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Dave T

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About Dave T

  • Rank
    Member
  • Birthday 12/07/1953

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  • Gender
    Male
  • Interests
    Running,bicycling, rollerblading.<br />Spending time with my 3 boys.<br />Studying the Bible
  1. Husband and wife both self employed music teachers. Some lessons given in home. others at students' homes. Health insurance is purchased through exchange. T/P receives 1095-A showing premiums under silver plan and advance payments of FTC. I'm in the process of preparing the 8962. My question is, can they claim the amount paid out of pocket as the Self Employment Heatlh Insurance adjustment. Seems I saw something indicating they can't take this but not sure about this one. I haven't encountered this in the past. Thanks for your assistance. Dave T
  2. New York Sate Forms

    Watermark on NYS forms says not approved for filing yet it lets me create the NYS e-file. Two questions: will the file reject if sent and does anyone know when the forms will be approved? I don't want to give a client a hard copy with the watermark on it. Thanks Dave T
  3. IRA Distribution

    T/P's husband died in early 2014. Sometime later she gets $ 62 K distribution form his IRA. She then ( within allotted time ) rolls into her own IRA. The 1099 form Met Life has the $ 62 K as fully taxable and distribution code 4. No Federal w/h I don't believe this should be taxable to her since she rolled it but am wondering how the IRS would know since it wasn't a direct transfer ( Code G ) but rather a cash receipt and redeposit. Do I change 1099 to show as non-taxable? Thanks Dave T
  4. Foreign Tax Form 1116

    T/P has two 1099 DIV with Foreign Tax paid totaling 999 so I realize it can't be put directly on 1040. Here is the data on the two: Fidelity Canada Dividends and Qualified Div. - same amount $ 2417 Capital Gain Distribution $ 21,517 Foreign Tax 406 Paine Weber - Other Country Dividends and QD - the same - $ 4137 - Foreign Tax 593 I've input these two items into the Detail schedule of the 1116 but nothing is flowing to the 1040. I'm obviously doing something wrong but can't figure it out. In column (c ) Income amount what should go in there? Is it the total dividends and capital gain or something else? I recall having a similar issue with this last year but can't recall how I resolved it. Thanks for any help. Dave T
  5. Health Care Responsibility

    I haven't had to deal with this yet so please forgive me if this has been discussed already. Young couple get married in November 2014, both under 26. Young man covered under parents policy then takes out policy through work in November. In other words covered for the year. Young woman didn't have insurance for first ten months and then gets policy through work ( same employer as husband ) In November. Trying to compute the shared responsibility amount. Her income was $ 20 k and his $ 27 K. Not sure if I'm working through 8965 correctly or not but it looks like the penalty is $ 248 which seems high. Again, apologize for not having a better handle on this but just looking for some guidance. Thank you. Dave T
  6. Server Issue?

    I've seen some posts regarding version 14.5 but I don't know if the problem I'm encountering is related or not. Earlier in the week my hard drive crashed without warning and now am in the process of having to reload the program. ( ugh ) I'm getting an error message that the server can't be located. Is this what others are getting when upgrading to the newer version? Thanks for any insights. Needless to say this has been a very stressful week Dave T
  7. NT I just signed up for my first full marathon

    Go for it Bob. My sons were in Columbus last summer and were very impressed by the city. I plan on doing a duatholon the week after tax season, 5K run, 20 mile bike , and another 5K run. Hopefully the weather breaks early this year ( although I'm not hat optimistic ) so that I can get out on the bike. Dave T
  8. Printer/Printing

    I've used Brother printers for several years now and have very pleased with them. Last evening I was in Office Max purchasing toner and was looking at one of the new Brother printers and noticed that it said it can print two sided. It got me wondering if ATX accomodates two sided prinitng. Does anyone know? The printer was quite reasonable and the thought of being able to print retruns on both sides seemed appealing. Thanks Dave T
  9. Now What Do I Do?

    I've never encountered this before so I would appreciate your input. I have an elderly woman client who I've worked with for several years. She informed me when we me that her 62 year old son was very ill ( cancer ) and wasn't sure how much longer he would live. Soon thereafter I received a call from this man's brother concerned that his brother, due to his condition, hadn't prepared his taxes and would I be willing to do so? I said I would but due to the lateness of the season I would probably need to file an extension which he was fine with ( he said he would pay my fee as well ). I met with the man and his wife, got their documents, and filed the extension. I began working on the return several days later and encountered some items that I needed follow up information on, basis of a stock transaction, as well as some of his business records as what he had provided didn't make a lot of sense. This morning I called and left him a message about getting together to discus these and shortly thereafter I contacted the out of state brother to let him know how things were progressing. He just emailed me thanking me for taking care of this but also to let me know his brother passed away this morning. I'm not exactly sure how to proceed at his point. I believe his wife will be able to assist with some of the easier questions but not so sure about the business aspect. Any help would be appreciated. Thank you Dave T
  10. 1099 R - Dist. Code 3

    T/p is 57 years old and receives a 1099R with Distribution Code 3 - Disability. Below the box 7 it asks, if Code 3, is recipient below minimum retirement age? Is this considered to be 59 1/2 or is it dependent upon the employer's retirement policy? He worked for New York State which does allow retirement at 55 . If it's 59 1/2 I check yes and he becomes eligible for EIC as this disability pension is considered earned income, in fact when inputting it flows to line 7. If it's 55 no EIC and he ends up owing some. Tried looking in the Pub on 1099's but didn't see the issue addressed. Thanks very much Dave T
  11. Our church has used Power Church for a number of years and it works very well for tracking contributions. It also has a number of other financial features but we use it primarily for donations. The posting source is the prenumbered offering envelopes we provide to our members. Dave T
  12. Foreign Exchange Student

    Thanks for the responses on this. There was no reimbursement from the agency on this it was just a monthly stipend without the requirement of how the funds were spent. The client didn't track expenses and so it isn't possbile to determine if they exceeded the stipend so I agree the $3,300 is all income and there is no charitable contribution. Thanks again, Dave T
  13. Foreign Exchange Student

    Yes - that is correct. The 1099 came to my client as a stipend for housing the exchange student. It was mentioned, and I admit I didn't know this, that a charitable contribution can be taken for this as well. Am I understanding this correctly? Thanks to those that responded to this as I know I have another client coming later who did the same thing. - Dave T
  14. Foreign Exchange Student

    Clients had young woman from China stay with them while she attended high scholl in US. Upon graduation she stayed in US to attend Univ. of Wisconsin in fall of 2013. The sponsoring agency provided clients with 1099-Misc. with box 7 filled in, Non-Employee Compensation for $ 3,300. I've added this to line 21 as " Other Income". Clients don't track incremental food costs or other items so I'm wondering if there is any type of offset ( per deim allowance ) to this income and if so how would it be shown? Thanks very much. - Dave T
  15. I’m probably not thinking clearly on this and wondering if someone might be able to shed some light on what I’m missing. Parents take a distribution from their 529 plan (QTP) to pay for college expense for son. Here is the breakdown on the 1099-Q Total Distribution $ 19,800. Earnings - $ 6,618 – Basis $ 13,182. Here are the expenses – Room & Board - $ 9,215, Tuition, fees and books net of scholarships - $ 7,166= total expenses of $ 16,381. I’ve calculated the tax free and taxable portions of the distribution as follows: $ 6,618 x 16,381/19,800 Tax Exempt $ 5,475 Taxable 1,143 Where I’m getting hung up is whether they can still take the American Opp. Credit. I’m trying to follow the example in Publication 970 and this is how I’m figuring it: Net Tuition, Fees and Books $ 7,166 less $ 4,000 allowable for computing credit = $ 3,166.. I believe I then need to again compute a taxable and non taxable portion as follows: 6,618 x 3,166/19,800 Tax Exempt – $ 1,059 Taxable 5,559 If my calculations are correct, and I’m not entirely sure at this point, they would probably be better off by not taking the credit. I apologize for throwing a lot of numbers out there and also for being obtuse about this but I’m trying the best I can for this new client and help mitigate what is already a rather large amount due. Thanks for your assistance.
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