jasdlm

Do you mean box 20? If so, it's probably just a principal distribution; info needed for partner's basis, but not for 1040.

Client drops off tax information. Includes a $25 off coupon for Jackson Hewitt. (yes, it really does say 'get a refund faster than you can spend it'). What is this client trying to tell me? Sheesh

Thank you very much for your response. I couldn't figure out how this fit with the rules, but like I said, the previous preparer has much more experience, and I was afraid I was missing something.

Client is new to me. Previous tax preparer took HI premiums (paid by Wife through her employment at the University) on line 29. I did not think he was eligible for the deduction, since he was eligible (and in fact did participate) in wife's employer's subsidized plan. Previous prepare is a very well-respected CPA who has been practicing far longer than I have, so I am questioning my understanding of the rules. The employer plan is subsidized, but only to the extent of the employee's coverage. (University pays part of Employee's premium; allows family policies, but only pays same portion as if employee was single). Is my client's premium deductible because technically it is 'not subsidized', even though it is one plan for which client's spouse is subsidized? Any advice is appreciated.

I won't know how long it goes with no posts, because I can't log onto MY ATX and haven't been able to at all this year. (E-mailed but only got the standard 'we'll answer you within 48 hours' autoresponse) Those of you who can access it will have to let us know.

I never have been able to access MyAtx, I haven't received any of my 'hard copy' reference materials, and it's 27 March. It's midnight; I want to look something up and I have no book, and I'm really grouchy. Did anyone else NOT get what he/she ordered?

Client owns farm ground (and bought more in 2007) that is part of a family farm. Previous preparer did as follows: Pasture rent recorded on schedule E. Type of property - Farmland Approximately $3000 in Farm expenses on Schedule F. Only Farm income, $120 patronage dividend. New twist: For 2007, client has in addition to approximately $3,000 in 'farm expenses', a 1098 from Far Credit for $10,500 worth of interest on the additional land he bought. I can't get my head around taking almost $14,000 in deductions against $120 patronage dividend. Obviously, it would help my client, but it doesn't seem right. I'm at a loss with regard to what to do. Also, is it accurate to report the pasture rent on schedule E? Thanks for any guidance. I don't have many farm returns, and certainly none like this.

What work sheet are you using? I have an 11 page pdf that I received and used for my client. Is this the CNL worksheet you're talking about?

I have two of these. I have been entering full expenses and then entering personal use by number of days (i.e. 3 BR house, 2 renters, 1 child of taxpayers = 122 days of personal use). Does anyone see a problem with this method? Also, wouldn't it be true that no loss would be allowed given the personal use? Please let me know if I'm not thinking this through clearly.

Thank you, gentlemen. I am not the bookkeeper/accountant for the company. The company has a large accounting firm in Kansas City that does its books. I just drove down to my office to pull the client's W2's back to 2003. 2006 was the first year client crossed the SS maximum. I will do as you suggest: prepare the return with the W2 as printed, point out the possible error to my client, and move on to another return. I feel like an idiot for not catching last year's possible 'mismatch' on this client's W2, but I'll forgive myself and work harder to not miss things. Thank you both for taking time to respond. I think now I will be able to wind down and get some sleep. Happy Easter to both of you.

Okay . . . now I'm really sweating. Just looked back and Client's 2006 Wage maximum shows as $87,000. Clients Box 1 income was $89,000. I just flat out missed it. Besides eating a bunch of penalties and interest for not catching this, what do I do next? To make myself feel better, it appears that possibly none of the preparers for the other 14 employees caught it, because the mistake was made in 2 years in a row. I'm scared to look, but it probably goes back to 2003. Yikes. I guess I'll go pull the 2005 W2 so I can really not sleep tonight.

Client has standard W2 from employer. (Employer is a small publishing company; perhaps 15 employees. S-Corp.) The W2 has $93,736.64 in Box 2 Wages and the same number in box 5 Wages. Box 3 has $87,000 listed in social security wages. There is nothing in box 12, box 14, or any other box on the W2 (other than state information). 1) Could there be some reason I'm not aware of why this would actually be correct? 2) Assuming it's not correct, what do I do now? Obviously, the Employer has underpaid and the Employee has under withheld. (Yes, Box 4 is calculated on the $87,000.) Please advise. Thanks so much. I've never come across this kind of situation with a W2.

Thanks to all of you! I am truly grateful. (Even though I feel stupid that KC had to figure out the math for me . . . sheesh.) I will keep my nose in the research material and figure this out. It seems that I should ignore the bit on the W2 summary that says 'nontaxable compensation'. I was very suspicious about it; I couldn't figure out why it wouldn't be taxable. Thanks again. I really appreciate thie guidance. Jainen, thanks for your honesty. I appreciate your knowledge. You remind me of my finance professor in graduate school. He was tough as nails, but I learned more from him than anyone else I studied with during my entire undergraduate, graduate, and law school tenure.

I am working on the same thing, as posted in an earlier thread. All the research I have done says to increase the number entered in Box 1 of the W2 for the amount of the qualifying dispositions. Also, my client's W2 indicates in a 'supplemental information' field (not the W2 itself, but an attachment) that the qualified dispositions are non-taxable??? I can't find anything to support this, and a year-end statement provided regarding the distributions indicated that they were W2 income. I'll be eager to see what you decide to do.

Did he contribute more than 1/2 the child's support? What did girlfriend claim when she filed?

Anyone? I'm developing a complex. No one has responded to my last 2 posts.

Hurts like h***. Eventually, if you do it enough times, your skin toughens a bit and it's not quite as bad. I'm glad I'm not a guy; I would never wax my enitre chest and back. Eeeuuuw!

Client formerly worked for Netopia. Has a W2 that was issued. A 2nd W2 was issued (although not marked corrected) that was the exact same as the 1st W2 except that box 14, which was blank in 1st issue, includes $12,246.62 ISOS. W2 Numbers are as follows: Box 1 $31,664.16; Box 3 $22,362.93; Box 5 $22,362.93; Box 12 - $15.72 life insurance, $2945.39 401(k) Issues: According to the 'Statement of Taxable Income Stock Purchase' client brought in, Disqualifying Dispositions that should have been taxable totalled $11,368.70 (value on purchase date minus purchase price). Qualifying Dispositions totalled $12,246.62. 1) The difference between Box 1 and Box 3 is $9,301.23. This doesn't seem to fully account for the $11,368.70 in NQ Dispositions. Do I need to add the difference to the amount I enter for the taxable portion of the Box 1? 2) The Qualifying Dispositions, which are coded in what I assume is the 'corrected' W2, are listed in the W2 summary (upper right hand corner of sheet also containing 4 detachable W2 copies) as Misc. Non Taxable Comp. I thought Qualified Dispositions were taxable compensation. What am I missing? If they are not taxable, then I assume my clients basis in the sale of the stock is $0? If it is taxable, do I add it to taxable income as in #1 above? The 'Statement of taxable Income Stock Purchase' lists the qualifying dispositions as taxable. Someone more knowledgable please help.

Bump.

Client sold all shares of Walgreen's stock this year. Client is an employee of Walgreens. The shares date back to the late 90s/early 00-01 and were purchased through an Employee Stock Purchase Plan. There was a loan component to this purchase plan. The statements show a starting balance (the cost of the # of shares) and then a payment every time the employee got paid. There is an interest charge identified for every transaction. Would I add the interest to the basis of the stock, or would it have been somehow deductible as investment interest in the year paid, which would require me, I assume, to request very old tax returns to see if the deduction was taken. Am I on the right track here? This is the first time I have seen something like this. (It's probably really common and I'm just uninformed.) Thanks very much.

Thanks so much, Pacun and Linda. I read the instructions for the 982 but still wasn't confident that I didn't need to report the debt cancellation on the 1040. I appreciate your confirmation.

Thank you so much, RC! I was starting to feel sick to my stomach that I had cost my client several thousand dollars!

Client received a 1099C. (Sold house for less than what was owed against it; negotiated with lender for cancellation of remaining balance.) The house was client's primary residence. I included the 1099C income on line 21. I completed form 982. The tax is still being calculated on the debt cancellation, and I can't figure out how to change it. Sheesh. I feel really stupid, but somebody please help. This is my first 1099C and it's not going well! Thanks in advance.

Thanks for your response. If you have any additional ideas later, please let me know.

Would you please clarify for me the position you posted on another thread regarding a 'step up' in basis for accrued savings bond interest at the death of the original holder? I want to make certain that I did not err in a return I prepared earlier this year. Facts: Client inherited HH bonds, the prinicipal of which was mostly deferred E bond interest from 20 years ago. Gov't issued a 1099 INT for the deferred interest. I matched the deferred interest to the 'rollover' amounts from the face of the original bonds and came up with the exact number 1099'd. I reported all the interest on the clients 1040 (she cashed the bonds). Did I somehow miss a possible tax savings for my client, or did I misunderstand your other post. Thanks so much for taking time to respond.