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Me too! I'm loving the ease and speed of everything in Drake. I'm looking forward to a stress-free season. Drake has allowed me to easily upgrade and accomplish several new time and expense savings for this year. I am using the DDM to launch my new scanner to scan & save all client's documents (much faster than standing at the copier), saving all prepared returns, signature forms and workpapers there also, and the DDM sets up the file structure automatically! I am going totally paperless this year for the 1040s. It's great that the program automatically password protects the returns in a standardized fashion. I've already received data and sent returns totally electronically without having to meet with the clients too. Two other new additions for me this year are accepting payments through Paypal and my locking drop box for clients not needing or wanting a meeting to leave their documents and records for me in a secure place. No wonder everyone on the Drake forum is so happy and helpful!

Rich, will the unearned income of this 18 year old child exceed $2,000? If so, please see the following taken from the Form 8615 instructions, and you'll see why I said you need to run the support test. Who Must File Form 8615 must be filed for any child who meets ALL of the following conditions. 1. The child had more than $2,000 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2013, b. Was age 18 at the end of 2013 and did not have earned income that was more than half of the child's support, or c. Was over age 18 and under age 24 at the end of 2013, was a full-time student, and did not have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.) 4. At least one of the child's parents was alive at the end of 2013. 5. The child does not file a joint return for 2013. Support. Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your child's support, count support provided by you, your child, and others. However, a scholarship received by your child is not considered support if your child is a full-time student. For details, see Pub. 501, Exemptions, Standard Deduction, and Filing Information. Certain January 1 birthdays. Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under Who Must File. IF a child was born on... THEN, at the end of 2013, the child is considered to be... January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. ***Do not use Form 8615 for this child. The parent may be able to elect to report the child's interest, ordinary dividends, and capital gain distributions on the parent's return. If the parent makes this election, the child will not have to file a return or Form 8615. However, the federal income tax on the child's income, including qualified dividends and capital gain distributions, may be higher if this election is made. For more details, see Form 8814, Parents'

It relates back to this thread that was locked: '?do=embed' frameborder='0' data-embedContent>>

I agree with what KC said to pikester and also what you've said about looking at the exceptions individually.

David1980, if you go back and look at pikester's first post, #15 in this topic at 4:54pm, he's asking about withdrawals for medical expenses and not a home purchase.

I do understand that part of your post was expressing your concern about renewing with ATX for this season and why you ultimately chose other software. Whether or not you believe you weren't bashing 2012, it was implied by your saying you wanted it to be like it was in 2011, that the company had plenty of time to fix it for this year so as to not repeat the problems that 2012 had, that the beta testing was a coverup, something thrown in there about the big raven.... As far as offensive remarks going unpunished, you know firsthand that that is untrue. You've been visiting this forum over this past year, and I know this because I saw your unkind posts on the official forum about some of the members here, our posts, the moderation, and the creation of the politics subforum. You were aware that we put a warning point system in place, were warning people publicly within the topics, and that the forum is actively monitored and moderated as needed. Like everyone else on here, you also have the ability to report those posts or topic you find offensive and provide us with an explanation of why that is. Most of the time we have acted on those reports, and on rare occasion have made the choice that no action be taken, but we do give each report serious consideration. There is no game being played here. We want this to be a friendly place where tax preparers come to get help, help others, and stay productive. That is the main focus and purpose of this community, and that means that some posts will report problems with the current ATX program as current users try to find solutions and share workarounds. If you choose to think of those people as "the preferred ones" then so be it. They are the ones that should be discussing the program. There is nothing to be gained by rehashing the disaster of last season, and the only times last year's program should come up are if someone's current work, program, or data file is affected by it, or if someone is preparing a late or amended return with it. As far as you ponying up funds to purchase ATX and then being allowed to say whatever you want about ATX or CCH on here, that isn't the case. The official forum may allow those types of posts, but this is a privately owned forum. The owner of this forum gives each of us access and can take that away from any one of us at any time. As KC already said, you are welcome to stay, but please understand our main focus here is to help each other, and that the general concensus is to put the problems with last year's program behind us and concentrate on our current work with the current year's program.

There is a danger of taking a loan because if employment ends, it turns into a distribution that could be subject to a penalty.

KC, ((hugs)) to you. They certainly do bring up a range of emotions.

A 401k plan is definitely a qualified plan. I don't know why withdrawals from them would be excepted from being able to avoid the early w/d penalty and haven't personally had the issue your peers are noticing.

Rich, you didn't say how old the children are, and you might need to run the support calculations to determine if they are subject to the kiddie tax. See Who Must File in the instructions for Form 8615 and the tax topic below: http://www.irs.gov/pub/irs-pdf/i8615.pdf http://www.irs.gov/taxtopics/tc553.html

My letter has it too, and I'm with you on not checking on client's refunds. This was family.

This posting might answer your question, although I can say if any updates since its posting have made any difference to the procedures. Read the whole thread:

I can't follow your link, but you are correct that $25K of gain will be recognized. In your case, the gain is limited to the amount of cash received. I think your new basis will be still be $30K. (Basis given - less cash received + gain recognized).

You may also be able to check for the type of organization directly on their website.

It looks like something is wrong with the EIN entered for a state tax refund to me.

Three powerful, inspirational, and touching short films by Wacoal. Beautifully shot too. One is 6 minutes, the other two are 7 minutes each: http://www.collective-evolution.com/2014/02/07/3-touching-short-films-that-we-all-need-to-watch/

The last year that the refund cycle chart was available was in 2011 The Where's My Refund link provided by the IRS does give some limited information. The date it gives for the refund is only an approximation. The pop up box has been there for years and is only a warning that the person is using an official government site. It says this, and shouldn't scare clients off from using it: THIS U.S. GOVERNMENT SYSTEM IS FOR AUTHORIZED USE ONLY! Use of this system constitutes consent to monitoring, interception, recording, reading, copying or capturing by authorized personnel of all activities. There is no right to privacy in this system. Unauthorized use of this system is prohibited and subject to criminal and civil penalties, including all penalties applicable to willful unauthorized access (UNAX) or inspection of taxpayer records (under 18 U.S.C. 1030 and 26 U.S.C. 7213A and 26 U.S.C. 7431). The site says to wait at least 24 hours after the return has been e-filed (or 4 weeks if paper filed) before checking and that it is only updated once a day, so checking more than once a day won't yield different information. When your clients ask you, or later calls you about their refund, direct them to the IRS site and the link to Where's My Refund because it's the only place to get any information about it. This afternoon I helped my sister check on the status of her refund. The site showed the date her e-filed return was received, that the refund was approved, and the approximate date that it might be direct deposited which happened to be next Tuesday. My state has a similar link on the Division of Revenue's website to check on the status of refunds. I'm not sure where you are located, so be sure to check your state's official site so that you may direct clients there.

No, this does not go on line 21. Read Joelgilb's post above, and because the OP said client is a lawyer and received a referral fee, not an award.

I learned from this today too! MAS, thanks for asking the question.

From the 1040 instructions for LINE 7: Disability pensions shown on Form 1099-R if you have not reached the minimum retirement age set by your employer. But see Insurance Premiums for Retired Public Safety Officers in the instructions for lines 16a and 16b. Disability pensions received after you reach minimum retirement age and other payments shown on Form 1099-R (other than payments from an IRA*) are reported on lines 16a and 16b. Payments from an IRA are reported on lines 15a and 15b.

From Pub 596 - Earned Income Credit (EIC) Disability Benefits If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Disability insurance payments. Payments you received from a disability insurance policy that you paid the premiums for are not earned income. It does not matter whether you have reached minimum retirement age. If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J.” Income That Is Not Earned Income Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Do not include any of these items in your earned income.

That is true for pension distributions to recipients under retirement age where the distribution is due to total and permanent disability, but I think IRA distributions due to disability still go on lines 15a and 15b. Am I wrong about this?

That's correct. We are required to associate the SID # with the signature forms in some manner.

From Pub 587 - Business Use of Your Home. Specifically see the example. More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. You must use the home office exclusively and regularly for one or more of the following purposes. As the principal place of business for one or more of your trades or businesses. As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. If your home office is a separate structure, in connection with one or more of your trades or businesses. You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i.e., personal) activities. If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. See Rental to employer , later, if you rent part of your home to your employer. Example. Tracy White is employed as a teacher. Her principal place of work is the school, which provides her office space to do her school work. She also has a mail order jewelry business. All her work in the jewelry business is done in her home office and the office is used exclusively for that business. If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity.