Pacun

Make sure that your client has the right to claim child as dependent and file normally. Form 8332 is needed by the non-custodian parent only when both parents claim the same child.

I found the problem mia culpa. My friend sold stock for 200 and the basis was 423. Since I was doing just a sample return, I click override and enter -223 on line line 13 where schedule D goes. That drove ATX bananas and instead of using that tax table, it used alternative minimum tax. Lesson I learned: If you need to override something, prepare the return and print it before the override and then compare. In this case, even if I lowered the W-2 from 206K to 79K, the program was giving me the wrong results. When using 79K, the error was very obvious.

I will post the figures later on, but are we on agreement that if the ATX uses AMT it is because under the regular tax system the TP is getting away with too much? Which means that AMT will result in a bigger tax liability.

ATX is using Alternative Minimum tax. I thought AMT was only used to increase your taxes in case you were deducting too much.

My friend did his taxes using Turbo Tax and I tried to verify everything was OK. MFJ AGI is $149,790. Tax liability using Turbo Tax was $30,196 Tax liability using ATX was $29,626 Hand tax calculation using tax rate schedules for 2009 was $30,204. Could you please let me know if my Pentium 4 Chip is calculating it wrong?

How about a business decision like this. My personal usage will be satisfied with a $39 plan. Since I am going to use it for work, I will purchase a $90 plan because; if I don't, my bill could be more than $100 per month. I understand that auditors will accept 50% of global cost if they understand that client uses phone about 50% for work. No way Jainen is sleeping. Remember he is in CA.

A doctor has to determine that he is disabled.

Non-residential Real Estate Property.

I checked Pub 17 and you are right, number 11 states it. Do you know the percentage of my clients who get married? Most of my clients have children when they are on their teens and don't believe in marriage anyways. The ones I have used MFS have lived together at some point in the year or have children and can file as HH if they lived apart at least since Jun 30 the previous year. This year, no one has filed MFS so far but the night still young. According to a study, that goes in accordance to the ecomic situation, pleople are living togheter because it is cheaper. A new client came to my office in January and when I told her that she needs to file MFS and no earned income credit for her 2 children, she picked up her papers and stated she was going somewhere else. The same thing happened last week.

I guess you don't have to itemized but your standard deduction is zero.

Since they didn't live together AT ALL in 2009, he can use the standard deduction even if she itemized. He can file as MFS and use $5,700 as standard deduction.

For houses, you use depreciation using less than the actual cost of the house, correct? When you sell the property, you add the price of the land to the depreciation basis. The same principle applies.

To the eyes of the IRS, the child made $300 of dividends and $5,654 by selling stock. If you want to avoid the possibility of a letter from the IRS, you should file a return for the child.

I know most of you don't share with anyone when you make a donation, but I want to share with you that today (before tax season ends), I made a small donation to help pay the electrical bill. It feels good to donate to a very valuable forum. I also want to extend my thanks to you who provide answers to our posts, I don't know what I would do without your support. Thank you... thank you.

Remember, if they lived apart the whole tax year, it doesn't matter if the other spouse itemizes. The problem is when they lived together at some point during the tax year.

Thanks for restating what I said. I knew I was right.

The fact that they are still married overrules any separation agreement for 1040.

Married people who lived apart the whole year without any children have two choices: MFJ and MFS. Since MFJ is not an option, your only choice is MFS. Since they lived apart the whole year, if one itemizes, the other can use the standard deduction or itemize also.

A friend called and said that last year he paid a babysitter $20K and reported schedule H using Turbo Tax. He withheld Fed Taxes for babysitter but he is not sure if Turbo tax asked him for that money. I have not seen he 2008 return yet. If he didn't send the Federal Witholding, does he owe a big penalty?

I was thinking from a different angle, but I agree with most of your points. Do you know how much money the IRS will collect in 2010, 2011 and 2012 just from those conversions?

I thought you could only deduct RE taxes on schedule A for the primary and secondary home.

Thank you.

I had a client from NY and I fired her this season because I didn't want to pay $100. Now, that you said that you have to prepare more than 10, I will call her. How long does the registration process take for NY?

As long as there is enough income on schedule C, I am able to enter 2 8829 forms. One gets labeled as home 01 and the other as home 02. I was also tempted to use 2 schedules C since you have two different addresses, but I know you should use one schedule C for same or similar activities. Since your client lost his first home, don't you think it will not make any difference if you don't claim Business Use of your Home since you will have to recarapterized it as ordinary income? Another point I want to make, he is now renting. Remember the exclusively and regularly rules, unless it is a daycare or you have inventory at home.

Send the return without claiming the credit and then you will have a lot of time to find the correct answer and amend.