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Only the custodial parent gets to claim the child care credit. This is true even if he or she does not claim the exemption for the child. This is one area where IRS rules actually make sense. The custodial parent needs child care so s/he can go to work. The noncustodial parent can come and go as s/he pleases and doesn't need someone to watch the child while working. And yes, the credit is based on a maximum of $3k for one child, $6k for two or more. AGI determines how much the credit is, ranging from 20-35% of the cost of care. So if the custodial parent makes over $43k, the most s/he will get is $600 credit no matter how much was spent. I know, where has Congress been? They increased the amount allowed for each child to $3k in 2001 (before that it was $2400). One cannot find good child care at those prices, or even horrible child care. "the exspouse paid his share of expenses from his business account." Gotta love it. Can't imagine what expense he charged it to. Be glad you aren't doing his taxes.

I am proud I did do at least my minimum exercise before the client appointments began today. And my phone tracked walking up 10 flights of stairs and I know I did at least two more when I wasn't carrying the phone! Benefit of having an upstairs office Filed my first return today too.

Copied from the website of the Maryland Society of CPA s: Posted By: Bill Sheridan on January 22, 2015 in Taxation That didn’t take long. Tax season has only just begun, and the MACPA’s federal tax listserv is already lighting up with questions from tax pros. The issue at hand involves the IRS’s tangible property regulations. The final disposition rules for tangible property were issued in August and largely adopted the proposed regulations that were issued in 2013. The IRS also recently issued procedural guidance, but if the listserv is any indication, a ton of questions still remain. The MACPA is working on digging up some answers, possibly in the form of CPE programs and other guidance to address the issue. Stay tuned. In the mean time, here are a few resources that might provide some answers. AICPA resources: Tax treatment of expenditures related to tangible property resources FAQ: Forms 3115 and the new tangible property regulations IRS updates accounting method change procedures IRS Rev. Proc. 2015-13 IRS Rev. Proc. 2015-14 AICPA: Repair regulations’ de minimis safe harbor is set too low Regulations govern dispositions of depreciable property The five actions for IRS tangible property ‘repair’ regulations It’s not too late to save tax via IRS tangible property regs Post By:

Pinning this topic. If anyone has additional references that they've found to be very helpful in this area, please add the links.

No --- line 61 is for ALL on return --- if ALL did not have coverage for all of 2014, then DO NOT check, open 8965 and complete as described.

Has anyone looked at the new 1040? What shananagins is this line 61? What is "Healthcare: Individual Responsibility"? Is that part of the ACA that all the kids are talking about these days? Damn Kids bunch of hulligans, they are

I am posting this in general chat because this is about general handling and processing of returns and not really a question specific to the ACA. This season will be tough enough without the added delay in collecting fees or having to explain to clients why they haven't received their refunds. Be sure to double check this before finalizing the returns for filing: If returns are filed with line 61 blank and no form 8965 or 8962 is included (totally "silent" for the ACA), the IRS will pull the return for error resolution and any refund will be delayed. If this is an ERC or Fee Collect return, the preparer's fees will not be collected if the IRS chooses to mail the refund as a paper check later, rather than as a direct deposit. This was posted to the ATX blog earlier in January.

Washington, D.C. (January 26, 2015) By Jeff Stimpson Enrolled Agents with Social Security numbers ending in 7, 8 or 9, as well as those who don’t have a Social Security number, need to renew their continuing education enrollment status with the IRS by January 31 for the 2015-2018 period. Without renewal, current enrollments expire on March 31. Renewal cycles for other EAs through the rest of 2015 are available here. To renew, you must have a valid PTIN and complete a minimum of 16 hours of CE each year of your enrollment cycle for a total 72 hours, as well as two hours of ethics or professional conduct during each enrollment year. (Those who are renewing for the first time must complete two hours of CE for each month of enrollment, including two hours of ethics, or professional conduct each year.) The non-refundable renewal fee is $30, which applies regardless of enrollment status. EAs may submit their enrollment renewal application and payment directly online through Pay.gov. They can check on the status of a renewal after 90 days, at (855) 472-5540. For more, see the IRS EA enrollment page.

Marie, you are right - it's not there. I wonder if it will be included in tomorrow's program update. If not, then you'll (and the rest of us) will have to add a blanket election for this reg. I found a sample: It is the company's policy to capitalize assets that cost $___ or more. All capitalized assets will be depreciated in accordance with the company's depreciation policy. Assets that cost less than $__ will be expensed in the period purchased. Amounts paid for assets with an estimated useful life of 12 months or less with a value of $___ or less are expensed in the period purchased as well. Management will periodically review these levels and make modifications as necessary. Hope this helps, Lynn

It is possible that the reimbursements will be included on their W-2s as taxable income or they will get a 1099-MISC...In this case, I would go ahead and claim the Hope as normal...students will pay taxes on the reimbursements when they receive them.

Cash basis taxpayer. Calendar year accounting. You can't forecast that there will be a reimbursement. Take the credit. When the reimbursement comes in, treat it just like a scholarship that covers more than the cost of the education in the year it is received. Tom Newark, CA

You have it correct. No one will be able to claim HOH and no need for the extra worksheet and questions.

You got the correct answer from Frazzled, mom as single or HOH if she qualifies and father as single. Or father as HOH (if he qualifies) with the dependent child and mother as single without the child as a dependent and no benefits. The only time I have seen one filing as HOH and claiming EIC without claiming the child is in the case of separated parents. One parent lives with the child all year and provides more than half of the support, get HOH and EIC and signs the dependent release form so the absent parent can claim the child.

No, they cannot split the tax benefits. See pub 17, page 31 Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 1. The exemption for the child. 2. The child tax credit. 3. Head of household filing status. 4. The credit for child and dependent care expenses. 5. The exclusion from income for dependent care benefits. 6. The earned income credit. The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these benefits between you. The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child.

If it is truly disability payments paid via EDD it is state disability insurance payments and therefore not taxable. She will not get any kind of a form for this money. If she received a 1099 from EDD than it is more than likely the extended paid family leave and if so is taxable. Hope this helps!

I just posted some pictures to my facebook page; I believe they are public, so anyone can see them. https://www.facebook.com/catherine.white.796/media_set?set=a.10203734001613513.1073741829.1322420821&type=1&pnref=story

Clearly this was started as a joke, so this one post will be allowed to stay in General Chat.

I agree with CBSLEE. If the reimbursement is taxable, it will most likely be included in the student's W2. If it is under a tax free plan, the benefit has been received in the current year and the reimbursement would become taxable in the year received. I would treat it just like a scholarship payment in excess of the cost of the educations in that year. No different than a high school senior who gets more scholarship money than they need for the first semester of school. Even though they save that money to pay for future years, they have to take into income the excess over the cost of education in that first year, and then they get to take the education credits in the subsequent year. Tom Newark, CA

I moved one called "line 61 ACA question" and don't see any other topic by you in general chat about the ACA. If you PM one of us or post the title, it can also be moved. ETA - was it the other topic that was a warning to us about the return being able to be filed even though line 61 is blank? That topic is now 3 pages back for me at this time. The forum doesn't automatically send a PM when posts are moved. I can't answer for Eric or KC, but I would prefer that questions pertaining to the ACA be posted in that section from the start. If everyone posted all the topics in general chat and then expected the moderators to move them, we really don't know when you have the answer you seek, but not everyone visits this forum with the same frequency, and that would add extra work for us. Eric doesn't read many of the tax posts and wouldn't know if the topic had been answered to a particular person's satisfaction, and my time will be more limited on here very soon.

First we need to know whether the Starbucks program qualifies as a tax free Educational Assistance under IRC 127 currently limited to $ 5,250 per year. If it does, to extent that we receive a tax benefit in one year, the future year reimbursement becomes taxable income.

Just got IRS email with this link. Nice ACA Chart about what to do? Check it out. http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTUwMTI3LjQwODAzMzQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE1MDEyNy40MDgwMzM0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTY1NjQxJmVtYWlsaWQ9Ymo0aW5zdXJhbmNlQGhvdG1haWwuY29tJnVzZXJpZD1iajRpbnN1cmFuY2VAaG90bWFpbC5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&http://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Health-Care-Law-and-Your-Tax-Return Individuals-and-Families.pdf

Father must file single if mom takes the dependency exemption.

Excel worksheet is free; booklet is $20 but worth it: http://brasstax.com/3115%20Booklet.htm Lisa Ihm is a great speaker if you have the opportunity to hear her live or even take a home study course.

Query - doesn't the online FAFSA pull an IRS transcript (if permission is granted) when the transcript becomes available? It has been a couple of years since I have looked at that, but that sticks in my mind. Fact or dream?

Who Must File (Form 8965) If you are required to file a tax return, you do not have minimum essential coverage for yourself and everyone else in your tax household, and you want to report or claim a coverage exemption for yourself or another member of your tax household, file Form 8965 to report or claim coverage exemptions. Attach Form 8965 to your tax return (Form 1040, Form 1040A, or Form 1040EZ). If you are unable to check the box on your Form 1040 series return indicating that every member of your tax household had minimum essential coverage in every month of 2014 (and therefore you are filing Form 8965 to report or claim a coverage exemption or are making a shared responsibility payment), you do not need to take any action to indicate that some members of your tax household had minimum essential coverage for some or all months in 2014. (The underlining is mine)

File an estimated FAFSA and tell the College to get real. The date of submission of finalized FAFSA has no effect on federal grants or student loans. Some colleges have college based scholarships and they demand (unrealistically) that the FAFSA be submitted early. Time for the transcript to be available last year ranged from 4-6 weeks. Colleges can pull that transcript with permission from the student. There is a release form they can sign. College financial aid departments are not known for having staff that are all properly informed or trained.

How many kids? Who is taking dependency exemption? We are assuming your client worked, paid for cost of own place, and needed the daycare and that the child was under required age, etc.. Basically if they were married then the money was paid by both (jointly) regardless of who wrote check (as long as they agree here - which you say they do). If just one kid the most you can use anyway is $3,000 and your client paid that alone. Also remember to get the 8332 if your client is taking dependency and is not the custodial parent. Additionally most credits, exemptions can not be "split" -- usually all or none. Divorces can be agreeable now BUT always need to have "the paper work" in place in case someone gets upset later.

The IRS announced Monday that it will provide automatic penalty relief for taxpayers who, when they reconciled advance payments of the premium tax credit they received for 2014 (which were paid as premiums directly to insurance providers) to the amount of the credit they are entitled to on their income tax returns, find they owe additional tax they are unable to pay or owe a penalty for underestimating the amount of tax due (Notice 2015-9). http://journalofaccountancy.com/news/2015/jan/irs-advance-payments-penalty-relief-201511697.html

Mine also brought over ALL of the information. Gfizer, this is why I export each return to a jump drive as I am working on it. If you cannot access your files on your old computer, I have no clue. If you can, it is smooth as silk.

Your client sounds EXACTLY like my couple. Hopefully, I can train them on proper bookkeeping since they just started and seem eager to do it right.

Easy makes a great point, IMHO. If the recipient is not a 'caregiver', but just being paid to manage finances, etc, then the special rule for family caregivers is not applicable anyway. The argument might still be made that he's not "in the business" so SE tax not applicable, but that would be a 'facts and circumstances' issue. How much he's being paid, and amount of time involved would be important factors.

Aaaawwwww - now I am blushing.

My research indicates that we are really happy to have you back, too.

Let give another example, this error on our part, is listed at the same level when we forget to check if client wants to buy or decline protection. The bar needs to be raised for ACA silence.

This is an awesome post. I cannot budge even one ounce. However, exercises to strengthen my bones have made my clothes fit much better and I feel so much better about myself. Would feel even better if I could lose 80 ounces.

Once upon a time, employees of the government were very very busy promulgating endless rules and regulations to instruct the citizens how to follow that wondrous creation known as The ACA. One day after the moon and the sun had circled the planet many many times,spokespersons came forth and said, "Lo and behold citizens, if you have been a member of an HRA, the rules are all different and to show that we are most thoughtful the rules go back to the beginning of this year. The citizens and their advisors were most confused crying, "This makes no sense, what will we do?" The advisors went to the country's revenue agency, "This makes no sense, what will we do?" The employees at the revenue agency said, "We don't know, the left hand knows not what the right hand is doing." The employees at the agency promulgating the new rules and regulations said, "We don't know, the left hand knows not what the right hand is doing." Moral of the story: If the left hand doesn't know what the right hand is doing you may be in big trouble. Footnote: It is said that this is what actually happened. The employees of the DOL and HHS did not know that rules and regulations they were writing would be in conflict with the rules already in place at the IRS. The employees at the IRS had no idea that the employees at the DOL and HHS were going to publish these rules when they did and were extremely surprised. After all no proposed rules or regs were ever published nor were any hearing ever held.