Pacun

Only one of the tax payers needs to have a valid ss# to qualify for the $800 when filing MFJ.

To the best of my knowledge, a spouse is NEVER the dependent of the other spouse for tax purposes.

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For HOH you don't qualify by yourself and for EIC credit you can qualify by yourself. I think I will take the rule as it is because your reasoning doesn't help much.

The Saints will be lossing 10-0 at the end of the first quarter and they will win the super bowl by 14 points.

I don't see where you could change the database location. I don't recall having any choice either when I installed. I think you should call tech support and share with us.

The amount for lost wages is taxable.

Example 11. You, your 5-year-old son, and your son’s father lived together all year. You and your son’s father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Your earned income and AGI are $12,000, and your son’s father’s earned income and AGI are $14,000. Neither of you had any other income. Your son’s father agrees to let you treat the child as a qualifying child. This means, if your son’s father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed on page 16, you can claim him as a qualifying child for the EIC and any other tax benefits listed on page 16 for which you qualify. Example 12. The facts are the same as in Example 11 except that you and your son’s father both claim your son as a qualifying child. In this case, only your son’s father will be allowed to treat your son as a qualifying child. This is because his AGI, $14,000, is more than your AGI, $12,000. You cannot claim the EIC (either with or without a qualifying child The question was why she didn't qualify for EIC by herself if she was over 25 and under 65 if she made only $12,000. I found my answer... it is interesting. If you have a qualifying child. If you meet Rule 8, you have a qualifying child. If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child.

For new clients, I ask for the previous year's return. If you see that he was renting the time share and reporting rental income on his previous return, you should feel confortable calculating the loss. You should have a lot of questions for this new client.

I am sure you returned the hope credit you had collected from the IRS because the hope credit didn't exist. If I am not mistaken, the hope credit started in 1996.

Am I correct assuming that you are reliquinshing the server, and client setup? If I am understanding correctly, you want to have two different computers, (without communicating to each other) and run ATX on both computers. If that's the case, do not touch the server which is working properly. Don't fix the server in the middle of tax season, PLEASE.

If you have removed ATX, rebooted the computer, then reinstalled, you have covered your basics. I just checked my XP registry and there is no easy way to completely remove ATX from the registry. I was hoping ATX was like all other programs when it comes to the registry but I am sorry, I cannot help. I would removed the program, then delete the atx2009 folder from c:\program files and then reboot. Then I would reinstall. For testing, I would create a new account and then test it when I am log on as the new user. I would log on as the admin to the local box, back up your data and delete your profile. Then I would log in as you and move your data back. If you don't feel confortable with what I have said, don't do it. If that doesn't work, you might need to call tech support.

If only one parent worked, brother is not going to have more income than the working parent. How does this work on the community states where the non working parent will get half of the income?

The best weather men are here in the Washington Area where salaries are better. lol. They predicted correctly this weekend.

If the bank issued 1099-A, you have to deal with it. You can file sch D.

I read it was that you don't have to file if you made less than $1,000 AND you claim 1 exemption on your federal tax. In this case the student is claimed on the parents return, so he must file.

I am not from Indiana but I prepared a sample form. It seems that you cannot efile non resident filing. He is required to file IN and since he didn't pay any state taxes where he lives (since he made little money), he doesn't get any credits (that's the only credit I saw that he could qualified). Also, his tax will be no more than $34 and he already paid $19, so it might not be worth it a time consuming research for such a small amount.

Open Schedule A form and open the very last bunny and uncheck Ln 40a.

It seems that ATX doesn't have a safeguard for mistakes made LN 4 Calc Alloc Credit worksheet. If you Go to LN 4 Calc Alloc Credit worksheet and enter the cost of the house on line 1 and you enter $8,000.00 on line 5, the 8K will flow to the 1040. If the IRS rules say that you can allocate between spouses in a fair way, your client deserves the $8K and going to that worksheet will be the answer.

Save yourself a nice headake. File MFS and get TP 4K. Then file MFJ and let the IRS keep the other 4K (plus $400 of work credit) to cover the debt. Next year you continue doing what you have done in the past. "Even so, one question I still have is: if her name is nowhere to be found on the paperwork, can she even apply for the other $4000 of the credit ? When the HUD statement is attached and mailed in, her name won't be on it." You will send a copy of the marriage certificate and a nice letter explaining the situation.

Married couple purchased a home in 2009. They qualify for the credit. The house cost $70,000.00 (contract sales price) and with other charges (surveys, pest inspection, title insurance, attorney fees, appraisal fees, inspection fees, settlement fees and $3,000 mortgage insurance) the cost becomes $81,000. What amount should I use as the purchase price for this house? For a house that costs $160,000 (contract sales price), do you think the IRS would like you to include other costs or they will be happy with $160,000?

Because you never mentioned that you could file jointly. File jointly and end of conversation, then. AND they will get extra 400 for the making work credit.

That's the answer to your question. Since your client is filing MFS, the credit for this tax payer will be the smaller of $4,000 or 10% of the cost of the house. No way the credit will be bigger than $4,000. Wait for the divorce and claim the 8K next year when TP files single.

The way I see it is that the taxpayer will only qualify for 1/3 of the 8K. Parents will sign the HUD-1 and the IRS will get a signed copy of it, correct?

Can I conclude that it would be reasonable for the TP to therefore claim the full $8000 credit ? Or am I missing something ?