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Box 12, code W includes employer contributions AND contributions the employee elected to contribute to the HSA through a cafeteria plan. That amount coded "W" does not create a deduction on the return because the employee has already received the tax benefit via reduced federal taxable wages in box 1 of the W-2. If that amount isn't at the maximum, it is a limiting factor in how much additional the employee may be allowed to contribute to the HSA though. Your client's HSA has received the maximum contribution allowed for the year. It appears that you are simply misinterpreting the W-2.

WTG, KC, and thanks for posting that answer. I learned something new today from that.

You can't lump those sales of ABC that have different sale dates during the year. You can lump those sales of ABC that are short-term and sold on the same date that were purchased at different times by entering "various" as the purchase date. Then you can also lump all the long-term and sold on the same date that were purchased at different times by entering "various" as the purchase date.

From the instructions to Schedule D - Reduced exclusion. Even if you do not meet one or both of the above two tests, you still can claim an exclusion if you sold or exchanged the home because of a change in place of employment, health, or certain unforeseen circumstances. In this case, the maximum amount of gain you can exclude is reduced. For more information, see Pub. 523.

If the client isn't filing 1116 with a limitation calc'd there and client meets the requirements to not file that form, then the limitation is the lesser of $300 ($600 if joint) or the sum of lines 44 and 46. The sum of those 2 lines is the regular income tax plus the repayment of the PTC. Based on that, I think it should be allowed. Is the FTC being disallowed for some other reason, perhaps that the IRS is not recognizing it from its reporting source like the 1099-DIV or flowing through on a K-1?

It's impossible to see and feel the difference in speed without being proficient on both and having used them. Drake definitely beats ATX in speed in all of the areas that John mentioned. It rarely crashes or has problems with printing letters and sets and such that users of other software complain of. There is a learning curve which I didn't have much trouble with. Other users might, especially those that *need* that bunny hop or green arrow. I know Tom mentioned that he likes and used that, but in his instance he mentioned that he recognizes a spot where an entry is needed and the arrow takes him there. Drake will do that in forms entry mode as well by having the links on the form. That being said, Drake software will not hand hold the preparer that uses those bunny hops as a crutch as a replacement for truly not knowing what one is doing when preparing a return. I'd hope that all here are above that skill level, but unfortunately I see questions on a variety of tax forums that leave me wondering at times about the skills and knowledge of some preparers, and I'm not talking about asking for some reassurance either, because many of us get tired and do that at times.

Terry, I sent you a PM with a pdf that might help.

My house is a disaster and no way I could entertain anyone! Luckily we will go to my Mom's for dinner tomorrow where I will do most of the cooking.

Well, yes! I agree with that, but in your original post you did not indicate that you were requesting a waiver and that is the reason my post was worded as such. If you don't request the waiver then the shortfall is the full amount and the penalty is 50% of that. If you are requesting a waiver, follow the above. Whichever you choose, your original post of your input was incorrect.

Price, silly. Because the low cost of the ATX product is attractive, even when they've had to go out and purchase new machines and additional hard drives to run that program that, when in actuality they could raise the price of each existing return by $5-10 and more than cover the cost (and then some!) of a more stable higher-end program that would probably make them faster or more efficient too and would allow for growth of their practice.

JM, are you using ATX MAX? How much do they charge for the extra user? Maybe you should consider purchasing the Total Tax office package that includes up to 5 users and would give you the research package too. I used MAX for years and then found that purchasing TTO actually saved me some money because I was able to eliminate other research products I was purchasing separately.

If the dividends are being reinvested to purchase more shares (mutual funds or drip plans), then yes, the brokers are including this for the dividends paid that are considered "covered" securities. For funds that were held prior to the brokers being required to track this, then there will be some transactions that are "not covered" securities, and some are showing the basis that isn't reported to IRS and some aren't. Most of the broker statements that I've seen this year do have all of the information on them. The ones that haven't had it were because the clients had switched brokers or advisors at some point in the past and the information was not available to be included.

Line 52 - "subtract line 51 from line 50" Line 53 - 50% of line 52 Why not request a waiver? Is this the first year's distribution? Or is this a first time offender and every other year has been had RMDs received timely? Requesting the waiver requires that you provide a reasonable explanation for the error and describe the steps that your client has taken to remedy the situation and also so that it won't happen again.

You will have to reconcile the APTC they received and work through the Shared Policy Allocation worksheets. See the form 8962 instructions that start on pg 7.

Said like a true accountant! This made me laugh because we think like this. My husband would have eaten a whole row, or half of a row if it's a large package.

Your client will split the proceeds and basis with his former spouse with each reporting 1/2. Even though your client files a joint return with his current wife, because he owns the home jointly with another person that isn't his spouse, he can only exclude up to $250K as long as he meets the requirements. The same is true for his ex-wife, although you aren't concerned with that return. Pub 523, use CRTL-F and search for the word "divorce" and you'll have your answers. I DON'T THINK THIS IS YOUR CASE, BUT JUST FOR INFORMATION'S SAKE: His situation would be different if the house was transferred to him as property settlement incident to divorce and then it was sold. If he was sole owner, then he and new wife would meet the "ownership" test, and then they'd each work through the "residency" test to determine how much to exclude. He'd most likely exclude all of his 1/2 (of the $500K, and the new wife would have to determine what % of the 24 months out of the last 5 years it was her principal residence, AND not have excluded any other home during that period also)

I would also choose to convert it to personal use. I think, but not entirely sure on this, but I think converting to personal use won't trigger the depreciation recapture until the home is sold. That would be my choice as well because that is what has happened. If you change the business use to that .001 as cbslee suggested, that would trigger the recapture because the business use fell below 50%.

I was on Firefox when I got the odd message for a brief time.

Mine is working again too. Must have been a brief downtime to make a fix.

I get that now too. It was working when Lee first posted about it and when I made the picture.

The main page has a picture with arrows left and right in the picture (< >) to scroll to the different offers. If you click on "lock in your deal" it then takes you to the log in page.

Update - I made it through the credit card statements without too much effort! I did reward myself with 2 Nutter Butter cookies and the last of the coffee. Just thought you all should know. Well darn it, I was going to put a smiley and then realized that I have a headache because it's after 4:30 and I forgot to eat lunch. I guess those 2 cookies were it. No, you guys get my smiley after all, because I can move on to this guy's return now. Hooray for that, anyway!

And we all know companies analyze their customer bases to maximize its profits based on criteria such as this, and that is probably why they have 3 users built in to the base price, knowing that there are those with 4 preparers so that they can tack on that extra charge for.

What WAS fabulous was the dutch crumb-topped doughnut I had with that coffee. It would have been even better if it was the chocolate version of that doughnut.

Item 6 here on this page from IRS explanations: http://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Questions-and-Answers-on-the-Premium-Tax-Credit The disqualification is probably because the person is eligible for Medicaid.