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I don't like working on returns piecemeal. It's a perfect recipe for making a mistake or missing something, is inefficient, and overall wastes time because then I go over the original data again on review to make sure everything is input. If I know things are missing, I don't work on that return unless I have all of the information. Having followup questions is different than those clients that want to bring most data so to get the process started. I need to be efficient and won't work like that.

Also staying in the Tractor Trailer Drivers Blind Spot (right lane) is not a good thing either. I see it all the time, someone gets in the left lane to pass a big rig and freeze. They stay neck and neck and the Tractor Trailer Driver can't see them. If you do not see him in his mirror, he can't see you. Not worth being dead. Either pull behind or increase speed a little and get ahead. No matter what speed you do on an Highway, there is always someone who wants to go faster. Not worth having an accident or loosing your life.

I always accommodate the speeder & reckless driver. It's the safest thing to do. The guy in the pickup is truly a jerk, but she's putting herself in serious danger by driving the way she is driving. She doesn't have an "out" if something goes wrong. If the truck to her right swerves slightly has a blowout, starts shredding a recap, or if something goes wrong in front of her, the only choice she has is the median and possibly a head-on into oncoming traffic. And we won't go into how distracted she is by filming the whole thing - it's worse than texting IMO. If someone's tailgating me, I'll speed up somewhat to get over & let them pass if possible. Even if they're dead wrong, I don't relish being dead right.

I have very few clients who are NOT missing information. I keep running notes on my WIP spreadsheet and send off one long email with questions. What ticks me off is the people who go through the list, answer one question, and then think they're done. Sorry, kids, when I send a bulleted list of questions, I need an answer to ALL of them.

The driver filming did several things wrong, 2 were clearly illegal, at least where I live. She was out in the left lane when there were several opportunities for her to move over, and she was using a cell phone or camera while driving. She was a danger on the road due to her inattentive driving, and not willing to move over.

This is one of the reasons I don't think I could handle doing returns while the client is there. I started one last night, the guy said when he dropped off (on the 18th), "I think everything is there," which is the most common parting shot I hear, and frequently incorrect, but for this couple, practically NOTHING was there. No SSA-1099's, no medical expense (and they have a TON), no contributions (and they give). I called and left a detailed message about what they usually have, but you don't know what you don't know. It's a slog with clients like this. I can't get mad at these folks; they are elderly and not in good health. But returns like this DRAIN you.

I ​am not wasting your time. You may be, but I do not control what you click on. The post title seems rather clear to me. Many members have, over the years, expressed liking the occasional brief break. Feel free to skip them if you don't.

NASA has made an *astounding* discovery!! http://fourthcrown.wordpress.com/2014/03/26/liquid-water-discovered-on-surface-of-minnesota/ Excerpt: "FORT LAUDERDALE—In a press conference held Tuesday morning, NASA officials have announced the discovery of liquid water on the surface of the region commonly referred to as Minnesota. The discovery has come as a surprise to the space exploration organization, which has listed the state of Minnesota as “unsuitable for any and all biotic life” since mid-November. " Addendum: My husband had a guy in his dorm from International Falls ("Frostbite Falls" of Rocky & Bullwinkle fame). The guy stood outside in a snowfall, in short sleeves, perfectly comfortable -- and the snow that landed on his arm did not melt. That's acclimated for you!

I would do it for a little fee. Just tell him to do a little research of his situation and guide him. He seems to be very smart and you could easily have a person doing research for you for free. "just shows how much one doesn't know." In this field that's the daily struggle. Thanks God for this forum, which reminds me that we should DONATE while supplies last.

"...why do you want the excess to be taxed?" Pub 970 says if you receive more in grants than you have in eligible expenses, the difference is taxable and goes to line 7 on the 1040. Tom Hollister, CA

Losses are only deductible if you have used the timeshare as rental property. Otherwise, personal loss, no deduction. Deed or not makes no difference.

Thank You for the verification that I didn't miss something!!

Only Eric knows. I've run out several times, myself.

INSTANT KARMA The YouTuber going by the username Florida Driver posted video Wednesday, saying that she’d been tailed by the truck driver for three minutes. “After about a minute, and me shaking my head, I pulled out my phone and started recording. I couldn’t move over because there were trucks in the right lane, and I sure as heck wasn’t going to speed on a rainy day with the roads being as slick as they were. I was turning left in about a half-mile when this happened,” the driver wrote. “Now bear in mind, that this guy had already passed a truck in a left turn lane, was tailgating and driving recklessly on a wet slick road, wasn’t paying attention, and all in all being an ignorant [a**]. In the full video which I will post later, you will be able to see that not once was I mouthing off, I never brake checked him, and in fact until I watched the video after the accident I didn’t even know he shot a bird at me because I wasn’t looking at him at all, I was paying attention to the road while holding the phone up with my right hand,” the driver continued. Just after the man driving the black Ford pickup truck passed this driver and changed lanes, he lost control and spun out into a grassy median. “That’s what you get,” the woman filming yelled as she laughed. Watch what the incident as it unfolded (Content warning: offensive hand gesture): http://www.youtube.com/watch?feature=player_embedded&v=3XqZoaWKv2k According to the driver who recorded the footage, the man in the truck fled the scene but with the video, law enforcement were able to identify and charge the driver.

Excellent...Pub 535....Page 34 ....Method 1

There will be a 1099-R. Hopefully, they'll have the gross distribution and taxable amount shown. They should have tracked basis in contract. Hopefully client has kept all annual statements just in case. If the policy is old and has changed insurance companies thru mergers, etc, the insurance company may not be able to provide a good historical statement.

But ignoring that it was for education, if he was previously taxed on this $38,000 and has to repay it in 2013, then can't he either deduct it on Sch A or take it as credit under claim of right, as explained in Pub 525? Would that do him more good than going back for education credits when he did not pay for the education he just repaid his employer?

Jeez, that's insane for $150! I'm cheap, and I won't do just 1040 with Sch A for that, not even 10 years ago when I was starting out.

I read the title of this thread, and just went "DUH!" Rich

Tom: This line: "The rest of the money was used for room and board." THAT is what I am talking about. She used the money for R&B at the college first, books, then tuition, etc. So that way, there is no $$ left over subject to tax. The Tax Court ruling supported this treatment. IRS Pub 970 has it going the other way, but that is the IRS writing rulings to benefits them, and NOT the taxpayer. I am sorry, but when the court rules, that is law, when the IRS interpetes, its just rules. Rich

I've got one of these coming for 2014. Got the letter already saying it was being distributed....

There is a description on the line 7 worksheet. It prints SCH next to line 7

One other thing worth mentioning If client has foreign tax paid, NC allows tax credit for taxes paid "to more than one state or country". Basically same info that would be on fed form 1116. Hope pdf below that refers to NC Gen Statutes 17 NCAC 06B.0607 works. NC Tx Credit.pdf

I just figured it out. Report on line 5. Sheesh . . . I'm not very bright . Says right on it "Enter amount withheld by another entity and being distributed". I was holding for the FTB when this light bulb came on. I can't believe I've been sitting on this for days when it's right on the front of the form.

You're right. Very dangerous place to be. And anyone who has ever found themselves side-by-side with a tractor trailer shredding a tire will vow never again to be in that scary spot for very long. (Trust me). There's no question that the video depicts a dangerous driver in the pickup (he doesn't even know how unstable pickup trucks are because they're so light in the rear). He got what was coming to him. But the person filming it is also a very bad driver who made several foolish mistakes IMO.

Another personal loss and no deduction. No need to report unless they received a 1099-S.

Oh please. Have them draft a loan letter up with some small amount of interest. You can't live your life scared of the IRS. Are we tax advocates or just a conduits of funds to the federal imperial government?

Tom: The IRS instructions in this area contradict the tax court rulings. The IRS is having its cake here... The IRS says the Scholarships and grants are used to pay tuition first. And once extinguished, there is no AOC/Credits/etc.... But the Tax Court ruled that a taxpayer can apply the scholarships/grants to other college expenses first, then to books, then to tuition, thereby, using up all the funds and nothing left over to be taxed. The PPC 1040 deskbook described this sitch pretty good. Rich

I had several OK clients and one non-resident one, so got familiar with them. Glad it helped.

The title is "Just for smiles." Some of us appreciate a short break, but I knew from the title that it was not a tax posting.

You have to check his treaty and how it's coded. Students on F-1s do the 1040-NR for five years...and the income may be exempt.

Yes, and it should also send an explanatory cover letter that will tell you more. Clearly since the withheld taxes at least some of it was taxable.

On 9K he'd owe $29 to OK. Assuming he's being claimed by his parents. Being a non-resident has no effect because all his income was OK income.

I would just tell them in person. And if they slapped me or spit on me, oh well, there might be an additional fee. I got a feeling they are going to bail. Might as well suffer a little. And you know I'm kidding, right? But really I'd just explain, "Hey, I'm not charging you enough, and if you can find someone to do your return for less, no hard feelings." Maybe rub some onion on your hands and wipe your eyes so a tear rolls down.

Good summary Gail. NC will exempt the first $2,000 of pension income for each spouse. That figure goes to $4,000 if they are government retirees, and SOME government retirees can exclude their entire pension. (You'll have to read up on the Bailey case if it applies, but if their income is from private pensions or IRA plans, don't bother). NC allocates based on income, not time of residence. Just follow the instructions for allocating NC and non-NC income for a part-year resident. (You might need to allocate the pensions based on where they were living when the payments were made, though). Next year everything changes - and I do mean EVERYTHING. So don't expect 2014 to work like 2013. I'd try to explain, but as they say - it's complicated.

I was just pointing out how there can be cash in excess of profit or excess.

I've never issued a 1099 and I don't think you should because it's already reported on the K1. Excess distributions are capital gains so if you were going to issue a 1099 it would be a 1099B. I would not treat it as a loan to shareholder because it's not evidenced by a note and the loan will never be repaid.