Pacun

The numbers you have entered don't make much sense... can you omit the cents? AND maybe use commas where appropriated.

Not only can't you deduct any loss, but you are also required to pay taxes on the debt forgiveness! Luckily for your client, the President signed that law at the end of 2007 where debt forgiveness on primary residence is also forgave by the IRS.

Yes, it goes to schedule D for matching purposes.

Did your client get a 1099-C? If not, s/he might get one for 2008 and you should advise them for that too.

Yes. If you qualify for the exclusion, the IRS doesn't care if you live under a bridge ever after or you move in with your in-laws.

thank you for your replies. Do you know the date we can start asking the IRS for W-2 info?

I am waiting for peer review but AGE is not a requirement for claiming someone as a dependent. I am 100% sure that the person can be claimed as a dependent. I am not 100% sure about the household status.

yes to both.

Jainen is right... since they made 5K, they can claim their children and get a big refund. Mother will file MFS.

Client (legally separated) lives with boyfriend. Client's son and his wife also live with her.

Client's son and wife have 2 small children who also live with client and her boyfriend.

Boyfriend and client each have W-2 of about 35,000 apiece.

Client's son and wife made about $5,000 between them.

Son made 3,500, his wife made 1,500.

Plan on filing MFJ (son and wife), Single (Client claiming both grandkids), Boyfriend filing single (claiming himself).

Does this sound correct?

Sounds good... Boyfriend should file single with no dependents, no question about that.

Your client could claim all (son and wife and two children) and possible she could qualify as HH.

Change her ITIN to a valid social security number for your test. If Low income credit is calculated with the valid social security, then the credit is NOT meant for people with ITIN.

If she is a full time student MAYBE. But student could not claim her exemption (maybe father or mother could take exemption).

You shouldn't ignore it because it could be some taxable money included there. I think this is a Flexible Spending Account. Money taken out pretax from paycheck and if not used to pay babysitter, medical expenses, etc. amount should go back to box 1 of W-2. At least ask your client about it and ask for some paycheck stubs to see how it is calculated.

If income and household membership permit, there is only one more requirement (this requirement cannot be changed with student status or incapacity)... the child has to be under 17 on December 31 of the tax year.

I think you are not providing enough information for us to give a good advice.

Let's say that on 12-31-2006 the value to be split was 20K (10K each). Since the money was not withdrawn until next year, the value split was $24K and the wife took 12K. Husband was given 1099 and needs to pay taxes on earning and possible penalty if not over 59.5. Since this money was distributed with a court order, he doesn't have to pay anything. I hope someone can elaborate on my thought or tell me I am completely off.

I think it is safe to do it. If for ANY reason the bank rejects a direct deposit, the IRS issues a paper check the following Friday. A lot of banks accepts deposits without checking names.

I have a client who has the last pay check stub.

When can I start filing with substitute W-2 form?

Can I efile using Substitute W-2? If yes, do I create a non-standard W-2 and form 4852?

When can I start asking the IRS for W-2 copies for 2007?

If you do not know all the answers, please help me with ones you know and others might help with the other answers.

Nothing automatically. You will have to devide the whole amount by 5 and then you divide it by 6. That will give the amount for office.

Thanks Pacun but line 13 of the ADJ form must be manually done, the program is not calculating like last year, any other sugestion

Thanks

Can you give me filing status, head count and income amounts? Date of births might be important too.

Okay...time to clarify. First there is no written agreement between the couple, they were never married, and mother is custodial parent. Next, father makes a considerable amout of money each year and is being "nice" when he cannot benefit from the exemption and "allows" mother to take the exemption. This year is his year to claim the exemption and again may decide to be "nice" and "allow" mother to use the exemption if he decides to tell her before she files her return. Now back to the original question of can mother file HOH and take EIC without the exemption because she has a qualifying child? And if she claims the exemption on her return for child and he also claims the exemption will the IRS decide who is actually entitled to the exemption? I really don't see how those questions suggest my client violate the law or court order.

Thank you for the clarification.

This was my first answer...

"YES, she can use the child for HH status and EIC if her home is the main home of the child." This is true for any year, including the years when the father claims the child.

If there is no previous agreement between the parents, then the mother will prevail before the IRS if both of them claim the child this year (please make sure custodial parent didn't sign Form 8332 or equivalent for 2007). Regardless of who supports the child (as long as the child doesn't provide more than 50% for his own support), the mother (custodial parent) will be entitled to the exemption, EIC, Child tax credit, additional child tax credit, Hope credit, Lefe Learning credit and the $300 rebate. If the mother cannot prove that she maintains (more than 50%) her home, which is the main home of the child for 2007, then the IRS will not allow her the HH status, but she will be single, with a dependent and will qualify for all the credits stated above. (I listed some credits that might not apply to this situation but if any of those credits apply, she would be entitled to).

How about issuing a 1099 to ex.

There is a similar question going on here on this forum. In your case, I think the custodial parent will prevail before the IRS and in front of any divorce/custody court.

For me, it is important that my clients prevail on both because the IRS or the courts can have my client amend their return if they feel it is against the rules.

I am thinking the same thing as Eli, I did not read "divorce decree" or "legal" in the OP."

All of you are right, he didn't mention legal or divorce decree and that's why I asked. Instead of answering my question, he got defensive and offended. Without all the facts on the table, we cannot give answers to questions.

And by the way, agreements are binding and orginal poster said "My client has an agreement with x that he can claim child as a dependant every other year and this is not her year to claim the child as a dependant."

YES, she can use the child for HH status and EIC if her home is the main home of the child.

Are you suggesting your client to violate a legal agreement or court order?

follow what HRB did.

300 for filers and 300 for each child under 17.

Ask your client to finish his gasoline, get the miles from the odometer, ask him to fill the tank and ask for receipt, when the tank is finished, ask him to get the miles from the odometer again.

If he pays for gas $50 and runs the car 250 miles, you know that he gets reimbursed 20 cents per mile from employer. Since the standard is 48.5 cents per mile, you can deduct the missing 28.5 cents per mile on 2106. Since you have " properly kept mileage log" from previous year, you don't have to worry if miles run for your test are personal miles.