jklcpa

Info from healthcare.gov (below), I think your client would owe a penalty of $259. This is based on the excess AGI over the filing threshold of $25850 * 1%. The fee in 2014 and beyond The penalty in 2014 is calculated one of 2 ways. If you or your dependents don’t have insurance that qualifies as minimum essential coverage you'll pay whichever of these amounts is higher: 1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan. $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285. The way the penalty is calculated, a single adult with household income below $19,650 would pay the $95 flat rate. A single adult with household income above $19,650 would pay an amount based on the 1% rate. (If income is below $10,150, no penalty is owed.) The penalty increases every year. In 2015 it’s 2% of income or $325 per person. In 2016 and later years it’s 2.5% of income or $695 per person. After that it's adjusted for inflation. If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have to make a payment. You’ll pay the fee on your 2014 federal income tax return. Most people will file this return in 2015. Learn more about the individual shared responsibility payment from the Internal Revenue Service. Link to page where I took excerpt above: https://www.healthcare.gov/what-if-i-dont-have-health-coverage/ Link to the IRS site for an overview of the shared responsibility payment: http://www.irs.gov/uac/Newsroom/The-Individual-Shared-Responsibility-Payment-An-Overview

Doctors and dentists offices are a good examples of those that will report on the cash basis for tax purposes where tracking receivables is very important since it is usually a very large, or largest, asset that have many adjustments to arrive at the final collectible amount. No way would they want to pay taxes on the initial receivable recorded for services rendered when downward adjustments due to patients' negotiated rates are the norm.

Is the business one that typically would report on the cash basis? If Quickbooks is reporting on cash basis and the tax return is also, maybe that's the way it should be reported. I'd check the return 2 years back. Is it possible that the only thing wrong with last year's return is that the box checked indicates "accrual"? It's possible to use QB to track a/r and a/p while reporting on the cash basis. If that is your case, the QB chart of accounts and trial balance would show the a/r and a/p accounts. Reports can then be run for either cash or accrual.

You're welcome. I didn't see the actual article until I searched for it from here. The source was easy to find by highlighting the first sentence, right clicking, and choosing the option to search for that sentence or phrase.

To be clear, these weren't cbslee's assertions. His post was a direct cut and paste of an Aug 21st article by Ken Berry, CPA that was published in the CPA Practice Advisor entitled "5 Ways to Get Tax Deductions for Local Transportation Uses". I've added the title and given the author proper credit in the OP above.

They have the RACs and the fees that go along with them. Additional $68 in fees if the person chooses to walk out with a paper check. You can choose to receive your refund proceeds, minus tax preparation and processing fees, on an H&R Block Emerald Prepaid Mastercard®, via a physical check or deposited to an existing account. State RAC is disbursed using the same method you chose for your Federal RAC Typically receive your funds within 21 days. Email alerts when funds are available. Federal RAC Fee $34.95 State RAC Fee $13.00 (Additional $20 fee for a paper check) http://www.hrblock.com/financial-services/tax-refund-payment/

Oops, I've never clicked on that field because I thought that was only for offices with multiple preparers, so I didn't realize it had a choice for 'none' to indicate self-prepared. I would have removed the paid preparer designation from my own returns if I'd known it was that simple. I learned something new tonight. lol

Bob, you were clear. When I prepare my own corporate return for the office, and for my personal returns, I leave the paid preparer info on there too.

John, are you doing that in Drake? When I looked at Drake's preparer setup, it requires a separate login for each preparer and must also have a PTIN for efiling. So if you are entering for preparer "..", what is the PTIN entered? Or are you filing these on paper? Seems like a hassle, and I agree with Jack on this and show my paid preparer info on all returns.

And for further clarification, the general chat says "Discuss taxes, software, anything you want besides politics." I think by now all here know that the IRS and taxes are political pawns, and the article does nothing to enhance our knowledge that will help us with the business we conduct with this agency. It was purely a political piece.

Did you leave out a PB, bacon & banana sandwich? btw.....ewwwww at that.

Lloyd, the post count is the # of posts you've made and shows up at the left below your name and avatar. It will probably be a pretty low #, only to make sure that new users are legit real people that are tax professionals that should be participating here, not just the spammers that we sometimes get. If you can already see the new private forum, you don't need to worry about the post count.

Jack makes a good point, and the worksheets will help document the deduction split for our purposes, but those worksheets aren't efiled with the return. Is there a way to document this on e-filed returns so to avoid the notices? The instructions for line 11 specifically say that an attachment is necessary as documentation in this case for a paper-filed return. Since it doesn't specifically address this issue for e-filed returns, I created a document with an explanation of the split and included the scanned Form 1098, and attached this as a pdf to the efile. Specifically, I had 2 new clients last year that purchased a house together, unrelated individuals both filing single, not MFS returns. Both names appear on the Form 1098 but obviously was reported under the first-named's social security number. I efiled the return with the attachment named so to be very obvious as to what it related to, and I haven't received as notice...yet. I did the same thing in a previous year for a divorcee where the 1098s came in the name of the former spouse. Never a notice there either. Instructions for Sch A, line 11, 3rd paragraph only: Line 11 If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the home mortgage interest paid was reported on the other person's Form 1098, attach a statement to your paper return listing the name and address of that person. To the right of line 11, enter “See attached. Anyone care to comment if my attachment will work to avoid the CP2000 on an e-filed return?

Is the notice coming to the spouse whose name was not on the Form 1098. If so, did you report it on line 11 as instructed, and not on line 10, and did you indicate and supply the attachment to document the interest?

David, I've been trying off and on today to find something for you that says the exclusion is still available to be used against gains on sales by estates or heirs, but I believe Lion is correct. This exclusion WAS available in 2010 only, and that's why the first linked document says "for sales after Dec 31, 2009". As far as I can find, in 2010 this was covered in IRC sec 121(d)(9) , that frustratingly now reads as something completely different. If you look at this site, on page 4 of the right-hand column, in very fine print you'll see the amendments for 2010, the temporary additions of the words that would have extended the exclusion to estates and heirs. It's the last line of that first block in the amendments section. Hope that makes sense. Here's that site for the actual code: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapB-partIII-sec121.pdf

Even if an accountable plan was in place, the situation Rita describes where the pastor is traveling from his home to his place of employment, that travel is commuting. If he actually worked at both A and B, after he'd go to one place, then the travel from the first place to the second would be deductible, but not a situation where he goes from home to only one of the locations. I'd say there's no deduction.

Linsey Pollak is totally cool. Google his name and watch him make clarinets from other household objects. The curly garden hose is a fun one:

I participate in another forum, not business related, and it has a private section that works very well for those subjects or private photos that we want to keep from anyone other than members. Like Eric is planning, it is also hidden from the search engines and bots. I hope this new addition will give us the opportunity to get to know one another better and will make for a friendlier place that people want to come back to.

Mine as well.

Eric, thank you, it all sounds good to me. My only thought is that those that don't really care about the politics forum's demise might not click on this thread unless you change its title, or start a new thread announcing your plans and ask for comments and suggestions.

Yes, what KC said. KC, Eric and I had been discussing its ending off and on since last fall, and in April we all agreed again that it was best for the group as a whole to put it to rest. So that the forum wasn't disrupted by any changes during the busy season, Eric thought it best to end it during the slower months of summer, around the time that he does some overhaul work to the forum.

Even with the different font, people who are not frequent posters might miss that subtlety and take a post as a serious one. Maybe Eric can include a sarcastic smiley in the overhaul.

No, lol. I just had a little time to help, and I learned something from it too. A win-win.

I agree with Lynn and was about to post the same thing. Be sure to follow the instructions for the 5329 carefully and file a 5329 for each year of missed RMD. I think these are the correct line #, please check me though: Line 50 enter the RMD, line 51 the actual RMD taken, line 52 enter -0- on the line for the amount subject to the penalty and put "RC" (for reasonable cause) next to that line in parathesis along with the amount you want waived. Be sure to have a cause. Is this a small 401k where she possibly was not notified of the RMD? The 401k plan should have had her DOB on file and should have been notifying her each year of the value of the amount and the amount required to be withdrawn each year.

I found this site for you that gives a reference to a CA FTB publication that may give you the answers to the CA taxation of the IHSS: http://www.sbsnap.org/profiles/blogs/ihss-and-respite-income-exception-irs-and-ca-taxes From that site: IHSS and Respite income Exception IRS and CA taxes IHSS and Respite Income http://www.tacanow.org/news/ca-only-qualified-medicaid-waiver-payments-not-subject-to-federal-tax-in-2014/ " Taxpayers may exclude payments defined in Notice 2014-7 from taxable income in 2013. They may also file amended returns for any return open under IRC section 6511. That code sections means any return filed within the past 3 years. Please note, IRS Notice 2014-7 mentions both IHSS and respite payments. "IHSS income can be amended for California state taxes as well. See FTB Publication 1001 on page 3 discusses IHSS income. It is amended on Schedule CA. This has been in effect before the IRS came out with their notice 2014-7.