MAMalody

Will the close of tax season (other than extensions) most tax issues have been resolved. If you will monitor during the extension season you will see occassional questions as those issues are resolved. Instead of just monitoring, why not post that question that has been nagging you?

Mike

To be honest, I hate to even consider going anywhere else. I have enjoyed using ATX and don't want to change. It does everything I need. Having said that, I am concerned about my price increase for next year and even whether they will be here. The way the community was summarily removed does not sit well or feel right to me, so I have questions about whether ATX will be here for the 2007 tax year. This is why I am looking at other possible alternatives.

Mike

as I review prior year's Sch SE and The Ministers Guide for 2006 Income Tax - iam getting more confused!

Taxpayer teaches at a Lutheran college and receives a regular W-2. However, he also receives a housing allowance of 16,200.

He has self-employment income of 18,000 with expenses of 18,500 and office in the home of 350 ( as the utilities etc are carried forward as not enough income to deduct)

Is the SE as simple as Sch C plus the housing allowance for SE tax?

Or can he deduct his expenses for the house against it before he pays se tax? When he was a W-2 minister, I allocated etc... but now it is a little different scenario.

Someone please help clarify this for me.

Thank you D

Your posting is a little confusing, however, if the school is an integral agency of a church, and it probably is, it would be able to treat an employee performing ministerial duties as a dual status minister for tax purposes and designate a parsonage allowance if it meets most of the requirements of RR 72-606 to be an integral agency of a church.

RR 70-549 and RR 72-606 clearly state what is requireed to a school, mission, or other religous organizatioin to be under the control of a church and qualify as an integral agency of a church.

If all qualifies, you would handle him like any other pastor. If it doesn't, the housing allowance becomes taxable.

This can be a tricky area, however, my guess is, that if you contact the school, they may have documentation showing qualification, maybe even a PLA.

Now, let me explain your problem, as I see it. You are indicating that he received a normal W-2, that is, one that has FICA and Medicare deducted on it. If that is the case, he does not qualify for a housing allowance because that would indicated that he does not have dual status. If the W-2 is issued in error that way, you would need to have the W-2 corrected.

I do not now all the answers, however, I do specialize in clergy taxes and would be happy to help you with any questions that I can. You can contact me directly at [email protected]. You should note, that if you contact me directly, you will receive the benefit of peer review that this board makes available.

I hope this has helped.

Mike

Taking into account that some (maybe me) may be moving to different software this year as a result of the changes in ATX, has any tried or have knowledge of TaxAct by 2nd Story?

Mike

Thank you - timely, I will use the clergy to double check...

I submitted the clergy worksheets and would be interested in any errors or comments so that I can fix the worksheets or improve on them. Thanks for the help. You may contact me at [email protected]

Mike

Mike,

On the W-2 be sure to indicate that it is to go to the 2555. Near the to of the W-2

entry screen there is place that says "Special Type" Just Select "To Form 2555"

Hope that helps.

Thanks

jake

Ahh. I looked at the W-2 but missed that. Thanks. (And to think they say these boards aren't necessary)

Mike

I can't seem to get the Form 2555 to pick up the income for line 19. Any hints. I tried using the tabs at the bottom to no avail (I am assuming I used them correctly). I can override the field, but, i don't like to do that. Oh yes, this is on ATX software, of course.

Mike

KC it is good to see you here. I have missed your missives.

What is a link to your reference software research discussion lines/

Mike

I would have certainly renewed with ATX's MAX program until they presented us with this slap in the face. Now I am almost certain to switch. One message they seem to be sending is that this is just a prelude to more high-handed ways of cost cutting based on the idea that losing a few customers is OK if it improves the bottom line. However, I am more interested in MY bottom line than theirs.

What next? They have dropped the free zillion forms they promised to continue forever. They dropped the message board. They dropped the 'chat' feature. Next: drop free e-filing? Drop including W-2/1099 as part of MAX? All of thise are good things to market separately to improve profits. All they have to worry about is to keep up the cost cutting without losing too many clients.

This is what you want to putting into their suggestion box, not bring back the community. Any company that is not interested in their clients bottom line is not really interested in the client. It is only as ATX did those things that enhanced our business with better service, problem solving, product, etc that we stayed and spread the word. If our costs go up and we receive less service, product, etc what is our incentive to stay. Ultimately, our bottom line suffering will cause their bottom line to suffer...unless their ultimate direction it to terminate ATX anyway.

Mike