RDennis

I switched to Drake for 2013 returns for two reasons. I took over a friend's practice and he had used Drake for about ten years prior to 2013. I was also frustrated by printing issues and other software issues, including crashing numerous times with ATX 2012. I purchased the 2013 ATX Payroll Compliance Software and Drake for 2014. I also had the ATX 2014 software disk sent to try out, and as a result was able to download the 2013 program. I notice that the printing issues seem to have been solved. However, as others have noted, I have rarely been able to open the 2013 program because of the server issue. I have to totally turn off the computer, reboot and open nothing else except the 2013 ATX program. Most of the time that will work, but not always. I have not loaded the 2014 software as yet. Dennis

I prepared the 940s, 941s, W-2s and 1099s on Drake. And, yes, it was a struggle at first but it was a bit better the second time I did them. I used the ATX W-2 program from 2012 for state unemployment (though, Drake does them also), state withholding and the Denver Occupational Privilege Tax. It is fine until the forms are changed, then I suppose that I'll have to do some online on the state and city websites. Also, use the instructions from the ATX program. How was ATX not good on the pay per return basis?

She had a gain in 2013, but had a $28,000 capital loss carryover. So, the bottom line on Schedule D is a $23,000 capital loss. So, yes, I entered 0 on line 5. And, yes, she had a rental loss. Every single line in the right hand column is zero, except for dividend income of $1,082. Line 15, then, is the $1,082--so less than $3,000. Thus, it appears she qualifies. Well, at least, for 2014, she won't have any earned income! And, no, she won't be open for any advice.

Help!! I have taken over a friend's tax practice. One of his clients has qualified for Earned Income Credit from time to time. I have not prepared a return with EIC in many years, and not under the newest guidelines. She, a single mom who has been divorced for some ten or more years, has two children living at home 100% of the time. She provides 100% of the support. She and the kids seemingly meet all of the criteria, until I get to Worksheet 1, Investment Income. She inherited quite a bit of stock after her mother's death in 2013, and there were a lot of stock sales in 2013. In 2014, the remainder of the estate was distributed--not a factor here. Her earned income was $17,613. After the stock inheritance, she quit her job!! She had gross proceeds from the stock sales of $195K. She also received rental income of $23,000. There is also dividend income and a state income tax refund. So, lots of money received during the year. I go through the Worksheet, and in the first three sections, she has only $1,082 in dividends. In part 4, it appears that on line 12, I should enter the net loss from passive activities (the rental) of $7,650--lots of depreciation and probably light on the amount of rent charged--as a negative figure. Am I missing something, or does she really qualify for the EIC? If so, it certainly doesn't seem fair. Thanks for your help, Dennis Kavanaugh Colorado

I totally agree. I was hesitant to switch, but I took over someone's accounting practice who used Drake. So, I thought that would be a better fit. And, I was very frustrated with the slowness, the printing difficulties and the times I lost data and had to backup, etc. I was with ATX from the time that Parsons was sold to Intuit. Was that 1998 or so?

Both my wife and I go by our middle names, and I have always put R Dennis as my first name. My SS card has Robert Dennis. My wife is M Irene, and she also both names on her SS card. Medicare cards are different--mine is first name, middle initial. Hers is first initial, middle name. No problems with the IRS, etc.

Thanks, again. I have now done that. I prepare payroll tax returns, W-2s and 1099s. I have listened to their tutorials and they are very good. It isn't as easy to do as ATX, but it seems to be all right.

Thanks. I finally found it once I installed the 2013 program, under Manuals, Practice Returns, and IRS Pubs--PDF browser. As a 15-year user of the form-based ATX software, I think this will be invaluable.

Oh, I like that idea. I will download that. Thanks!!

Judy. Thanks so much for doing all that. That is good to hear. I probably won't have a chance for a week or so, as I have regular bookkeeping/accounting clients to work on until then. Dennis

Thanks, Judy. I originally entered the correct amounts on the "ES" screen, and they didn't go to the 1040-ES. I guess I am hoping that the "ES" screen amounts will roll over to 2013. Did you recall what happened when you rolled 2011 over to 2012, as to which took? I did receive the 2013 disk today. I guess I could install it and roll that one return over. Dennis

When I used the conversion program, I had the basic differences referred to above. In addition, I tried to set up the estimated tax payments for 2013 using the amounts in the 1040-ES as given to the client, assuming that would carryover to the 2013 file, however, it made its own computation (only $20 vs. $3920 for the total). I think it might have something to do with the 1099-Rs, but I am not sure. Has anyone else had this problem? If so, were you able to fix it? Thanks, Dennis

Thanks for the great references. Clearly the rules changed for 2014.

I have two very small non-profit organizations as clients. One has two employees. The older employee turned 65 in August and plans (read: hopes) to retire early next year. She was in the group plan (just for the two of them), but when she turned 65 she dropped the group plan and began Medicare coverage and a Medigap policy. She submits reimbursement requests with invoices attach each month. The second one has three full-time employees and two part-time employees. The ED has his insurance through his wife's policy. The other two do not have health insurance. The ED's idea is beginning next year for this non-profit to give moneys to those two employees to buy health insurance. On the first situation, I have found references to the Medicare and Medigap policy reimbursements being taxable and not being taxable. One reference indicates that since it is Medicare, that it would be taxable; if not Medicare, then it would not be taxable. On the second situation, I have not found specific answers. I believe if the employees are given an amount to buy insurance that may or may not cover the total cost, it would be taxable. I believe if the employees submit a reimbursement request for the exact amount, it would not be taxable. The downside of the latter is that one employee is in her late 50s and a smoker, while the other is in her early 40s and very healthy. Does anyone have any specific references for these situations? Thank you for any help on this, R. Dennis Kavanaugh, CPA

I do only one 990-PF, and I have had the foundation make the payment via EFTPS the last couple of years. Before that, they always mailed in the payment with the return or with an extension. They never heard anything from the IRS about mailing the check in the past.