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Follow Lion EA's guidance. Get the statements from the college. I've had two situations within the last two years of the IRS questioning the amounts on the 8863. I have noticed this year the colleges are now putting amounts in Box 1 of the 1098-T. I have also notice those amounts are not entirely accurate either. I make copies (digital) of everything and put them in the client's file just in case my client's get a letter.

Scholarship income is unearned income for Kiddie Tax purposes. Yes. Now, you taught me something: I didn't realize the taxable scholarships are NOT counted as support provided by the student. Also. I wonder how many education credits are reported incorrectly. I hate it when I see a 1098-T.

If your question is about 199A QBI, it doesn't matter as Cap Gains are not included in 199A. My concern would be the valuation. How does farmland increase in value nearly 4.5 times in 2 years? Was it rezoned for housing, commercial, industrial use? Did soething else happen that would affect the valuation?

This could be a trust set up to avoid SE tax.

Yes I have the actual account transactions and they are matching to the 1098-T. Even with the 12000 standard deduction the taxes are over 4,000. I guess it is what it is, but honestly the only way I would have ever caught this was Drake flagged it. I used ATX last year and nothing, but looking over the instructions for the kiddie tax form it has been this way for quite some time. I will have to look at last years and see if it would make a difference. I really don't believe so because to be honest with you the kid makes more in scholarships than his parents do working.

I need a second set of eyes on this one. I have a client who is a student at UCLA. He is very smart and as a result has scholarships that way exceed his tuition. His scholarships and grant is $36,107 his tuition is $11,754. So he has taxable scholarships of $24,353. In addition he has a W2 for 3,219. Because the taxable scholarship isn't counted as support for himself, his parents are still able to claim him, thus causing a form 8615 situation by which they want over 4,000 in taxes. Am I understanding this correctly? Did I mess up last year and not figure Kiddy Tax for him based on the scholarship be non earned income? He was in the same situation last year, however I didn't do the Kiddie Tax Return thinking that non earned income was basically interest dividends, investments ect… I never would have though of scholarships in that classification (he worked hard, in my mind earned it). What say you? Am I missing something?

Very welcome and glad to help. You are always there for all of us with a sticky problem and have helped me more than once. Thank you.

Drake's paper returns are on a single page. Seems like a no-brainer to me. I don't now why all software vendors don't do this.

I would save a copy of the 7004 to desktop then from e file tab select attach pdf then scroll to the state section and at the bottom click on paperclip "other" then find the saved desktop item and attach.

It sounds like this is all NYS source income so line 1 is correct. What you do need to fill out is the NYC 360.1 Change of NYC residence as he owes city tax up to the move. There is no city tax for NYC source income for non residents so he's good after the move. I don't think allocation worksheet is necessary. I will think up a NJ question for you later.

A client sold his primary residence (on 5 acres) in an installment sale. Sold two other pieces of farm ground on installment. 6252 done for the two pieces of farm ground. The barn the client used for farming, which has a basis of $50k and depreciation of $30k, is on the 5 acres sold with the primary residence, which sold for a total of $150k. The appraisal did not assign a specific value to the barn. I'm having a brain collapse. I can't figure out how to deal with this barn. Thanks so much. Some days I wonder if I still have what it takes to do this. Aaargh!

Was the work physically performed in NY, was this a remote worker, or something else?

You can't exclude any of the land that was used for farming, including the land which the barn sits on so you need to make a reasonable allocation. Was there an appraisal on the house? How does the appraisal compare to property tax statements? From what I have seen for property taxes there is usually about a half acre included with the house. Curious as to where the $50,000 basis for the barn came from.

The scholarship was likely used for room and board.

Keep in mind the credit is only available for deferral items, so not all prior AMT is a available for the credit.

The requirement of probate could be per State. After death, usually the decedent's will is admitted to probate so the court can oversee the administration of the will. However, if there are no assets, the probate court will run the statute for claims against the estate to be presented and the estate will be closed at that time. In your case, the executrix has the authority to sign the tax return and at the time of death the executrix has full authority. The executrix should still receive letters of authority granting him/her the right act on behalf of the decedent. That covers your client on the Federal side. Just follow your State's requirements and all should be well.

Are you working off the bursar's statement that has dates for the amounts? Forms 1098-T are frequently wrong.

The form your looking for may very well be a POA. However, if the estate rep has letters of authority from the probate court, then those should suffice to sign the return. You will probably have to submit a copy of the letters or POA with the return. I had to do this very thing to sign the return for my mother who is now incompetent in a skilled nursing facility. Yes, the 1310 is used to claim a refund if any.

Let me throw my 2 cents worth in. While SaraEA very well maybe correct, I think it is always best to obtain the trust document (instrument) prior to filing any type of trust. The trust document will tell you the details you need to properly file the trust return as well as the taxation of the earnings and to whom it applies.

Below is a different twist in this situation. I would check further into the changes for 2018 to be sure this is filed correctly. Yes, unearned income (including scholarships) is subject to the Kiddie Tax. For 2018, Kiddie Tax rules change and will be taxed at Trust rates. However, for some mysterious reason the Standard Deduction treats scholarships as 'earned' income. In other words, the student will get the $12,000 Standard Deduction, and only the income above that would be subject to Kiddie Tax.

I don't think it matters. The IRS seems to treat 1120 and 1120S the same. I've noticed that when I have POA for one or the other, I can access both forms on eservices.

Virginia uses the Federal 1310.

if there is a refund there will be a form 1310 to be file if no refund then no form needed.

I know good and well that I am NOT typing in my password incorrectly for ATX. Well, I'll show them. Not only will I slow it down, I will break fingernails pounding out those characters on this keyboard. Take that! Just once, I want them to say, "Close enough," and let me in.

Uh, I edited Abby's post to remove some symbols that were setting off my AV software making it think there was a script running on the page. It wasn't happening before Catherine's and Terry's posts, so that is strange, but I removed the colon symbols. Still not helping with my AV that is now chiming every minute even though I told the program this page is a safe link. Thanks, Abby. Grumble, grumble.

Catherine that was great! LOL!!!

Never mind I found it!

I see fingerprinting required for the EFIN, but just saw an old notice from 2011 re PTIN that said: Attorneys, certified public accountants, enrolled agents, enrolled retirement plan agent and enrolled actuaries also are expected to be exempt from the fingerprinting requirement at this time. However, these individuals also must answer all the suitability questions asked on the PTIN application, such as whether they have been convicted of a felony in the previous 10 years.

I don't remember the details, but I think the IRS has gone back and forth on the fingerprints and at one time required them, then did not, then did again (and still do, as far as I know.) So it was a timing thing.

And here is one version of an old story. WARNING: potty-mouth terms used as you get farther in. Password reset A man was was unable to log into his online banking account and he pulled up the online chat support. "I put in my password and I cannot access my account" "Sorry that password has expired - you must register a new one." "Did anyone discover that password and hack my computer?" "No, but your password has expired - you must get a new one." "Why then do I need a new one as that one seems to be working pretty well?" "Well, you must get a new one as they automatically expire every 90 days." "Can I use the old one and just re-register it?" "No, you must get a new one." "I don't want a new one as that is one more thing for me to remember." "Sorry, you must get a new one." "OK, roses." "Sorry you must use more letters." "OK, pretty roses" "No good, you must use at least one numerical character." "OK, 1 pretty rose" "Sorry, you cannot use blank spaces." "OK, 1prettyrose" "Sorry, you must use additional characters." "OK, 1fuckingprettyrose" "Sorry, you must use at least one capital letter." "OK,1FUCKINGprettyrose" "Sorry, you cannot use more than one capital letter in a row." "OK, 1Fuckingprettyrose" "Sorry, you cannot use that password as you must use additional letters." "OK, 1Fuckingprettyroseshovedupyourassifyoudon'tgivemeaccessrightfuckingnow" "Sorry, you cannot use that password as it is already being used"

And I bet your script has no broken fingernails and never curses.