Chris R

Does anybody know, and forgive me if this is a stupid question, but in ATX I have filed the NPT city tax return electronically. The payment I selected the only option which is an e-check. Does that mean the same thing as an electronic transfer or does the client need to login to there account and pay it that way? I guess I am just unclear on what an e-check is in ATX

I just spoke to support on this very issue and they said I will just have to override the 3514 and the Schedule EIC to make this work for my IHSS clients. Dumb but that is what it is according to ATX support. Maybe add an 8275 with explanation of where the income came from?

I figured it out. Ugg. There was an 8606 in the return from the prior year and all I needed to do was delete it and then the 1099r was treated correctly. I hate when it is some dumb thing I just didn't think about. Thank you though for trying to help me.

I have looked at that part but it says Distribution from a Roth which this was not.

Client made a 2017 contribution in May of 2017 then took it back out before the year was up. Received a 1099r with $6804 in box 1 and $304 in 2a and coded 1 and 8. As I understand it she should get the 6500 back tax free but should pay tax and possibly penalties on the earnings of $304. The software is making everything taxable and subject to penalty. How do I fix that? Is there some box I need to mark that I am not? Thank you

Thank you both for confirming.

Client is putting in solar panels but has to replace the entire roof because it needs it. The roof would need to be replaced regardless. My research of the code and other info says no credit on the cost portion for the new roof just the solar panels. The roof portion is not to upgrade it to hold the solar panels and it is not reflective it simply is too old. Does that sound right or is there something else i need to look at. Thanks

Most of them are required to be used for tuition. The Pell grants and Cal Grant Bs are not but saying they are for R & B just makes them taxable which is what I was trying to avoid. Thank you for replying though.

I'm doing the return for a student but not the parents. He came in with girlfriend and her family. The kid gets a 1098t with amount in box 1 which is $9000 less than the amount in box 5. So I look at the Bursars office info and from that I see that he actually was billed in 2016 for about $7000 in tuition and they recorded payments in 2016 of about $10000 all coming from scholarships and grants. If I were doing mom and dads returns I would be looking to see how I can maximize the credits and I would make as much of the grants taxable and go through that whole process, but I am not. So my quandary is this taxable grant is of course reducing his refund from his small job. And he doesn't understand why the grants are taxable since he used them all for tuition and in fact took out loans to pay for living costs. We are not talking big dollars but to him it is a lot. I guess my question is if the IRS is saying these 1098Ts are inaccurate and they are basically ignoring them do we need to report this. We are not taking a credit on his return. It seems that this is a timing issue and he really did not get excess grants they just aren't recorded in the same year because of the way the school reports them. Any thoughts would be greatly appreciated. Thank you.

My client had to repay some long-term disability payments because in 2016 he received his PERS finally and it included retro. Following the guidelines in Pub 525 he can either do a deduction or credit. Under the claim of right rules the client had no tax liability in 2015 with or without the LTD nor in 2016 so no credit to take. But my concern is that with the LTD income included in both years he qualified/s for a greater amount of EIC and it affected his PTC amount. The payback amount is just over $13000. Is there anything I need to do concerning those credits? Thank you

My program is up to date and I can not create an e-file without line 61 checked or the Form 8965.

Had a client come in this week with a 1099C with a code H. This client has filed for bankruptcy chapter 13 and this debt she says is part of that but that it is still in the works and so the debt to her knowledge has not been written off yet. I have researched this but I can't find anything definitive and I am just unsure on how to treat this. Do I put it on the return and then use the 982 to report it as non taxable because of the bankruptcy even though it hasn't been discharged yet? Any thoughts would be greatly appreciated. Thank you

Yes. I double checked check stubs and spoke to the agent who checked on covered ca site just to be sure.

I had to inform one of my clients that they would have to pay back all of the PTC they received during the year. All $9000. Needless to say, they were not happy. Turns out they informed their insurance agent that the husband got a job in April and insurance. So there should have been a change for the monthly premiums they paid but there wasn't and they went on paying what they were told. I spoke with the agent and she says they did send the change into Covered CA but apparently it never went through. She is filing an appeal with Covered Ca but says its a slim chance they will change it. I explained to the client that if the change would have happened as it should have, they should have paid in over 7500 for health insurance yet they only paid about 2500. I don't think it softened the blow much. Hopefully they can recoup the difference. I hate I had to be the one to tell them.

Thanks everyone for the answers. Much appreciated.