Pacun

We assumed the withdrawal was in 2015 because you omitted 2012. As you know the year of withdrawal is very important in this situation. Since you omitted that information, maybe you also omitted that she was over 59.5 years old when she withdrew the money.

I think the program is correct because the conversion took place in 2010. If the IRS or Congress gave you a chance to pay taxes in a delayed manner, it doesn't change the date of the conversion.

One more detail... did you hit the receiver with a $20K 1099-misc? You should check that.

Yes, the 20K are deductible because it was not a penalty or fine. That's normal business practice and/or expense in this suing society. 2.- I think they are referring to a program in 2010 that expired and it was for hiring unemployed or part time individuals. I don't think such an animal exists anymore.

Her story? Her story will be, I told the preparer that I wanted to file separate and the tax guy/lady prepared my taxes as HH. She wont tell you that maybe she went to two preparers because they stylist told her that with children she should get a bunch of money because she works (EIC). Was the wife the one who approached you or was it the guy? If the guy approached you, this is what I would do. I would file him as MFS and itemize his deductions or take 0 standard deduction. You don't need to see the other return unless the wife came to you and told that she wanted to amend. With his papers in front of you, do you care if each June he was kicked out of the house and returned in January? Do you need that information? I don't think so... as long as you file MFS and itemized deduction. Just ask the husband for the wife's and ss number. In any event, I reject this type of clients because divorce lawyers are and should be nosy. I am glad I prepare taxes and I don't need to be nosy as divorce lawyers.

The penalty for not filing might not be imposed but if "they" omitted more than 25% of income, they might be nailed with another accuracy penalty. I hope this is a solid marriage, otherwise I would think twice about involving the wife on this huge tax liability.

Thank you.

Is there a number for a client to call the IRS and talk to a person? 1-800-829-1040 doesn't seem to have an option to talk to a representative.

Cool. That's good to know. I don't have any disabled clients. So, IEC should be in the game in this situation.

Yes it matters. Dependent has to be younger.

I do apologize to LION. I think the original poster left some information out and we had to read between the lines, which contributed to the confusion. I also read (between the lines) that the accident happened at least in 2014, that the brothers were not full time students, and that the preparer wished that the parents would claim both children (never thought that EIC was more beneficial to this family, which by the way is well deserved for the caring older brother). When situations like this happen, we need KC with the ice bucket contest. We are happy family but that contest is needed sometimes.

Correct. If a house or building, don't forget to reduce the land.

If the original poster was wishing that parents could claim older child, that makes me believe that he is not married. I also can read between the lines and based on the questions posted, EIC was not even thought of. If the parent will benefit about 1K by claiming the older child and the poster wished the parents could do that, it is because he didn't see the 3K+ EIC benefit on the other return. Jack, I think you need to read the rules about EIC again.

I didn't want to use my heavy artillery Jack, but since she volunteer, THANK YOU RITA. You are always my secret weapon.

No.

Jack: Who said that support has to do with EIC? Sleeping in the same household and blood relation are the main ingredients.

So, we know that the parents can NOT claim older child but older child can claim younger brother and qualify for EIC, correct?

If you want it for 2015, you have to wait until August 1st, 2016 and file form4506-t and select this: 8 Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. The IRS can provide a transcript that includes data from these information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS. For example, W-2 information for 2011, filed in 2012, will likely not be available from the IRS until 2013. If you need W-2 information for retirement purposes, you should contact the Social Security Administration at 1-800-772-1213. Most requests will be processed within 10 business days . Caution: If you need a copy of Form W-2 or Form 1099, you should first contact the payer. To get a copy of the Form W-2 or Form 1099 filed with your return, you must use Form 4506 and request a copy of your return, which includes all attachments.

You don't request a transcript, but rather forms W-2s, 1099s, 1098s that were reported under SS# ###-##-#### on form ####-t.

August 1st is the date you start asking for 1099s, W-2s and 1098s from the IRS.

I normally don't see any articles from Forbes because they want me to disable my ad blocker. Can someone paste the important part of the article?

I see this way: If the $1,500 are directly related to the US, you have to report them on 1040NR. If it is not related, I wouldn't pay taxes on it. If it is directly related to the US, then no need for FBAR because you are using an U.S. source to make that income. FBAR is for Legal Permanent Residents and U.S. Citizens if I recall correctly.

Just ask the Payer to send a 1099 corrected with 0 income and let the IRS choose which one to correct. Report the highest one on your client's taxes and that will be the end.

Id you enter 2K on W-2 box 10, and you have only one child, then if you enter 3K on 2441, the computer will take only 1K and calculate the credit. The best is to enter 5K on 2441 but again the computer will only take 1K because you entered 2K on box 10.

I have been taken out taxes paid and entering them on Sch A from Hud-1. It is never too much and sometimes it is already included on 1098 and I ignore them. I better start checking the dates on those taxes listed on the HUD-1