JohnH

Beats me too. But I know someone who deals with hundreds of contractors (independent truck drivers) and I'll bet over half the sole proprietors list their SS# on the W-9 (some with a FEI# and others without). Of course, that also begs the question of why an independent trucker would want to operate as a sole proprietor in the first place.

That's interesting. So I wonder why the W-9 still has a place for the SSN.

Tom777: The main purpose of the stimulus payments has little to do with who pays tax or who doesn't. And the payments are only indirectly related to the economy. The main purpose of the stmulus payments is to buy votes. If this weren't an election year, I doubt there would be any mention of rebates / simulus payments / etc by either political party, no matter what the perceived shape of the economy.

Apparently there is a disconnect between what MYATX believes will happen and what IRS says will happen. See the quote below taken from the IRS Q&A on the subject. (Of course, this my only apply to paper filed returns, but IRS is very clear on this point) >>> Q. If I'm not expecting a refund, should I still fill out the direct deposit line on my return so I can get my stimulus payment direct deposited? A. Yes. Even if you aren't due a refund on your tax return, filling out the bank routing information will allow for your stimulus payment to be direct deposited. <<< http://www.irs.ustreas.gov/newsroom/articl...=179181,00.html

Maybe I'm missing something here. How would you eat any penalties for not catching this? (Unless you're the bookeeper/accountant for the employer)

The limit in 2003 was $87.000. Maybe either the bookkeeper or the tax software is out of date (or both). I'd point it out to the client but then move on with preparing the return.

Good point about the direct deposit. I've been entering checking account info on my "Balance Due" tax returns so their rebate will be direct deposited. So far I've found it necessary to do it via an override on the form itself - has ATX said anything about changing that with an extra check box on the input form? Another interesting tidbit over on the TaxBook forum - there's a special zip code for the paper stimulus payment returns. xxxxx-0099 http://www.irs.ustreas.gov/newsroom/articl...=180018,00.html

I just noticed today that the paper ATX 1040A now shows the words "Stimulus Return" preprinted at the top of the page. Maybe it's already been mentioned, but I just ran across it today while preparing one.

My first guess would be that you are entering 1099-Misc amounts for a spouse and opening a Schedule C for a spouse, but you are not checking the box at the top of the top left of the 1099-Misc that says it is the Spouse's 1099-Misc. (or vice versa) I see you covered that one with your follow-up post. My next guess would be that you are not checking the proper box at the top of the schedule C. It has to agree with the box checked on the 1099-Misc input.

You don't actually "send" the Box 7 amount to Schedule C, you "pull" the appropriate 1099 amounts to the proper Schedule C. First you enter the 1099 amounts in the input screen. Then, with the schedule C open, click on the bunny to the right of line 1. This opens a window which lists all 1099's entered for the taxpayer. Check the blue box the the left of each 1099 you wish to report on that schedule C. Go back to page 1 of Schedule C and the total should be present on line 1.

I told him to throw away anything related to claiming the rebate (stimulus return info). He's already claimed it by filing his return. As for the amount received, most clients are going to forget what they received anyhow. I'll have a place for them to tell me on the organizer, but I don't think the majority will know what to enter. I'm guessing it won't be that difficult to verify next year - IRS will probably set up a simple online lookup tool like they did last time. What I'm not sure about right now is how much I will charge to check it for them when I prepare the return.

Conversation I had with a married client in his 70's today. He has $500 in eanred income, $26K in AGI due to dividends, interest, etc, SocSec of $21K, and a net tax liability of $560. $2K of tax was withheld so they have a $1,440 refund. ME: You have a $1,440 refund. CL: Thanks, what about the rebate? ME: You'll get a $600 rebate. CL: Is that $600 each? ME: No, it's $300 each - a total of $600. The rebate is based on your tax liability, but since it's under $600 you only get the $300 each as Social Security recipients. CL: But I paid in $2K. ME: Yes, but your actual tax liability is only $560. That's why you have a $1,440 refund and then you'll still get the $600 rebate. CL: Do I need to do anything else to get the rebate? ME: No, just file this return. You'll be getting some stuff from Social Security and IRS. Just throw it away. CL: OK, thanks. ME: One more thing. Your investment income & earned income varies, so next year your tax liability may be more than $600. If so, then we will be able to compute an additional rebate amount and claim that as a refund on your 2008 return. CL: Huh? ME: Never mind, we'll talk about that part next year.

I copied this from a post over on the Tax Book forum. This is a MUST listen-to. I promise it will brighten your day. http://www.youtube.com/watch?v=5TkuZ5oI9uY

JB: Maybe you should do a trial run. Light a candle & let some of the wax drip on a sensitive area - maybe your inner thigh or the inside bend of your elbow. After it dries, rip it off with whatever hair has stuck to it. Repeat as needed until all the hair is gone. Now imagine that sensation over your entire chest or back, all at once. If that seems like a good idea, then go for it! :)

Does anyone know the name of the genius who decided long ago that a W-2 or a 1099-R has a "Copy B" for the Fed return, a "Copy 2" for the state return, and a "Copy C" for the taxpayer, but if they receive a 1099-G for unemployment benefits, the "Copy A" is for the Fed return, the "Copy C" is for the state return, and the "Copy B" is for the taxpayer? This burning question has always intrigued me. I'd like to know what they were smoking when they devised this scheme.

It doesn't hurt at all, provided you're the one DOING the waxing.

I've already filed a half dozen extensions. (all paper) Expect to have about 20+ in by the end of this week. (I like gettting them underway early - it's nice being an anticipatory procrastinator).

You've probably tried this, but I'll suggest it anyhow. Have you tried entering her info on ANOTHER 1099-R screen and then deleting the entire original entry? Sometimes a fresh start will work out the kinks, and it's quicker than comparing line-by-line.

I'll vote for a woman who promises to reduce taxes.

Reminds me of what Mark Twain said: "The difference between the right word and the almost-right word is like the difference between 'lightning' and 'lightning bug'." (abridged quote)

Neverthless, I'll be interested to see how they react when someone posts a link to this Forum on their in-house message board. I'm not predicting that they won't allow it, but it won't surprise me to see them delete any such posts. That will be the clue as to whether they believe it serves their best interests to have truly informed customers.

Well, there's always Myrtle Beach, South Carolina.

Well who is he supposed to believe, you or his barber? Cut the client a little slack. After all, everybody knows barbers give much better tax advice than we do, and it's easier to accept!

We stopped over in Barbados on a cruise a couple of years back. We were only there for a day and all we did was go into the town for a while, then did some sort of excursion on a "Pirate" ship which culminated with an afternoon on the beach. Sometimes we do some goofy things on cruises, don't we? The only memorable event of the day was the conversation with the Rastafarian who made bead necklaces on the beach. The beaches were beautiful and the weather very pleasant - it seemed like it might be a very nice place to vacation.

My pleasure - glad I could help out on the 8109-B's.