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About Hahn1040

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  1. Hahn1040

    199A for a dependent???

    exactly! We all know that this college kid is seriously in the business of coaching: Head coach: do you want to coach these little kids... I'll give you 50 buck college kid: OK (do I have to get up before 11 am to do it?) and certainly it is a SSTB: endorsements, personal appearances all of that
  2. Hahn1040

    My first 1099Q!

    Goodness! Ask about other expenses: Room and Board, books, computer (see page 52 Pub 970) before you go to the trouble of calculating the taxable portion. The designated beneficiary generally doesn't have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses. If there is a taxable portion, it is reported on line 21 Schedule 1. Some software have a worksheet to calculate and report.
  3. Hahn1040

    Virginia Efile

    Just in: https://tax.virginia.gov/sites/default/files/inline-files/tb-19-1-date-irc-conformity-advanced.pdf?utm_content=february_2018&utm_medium=email&utm_name=18_1_tax_bulletin&utm_source=govdelivery&utm_term=tax_preparer This year they are going with Federal with 7 1/2% for medical so we don't have to make that adjustment.
  4. Hahn1040

    My first 1099Q!

    the point is that if the student has an additional $2,246 of qualified expenses, there is enough to have $4,000 for the AO credit and all of the 529 is tax free. $9,000 for the 529 + $4,000 for the AO credit= $13,000 the student already has $10,754 for tuition. an additional $2,246 in qualified expenses will free up the $4,000 for the AO credit. Possibly/probably/potentially the student has rrom and board, books, equipment, etc. BUT if the student lives at home and is not at least a half time student, then no room and board and no AO. Still the $9,000 is less than the tuition so none is taxable.
  5. Hahn1040

    My first 1099Q!

    room and board are qualified expenses for 529 funds but not for the credits So if you use the 529 for room and board and some of the tuition, you can potentially have $4,000 out of pocket for tuition and books to use for the credit. Example: Tuition $10,764 Books $250 = $11,014 Room and Board $2,000 total expenses $13,014 paid with 529 Room and board $2,000 + tuition $,7000= $9,000 out of pocket for AO credit: $4,014 of course, the $4,000 has to be out of pocket, not paid with tuition or other tax advantage plan if they don't have enough room and board to "use up" the $2,000, they can choose to pay tax on some of the 529 funds.. Since only the earnings are taxed it would be a small amount. And if there are scholarships, they can choose to pay tax on the Scholarships to free up the funds for the AO credit. The Scholarships are taxed to the student not the parent. Yes, Pub 970 has good examples
  6. Hahn1040

    199A for a dependent???

    has anyone come across this yet: college kid; has 1099MISC for $1,300 for coaching LAX; no expenses he does have taxable income I tried looking, but I don't see anything that addresses this. ...seems to me that with the number of deductions and credits that are not allowed for dependents, this would be one of them!
  7. Hahn1040

    Virginia Efile

    Along the lines of comparing itemized vs. standard for federal vs. state: also look at using Sales Tax vs. State tax. In the past, I sometimes found that with AMT the net for federal and state was that using sales tax resulted in overall lower tax. NOW With the $10,000 limit for the deduction for taxes, in some cases, it will save overall to use sales tax because the state does not subtract sales tax the way it subtracts state tax Of course, this is a case by case evaluation. AND certainly the states vary with this...
  8. Hahn1040

    Signature nt

    be sure to use "insert picture" do not "insert text" that does not work
  9. Hahn1040

    IRA not allowed

    the $6,500 is a return of excess contribution. It is not taxed because it was not deducted from income. the earnings should have also been returned. the earnings would be taxable and subject to the 10% penalty
  10. Hahn1040

    Signature nt

    I know this was a topic in the past, but i cannot find it to refer to: FIRST you have to have your picture saved on your computer. Mine is a scanned pdf go to customize master forms select 1040 (and then other forms you want to place your signature) select: edit then insert picture click in the signature box where you want the signature find your signature where you have saved it in your files it will now be on your page you will want to resize it so that it fits in the box. If you don't like the way it looks, you can go back and resize it later save master then close master not all forms will allow you to insert the picture so you will want to keep the box checked as described above. Your pic will be over the printed signature placed in the program.
  11. Hahn1040

    Suspended Rental Loss & Disposition

    thank you so very much!
  12. Hahn1040

    Suspended Rental Loss & Disposition

    Would like to clarify on this topic: MY client converted a rental to personal use a couple of years ago. At the time it had $65,000 plus suspended losses. He has three other rentals. In 2017, he sold one of the other rentals. ATX is giving him the $65,000 losses on the former rental because he has the gain on the property sold. This uses up all of the suspended losses on all four of the properties and he still has a gain. Based on my understanding and your info above, this is accurate. I just want to confirm this is correct. I surely don't want to give him a $65,000 loss in error!! Thank so much!
  13. Hahn1040

    resource for bond interest

    I would appreciate suggestions for resources / references for reporting bond interest: including OID instruments i have just a couple of clients who invest in such bonds. For the most part, I can go through the 1099 and plug in the info on the 1099 worksheets and it flows to where it needs to be on the tax return. Still, it seems there are inevitably one or two items that i am unclear on.... (market discount, bond premium, OID accrual...) One of these clients with a large portfolio of stocks and bonds (both taxable and tax free) died last June. I encouraged the son to get the broker to transfer the securities into an estate account. That did not happen.... the 1099s for 2017 were issued in the deceased name and social security number. ($38,000 dividends; $12,000 tax exempt interest; $5,000 OID) All of the securities were sold in February 2018 to distribute the cash to the heirs. i am working on separating the income for the 1040 and the 1041. of course, the stocks are easy because i have the statement that shows when the dividends were paid. But some of the bond interest is killing me- with accrued interest etc. the broker did provide a listing of the value of the securities as of the date of death. again, it is straight forward for the stocks, but for the bonds, I am unclear about how the interest accrued and/or paid impact the cost basis... I have a general understanding of how these things work but I would like to have a resource to consult to gain a more in depth understanding. A textbook or article would be great to use to work my way through these. Something with examples would be great so that I could follow along to see how it all fits together. Thanks so much for your help! I do appreciate any guidance!!
  14. Hahn1040

    Military Wages higher than Medicare Wages

    BAH and BAS are not reported on the W-2 at all. They are not subject to FICA and Medicare. That is not the difference. If you want to know the reason there is a difference, ask to see the 12/31 LES (leave and earnings statement). That will show all of the various sources of pay and you can see what is included in taxable wages and what is not. You will see that there is one of the types of compensation I described above: bonus, flight pay, medical differential etc.
  15. Hahn1040

    Military Wages higher than Medicare Wages

    When taxable wages are greater than social security wages, it could be one of several types of pay: bonus such as a reenlistment bonus or medical specialties, or other bonuses flight pay incentive pay for doctors, submarines or other specialties with combat pay: taxable wages are lower than social security wages