jasdlm

What do taxpayers send in with their checks? Thanks.

I absolutely did not put that winking sunglasses thing in there (or I didn't do it intentionally, anyway).

This is from the instructions to the form: Not sure what your client does, but it sounds like eligibiity is pretty narrowly defined. *** Who Can Take This Credit You can take this credit only if (a) you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient in 2008, ( you cannot be claimed as a dependent on someone else’s 2008 tax return, and © you met all of the other conditions listed on line 1. If you cannot be claimed as a dependent on someone else’s 2008 tax return, complete Form 8885, Part I, to see if you are eligible to take this credit. *** Are you deducting her premiums under SE health insurance?

My bad . . . listen to JohnH. (Too quick on the keyboard . . . too slow in the brain.)

If 2008 was the year in which they turned 70 1/2, I think they have until 15 April of the following year to take the distribution. Bad thing is, they still have to take a distribution for this year, so 2 taxable distributions in 1 year.

My 3 year old son is excited, but I wasn't very clever, and he found the bag of little toys that I had purchased for his Easter Basket (luckily, no themed items, chocolates bunnies, or eggs, so he is none the wiser). Now this bunny has to find a time between now and Sunday a.m. to 'restock'. Sheesh . . . I actually bought the stuff back in February and felt pretty smug about how organized and ahead of the game I was. Then I proceeded to leave the bag in the middle of my bedroom floor. (Anyone else not cleaned house for over a month?) Worked fine until this past weekend, when he walked over (while I was standing right there but not focusing well), peered into the bag, squealed with delight and said 'look Mommy'! I am cranking through returns and pushing myself to the absolute limit. I really hope I get enough done by Saturday morning to feel that I can take him down to my parents Saturday afternoon (3 hour drive) for egg coloring, overnight, egg hunting, church, and Easter dinner. Back to the grind!

Rita, that's a good idea. I think I will talk with him about not taking the bonus depreciation. . . I'll run it by my hairdresser first, though! Thanks so much!

I have a new client; schedule C. Just came in 2 April. Owes $25,000 Fed and $5,000 State. Huge portion of expenses are Meals and Entertainment. I just sent him a CYA email asking him to verify that all M&E expenses were business expenses. Also recommended making certain he had receipts clearly marked as to who, why, etc. Yikes. Like KC says . . . No estimated payments made!

David, thanks so much. I appreciate the expert advice on this Board more than I can say.

KC, you rock. Thanks very much.

Thanks, KC. I can't come up with the $116,415 AGI. I'm going to give up and try again tomorrow. Thanks for taking the time to work through it. Hopefully tomorrow I'll get it right.

I usually have clients keep a log (internet and phone) for business/personal use and then do a percentage calculation. I always tell clients that the phone/internet, etc. has to be reasonably necessary for the production of income.

Sorry . . . 1 wife; 2 kids . . . both kids over 16.

Client has $76,881 in Wages, $7,855 in Interest, $42,433 in Dividends ($39,302 of which are qualified), a $3,000 net capital loss and a $12,754 farm loss (because of bonus depreciation on a Tractor) . . . Itemized deductions of $55,873 because of a $36,000 investment management fee (sheesh). Total tax: $199. This is really not right. I hope one of you is going to tell me I've done something wrong, but I don't think so. Client is not going to like this . . . he can afford to pay taxes and is paying less than many who truly can't afford what they're paying. I'm also really nervous and haven't signed off on the return yet . . . it just seems like it can't be right. Am I doing something wrong?

I agree with Margaret on filing the W2. I don't think you need to feel responsible for her half of the FICA and withholding. She obviously knew you weren't withholding. If she was expecting to be treated as an independent contractor (which isn't the case given the situation), she ought to owe less than she is expecting since your Dad's estate will now cover the employer 1/2 of the FICA.

Okay . . . I think I've done my homework, and I think I have this right, but it seems too good to be true, so I want to check. Client is Trustee for father's testamentary credit shelter trust. Mother died last year, so trust assets now distribute. There is a large loss (currently at $64,000) that has been carried forward on schedule D since before I started doing the return. (Using up at standard $3,000 per year). I think that my client, given that this is the final year of the trust, gets a Schedule A deduction equal to the unused portion of the loss carry-forward. Really? A $64,000 Schedule A deduction? This is the first 'final' fiduciary return I have done where there is a loss carryforward. Thanks.

Lynn, Thanks so much. My clients live in Kenner! I did not know about the 7% Homeowners Insurance Credit. I really don't want to do this return, but they had problems with their prior LA preparer, and now they are very skittish. (They had to pay over $1500 in interest/penalties because he could not produce a copy of the extension he filed for them for 2006 . . . they lost their house and were in a FEMA trailer then.) He also did not deduct their military and State Employee pensions from Lousiana income. Last year on 10 April he still hadn't started their return, so their daughter had them pick up their things and overnight it all to me. Yikes. They would probably be better served by a LA preparer, but they now don't want anyone they don't know. Looks like I'm going to have to amend 2007 (which I did) for the 7% HO Ins. Credit that I missed. (Cranked it out and had it back to them by the 15th . . . they were completely freaked out after the 2006 penalties and didn't want another extension.)

Thanks, Bonnie.

I only have 1 LA return . . . parents of my best friend, so I have to do it. On the Insurance Assessment refund, the LA R-540 INS asks for assessments paid in 2008. Do I have to file and amended LA State return to get the 2007 and 2006 amounts refunded, or is it sufficient just to file a 2007 & 2006 540INS? Thanks.

Clients son (just out of college) works for the Navigators. He is based in Seattle. His W2 shows $6,745 in Box 1, but only $3,238 in box 16 (State wages), and the State listed is Kansas (our home State). What do I not understand about the Navigators that causes only a portion of the income to be taxable to the State . . . a State that is not where the work is being performed. There is no other W2 putting the balance of the wages to WA. Thanks.

Okay . . . I'll bite. Cite? I have a client with a $400,000 cello . . . never depreciated .

Was that the way the show always ended?

Thanks so much. I'll file it.

Catherine, Do I still need to file the MA return? Thanks.

Thank you very much! You rock.