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Frankly, my dear, I'd rather have the wine!

I think the ones you gotta watch are the 1099R with a code 3.

My client married a woman who is permanently disabled from a tumor on her spine. She received Social Security (22,800) and she receives a W2 from an insurance company with ONLY box 1 filled in, $12,922, and "third party sick pay" marked. She hasn't filed a tax return since her disability initiated in 2005, when she was 41 years old. Wife is telling husband that she isn't required to file and she knows it all. I told the husband, congratulations on your wedding. She is required to file. If she had filed in the past, I believe she would have received a little EIC because what I have read tells me that her disability insurance W2 would count as "earned income." Do you agree?

I vote yes and he would be considered an SSTB.

I read that IRS is considering moving those excess deds to the not-2% category. The notice said they will rule on it later. If they decide to do that, and congress reinstates the extenders, we can all look forward to no downtime this summer. Instead we'll be amending return after return. I don't know about anyone else, but amendments are a pain, more so because they have to be assembled and paper filed. I have seen the loss of deduction for investment advisory fees hurt a lot of people. Several but not a lot of outside sales clients are getting killed by the loss of their mileage deductions. On the other hand, that whole misc expenses category was rife with abuse. I am trying to remember to choose sales tax instead of income tax for those clients who are way over the $10k cap just with their real estate and property taxes so any state refund doesn't show up as taxable next year. I wonder what the software will do when they essentially couldn't deduct state income taxes because the category was maxed out.

Thank you for the validation. That's one I got right. One.

Yes, the payer of the third party sick pay is acting as agent for the employer and the payment is considered wages to the extent it is subject to withholding and includable in income, so it does qualify as earned income for EIC.

I did find that! I can't USE it, but I found it~ Thanks everybody.

Just discovered ATX has a summary of the unadjusted basis of depreciable property. It's under 4562 statements. I was working on an 1120S and calculated the amount manually, then saw this statement. Same amount as I calculated so I must be doing it right.

His tax home is where he earns his living. It sounds like CA. Or, an itinerant. (If his tax home were IL, ALL his worldwide income would be reported to IL, his CA income to CA, and a credit for taxes paid to CA on his IL return. But, I don't think his tax home is IL.) And, it's not sounding like temporary, if each contract is for a year. He should have talked to you BEFORE signing a contract. We cannot fix these things after the fact.

Acks are flowing like sweet, sweet wine!

Need to fill out form 8824 - Like Kind Exchanges. Read the instructions....

Possi, it is a subtraction to income on line 5 of the adjustments on the 1099R input use code 3 (it is 3 on your 1099R isn't it?) then there is a box on the 1099R input just under the box 7 that says "check if disability and the taxpayer is disabled" it will them put it on line 7 as wages and subtract out a max of $20,000 on line 5 of the adjustments

Does not a long journey begin with a small step?

From my sleep-deprived memory, I think the "help" for abused spouses has to do with filing MFS withOUT having to pay everything back. Look for that exception within the form, maybe. That's all I got.