Pacun

Client makes 80K and has two minor children (11 and 12 years old). The children receive 18K each from social security because their father passed away a couple of years ago. Part of that money is put on CDs and they each have $800 interest income. That's all the income the children made. Any tax return to be filed for the kids? Any kiddie taxes involved? I believe the answer to both is no but I want to double check. They didn't provide more than 50% of their own support.

I think I would enjoy it more if you said: "AND you have to return some of the advance payments... because based on your salary they should have helped you only with $10 per month".

Go to your preferences and change to "not hold state returns". Create the efile and send the state.

Good luck proving that this is a temporary absence.

Support is not the issue. Child has to breath in the same household at least for 6 months in order to be claimed as a dependent.

I misread your post. I thought he got his green card a week ago.

You need to report the sale at a loss and that loss is a personal loss so the 3K doesn't kick in. Then 982 should take care of the 1099-C. One thing to keep in mind is that the basis is reduced by $115,236.53 and you could have a profit on the sale of the house which is taxable if they didn't live in the house for 2 years in the last 5 years.

One thing is for the employer to accept the change of address in a timely fashion and another is to file the NY state withholding form. It doesn't matter when the employer knew about the change of address what matters is that the employee didn't inform the employer that NJ taxes were continued to be withheld. So, it is what it is and it is what you have on the W-2. That money is long gone to NJ and you need to pay or recover.

Good for him. He can make millions in UK in 2014 and the US doesn't mind. For next year, he will have to file a U.S. tax return and report his income based on the tax treaty between UK and us.

Interesting. I had no idea to use Sch C with expenses without income. I like that part that it says that you should have only this job so the IRS doesn't question your title as a trader, then later on they say that one of the benefits is to have unlimited losses. Unlimited losses against what? If you are a trader most like that's all the income coming in from that job and you would not benefit from a huge loss in that year. Does anyone has that software that downloads trades? How much?

On your end, everything will be business as usual and she will file single.

If I get a call from the "IRS" and they demand that I pay them otherwise they will send me jail and I pay them $20K, where do I report that money? Do I pay taxes because that was a gift to scammers or do I get a casualty loss?

Don't worry about those 4th digits things that you are reading. The IRS ran out of number and then they started issuing ITINs with a completely different number scheme to the point that efiles were rejected because the IRS changed the number scheme and didn't let the software companies know. Many employees get fired because they use their ITIN as social security number and when the employer files its w-2s with SSA they get a letter asking to verify the number for employee X. At that point the employer knows he has an illegal working on his force and fires him/her. In your case, your client loves the lovely and inexpensive nanny he/she has and that's not an issue. Paper file and don't waste much time with it since the employer knows.

ILLMAS, you are the only one not playing the lotto. No lotto tickets for you mi amigo.

You will be surprise. Get the birth certificate and don't assume that because the IRS didn't say "hey dude, you are entering the wrong year of birth on two returns", you are entering correctly. There are a few times when the IRS really cares about the birth dates: when the dependent turns 17, 19, 24 if child tax credit or EIC is involved. When a tax payer becomes 25 or 65 if EIC is claimed without dependents or when retirement events, such as contributions or withdrawals. Again, SSA might have the wrong date.

Uncheck the box, recreate the efile and re-transmit. Are those people getting a refund from the IRS?

How much did he make in each state? Some of them will not require filing at all. I guess you would love if this client had expenses for each event so you can pay the states correctly. Let's say that for each event he paid a helper amounts varying from $700 to $1K, it would be nice if he issued a 1099 for each event to the same person so you could correctly report that expense on each state, correct? If that would be nice for you, what's wrong with the company that issued 2 1099s?

Isn't that funny that if you have a 26 year old son who doesn't work, you support him 100%, you don't claim him on your taxes and YET you have to pay the penalty. After a second thought, it makes sense that if you have a child like that, you deserve some kind of penalty from the government.

Have you verified it with the birth certificate? Ironically, the IRS sometimes doesn't say "hey dude, you entered the wrong year for this dependent" until they turn 17. Check his birth date and if correct, then check with the social security administration just in case they made a mistake.

Maybe you cannot efile but you should file a W-2 form and mail it. The employee is a resident of the US for tax purposes and form 1042-s is for non residents.

If you have multiple preparers, the clients belong to the ERO. Now, I have a partner that has the ERO credentials and I prepare all taxes. Some of the clients come because my partner works with them or are her friends. Some others come because they are my friends or I have worked with them in the past. Since my partner doesn't prepare taxes, I believe most of my clients would follow me. My partner would not find another preparer because it is hard to find someone you can trust when you don't know what his is doing.

Actually the parents will be hit with the penalty even if they don't claim their child.

They do that all the time here in the DC area but it is illegal. They can claim the dependency exemption but not the $1000 CTC

One more reason for me to believe that "server not available" is not just because your computer is communicating only with your hard drive but rather it is in constant communication with the ATX server from the very moment you click on the ATX icon as long as you have Internet connection. I will try your trick next time I have a not important return.

I thought ATX just changed the efile file on your computer, not when you have sent it to ATX servers?