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About Ringers

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    Advanced Member
  • Birthday 09/15/1945

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    Horseshoes, Bowling, Blackjack, Cribbage, Teaching College Math, and....(yeah) accounting and taxes.
    Former ATX user for business since the Saber days of 1995 through 2012 and Pro Series since the Chipsoft days of 1988 for individual taxes. Now for 2013 I am using the Pro Series Power Tax Library for all returns. I love it!!!

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  1. Illinois will give you a credit for taxes paid to another state of either the amount paid to the other state or the amount of tax Illinois would have charged on that income, whichever is less. Prepare a return for each state in which income is earned, but be aware that if the income is below the filing threshhold in any state and the state charges no tax, IL will not credit any amount and will tax that income at IL rates if the person is an IL resident or part year resident. If the wages all show on the W-2 as IL wages, then no other state return needs to be filed for those wages as they are all considered to have been earned in Illinois. Hope this helps. It is not exactly fair, but it is what it is.
  2. This year I'm sure we all have done at least one MLP 1065 K-1 from places like Energy Transfer Partners, Blackstone, etc. where the Schedle K-1 is marked "DO NOT USE-SEE SUPPLEMENTAL SCHEDULE" which makes the single K-1 become 4 or 5 K-1's, each with 85 line items. When it gets down to the codes v, t, x, and z, some of these K-1's have 6 lines with different descriptions labeled V1, V2,V3,...V6, etc. Has anyone come across a good index to all of these line items stating where they end up on the tax returns and if some of the codes are just pertinent to corporate filers, IRA custodians, etc? I would like not to have to enter any items that do not apply to the return at hand but also know what impact each of these obscure items has on the individual return without googling each descriptor. The general instructions on the back of the K-1 forms are too generic to be of much use. etp.pdf
  3. new laws - what are you doing?

    I am telling clients affected by the extenders that the Congress is responsible (hard to use the words "Congress" and "responsible" in the same sentence) for the VERY late passage of the extenders. As a result, the IRS has to revamp many of its forms to re-allow the deductions and credits to apply. Then, after IRS is done, the software companies have to reprogram their software to align with the revised IRS forms. I tell them that it is anyone's guess as to when the software will be updated to allow the credits and deductions that many of them have. I cannot at this time tell them for certain that the software will be ready before April 17th. So I give them a choice: 1. File your returns now based on the tax regs as of december 31, 2017, get your refunds, and then I will amend your Federal return for a flat fee of $50 to obtain your additional refund. I also, of course, tell them the approximate amount of their additional refund due before they make their decision. 2. Wait until the softward is able to process the e3xtended credits and deductions before filing with the option of filing extensions on or before April 17th. So far I have had all 3 affected clients take option #1, which is what I expected. No one wants to wait for their money because Congress had " other things to do" besides address the extenders before Dec. 31. Rant over!!
  4. Commute or Not

    I agree with Yardley, FDNY, and Abby--definitely commuting.
  5. If the mother's estate left the account to your client upon her death with an informal understanding that it was to be used to provide care for the client's brother, then the basis would be mothers DOD. If, howeveer, the fund was left to the client's brother for his care (or even in trust for the care of your client's brother), then I believe your client has another step up in basis as of his brother's DOD. With regard to tax bracket change, since the sale would result in LTCG, the gain would be taxed at capital gain rates, at lease on the Federal side. Depending on the state of residency, the amount of gain could affect the State tax bracket. Just my thoughts on the matter.
  6. Illinois Schedule SA

    ILLMAS: Anyone can use the SA, even a W-2 employee if he received a large bonus during the first half of the year, or he may have sold stocks for a gain during the first half of the year. Any aberration that would have had h8im receive more income in the period 1/1 through 6/30 than in 7/1 through year end would make filing the SA beneficial. LION: If you had more income after 7/31, the SA form would tax that at the higher rate. Income prior to July 1 would be taxed at the old rate of 3.75%; income after June 30 would be taxed at the new rate of 4.95%. Not using the SA form taxes all income at the blended rate of 4.3549%
  7. Illinois Schedule SA

    Thanks, Judy. Does anyone know about ATX and the IL SA?
  8. Illinois Schedule SA

    I use Pro Series and the users in their forum are having a hard time convincing the "powers that be" that the IL SA (Specific Accounting) form is a necessity for this year. IL raised its tax on 7/1/17, and the SA form lets you do a calculation at the old rate and new rate for half of the year and then combine the two instead of using the "blended" rate that the form uses to calculate the taxes. For tax preparers especially the form is an absolute necessity, as much of the income comes in during the first half of the year. What I would like to know is if ATX and Drake have the form in their programs. Perhaps we Pro Series users could parlay that knowledge and create a fire under Intuit programmers. Thanks much!!
  9. Charitable Contributions - Brand New Clothing Donated

    That is the exact method I have used over the years when new articles are purchased and donated to a 501c-3 (such as a Church) for distribution to the homeless, poor, etc. It has withstood 2 audits, so our thinking on the matter must be correct.
  10. Year End Tax Moves

    In Cook County Illinois as well as surrounding counties, property taxes are imposed in one year and billed in the subsequent year. In other words, the taxes imposed for the privilege of liviing in your home for they year 2017 are payable in 2018. If you sell your home on Dec 31, 2017 you have to provide the purchasers with the money to pay the real estate taxes that YOU incurred during the whole year 2017. Furthermore, if you were to sell yor home on Dec 31, that payment to the purchasers gets added on to the real estate tax you paid during 2017 to give you a 2017 deduction of two years of tax payments. Since prepayment is thus required in the case of a sale, I see no reason why prepayment is not an option at any time. Cook County only allows you to prepay 1/2 of your current tax bill, but the collar counties mostly allow full prepayment of an amount equal to the amount you paid during the current year. I have advised my non-AMT clients who can afford to do so to prepay as much of their property tax as the county will allow.
  11. back up

    When you plug the external hard drive into a USB port on your computer, the computer will assign it a drive letter. Then, in your backup program, just use that assigned letter as the destination for the backup. If you want to copy the returns instead of backing them up, select the files you want to copy by left-clicking them while holding dwon the control key (or you can select all of them by clicking on the first file and then, while holding down the Shift key, click on the last file). When all are selected, RIGHT-click to being up the menu and select "copy." Under "This Computer" or whatever the name of your Windows version's drive listing program, find the drive letter corresponding to your external hard drive, left'click to select it, and then RIGHT click to being up the context menu to select "Paste." Hope this helps.
  12. I have the same "password-entry- every-half-hour problem" with my software (ProSeries) also. I downloaded a free softwware program called "typertask." It lets you assign a key or group of keys to any word or message. I assigned my password to the F12 key and now all I do is just press F12 and it enters my password. When I change the password, I change it in typertask. It has worked for me very well and the typertask program has a very small footprint.
  13. What you are saying makes perfect sense to me, Judy. I couldn't believe that IL sent a correction notice explicitly including the nonqualified annuity in the deduction and that the group of auditors from IL that I spoke with all ageed that it would be excluded. Proseries also has a checkbox which is automatically checked when code D is entered and must be manually overwritten in order to NOT exclude the income on the Illinois return. The right way to do things isn't always the way that Illinois does them. Thanks for the information about Drake and Lacerte from the other forums.
  14. My client purchased an annuity with after-tax dollars from Prudential and received a payment on form 1099-R coded "7D." My software (ProSeries) transferred the taxable amount of the payment to 1040 line 16. On the IL 1040, however, it did not deduct this amount as being from "retirement income" which IL allows as a deduction. The taxpayer later received a correction notice from Illinois stating that the amount of retirment income allowed as an Illinois deduction was understated by this amount. I talked to an IL auditor and, after he conferred with a few other people at the office, stated that anything on Federal lines 15, 16, and 20b will always be allowed as Illinois retirement income subtractions. This means that if you use after tax money to purchase an annuity, the interest received will be tax free in Illinois, while if you put the money into a CD, the interest would be fully taxable by Illinois. I asked the auditor if this made sense, and his response was "that is why our state is in such sorry financial shape." SMH In looking on the Web, I find that ProSeries does not allow such payments as IL subtractions, but its partner Lacerte does allow them as IL subtractions. I am just wondering how ATX and Drake would treat code 7D payments regarding states which allow retirement income to be exculded from taxation.
  15. Hang in there!

    My dentist is also my client! I loaned him the money to buy his practice when he graduated from Dental school. He is fantastic at dentistry, but cannot balance a checkbook. I told him I will handle all the "money" and "taxz" stuff for him and he can handle all my dental work. We have a pact--he does the teeth, I do the books, and no one gets hurt.