Pacun

It seems that your client is "selling" the house at a loss!!! File Sch D with a loss and make it a personal loss so he doesn't get the 3K loss every year. This needs to be done even if included in bankruptcy since according to the IRS you had a property and sold it. If a 1099-C shows up later on then you invoke the bankruptcy shield and file for 982. "It sounds like your client still owes either the mortgage or taxes following the bankruptcy". I think client filed for banckruptcy and later on the bank repossed the house and the bank had to document the repossession with a 1099-A.

Active participation means that your employer has a retirement plan to which you can contribute if you wish to do so as an employee. Being retired from that employer doesn't make you an employee.

Add them to the basis.

Enter the information as entered by H and R Block. Check return filed as single (imagine that your client never got married) for errors. If the single return doesn't have errors (based on single status) save it. Then click on file, amend return and save. On 1040, change from single to MFS or MFJ and then enter the w-2 info if needed. Work on the 1040 and when finished, open the 1040X and see how all the info flowed correctly. Write the explanation and you should be OK to paper file.

The best route will be to ask the taxpayer how he put his hands on the item he sold. If taxpayer answers that question, then you can ask if he fork over some dinero.

independent contractor

I will try to answer the two questions I find on your post. Answer to question 1.- It coud be either Senior Moment or brain freeze. Answer to question 2.- No, it is not April 15th yet.

It seems that you are renting your property 100% of your time for 2011. Remember that your time share is only available to you 14 days a year. I would file one Sch E with two properties and split income and expenses. The Sch E will be OK because it will report the correct amount of income reported on the 1099. If you are concerned about matching, report the income only on one property using "income reported on 1099".

Send form 8948 with 1040 no exceptions. Keep records of that too. There is choice that it reads how many times you tried to e-file.

Remember that moving expenses are ONLY applicable if you move because your job required you to move.

Amended returns are delayed and viewed carefully. To change the address, don't amend or file another 1040, there is a change of address form that needs to be filed.

If the taxpayer lived in MD, he doesnot have to pay taxes in DC or VA. You should also check for reciprocracy agreements between MD and WV and PA if involved.

Thank you for the info Marco. I also have the issue that Canada witheld $1,250 from one pension which is 15% of the total. I wonder if canada will require a return and they just simply keep the money.

Maybe because your client is an active participant on an employer sponsored plan.

Just file a regular 1040 and don't ask to have the money credited for 2012 taxes. Mail it before the due date and send any money owed.

ARTICLE XVIII Pensions and Annuities 1. Pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State, but the amount of any pension included in income for the purposes of taxation in that other State shall not exceed the amount that would be included in the first-mentioned State if the recipient were a resident thereof. 2. However: (a) Pensions may also be taxed in the Contracting State in which they arise and according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of a periodic pension payment, the tax so charged shall not exceed 15 per cent of the gross amount of such payment; and (b ) Annuities may also be taxed in the Contracting State in which they arise and according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of an annuity payment, the tax so charged shall not exceed 15 per cent of the portion of such payment that is liable to tax in the first-mentioned State. 3. For the purposes of this Convention, the term "pensions" includes any payment under a superannuation, pension or retirement plan, Armed Forces retirement pay, war veterans pensions and allowances and amounts paid under a sickness, accident or disability plan, but does not include payments under an income-averaging annuity contract or any benefit referred to in paragraph 5. 4. For the purposes of the Convention, the term "annuities" means a stated sum paid periodically at stated times during life or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered), but does not include a payment that is not a periodic payment or any annuity the cost of which was deductible for the purposes of taxation in the Contracting State in which it was acquired. 5. Benefits under the social security legislation in a Contracting State paid to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State. 6. Alimony and other similar amounts (including child support payments) arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State, but the amount included in income for the purposes of taxation in that other State shall not exceed the amount that would be included in income in the first-mentioned State if the recipient were a resident thereof. Based on the tax treaty info above, it seems that the US and Canada can tax this pension. Any comment will be appreciated

No withholding took place. Do I have to prepare a W-2 and send it to the SS administration or sch H is enough? In any event, I do need to prepare a W-2 to give it to the employee but I am not sure if I need to send the W-2 to the SS adminitration. SUTA has been paid and FUTA was include on Schedule H with 1040.

Client paid $100 per week to a babysitter and decided to pay taxes using Schedule H. Should I prepare her W-2 also or I just do Schedule H and I am done with this?

You have to file as MFJ using global income for both. You should apply for an ITIN and send an statement signed by both spouses stating that they elect to be treated as "residents" for tax puposes even if one spouse has never and/or will never put a foot on USA's soil. How about if your spouse doesn't want to file US taxes? I think you can file as single since you will have difficulties filing as MFS when your spouse doesn't want to apply for an ITIN (I think I read something to that effect somewhere).

The long term care home charges for medical and room and board. The medical portion is deductible on Sch A. I don't see any other benefits from the federal level but some states give a break to pension income.

I would add it to the basis and take a loss when the partnership was sold.

Margaret, At half price, I don't think I would be able to walk home.

Yes but I would be concerned about the ITT not being a qualify institution.

A lot of times when EIC is included, it doesn't make much difference between single or HoH. File as single and claim EIC. She could claim her parents if she supported them more than 50%. Keep in mind that parents don't have to live with you in order for them to qualify you as HoH.

If she provided more than 50% of the support for her siblins and maintain a home in the U.S. which was the main home for the siblins, HOH is the way to go. She can qualify for EIC. Keep in mind that she doesn't need to be HOH to qualify for EIC, the only requirement in this case is that she lived with her siblins more than 6 months in the U.S. Where did the parents move to? Was it Canada, Mexico or elsewhere?