jasdlm

SOooooo True. It's very sad when tallying numbers at the end of the night. I have counted what I have left and divided by the number of days to try and set my 'per day' goal. I really want to be done by the 11th, but it's not looking very hopeful.

I'm making myself do only 'stinky' returns today. Complicated returns, or returns where clients aren't very organized, etc. I'm only on my 4th return, and I've been here since right after Church . I need to find a better system. It's depressing when at the end of the day, your numbers aren't very good.

Try opening a new return and choose 941 (2014) from the selections that come up?

I can open 2014 941s in my Payroll 2013. Update forms and try again?

I called in my IT guy and he installed using Jack's instructions. Everything is working well.

Called my IT guy. He remoted in and followed Jack's instructions. Everything is working perfectly. Jack, thanks for taking time to post the details. It is very much appreciated.

Same . . . I keep postponing for 4 hours (max time) every time it tells me it wants to update.

Do you mean terminating an installment sale, or simply terminating a contract to buy/sell land before the transaction closed?

I just figured it out. Report on line 5. Sheesh . . . I'm not very bright . Says right on it "Enter amount withheld by another entity and being distributed". I was holding for the FTB when this light bulb came on. I can't believe I've been sitting on this for days when it's right on the front of the form.

The following is from the Instructions to Form 592. The bullet is why I think I have to file the 592, but I can't figure out how to complete it in a method that makes sense for a pass-through. A Purpose Use Form 592 to report the total withholding under California Revenue and Taxation Code (R&TC) Sections 18662 and 18664. Use Form 592-V to remit withholding payments relating to Form 592. The amount of resident and nonresident withholding tax to be withheld shall be computed by applying a rate of 7% or such lesser amount as authorized in writing by the FTB. Get Form 589, Nonresident Reduced Withholding Request, for more information. Important: • Form 592 is also used by pass-through entities to flow through withholding credit to their pass-through owners.

I had that same question, but someone from the FTB told me it was necessary. When I read the instructions, it appears that it might be necessary (in addition to the k1?) to pass through the withholding to the shareholders.

Client has a rental in CA inside an LLC. Property Management Company withheld tax and submitted to CA using 592-B. I have completed CA 568, and the tax withheld is flowing through the K1 to each partner ($800 LLC Fee was paid by separate check). The way I read the instructions, the LLC needs to file 592. Is this correct? If so, i have to file for 2012, also (client 568 not done correctly - amended and need to pass-through withholding for that year, also). 1) The instructions say 'Nonresident Withholding Annual Return', but the 592 wants me to choose a quarterly due date. Instructions say it was due 31 Jan, but form choice is 15 Jan. 2) I can't make sense of the form. It says 'total withholding amount due', but nothing is due. I'm trying to get money passed through to the partners. 3) On the 'Total Income' on the Schedule of Payees, do I use gross income, or the net (which is negative) from the K1? Please help! Thanks.

The exception doesn't apply. Sorry.

I was updating as I read this and was able to hit cancel. Sheesh. Thanks so much, Jack, for looking out for us. Seriously . . . how do you run out of 'likes'?

Sorry . . . I guess I was posting while Carol was posting. Did not mean to duplicate the publication cite.

Refundable Part of Credit Forty percent of the American opportunity credit is refundable for most taxpayers. However, if you were under age 24 at the end of 2013 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, your allowed credit (figured on Form 8863, Part II) will be used to reduce your tax as a nonrefundable credit only. You do not qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. You were: Under age 18 at the end of 2013, or Age 18 at the end of 2013 and your earned income (defined below) was less than one-half of your support (defined below),or Over age 18 and under age 24 at the end of 2013 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). At least one of your parents was alive at the end of 2013. You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2013. Agree with Carol.

1) In the 2008 New Housing Rescue and Foreclosure Prevention Act’, Congress disallowed for the Section 121 exclusion the pro rata portion of the gain that corresponds to any period of nonqualified use after 2008. So . . . if they rented the house for 18 mos out of the 5 years, 30% of the gain is included and not qualified for the exclusion. 2) Must pay depreciation recap. 26 USC 121 d 6 (for all depreciation taken after 6 May 1997; pre-May 1997, they are golden)

Pub 535 - Page 18 - . . . Am I totally misreading the question? Self­Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long­term care insurance for yourself, your spouse, and your dependents. The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. A child includes your son, daughter, stepchild, adopted child, or foster child. A foster child is any child placed with you by an authorized placement agency or by judg­ ment, decree, or other order of any court of competent jurisdiction. One of the following statements must be true. You were self­employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Busi­ ness; Schedule C­EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. You were a partner with net earnings from self­employment for the year reported on Schedule K­1 (Form 1065), Partner's Page 18 of 50 Fileid: … tions/P535/2013/A/XML/Cycle07/source 12:15 ­ 13­Mar­2014 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Page 18 Chapter 6 InsuranceShare of Income, Deductions, Credits, etc., box 14, code A. You used one of the optional methods to figure your net earnings from self­employ­ ment on Schedule SE. You received wages in 2013 from an S cor­ poration in which you were a more­than­2% shareholder. Health insur­ ance premiums paid or reimbursed by the S corporation are shown as wages on Form W­2, Wage and Tax Statement. The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. For self­employed individuals filing a Schedule C, C­EZ, or F, a policy can be ei­ ther in the name of the business or in the name of the individual. For partners, a policy can be either in the name of the partnership or in the name of the partner. You can either pay the premi­ ums yourself or your partnership can pay them and report the premium amounts on Schedule K­1 (Form 1065) as guaranteed payments to be included in your gross in­ come. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Sched­ ule K­1 (Form 1065) as guaranteed pay­ ments to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business. For more­than­2% shareholders, a policy can be either in the name of the S corpora­ tion or in the name of the shareholder. You can either pay the premiums yourself or your S corporation can pay them and re­ port the premium amounts on Form W­2 as wages to be included in your gross in­ come. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W­2 as wages to be included in your gross in­ come. Otherwise, the insurance plan will not be considered to be established under your business. Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. If you previously filed re­ turns without using Medicare premiums to fig­ ure the deduction, you can file timely amended returns to refigure the deduction. For more in­ formation, see Form 1040X, Amended U.S. In­ dividual Income Tax Return. Amounts paid for health insurance coverage from retirement plan distributions that were non­ taxable because you are a retired public safety officer cannot be used to figure the deduction. Take the deduction on Form 1040, line 29

Don’t Miss the Health Insurance Deduction if You’re Self-Employed IRS Tax Tip 2013-43, March 28, 2013 If you are self-employed, the IRS wants you to know about a tax deduction generally available to people who are self-employed. The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. The insurance can also cover your child who was under age 27 at the end of 2012, even if the child was not your dependent. You may be able to take this deduction if one of the following applies to you: You had a net profit from self-employment. You would report this on a Schedule C, Profit or Loss From Business, Schedule C-EZ, Net Profit From Business, or Schedule F, Profit or Loss From Farming. You had self-employment earnings as a partner reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. You used an optional method to figure your net earnings from self-employment on Schedule SE, Self-Employment Tax. You were paid wages reported on Form W-2, Wage and Tax Statement, as a shareholder who owns more than two percent of the outstanding stock of an S corporation. There are also some rules that apply to how the insurance plan is established. Follow these guidelines to make sure the plan qualifies: If you’re self-employed and file Schedule C, C-EZ, or F, the policy can be in your name or in your business’ name. If you’re a partner, the policy can be in your name or the partnership’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the partnership must reimburse you and include the premiums as income on your Schedule K-1. If you’re an S corporation shareholder, the policy can be in your name or the S corporation’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the S corporation must reimburse you and include the premiums as wage income on your Form W-2. For more information, see Publication 535, Business Expenses. It’s available at IRS.gov or by calling 800-TAX-FORM (800-829-3676). Additional IRS Resources: Small Business and Self-Employed Tax Center Publication 535, Business Expenses Publication 225, Farmer’s Tax Guide Schedule C, Profit or Loss From Business Schedule C-EZ, Net Profit From Business Schedule F, Profit or Loss From Farming Subscribe to IRS Tax Tips Page Last Reviewed or Updated: 25-Nov-2013

Did I say something incredibly stupid, and I'm too tired to realize it?

If he is a schedule C, by definition, isn't his business name his name (and any other name is a dba)?

I had a client last year with 94 W2Gs. I never line up the days winnings/days losses. Impossible. I include the W2Gs in income as appropriate, and take the total invested (to the extent of winnings) as a deduction on Schedule A. If this isn't correct, I have no idea how else I could do it. I don't know what you mean by 'show them at net winnings', but if the front of the 1040 doesn't match the gross W2G numbers, I think you'll get a CP2000. Can't take loss in excess of winnings. Maybe I'm not reading your question correctly.

Thanks, KC. The child has no earned income, but over $1,000 of investment income (barely), so I simply wanted to include the child's investment income with the parent's return. Somehow tonight I just wasn't bright enough to make that happen. You're exactly right, I was trying to add the 8615, which would go with the Child's return if I was filing a return with the child, instead of an 8814. I feel like a complete idiot. Apologies for taking everyone's time. I even tried to google, but since I was googling the wrong form number, I had no luck. Yikes. It's a double at Starbucks in the morning!

8814. Sheesh. Please ignore me . . . I deserve it!

Sheesh. Thanks, Paul.