Janitor Bob

what about hobby income vs hobby expenses?

Brain Fart here. Can gambling losses directly offset gambling winnings or can you only report losses on Sch A subject to 2% income limitation? Client won $2300, but in doing so, spent $4,200.

I have actually found this helpful for my many clients that have local/city tax returns....Most cities around here require Page 1 of the 1040 and any Schedules C, E to be included with the city return (mail only, no local e-file). In the past, I would need to do a seperate print job for these extra copies...Now I can check them in the "Fed Attachments for State" area Other than the overall slowness and annoying tendancy to stop working and shut down, I'm actually starting to like this program....darn it....I just getting into full ATX bashing mode.

That's funny...when I click on the refund amount, mine adds the summary sheet but also plays the first 40 seconds of Abba's "Dancing Queen". You just never know what to expect from ATX

IRS To Accept Returns Claiming Education Credits by Mid-February IR-2013-10, Jan. 28, 2013 WASHINGTON - As preparations continue for the Jan. 30 opening of the 2013 filing season for most taxpayers, the Internal Revenue Service announced today that processing of tax returns claiming education credits will begin by the middle of February. Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its processing systems. Form 8863 is used to claim two higher education credits -- the American Opportunity Tax Credit and the Lifetime Learning Credit. The IRS emphasized that the delayed start will have no impact on taxpayers claiming other education-related tax benefits, such as the tuition and fees deduction and the student loan interest deduction. People otherwise able to file and claiming these benefits can start filing Jan. 30. As it does every year, the IRS reviews and tests its systems in advance of the opening of the tax season to protect taxpayers from processing errors and refund delays. The IRS discovered during testing that programming modifications are needed to accurately process Forms 8863. Filers who are otherwise able to file but use the Form 8863 will be able to file by mid-February. No action needs to be taken by the taxpayer or their tax professional. Typically through the mid-February period, about 3 million tax returns include Form 8863, less than a quarter of those filed during the year. The IRS remains on track to open the tax season on Jan. 30 for most taxpayers. The Jan. 30 opening includes people claiming the student loan interest deduction on the Form 1040 series or the higher education tuition or fees on Form 8917, Tuition and Fees Deduction. Forms that will be able to be filed later arelisted on IRS.gov. Updated information will be posted on IRS.gov. Posted by Kim Manuel at 12:32 PM

IRS has delayed accepting returns that include 8863 until mid-February or early March. This is why ATX has blocked e-filing of returns that contain the 8863.

I discussed everything with client...including potential audit and my fees if such audit did occur.....She decided it is a hobby.

I was wondering the same thing. I am noticing some of the annoyances (slowness, occasional memory leak that eats up RAM) with ATX 2012 12.5 on my stand alone XP machine, but I have never experience the major issues that others have and are experiencing. I installed first week of January updated to 12.2, 12.3, skipped 12.4 and updated to 12.5. I wonder if we will find at some poibt that the problem is with a specific OS, other installed software, Network setup, etc. Just knocking on wood here!

I have been sitting on 3 returns....I created e-files, but I'm afraid to transmit them because I see so many people with problems. Your e-filing experience went OK? If so, maybe I'll close my eyes and send these.

I actually am beginning to like the new print feature....when it does not cause the program to shut down (which it does if I click too fast). It has been a learning experience, but as long as I remember to uncheck all of the needless forms, and make sure it is defaulting to the correct printer, I can learn to like it. It would be nice if you could globally "uncheck" the Federal attachments for State....that is a lot of wasted toner and paper if you forget to uncheck that. Another example of ATX not really understanding what its clients want/need.

My dilemna is this: Personally, I do not think it is a business. What I "think" is that the client happens to like horses and wanted one. She bought one and decided to race it at a couple of county fairs. I think I'd feel differently if she had raced in a lot of races, but she only entered the horse into two races in 2012. But I'm trying to keep my personal view limited and do what is best for her professionally. She does keep very good records. Also....she paid more than $600.00 to one person for stall rental. If we decide this is a business, I need to ASAP get a 1099-MISC sent to this person.

Correct.....W-2 Income $49,000....Horse racing loss as mentioned...sounds like hobby to me, but I am unclear on exactly what the IRS would want to see to justify this as a business. I think I will advise her that the increase to her refund (approx. $450) would not be worth the risk should IRS audit and that IRS would likely view this as a hobby.

Client has a full-time job. Bought a horse to race at local fairs. had a few winning places and won $829.00 during the year. Expenses (excluding the cost of the horse) was $3,397...for a loss (before depreciation is considered) of $2,568. My question is this...In your opinions, is this a Sch C business or a hobby?

caffeine...lots and lots of caffeine. This time of year, I work 8 hours as import/export shipping manager, accountant at a local manufacturing company....then go home to do taxes until the wee hours....next day, rinse, repeat.

You are smart! Seriously...what you say makes perfect sense. I do not question "Why" ATX changed everything....my complaint...as with everyone else here...is that it obviously was released on unsuspecting customers in its clearly pre-beta state. I actually think it will be really nice once the bugs are worked.....It just would have been nice to do that in the off-season. I kinda hate to admit it....but if ATX offers a nice enough discount for next season, I will likely remain with them.....but they really should offer a huge discount for using us as beta testers.

I just double clicked my ATX 2012 desktop icon to open the program. At that very instance, a bird flew into my office window and knocked itself silly before flying away.....Coincidence or subtle message from the tax gods regarding self-inflicted injury and poor choices? So I'm torn....do I "fly away" or attempt the same window in hopes that I can get through?

I have had several of these in the past. Client deserves the dependancy exemption, but ex-partner files on their own and claims the kid. Client's e-file claiming the kid gets rejected because ex already claim the kid. Client paper-files claiming the kid and eventually gets what they deserve...but many, many, months later. I assume the ex eventually had to pay back the portion of refund over-paid, but I never get to hear about that. So there is always a race to file in an effort to avoid this mess and refund delay.

computer is telling me to use a different software company....but I resist because I hate change and as horrible as ATX is this year, I'd rather muddle through (as long as the program is functional) than switch programs now.

I never receive e-mails from ATX. I think in my 10+ years with ATX, they have NEVER e-mailed me and only called a few times trying to get me to renew early.

Thanks ATX! Since installing 12.5, my software now has the curious ability to stop working and shut down at random times. Glad to see you took suggestions from customers who were just tired of a software program that only closed when they wanted it to. ATX can BITE ME

I see that...but it does not give the option to move the closing to the bottom...just moving the state and school up and down....so I can choose to have state at bottom or school at bottom, but no option to have closing paragraph at bottom.

Now on a different Client, I get the closing paragraph in the middle of the page...after Federal info, but before the Ohio and School information....no option to move the closing to the bottom where it should be.

I just posted a similar complaint. In my case, I have a School return (OH SD-100) and local city return. Client is getting refund direct deposited for SD-100, but Federal Letter states check in the mail. Local returns cannot be e-filed...only mailed....but Federal Letter insists on stating that it is e-filed. Under Local letter options, I can see the option to choose paper file, but e-file is checked and it cannot be changed. Yeas...I know that client letters are not as important as having a program that works with the forms we need....but for the price we pay for this software, we deserve to have everything work.

I have given up on the client letter. Local letter info does not flow properly to Federal letter. OH SD-100 refund information does not flow properly to Federal letter. I have resorted to copying and pasting into Word then making corrections. I am just going to be happy that I have a functioning program with most of the forms I need....NOT what I deserve for the money I paid.

I updated from within the program late last night. Everything went smooth. It does seem a little faster...no other noticeable improvements. However, I have been one of the lucky ones with no serious problems other than the previous slowness. I have rolled over and completed several returns....have not yet transmitted any....hoping Ohio E-file will be ready in the next few days.