Pacun

My employer reimburses me 7K, but the IRS has a limit to about $5,600, so my employer gives me the first 5,600 (as a scholarship), which is tax free and it is not mentioned on the W-2, the other $1,400 is added as salary to my W-2 and I get taxed. So If I pay for school $10K, I can use $4,400 for education credits.

Think about the pretax money as a scholarship and you will understand that you are not double dipping. So lets say that you go to school and the school gives you a scholarship for $5,600 but the total cost for the year was $12K, so you paid from your pocket $6,400... in this case, you will use $6400 for education credits. Same thing if your employer reimburses $5,600 pre-tax. So, ONLY the pretax is the amount that you cannot use to calculate the credit.

Terry, I always thought that you must LIVE in the same household in the US with your dependent for at least 183 nights of the year to claim EIC so if she was in Costa Rica for a week and made 10K, that could work, but if she was in Costa Rica for 7 months, she doesn't qualify. If no child is involved, the post below is clear and says that she must be here for more than 6 moths. Assuming that her husband stay with the child and they file jointly, she will qualify but I doubt that between the two spouses don't make more than the EIC limit. I wish the poster would state if children are involved, if MFJ is involved and to say how many days she was in Costa Rica. Last year I was less than 330 days in Costa Rica (I was there for two days). This is from the IRS. Who can claim the credit and if I qualify, how do I get it? To claim EITC on your tax return, you must meet all the following rules: You, your spouse (if you file a joint return), and all others listed on Schedule EIC, must have a Social Security number that is valid for employment You must have earned income from working for someone else or running or operating a farm or business Your filing status cannot be married filing separately You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return You cannot be a qualifying child of another person You cannot file Form 2555 or Form 2555 EZ (related to foreign earned income) You must meet the earned income, AGI and investment income limits (income limits change each year), see EITC Income Limits for the tax year amounts And you must meet one of the following: Have a qualifying child (see who is a qualifying child below) If you do not have a qualifying child, you must: be age 25 but under 65 at the end of the year, live in the United States for more than half the year, and not qualify as a dependent of another person

Wife is not a dependent when she files her own return or ever.

http://www.accountingtoday.com/news/tax-practice/irs-to-refund-fines-to-marijuana-dispensary-74070-1.html?utm_campaign=tax%20pro%20today-mar%2025%202015&utm_medium=email&utm_source=newsletter&taxpro=1&ET=webcpa%3Ae4069072%3A2682979a%3A&st=email How can you pay cash when you file your 1040? Who will be authorized to put his/her hands on your cash?

But that's limited to 10% of MAGI, correct? It won't benefit since most scammers ask for 2K-5K and that amount is less than 10% of MAGI for most people.

You have to live in the US for 6 months for EIC.

She accumulates physical presence and you should consider what days she was in the US for 2013 and 2012. She is an investor and she has to prove she has a business not only for profit but that she has a lot of money at risk. These are the only people that do not accumulate physical presence (Students only the first 5 years do not accumulate). Exempt Individual Do not count days for which you are an exempt individual. The term "exempt individual" does not refer to someone exempt from U.S. tax, but to anyone in the following categories who is exempt from counting days of presence in the U.S.: An individual temporarily present in the United States as a foreign government-related individual A teacher or trainee temporarily present in the United States under a "J " or "Q " visa, who substantially complies with the requirements of the visa A student temporarily present in the United States under an "F, " "J, " "M, " or "Q " visa, who substantially complies with the requirements of the visa A professional athlete temporarily in the United States to compete in a charitable sports event

Pretax payment lower everything, I think, except for retirement plans.

have you donated lately to this great Forum? I haven't.... but I plan to do soon while supplies last. Give me a like if you will donate this week.

I went to visit my friend to collect some money now that she is making tons. Which reminds me that we need to donate to Eric while supplies last (but that's another post which I will prepare). Any ways, I am glad that I created a new LAN, server and joined her workstations, installed the network version of Pro Series and I have NOT received any call requiring my help. In computer and network terms, that's amazing for 10 computers networked and we are almost done with tax session. But going back to my intent, while I was there, there was a client with a letter from the IRS and everybody was running like chickens without head so I started talking to the guy. Then he showed me a letter that the IRS said: "One or more persons on your return got advanced credit payments for his/her insurance. You need to reconcile that and you didn't do it... Unless we requested it, please do not sent 1040 forms with your reply because we already have it" I guess the IRS just want to get the credit form and they will adjust the refund themselves. Has anyone receive one of those?

I will be getting a Surface Pro 3 next month and I will be running everything on it. I would consider that a tablet.

Go to control panel, administrative tools, services and make sure all atx services are started and automatic. You will need admin rights to do that.

I read somewhere that the IRS treats dental work not as cosmetic but as a medical condition and it can be deducted on Sch A without much issues. So, I would deduct any dental work on Sch A, but it will be hard for me to include it on Sch C. Of course now with the 10% limitation, that means nothing or a few bucks of benefits.

I know you were mainly joking but I like the fact that the client wants to treat it as a tool for his job. So, you are correct, when tools are used by both personal and business use, you have to prorate it.

Cosmetic to me and most likely not deductible at all with the 10% floor.

The 1098-Ts I have seen seem to be on a calendar year basis otherwise we would not receive a 1098-T when students start college as soon as they graduate from high school. Very seldom, colleges and universities check mark the part that reads if the bill for another year is included. If they were doing it based on their school year, more than 80% of the 1098-T we see would have that box checked.

If you are the lucky one, you should play with them. You should say "I am sorry, I want to make payment arrangements with you, please send me the contract and I will sign it. I can afford $20 per month and bla bla bla". Tell them that your bank cancelled you bank account because you are so poor. Tell them that you clean casinos but there are not that many in your area and therefor you are not making that much money. Or you can tell them that you are the shampoo guy but all you clients are bald now and that your job is in decline. I would play with them a lot if I get a call from them.

What did the police say? You have his voice on record, you should make a police report. Who knows, maybe the phone they are using is a real phone that was reported as stolen and the police could do something.

As you know 1098-T is not the document you need in order to enter the amounts. You need to get the receipts from the client in order to enter the amount. Most students go on line and get the payment information. The student will also know if the form includes amounts that were billed or paid for a prior year.

why would you elect if the child doesn't have to file?

Use a calculator to consider that amount.

Thank you.

Real life situation

I think Sara gave you a good guidance.... unless you want to post income prior to marriage and after marriage for her and the total income on her joint return and form 1095-A.