Edward

For joanmcq: PPC's 1040 Deskbook (Quick Reference Binder) has an excellent Worksheet for "Dependents Support Test for a Qualifying Relative". If you don't have the PPC pub send me your fax number and I'll send you a copy. Edward

George: I just went back to the 1040X and would you believe, they've added a Drop Down Menu for use of any one of the selections. That was the first time I noticed this - however, I haven't done many 1040X's......I made the change to Tax Tables.

Did a 1040X changing filing status from HH to S and line 6 of the 1040X had the following: QDCGTW. I'm wondering what this abbreviation stands for as it must be something new they've added? Comments?

FOR PEGGY: The initials AK ESC IN BOX 14 of the W-2 represents State Unemployment Tax withheld from P/R. First time I had ever heard of that - especially since he is working mostly in South Carolina and not Alaska. The other abbreviation was HI PREM which amounted to 2400.00 deducted from P/R for health insurance. I suspect I need to prepare form 8889 (HSA) for this item. The Company paid $24,903. for the family insurance, plus the 2400.00 deducted from P/R equals $27,303.00 for the year for health insurance?? Something unusual here?

Have client living with undocumented woman who has a 4 year old child from a person other than client. The child was born in the US and has a valid SSAN. Client has provided support for the child for all of 2007. Am I correct in assuming the following for client: a. EIC - No b. HH Filing Status - No c. Child Tax Credit - YES (He gets the exemption for the child, and thus he should qualify for the CTC? d. 300.00 Rebate for the child - Yes, as he gets the CTC & child is under 17? This is the FIRST experience with this type of relationship and will appreciate your help... Thanks

Peggy Thanks for your response. I didn't provide all necessary information. The taxpayer works for two different companies located in Anchorage AK and performs the work here in the U.S.. He does no work in AK but they pay him. Both W-2's have IN BOX 14: AK ESC AND HI PREM amounts. Sorry I didn't include this in my original post. Thanks for any further advice. Edward...

Note that the instructions at the bottom of the Form 4852 (rev 1-2007) states "Generally, do not file Form 4852 before April 15th.

Help on W-2 for Alaska company: Have W-2 with box 14 showing: AK ESC 150.00 AND HI PREM 2000. Am looking for what these stand for and whether or not they affect the 1040. Will appreciate any assistance. Thanks - Eddward

Cell Phones of course are listed property and thus we are required to maintain records reflecting business use. 1040 Quick Reference Binder (PPC) has a worksheet for this purpose (similiar to the auto mileage worksheet). But, wow, who's going to long EVERY CELL PHONE CALL? Nearly impossible. There's got to be an easier way. I've always show a percentage of total for the year based on what the client tells me. This may not be acceptable in the future, so I suspect the LOG is the only way to go. How you handling this? Appreciate your comments.

Client received 2250.00 interest in 2007 on an installment sale of rental unit. Is there a need for creation of a 1099-INT for this, and if so, who has responsibility for such? Bear in mind that the recipients Sch B contains full name, SSAN, address and amount received. I feel that there is no requirement for a 1099-INT in this isntance. Any comments would be appreciated. Thanks Edward

Thanks for your input. I am going to use Option (3) then we'll have some evidence to back up the absence of a 1099-Misc or W-9.

I failed to mention that the Landlord is not a Corporation but an LLC.

Client is renting office - he moves in next month at 800.00 per month. He presents W-9 to landlord and landlord asks why? Client responds with "cause I need to send you and the IRS a 1099-Misc at years end. Landlord says he has been leasing offices in other locations for years and has never been asked for the W-9 data. Client then mentions about the 28% backup withholding in the absence of the W-9 data and the landlord becomes furious and says he won't complete the W-9 and will take nothing less than the 800.00 per month. WHAT NOW?