Pacun

Off the books means that she worked and therefore she must pay taxes. If she worked then she qualifies for EIC if she has a child and or the income is low enough for EIC. Where am I ignoring circular 230? The fact that it is off the books doesn't change the characterization, classification, taxation of the money earned. Neither does it change the fact that was earned income (if it was) nor will it prevent for EIC to kick in.

Off the books qualifies her for EIC credit.

Question: Tina was injured in a car accident in 2013 and in 2014 received a settlement from the insurance company in the amount of $350,000. The settlement itemized the proceeds as follows: Lost wages $50,000 Physical injury $250,000 Emotional Distress $50,000 The emotional distress did not cause a medical condition. Can Tina exclude the entire $350,000 from income under §104(a)(2)? Answer: No, the court settlement indicated that Tina did not suffer any medical conditions due to the emotional distress. The amount received for emotional distress is not excludable under §104(a)(2) unless the taxpayer can prove that the emotional distress caused medical conditions. The allocation of the proceeds to lost wages and physical injury are excluded from income under §104(a)(2). Amounts received for lost wages are excluded from income even though had she earned these wages they would have been taxable.

Attorney is correct. None of the events listed are taxable events. "Client's "attorney" INSISTS that it is all non taxable. Part is punitive, part is for missed wages" The only time that this could be taxable is that if part of the payments were for emotional damages that didn't result on a medical illness.

Well, if they live in the second house and the elder don't live there, they don't qualify for EIC. Remember that you only need 183 days in a year to qualify for EIC. So finding out that they live in the house doesn't mean anything. Maybe they had a leak in the ceiling and the hair dresser saw them for a month there while it was repaired. I normally interview the TP and I write down their answers and keep it for my records. I don't have authorization from my clients to discuss their tax matters with any one else nor do I have their permissions to interview or question third parties.

Same here. They didn't say the price at all.... so I deleted it.

Knowing too much is a dangerous thing.

If you have an agreement with the management company that you have a room for rent, you give them a key and they can show the room at any time during business hours.

This room is close to the World bank so maybe it makes sense to rent it by the day.

She didn't rent to her fiancé (I said boyfriend but he is her fiancé). She didn't rent anything to him he lived with her in the same room. The other room was rented on and off but available.

The management company has the room available per day. If full month it is about $1200 per month.

I remember last year (I think November) while we were enjoying our wine or soft drinks, this site was down for a short period of time and Eric was working hard to bring it up. I said to myself, if anyone deserves a token of appreciation is Eric. Of course November and December are semi dead for us (income wise) so I said to myself that I was going to donate something during tax session and I did. I hope everybody donates even if only a couple of thousands each. I am just kidding. Every penny counts.

I always use my credit card and I have not had any issues. But I am sure you will get an official answer.

If he washes the uniforms and has other expenses, he might break even when you do Sch C for him. No matter what, that income subject to SE regardless of W-2 or 1099-misc. If he does Sch C, he will almost break even and he will keep his job.

TP has a two bedroom condo. She lives with her boyfriend in one room and she rents the other room through a management company. She wants to amend because previous preparer added $12,000 as rent paid by her boyfriend. Also depreciation for the whole year was $661 (six hundred sixty one). Previous tax preparer also didn't deduct on Schedule A everything that she paid to the state in 2014. The condo cost her $250K and besides "renting" to her boyfriend, she cooks for him, cleans the bed and provides other amenities. For those amenities, she actively participates and even though she has a management company, she cooks and provide other services for her guest. Those amenities are not available to her other "renter" in the other room. But my question is not about the services she provides to her guest... this is my question: Does she really need to report $12K of income because her boyfriend shares a room and they share the food and other amenities? I don't think so. Since the depreciation is so low, should I amend and attach form 3115 or simply amend and take the correct depreciation? If I understand the situation correctly, she should be able to depreciate 1/3 of her condo.

Is this a pass through entity?

I think you don't have to do anything in 2014 because you have until April 15 to take out the excess contribution, including any earnings that that money made. So in 2015, you will have to deal with the 1099-R.

Thank you. I will check it when I get to my work computer.

I have an info partnership return that needs to be efile. ATX rejects it because it says that that return has been approved or it is pending approval. I know there is a way to synch your efiles with those at the ATX servers, how do you do that? Or how do I check what ATX has efeiled for me? Thanks.

Yes, why did he hung up?

That's sad and funny. If you thought you had a bad day, think about this guy.

No.

No. That's by statue and there is nothing you can do. Someone took the IRS to court because she filed in time with the IRS but she forgot to sign her return. The return was returned by the IRS and when the return was returned to the IRS with signature, the return was late. The IRS prevailed in court because when the return was returned to the IRS with signature the statue of limitations kicked in. I hope you don't return to me stating that you don't understand that the return was returned.

I guess your asking for citation scared others and that's why no one has answered. My answer is correct but I don't have cite.

Thank you. a couple of years ago, I pulled out my crystal ball and I said that ATX was going to be a very robust program out of the box in a couple of years. I wish I could pull up that post. I am very happy with ATX and I hope they don't increase their prices.