Pacun

Could the law also say that for child care expenses you are not considered married and you can use your income to qualify? Is that the route you are trying Sarah?

Title should read "Child and dependent care credit" Father leaves work because of illness in November 2008. Continues to receive paycheck until he dies in January 2009. His W-2 for 2009 shows $1500 income and wife 70K. They will file jointly in 2009 and will claim their two children ages 3 and 5, for whom she paid 7K in child care. Since he received a W-2 for $1500, form 2441 "Child and dependent care expenses" calculates the credit using the lower of the 6K and the lowest income from one of the parents (which is $1,500). Keep in mind that father could not care for children because he was dying. To make matters more interesting, wife participated on a pre-tax child care deduction at work. She put $5000 pre-tax and later collected those $5000 when she showed employer her child care expenses. ATX correctly is doing two things: Calculating 2441 using the fathers income $1500 and adding mother $3,500 to her income. Can they/she get some help since father was not able to take care of children?

It is interesting, isn't it?

IRS to Match Return Preparation With Testing Under Preparer Regime By Diane Freda Publication date: 05/24/2010 The Internal Revenue Service will eventually check on whether the returns that tax preparers do fall into the category for which they have been tested, Full report at: http://www.bnasoftware.com/News_Articles/News/IRS_to_Match_Return_Preparation_With_Testing_Under_Preparer_Regime.asp

All returns I efiled yesterday and today are labeled as "Transmitted to EFC". I called helpdesk and the machine says that there are no records on some of my returns.

A Professional LLC should be treated as a disregarded entity and file schedule C or 1065.

File MFJ on Federal and file married filing Separate for the state and according to the dates they resided on each state. Another choice could be that you file one of the States as MFJ and the other as MFS.

Thank you both for your answers.

Thank you.

Executor (wife) was active participating on rental before death and continued after death. I am filing 1041 and my question is: Can the estate check "active participation"? The Estate only existed for 10 months within the same year. If I don't click on active participation, the loss is reported ONLY on the K1 line 14. If I click on active participation, I get a loss on 1041 line 5 (rental, sch E) and K-1 reports a loss distribution on line 11 with code D.

Can you print page by page?

Everything is for services provided by the partners. The problem is that they pay themselves too much and therefore the partnership ends up with a loss.

K1 reads ordinary income -5000 (loss) guaranteed payment to partner 8000 In what amount does the partner need to pay SE taxes?

I would itemize deductions and file as MFS without the social security number. Do not efile this return (lol)

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.