Pacun

If I understand correctly, you can issue a 1099misc and file schedule C with a loss.

No matter what you do, you get the same results. The only time you get a different result is when you change from code T to code Q. In reality, code Q is the correct one.

If you are not itemizing the federal return, add 1 dollar withholding for DC for each the w-2 that have 0 withholding. If DC is involved in your case, use any other state. MD takes income from federal, so you would have a problem with MD.

How did the US citizen file in 2008? If filed as married filed jointly or MFS, please amend. If not, please file jointly in 2009 and call it the day.

To solve your problem, look for av.exe services and stop it. Then go to c:\documents and setting\yourname\local settings\application data and delete av.exe. The go c:\windows\Prefetch and look for av.exe or av plus numbers and delete it. If so far, you have found what I said, let me know and I will send you a little program that will fix your registry.

I would deduct it as worthless inventory and take a post dated check as my payment.

Why are you paper filing the federal? Because of the home credit? Because you are requesting an ITIN? or simply because you want to delay the refund? In any event, pretend for a moment that you are leaving out the event that forces you to paper file the federal return. Prepare both the federal and state efile files, but do not piggy back it. The go to efile and send only the state efile file and continue working on the paper federal return.

Imagine for a second that she was in honduras for 360 days and that she worked for a US company and got a W-2. She only worked in Honduras, will she qualify for the make work credit? I would say yes. Now, I don't see the difference, since she is a US citizen who works and she must report world wide income. I would say that TP qualifies for $400 credit.

casual income. I would agree with line 21.

You should use Mortgage interest and RE Taxes on schedule A and add to the basis other expenses prior to 02/10.

You cannot file single if you are married period(.)

Where do I make the person pay SE taxes on the 1040, then?

I entered all the info on personal return from K-1 (1120-S) but sch SE is empty. Thanks for your help.

Thank you.

I am preparing an 1120S for a MD corporation. The corporation was formed on 02-01-2009 and it became S corporation on the same date. When I try to efile (federal) I get an error that states "S election effective date must be equal or precede the tax period begin date" If I enter a fiscal year from 02-01-2009 to 12-31-2009, I don't get any errors. Any help will be appreciated.

You should file a gift return for her. It is not a big deal unless she is wealthy and you still do her estate return when she dies.

I thought that the person who receives a cash gift had only one problem: What to do with the money. The receipient, doesn't have to report anything. The person with the big heart is the one that has to file a gift return.

D for child support (I think) I for IRS B for both

How many preparers do you have? If I move to Ohio, will you hire me?

We have one of those here in DC and another one in MD. I hope they catch up with them eventually.

Regardless of anything, a spouse can never be a dependent of the other spouse, but they can file MFJ or MFS. If she is in the process of getting a green card, you should file him MFS for now and then file MFJ when she gets her SS number. Remember that HOH if only available if they didn't live together for the last 6 months of the year.

"The only caution I would give is - we don't know what the tax rates are going to be in the next two years. This administration and congress has been so wrapped up in the HC debate that tax law has been pushed to the side. The administration has indicated new tax increases, but has not made any firm proposals to congress. By this strategy, you are sending your clients into an unknown." Tom, I made my scenario so I covered all the basics. Remember, they got $100,000 for the lotto this year. In the next 5 years, MFJ will make 35K to 40K. Regardless of what Congress or the president devices, it will not affect them much.

I would go with gifts, but then, they are not your clients. Some of them are potential clients.

I also don't like e-machines for work. This one seems to be refurbished which could be one of the three that TAX PREP BY DEB returned. I like DELL Precision machines because they are reliable but they are a bit expensive, but then again, I rather to have a good computer than to be sweting in front of my clients because my computer is giving me hard time.

MFJ who made 140K in 2009 want to open a Roth IRA for 10K before April 15, 2010 for tax year 2009 (5K each). Non of them were covered by a retirement plan at work. They won 100K from the lotto. The other 40K is from their regular jobs. Every year they make about 35K to 40K and most likely that will be their situation for the next 5 years. Instead of paying taxes on those 10K in 2009, don't you think they could open a traditional IRA on April 15, 2010 and go back to the bank the next day and roll it over to a ROTH IRA and pay taxes in tax years 2011 and 2012? Am I correct? Have you thought about this situation?