Pacun

File the kids return and NO kiddie tax is involved.

But if you were able to get only 3 clients, were you really in business? How about the second year, how did you do?

I agree with David. Because they live together, ONLY the person claiming the child will be able to be HOH if otherwise qualifies. Also EIC goes to the parent who spent most nights with the child, NOT the one that makes most of the money. AND that's only if both claim the child on the return.

Happy Birthday JohnH.

If he is a US citizen living aboard, he might be able to exclude the whole thing. I think you forgot to include if he is a U.S. or resident for tax purposes.

I am not sure. This is what I see happens. Client goes to his employer and says that he needs to "sell" or simply that he needs his money. About a week later, employer sells for him and fidelity sends check to employer. Another week later, the employer keeps about half of the amount taken from Fidelity and gives him a check through payroll for the other half. At the end of the year, employee gets W-2 with code V and then he gets a form from Fidelity listing that he sold and he lost $150.

Wow, I think tax preparation is one that shows profit the very same year of inception. I doubt I will spend three years of pressure of dealing with people without remuneration. If I do, I would check my business plan or my hobby plan.

The first question that comes to my mind is to ask you where he lives. If the person lives in a state with a reciprocal agreement between MD and his state, he needs to file and get full refund. I know MD has agreements with VA, DC, PA, etc.

I guess you got the answer you were looking for so please allow me to embed my question. Client claims that he has to exercise his option or he looses the money when they mature, is that correct? I saw the papers from his employer and the exercised his options last year. He had about 8K and the company charged him about 4K to get his money. So his taxable amount was a little bit more than 4K which was added to his W-2 and listed with code V. He also showed me a document from Fidelity showing that he sold about $8,150 and his basis was $8,300 so he had a short term lost for $150. Based on the answer above, he cannot show a loss on form 1040, correct? Thank you.

I based my answer because the person who knows about the situation said it. Now, I know that worksheets are not efiled and that's why I left that one dollar on line 21 to make sure that the 1099misc was mentioned on the return. But I also agree that in some cases it is taxable and it should be reported on line 21... unless the original deduction was made on schedule C. In which case, you should include the 1099misc on schedule C.

This should go on line 21. I would make the deduction there and leave line 21 with $1. On line 21 I would type "1099misc issued by mistake". Inside line 21, 1099 issued by mistake $1300, Deduction -1299.

As long as you a strong home office deduction, all miles are deductible whether you are going to do actual work or errands related to your activities. I am sorry for your losses and please feel free to post your questions.

Both jobs are NOT temporary job locations. There are two restaurants with ONLY one location.

Remember that non-resident means that he was out of the U.S. and he/she doesn't have a US citizen spouse who was a resident. If the US citizen spouse was a resident in the U.S., they can choose to file a residents.

You need to keep record of the FMV of the at the time of conversion. Ask the client to have that record handy and for the rest of their lives.

Those miles are unquestionable but I think he can deduct more. Terry D: Sometime yesterday wrote: "I have many clients that pay substantial parking at UNC because they are required to do so" Required or for the convenience of the employers I think it only works with "home office deductions" or some other fringe benefits.

Have you checked if there is information on "Where is my refund"?

A client has two jobs, Monday to Friday. For 20 days, he got up in the morning and drove 30 miles to his first job where he paid 10 for parking and then he drove 20 miles to his second job where he paid 5 for parking. Then he went drove home 40 miles. He paid $6 toll as soon as he leaves his house and $6 he comes back home. How many miles he can deduct on his 2106 form? How much parking and how much for toll?

RANGER, why will you be reading the divorce decree for DANRVAN's client? I am confused.

The investigation starts with two letters, one for each parent to prove their claim. You client should list each night they children slept under his guard, which means in the same house. So, in your case, I would paper file the return and attach a letter to the return signed by your client stating why he qualifies to claim the children. Mentioning the court papers on that letter will only piss off the officer reading it because we all know the rules and we also know that it doesn't have any weight on the IRS decision.

Good info. Interesting that they don't issue numbers starting with 666. Do you have any clients starting with 8? Can you check if the refund was issued by the IRS?

I don't like the title of this post. ONLY if I slept each night with these children, I would state that.

Get all the information together and be careful. Ask how many nights in 2013 the children slept with both. Then how many nights with the mother and how many nights with the father. Remember that the IRS's first tie breaker will be the nights the children spent with each parent. The IRS doesn't care what the paper from the court reads and they will not pay any attention to it. If the children spent exactly the same numbers of nights with each parent, they the IRS will consider the second tie breaker which is income. You don't have to be the first one to be filing. The first who files will receive the refund but he/she might have to return it with interests. This is what I do: I send a plain 1040 and I attach a letter from the tax paper stating why he believes he has the right to claim the children. That will be enough for the IRS to start its own investigation.

It is a 1040 replacing a 1040 before April 15.

I have two clients and when I check their status on the IRS website, it shows as if I never filed. These are my only two clients whose social security start with 8. Have you noticed that also? Yes, I efiled and if I am not mistaken, one already got the refund.