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About Pacun

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    ATX Supreme Guru

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  1. Whoever changed the title on this post... THANK YOU. Very helpful!!!!
  2. I meant to say this and I forgot. Thank you Lion. DO NOT prepare the two returns and see who gets more benefit. START by determining who can claim the "exemption" for the student. If the rightly owner of the "exemption" doesn't not claim it, NO ONE can claim the "exemption" of the student and REMEMBER that the refundable credit follows the "Exemption". I was hoping Lion was going to say if a student with living parents, single 19 years old, who provided more than 50% towards his own support qualified for the refundable portion. My clients (sorry to say... latinos like me), seem to qualify for the refundable credit as long as they provide more than 50% towards their own support.
  3. The suggestion above works if the Federal is the one stuck. In your case, you might want to keep both, the original and the copy 1 version because you will need proof that you efile and the federal will reside with the Original one and the state with the Copy 1 version.
  4. Sorry, I misread your question. I sent about 10 returns last week and all of them got stuck. Open the return, pull down the file menu and select "duplicate return". Close the original return and stay with the "copy 1" return, create the efile return and send the federal. When the efile is accepted by the IRS, send the "copy 1" return to the state. Once both are accepted, go to efile manager and delete the original efile files for IRS and for the state. Then go to return manager and delete the original return. After that and while in return manager, delete the Copy 1 in front of your client and you are back to normal.
  5. change your setting for a few minutes to DON'T hold my states. Recreate the efile file for the IL and send it to IL. Go back to your ATX settings and select to hold your state returns.
  6. Part of your question is that prior to 2018, you could see when some was claimed as a dependent because you had two places to check. One was the check box "YOUSELF" on page 1 of the 1040 and the other place to check was page 2 when the personal exemption amount was 0 for dependents. Now those places to check don't exist and you have single for the dependent with the same 12K standard deduction. These are the resources you have at your disposition to check if the person is filing as a dependent: 1.- If you are doing the return for both supporters and dependent, efile the supporters return first making sure you are claiming the dependent. After the federal is accepted, efile the dependent. If you make a mistake on the dependent's return, the IRS will reject it. 2.- When preparing the dependent's return, make sure you take out the X as shown on my post above AND even if the dependent didn't have health insurance, check the box for health insurance. If you did it correctly, ATX will not let you create the efile until you uncheck the health insurance question. If the efile is created with the health insurance check marked, you are filing as single and claiming the exemption. 3.- When the efile has been created, read that ATX will read something like" (someone can claim this person as a dependent).
  7. Filing a return is a different story. Yes, ANYONE is required to file a return if you have a 1099-misc filed correctly. That by itself doesn't change the rules of AOC. I start to understand why we have different answers. In my case both parents and students have W-2 and that's it and their livings standards are not of the Pacun tower. If you want to be more technically, ATX always want you to make the scholarships taxable so the student can take the refundable credit.
  8. Thank you for all the explanations. I have seen this post and I didn't bother to read before. Today I felt bored and I decided to read and to my surprised, I have a client exactly in the same situation. I am glad I read this because I was second guessing myself and I have an appointment with the client tomorrow. I am surprised that my client's 1099-R doesn't show the contribution amount since they have had this account since its inception. If the title on this posting would read something like "How do I report this Roth IRA transaction", I would have read it a while ago.
  9. If I am not mistaken, qualified higher education in the context of 529 means, bachelors degrees, and not technical schools. So as long as the dependent is going for a bachelors, I believe it should be OK and the money shouldn't be taxable.
  10. If you follow the instructions, a child who provided more than 50% of his/her support qualifies for REFUNDABLE AOC as long as he/she was over 18 years and 0 days by the end of tax year. ALL THREE have to match for the student not to claim the refundable part. I should add, provided he is not filing a joint return. Keep in mind that AOC follows the "exemption" (if you will).
  11. Standard deduction is $12,000 for the student in question. You need to take out the second X on the attachment below:
  12. Look for another post that we were discussing that VA was not ready to accept returns. Finally in February, the governor signed the law and made changes. Those changes affected all returns and for sure the ones with Schedule C. I am not sure if that's the situation you are experiencing but you should take a look.
  13. I would select C for Jan, Feb and March. Then unaffordable for the rest of the year.
  14. I have a client who lived and worked the whole year in another country. TP is a US citizen and made $70K. Form 2555 asks for some information and on line 19 it asks for the income which is $70K. I don't find a way to have the income transferred from W-2 or other part of the form automatically. I have to override it and I have to override it in about 4 places to give me the exclusion. What am I missing?
  15. How are they going to earn their living?
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