I gave amounts to mail in to the clients who will mail in extension payments. Going to e-file extensions for all extensions, whether they tell me they're mailing or not. (Thank you, Jack, that's a good idea.) And, have a bunch that called and said please file extensions, so I have no info, so zeroes. I've had only one extension denied, and it was by CT a few years ago for a single mom who teaches violin and doesn't make much money. So, I hope this is not the year any government cracks down on "zero" extensions, because I think I may be e-filing more than my usual number of zeroes. Going to get some sleep before I have to shower and dress!

Haven't done a CA in a long time, but will bump this up again for you. (I know we have lots of CA preparers.)

I haven't e-filed all extensions in the past, but this year one of my mail-with-payment older gentleman is in the hospital directing daughter what to do. So, I started using this method on ALL this year and going forward. E-file extensions (especially now that CT is finally accepting this and some other new forms via e-file) for everyone. Give paper extensions -- in addition to those I e-file -- to those that request and those that I encourage to mail payments.

I had one client that not only had everything in original envelopes, they were not necessarily the original envelopes for the contents. Would ignore an envelope that was her personal AmEx bill only to find later that it contained a sales receipt for some biz materials she purchased + her son's report card + an uncashed dividend check. I paid a gal to open her envelopes, sort info, and create a ledger of sorts, and charged client a bookkeeping charge.

Haven't dealt with MD. Have a couple CT clients with NY rentals. We're carrying forward losses that will come in handy when they sell their NY properties. Maybe, PA, too; a bit sleep-deprived to remember now. Yeah, starting with AGI is a game-changer, though. Shouldn't have answered without preparing MD returns or at least having time to look at one! Sorry.

E-file all extensions to get acknowledgements. (Next time, don't send him the 1040-V if he's already paying with an extension. I never send clients the 1040-V if they're paying via direct debit.)

The state will get lots of money when your client sells property in them. And, your clients won't have any carryover losses to lower their tax burden. I insist on state returns for real property. I let clients make the call re all those states have tiny PTP income or losses.

I was furious with ATX, but did find this independent board 4/14 I guess. Been here ever since. Thank you Eric and KC for your initiative and Judy for joining their team and ALL of you for sharing.

A MA loss carry forward could be used on the MA return for the year of a complete taxable disposition of the property. But, it sounds like she doesn't have a MA loss carry forward on her MA returns, no MA returns. You could file MA returns now....

I have not received the green return cards from time to time, so I don't even trust certified/return receipt requested. E-file. If a client wants to mail, then they're on their own.

You also have the option of using the exchange rate on the date of each transaction. If TP was paid monthly, use the rate on each pay date. (I wouldn't do that in April, but you could tell the client to provide the US dollar equivalent to you.)