Pacun

The bank didn't forgive anything yet. Let's say that I have enough money and I bought a house for 800K. I owe $750K and the area has became so ugly that houses prices have dropped a lot. The FMV of my house is $350K. I have money and I decided to walk away from this rental house. The 1099-A will show $750K and FMV $300K. If I claim that I sold the house for $750K, I will have a loss for $50K (forget depreciation to simplify). The bank later on sells the house for $300K and sends me a 1099-C for $450 on which I will have to pay taxes. Doesn't look right, correct?

I would use the FMV value as the selling price.

You are right Jainen. Going back to the question at hand, there are 4 people involved: the parents and the two children... if parents decide not to claim the child and they qualify for the exemption, then the child cannot claim his own exemption, correct?

Expense it.

Parents can elect not to claim the exemption for any of their children but NO ONE else can claim the exemption if parents qualify for it. Remember that the credit follows the exemption, so if no one claims the exemption, no one can get the credit.

Create a 1040 that mimics the 1040EZ and make sure that the buttom line agrees on both forms, save it and select amend return. Add Sch D to the amended return and mail 1040X and Schedule D.

Group them gotether by issuer.

Check the Roth IRA option since it will be non-deductible.

I have the problem and it is random.

I normally enter an asset with basis and years of depreciation and then I link it to the correct form or schedule.

?

I charge the client and I amend myself. If it took you a while to discover the second mistake, maybe it wasn't the other preparer's fault. You don't know what papers were given to the previous preparer, how the interview went, how many years the previous preparer work for them, etc. You don't even know if these clients will stay with you or if every year they try a different preparer.

As long as he didn't provide more than 50% for his own support, he can be claimed by his parents and the time he is away for school is considered to be spent with his parents. In this case it seems he was a full time student for at least 5 months and under 24. If you want to be technical and claim that he changed his tax home, you need to ask him if he changed his drivers licence, registered to vote, etc.

No deduction for stupidity.

They are considered US residents for tax purposes based on physical presence.

It doesn't matter if one of the spouses was abroad and the other was here and the children were here for more than 6 months and their main home was in the US. All you have to do is to file married filing jointly and include their global income. They must sign a statement that the non-resident spouse choses to be considered a resident and all global income is included. This is what the rule reads: If you (or your spouse, if married) were a nonresident alien for any part of the year, you cannot claim the earned income credit unless your filing status is married filing jointly. You can use that filing status only if one spouse is a U.S. citizen or resident alien and you choose to treat the nonresident spouse as a U.S. resident. If you make this choice, you and your spouse are taxed on your worldwide income. If you (or your spouse, if married) were a nonresident alien for any part of the year and your filing status is not married filing jointly, enter "No" on the dotted line next to line 64a (Form 1040) or in the space to the left of line 38a (Form 1040A). If you need more information on making this choice, get Publication 519, U.S. Tax Guide for Aliens.

As long as the child didn't provide more than 50%, the daughter is the qualifying child of the mother. No EIC in this case.

Hit them with a 1099-misc then.

Send him a bill for the work. Send it a second time and a third time. Then hit him with a 1099-C for 2012

I have an HP Laserjet 4300 which is very old and fast and I am using Windows 7 64bit. As you know, HP 4300 is a production printer and printing 100-page tax returns (no graphics) is nothing for this type of printers even if they are OLD. If you buy a printer designed for home use (home toy thing), you will get memory issues and drivers will not be upgraded by HP for new operating systems like Windows 7 64bit. To the original poster, have you tried to defrag your hard drive and increase your page file? Have you tried to run ATX with realtime priority? As JohnH said once, have you checked the cables to your PDF printer?

Believe or NOT, this is very true. If I don't trust a client, he will not be my client. I cannot prepare a tax return for someone I don't trust. Every year I send people away because it doesn't make sense what they are presenting or they tell me one thing and they want to report another. I don't trust them and I refer them to HRB.

There are other factors that you need to consider. If the child provided more than 50% of his support, which includes loans made for education and "room and board" by the student, then the parents cannot claim him. If he is 23 and the full load of credits is 12 and if he took 11 credits each semester, then he is not a full time student and the parents cannot claim him if he made more than $3,700.

There are three approches to this situation, which I will list after I quote the question from GraceNY. "According to the college's website, "scholarships and grants are financial aid that does not need to be repaid, and they will be applied to the comprehensive fee (my emphasis added) on your bill each semester, not paid to you directly." Tuition and Fees 2011-2012 Tuition: $42,000 Room: $ 6,000 Board: $ 5,000 Student Actvity Fee: $ 400 ------------ TOTAL $53,400 Comprehensive Fee Total Scholarship Awarded: $ $45,000" 1.- You could argue that client paid $8,400 for tuition. This will be a very agressive position and the IRS will not agree with that. 2.- You can take a very conservative approach and don't take the credit at all. 3.- You could prorate as I suggested and the IRS might not agree with you but the courts might have a different point of view. The fact that the instructions don't have your specific situation and DON'T mention prorating doesn't mean that prorating is not an option. Prorating is almost anywhere in accounting and taxes and if you can use it on other situations, you can use it here in this unique case. The instructions and Pub 17 are not taken seriously by the courts. See what payments the client has made and see the statement from the student's account from the University and that might give you more information and maybe you will be able to chose option 1 or 2 which are stated on the instructions. With the information you presented and if no other documentation to the contrary exists, I would go with prorating.

"How do I get the SS Income removed from the Fed AGI so it is not taxed for WI purposes?" Make a copy of the return or roll over the client again. Prepare a Federal and WI non resident return with ONLY the casino winnings and vuala.

I have checked for refunds and nothing has changed. The dollar bill logo might be gone but "where is my refund" is still available and you have to click twice. Another change that I noticed is that now you get a notice when you click on the link.