Margaret CPA in OH

I was surprised to read in the Sch M instructions that people filing 2555 and 2555EZ were also entitled to the Making Work Pay credit. However, I don't think the flow through is happening. At least not in my program and, yes, I have updated. Any insights or comments? Foolishly I called tech nonsupport and gave up after only 20 minutes thinking this may be a tax issue despite my reading of Sch M.

Jainen, I specifically mentioned that my son did not have a tax motive in buying his house and closing when he did. The purchase took place at the closing. If, by chance or design, the closing had been scheduled for Nov. 6 or after, they would have been able to avail themselves of the credit. It "cost them" because they knew the credit was in the process of being made into law and thought about waiting but decided, as mentioned, that they had not counted on it in their decision to purchase. They also chose not to request a delay in closing because there was no tax motive in their purchase decision.

Thanks, I really enjoyed that! I'm old enough to remember Abbott and Costello in television and always thought they were funny.

Yes, too bad for my son and wife, too. They closed on their house Oct. 30, one week before Nov. 6. It cost them $6500 in credit (he owned a home for 5 1/2 years previously) but the seller, an estate executor, wanted to close by end of October. They all agreed while the Washington negotiations were still in process. I was kind of proud of my son,though, as he philosophically observed that they had not counted on the credit anyway when deciding to buy the house. So there are folks who really don't always have a tax motive behind every decision.

You are more than welcome. We are all here to help each other. It was lucky that I just had this issue so was in the mindset. Also, I am so grateful for that worksheet! Can you imagine the time-consuming calculations to optimize without it?

I went back to my students form and input LLC. Then I input $3000 for tuition and fees and $5000 for additional expenses for Midwestern Disaster addl exp. This carried easily to 8863, line 7b and the 40% calculation. If I put $8000 in the Midw Dis box, it calculates the 40%. I'm thinking the box carries totals properly if all qualifying expenses for Midw Dis are put into that box only. But then I wanted to know what those extra expenses could be. Turns out, you probably know, it is only room and board and only if at least half-time. I guess that's because some folks may have had to pay these extra expenses if displaced from their homes. Otherwise, only tuition and fees, books, supplies, and equipment qualify for LLC. Anyway, it seems to work for me so am sorry that I can't help further.

Good point, Lion. I checked on this for two clients yesterday and discovered that (confession - I didn't know before) the American Opportunity Credit is an expansion of the Hope Credit. So if L.S.'s client doesn't qualify for the first 2 years (he did say client qualified for LLC), then American Opportunity might work. It does so beautifully for my folks, a sweet, young married couple both working full-time and both going to school almost full-time. They are to be admired, I think.

Did you complete the 1040EdExp worksheet? The far right side has a place to input such expenses.

Hey, Dude! Good work and great results. I have had only good experience myself with that office. It's great to know of more positive experiences. How does your daughter feel about your new title as Tax Dude? I'm aspiring to Dudess or is it Dudette?

Great! Ah, the Irish, just gotta love 'em!

:bday: and many more! And thanks, Taxbilly, for the added entertainment to help us celebrate. What a way to start the day!

Thanks, Chuck! My Irish in-laws will appreciate this one! They actually have an annual golf tournament which serves as a reunion now going on 41 years.

Ahhh, good to read you here again, Joel! We've missed you, you know. The wit, the fun, the smart answers, I mean, intelligent responses. Glad you're back!

I am trying to upload the form I mentioned. It may prove helpful to some.1098-TDocument.pdf

What a great addition! It will be interesting to see if others can add on. Geez, this is fun, sort of takes away some of the pain...

Las Vegas Churches accept gambling chips THIS MAY COME AS A SURPRISE TO THOSE OF YOU NOT LIVING IN LAS VEGAS, BUT THERE ARE MORE CATHOLIC CHURCHES THAN CASINOS.. NOT SURPRISINGLY, SOME WORSHIPERS AT SUNDAY SERVICES WILL GIVE CASINO CHIPS RATHER THAN CASH WHEN THE BASKET IS PASSED. SINCE THEY GET CHIPS FROM MANY DIFFERENT CASINOS, THE CHURCHES HAVE DEVISED A METHOD TO COLLECT THE OFFERINGS. THE CHURCHES SEND ALL THEIR COLLECTED CHIPS TO A NEARBY FRANCISCAN MONASTERY FOR SORTING AND THEN THE CHIPS ARE TAKEN TO THE CASINOS OF ORIGIN AND CASHED IN. THIS IS DONE BY THE CHIP MONKS.

Really good! I so appreciate these offerings; they make my day! I just hope to come up with one to share, too.

Thanks, KC and Catherine! I now have a smile instead of a frown.

:bday: and many more!

University of Cincinnati is one of the apparently rare schools that actually lists the payments received, when and the source in a neat chart format. The columns show payments made with cash, credit cards, scholarships, loans, and grants to clearly identify the possible treatments of payments. (My husband is the designer of the student information system software and is director of that division - I think there is a link there...) If clients provide only the 1098-T, I ask them to complete a similar chart. It can be enlightening.

Isn't it amazing how easily we are distracted from the pressing tasks at hand? Diversions of almost every kind grab me and refuse to shake loose. Hmmm, do you think I'm holding them too tightly? Now I want banana cream pie, too, and my favorites are actually cocoanut cream and lemon meringue. The power of suggestion is strong!

Don't you just hate it when skin is broken? It's especially painful in winter.

This is a great environment to learn so very many things. I love the oats comment and will eagerly look for an opportunity to use it. And the sand in the boot - now that's dumb! So sad that we actually encounter those folks, isn't it?

Heartiest congratulations, Tom. We here are in awe of your accomplishment and value the wisdom dropped as pearls from your postings. And of course we give, well, something, maybe not a darn but something! Keep the insights coming!

Well, she could minor in Frikkin' couldn't she? I'm sure it would look great on the resume and make her infinitely more marketable.