Kimberly K

Thanks Colleen, I thought maybe there was another way to do it that I might not have known. I already got half of it in, I might as well continue. I want all of it to carry onto the PA also. I would have done it that way, if PA had an amended form like the federal. W2 Mistakes on both and a dependent not claimed.

New Client comes in and files 2010 return, after a long conversation, I told them that if they want me to take a look at last years to bring it over. Sure enough I found a mistake last years preparer had made. Not only did the paid preparer, not sign their return, the preparer bought DIY software from the department store. But thats another topic that has been talked about alot.

Instead of repeatedly entering in the past years client info for returns like this, I was wondering if there is another way to do this in ATX? I know at Block, we had to enter in client info again in the earlier years programs, in other words, rollovers were doable just not rollbacks.

Client, MFJ, lives in PA and both TP and SP work in NY. Both have NY taxes withheld on W-2.

When filing out the PA 40 return, on the Sch G-S, when I click on Filer the values that go into Part I number 2 column A are the combined for TP and SP. Same is true if I click on Spouse. When I click on Joint, column A boxes a-c go blank. The return appears to be correct if I check either the Filer or Spouse box, but intuitively I would expect only to see the TP values when I click on Filer, the SP values when I click on Spouse, and the combined values when I click on Joint.

Is it correct to merely click the Filer box, since the return is correct, and submit it that way? Or is there some subtle program usage that I am missing to get what would be expected with the Joint box?

Thanks.

I saw your post this morning, but since I havent done a sch G-S this year, I didnt respond. At Block everything just flowed to the form, ATX is lacking flow on this form. But it can be easily changed, since PA combines all income for MFJ, I would click MFJ at the top and in the second column only include the NY income. But if your way works, go with that!

At block I always included the other state return with the PA (whenever a SCH G is needed) I also included the PA return when filing the other state return. I am not sure how to include these with ATX efiled, so I would send both as paper returns.

As of today, I am done with a nightmare of bookkeeping for a business that increased its sales for 2010. So I am breathing a big sigh of relief and taking the next few days playing catch up on returns.

Thanks Jainen,

The only thing they got was a letter with from the Attorney and the check. " Enclosed please find a check in the amount of $2900.00 representing settlement of your lemon law claim against."

Thats it, no 1099 or anything else for that matter!

Where do I enter 1099-C cancellation of debt in ATX? Primary residence so no taxes paid.

Click on other income, and in the list is cod. But only after you have figured out what is taxable!

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I have searched every publication that applies, the Taxbook and forums, of whether a lemon law settlement is taxable.

Here is the situation: Taxpayer buys a brand new truck in 2009 ($27000), after many months of repairs that were all covered under the manufacturers warranty, decides ( in 2010) to be done with this lemon and tries to get the manufacturer to put them in a new vehicle.

Manufacturer says NO, so the taxpayer contacts a lawyer and wins the claim for repair costs ($2900 was the taxpayers portion) . A few weeks after the taxpayer cashes the settlement check, the manufacturer contacts the taxpayer to put them in the same make and model truck as a trade. But their payments would start all over again.

Is this taxable?

While researching in one of the pubs I found,

" Loss-of-Use OR Loss-In-Value of Property-----settlements may be taxable if the settlement exceeds your basis in the property.

{ Property settlements that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your return}

{ When property settlements exceed your adjusted basis in the property, the excess is gain. }

I think I am reading too much into this. ( tend to do this in March) Last year when they were waiting on the settlement I told them its taxable, but Attorney fees would be deductible after the 2% floor.

Yep, I seen it happen about 5 years ago, my client was able to receive EIC until he reached retirement age for the company. I too was amazed and the client was so happy because the refund helped with his daughters college expenses. Its rare but awesome when it does happen!

A retired client moved to PA. I read in the instructions that neither Social Security or IRA's are taxable in PA but ATX wants to include the IRA's. Taxpayer has no basis. Is there a way to get the IRA's out of PA income without overrides? Thanks.

Your profile doesnt say what state you are from, so I am assuming you are not from Pa from your question. There is also a Property tax rebate form that your client might be eligable for. Form PA1000 the IRA distribution, 1/2 of the Soc. Sec. and any other income is added to this form. You will need to know how much they paid in Real Estate Taxes/ or Rent.

The frustrating part was not knowing anything about the IRA for the one and then, when and if the other client was ever going to clue me in on the bankruptcy. But you are right Rita, the start and stop and restart of the return is annoying, but I guess it comes with the job.

Oh and I try not to babysit, but sometimes you have to. I hate hold returns, and I know this comes from years of the ex-DM jumping down your throat if you let a return sit too long.

Okay, I am venting a little. Two of my clients have failed to give me info needed to complete an accurate return.

One client came in a few days ago and wanted to drop off all of his papers, I have been preparing his return since 1999. He took a distribution from an IRA, that I knew nothing about. Back in 2007 he left his current employer and took a large distribution but rolled over a portion of it. Then a year later added around 10000 to the IRA. So now I wait for his broker to get back to me on the value of this IRA.

This morning, a client was dropping off the worksheet for Form 982, so I can figure out if he is insolvent or not on a credit card COD. He handed me the paper and started to go out the door and said "This form wanted more info from me, than the paperwork I had to fill out when we filed for bankruptcy, okay see ya later" I let him go, once I am in his return, I will find out all the info needed for the bankruptcy. ( Like whether this credit card was included in it or not)

At this point I am just stunned.

Like getting a post it on a drop off return " tools- Maximum workboots-maximum"

Yeah, they think I will just make up any number for what they should have spent on these deductions. I dont think so!

Hello

Can somebody please help. Box 20 of W2 shows PA WNRTN. I tried to look up online and narrow down my search to Warrentown PA, I dont know if we are require to file Montgomery County taxes (Thats where Warrentown falls in) or Warrentown PA locality tax forms. Any PA tax preparers provide me guidance.

thanks again for the help

mircpa

Try this link, on the left hand side of this website, http://munstatspa.dced.state.pa.us/Registers.aspx

click on "find withhold rates by address."

Never go by what the bookkeeper put in box 20.

Hope this helps!

I don't see anything in your post that would justify a 1040 Sch-C reporting.

Client wants to take depreciation/sec179 on a vehicle over $33000 but compared to rent received and all other expenses, This just sticks out like a sore thumb. I always doubt myself, when changing anything on a prior client.

Thanks Jack for replying

New client...well actually didn't become a client lol..walks in & hands me her paperwork. 2 w2's totalling about $3800. Says she does massage therapy for several beauty salons in the area. She also has two kids & provided SSN & birth certificates for both. So I ask how much she earned & if she has any proof of the income. She asks me for a tax book. I look at her & ask what she means & she responds that she needs a tax book that shows the amounts of the credits she gets compared to her income (EIC Table). I ask why & she responds that thats what she did with the previous preparer. Oh well one less new client :-)

Eli

There will always be someone out there trying to get something for nothing.

That reminds me of a phone call I got many years ago, asking me How much should her husband should claim as income on his business to get the most back. I put her on hold, (this was my ex boss' client), I asked my boss what I should tell her, and she told me to look it up and give her the answer.

I got back on the phone and told her, she should call back later and speak to her preparer. AARRRGGG!

I have a long time client that has 2 rental properties (another one in the works now) and up until this year, I have always used Schedule E for reporting. Well since the government decided to change things for Rental Owners on reporting expenses for 2011, my client for 2010 has given me 3 itemized sheets this year( I think they are a little mad that they have to do this, so they are taking every deduction that is possible.)

Two of the sheets are for each property( which they give me every year) But the third sheet shows everything from computer purchase, vehicle, ect ect to utility bills for their home office.

Years ago I had a property owner that owned an apartment buiding with many tenants. I know that I added an all inclusive Schedule E to the return for expenses paid for all apartment expenses lumped into one catagory ( ex. insurance, garbage disposal ect.) Should I do this, or start a business return?

I had one also this morning, and noticed the same. But I did remember that this was just passed.

Temporary Extension of Investment Incentives Extension of bonus depreciation. Under prior law, businesses were allowed to recover the cost of capital expenditures over time according to a depreciation schedule. Congress allowed businesses, beginning January 1, 2008 through December 31, 2009, to take an additional depreciation deduction allowance equal to 50% of the cost of the depreciable

property placed in service in those years. Under the Small Business Jobs Act of 2010, this temporary increase in the depreciation deduction allowance was extended through December 31, 2010. The new law extends and temporarily increases this bonus depreciation provision for investments in new business equipment. For investments placed in service after September 8, 2010 and through December 31, 2011, the new law provides for 100% bonus depreciation. For investments placed in service after December 31, 2011 and through December 31, 2012, the new law provides for 50% bonus depreciation. The new law also allows taxpayers to elect to accelerate some AMT credits in lieu of bonus depreciation for taxable years 2011 and 2012.

Form 8379 can be efiled. It works in my software.

From instruction for Form 8379 - "Time Needed To Process Form 8379

Generally, if you file Form 8379 with a joint return on paper, the time needed to process it is about 14 weeks (11 weeks if filed electronically). If you file Form 8379 by itself after a joint return has been processed, the time needed is about 8 weeks."

Thanks Frazzled, I havent done a 8379 in quite some time!

Tom, I didnt think you could efile this form, I thought it always had to be sent by mail. Did this change?

Santa Barbara Bank is not Direct Depositing Refunds but sending checks by mail.I am hoping that this is just an isolated problem to just Turbo Tax Taxpayers and not any of my clients. I guess I will call support in the morning, just to be on the safe side. I do not want angry clients that have to wait for snail mail when they chose direct deposit at my desk.

http://trishmc.typepad.com/mac_tax_talk/2011/02/social-networking-works-both-ways.html

Thanks George. Wow, They are >50% more than what I charge for the forms noted and in the case of the 1040 alone >200% more. ($100 vs my $30).

And today I got a complaint for charging $70 total for a 1040 & Sch C, pa state & a local return with efiles included.

Crank, I think you need to bump up your fees. For the above forms I would have charged $147 and I also live in Pa.

Thanks George, for the estimate, I was hoping my fees were about half of the evil empire!

MFJ return. Husband is 67 years old and wife is 63 years old. Husband collected $12K SS and wife's W-2 shows 6K of earned income. Do they qualify for EIC without a child?

Yes, if they cannot be a dependent of anyone else, has a ss number..ect ect. Are you questioning it because of the husbands age?

I have one very part-time employee. I upload her pay stubs and W-2 via QB to ViewMyPaycheck.com. I also found unemployment Forms 1099-G on the CT DOL web site for two clients. Thank you Bert for posting that site; I'd been looking for it since I replaced my computer and didn't get all files from my old one yet.

Your welcome!

Ok now I have a question. Two weeks ago I started pounding the streets with marketing flyers to put up in area shops for their employees. I live in a small community with only H&R as my main competition. ( along with a handful of small Tax Firms) One of the stores that I put up a flyer was a small supermarket a few miles from my home.

Last week when I looked at the huge bulletin board, another flyer was placed over top of mine.(so I fixed it) Today, when I went in to get a few things, my flyer was ripped down. I plan on putting one back up,but geez I dont think my ex co-workers like my flyer!

Did any of you that left H&R, JH or Liberty run into this problem, after you were patient enough to wait for the Non compete clause to run out?

I doubt it because you don't need a Payer ID# just to a calculation. But you do need it to e-file. A lot of people are desperate for money this year it seems. I have been getting alot more calls about the last pay stub. Remains to be seen whether or not my overall business will be down because these people will go to someone willing to do it.

I heard a radio add for a place called something like Fast Tax Refunds or something (can't remember the name but the ad said 'hundreds of locations nationwide). The ad said, "No W-2 yet? Come on in! We can download most W-2's online!"

Oh yeah? I don't find that many companies do this, except banks and huge corporations.

There are many companies that let the taxpayer download their w-2, and this is the website that the puppy meal tax stores use. https://www.w2express.com/index.asp on the right hand side click. "find employer name"

My 19 yr. old grandson has gotten involved in "modeling" which has turned into going to various sporting events, wearing clothing with advertising, explaining why people should buy the product, etc. Plus he also does set up and break downs at some events. I am beginning to wonder if he is itinerant in which case he wouldn't be able to take his expenses while traveling. The jobs are frequently gotten for him by different agencies which pay him per job. Sometimes transportation is paid, other times not. My personal feeling is that all expenses involved in going to and staying at each location is deductible but I just wanted to have some back up thoughts.

As always, I appreciate any help. Many thanks. MM

How exciting for your grandson, My son started out getting small parts in major motion pictures from a talent agency after graduating high school. But the pay was not stable enough, so he joined a union to work behind the scenes on major motion pictures. Good Luck to your Grandson!( and to your family)

Is the reimbursements added to the W2s, if so then take all the travel. If they are not added to any w2s, take the travel deduction but make sure to put the amount reimbursed on the 2106.(using the artist deduction if he made less than 16000.)