Margaret CPA in OH

Thanks Lion and Judy, it appears as though she qualifies as a dependent. Disability income does not count no matter the amount and gross cd redemption income offset by basis leaving no taxable income doesn't count. What she contributes to her own support is apparently irrelevant. This mom and daughter will be happy as they need all the help they can manage! Thanks again...

Daughter is considered disabled emotionally, age 59, so not child but relative. I think at 65 it converts to regular SS. I have the worksheet but don't know whether to include the $6100. The SS is not included for this support test even thought the worksheet Line 1 says to include taxable and nontaxable income. I know the $6100 gross proceeds could be the difference as she pays all her money for medical expenses and share of food and own clothing plus grandchild gifts and vacation expenses. If GROSS income is used ($8500 + $6100), she provides more than her own support.

Adult daughter of client has disability income of $8500, not taxable, and gross proceeds from cd's of $6100, face amount of $6100. As this $6100 exceeds the threshold of $4150 for a person's gross income, does she qualify as dependent? The basis equals the proceeds so no tax is due BUT the gross receipts are $6100. Pub 501 does not seem to address net taxable security sales just gross income. Thanks for quick reply!

How wonderful for you all! Looks like a perfect day. Be sure to upload the photo of the proud parents, too!

Thanks, I will likely amend HIS filed return to include her unfiled information as Lion mentioned. I just have to get all of his documents now. For the college son and 529 distributions, it is a real challenge getting actual documents for 8867 proving dependency. He has lived in an apartment year round so gets no mail at parent's address. School info does not come to parent, privacy stuff you know. I will have to rely solely on a phrase from the divorce decree that she gets to claim one son for tax purposes, ex claims the other. I HATE 8867!

Returning client has married and now has brokerage accounts in joint ten. I haven't yet asked whether spouse (already filed, not my client), claimed half the divs, etc. I doubt it. Client's SSN is on the account. Is it okay for her to claim all? The only other clients I've had with joint accounts, I've split the amounts. I strongly suspect that all the money is hers. He is a personal trainer making not much money. She is a pharma sales rep making much more. It may also be advantageous for them to file jointly. Spouse has already filed, though. Is it appropriate to file client MFS then amend if it is, in fact, advantageous for MFJ? I haven't yet seen spouse's return. Client skipped a year with me but feels quite nervous that TT wasn't right. Yep, we may well amend 2017 as she completely omitted dividends and security sales. She also withdrew lots of 529 $ for both sons in college. I'm having her prepare a sheet of expenses but conversation seems to cover all withdrawn amounts as valid expenses. However she claims one son, ex claims the other. 529 accounts are in her SSN but both are named on the accounts. As withdrawals only in excess of valid expenses seem to be reportable, I have suggested that she just have handy the complete list of expenses and receipts if/when a nasty gram arrives. Other suggestions? I have two more footdraggers coming in Oct. 1. I really wish this season was over! I'm ready to send out the year end newsletter, for pete's sake!

My dedicated fax machine is an old XP computer. Faxes come there then I can transfer, if desired, to my main computer now Win 10. There are differences, indeed!

Catherine, that is exactly the message I tried to describe in the first post. The only thing that fixed it was to mark every single forum as read, whether or not it was. No problems since then.

Thanks, I did finally figure that out and actually have it already!

Well, this is embarrassing. I want to change banks for my business account and can't find my IRS letter with my EIN. Is it possible to get a copy somehow? I will look in the safe deposit box but can't get to it until later this week. (embarrassed emoji here - I don't know which it is)

Thanks, Eric. When I marked ALL fora as read, even those I never read anyway, the issue has disappeared. I am so relieved to reduce my keystrokes

I've now marked all of them as 'read' including this one. I'll let you know what happens with the next posting. Thanks!

Yes, recurs every time. I can get back but have to go to Forums, then choose General which is black for having unread messages but, of course, there are no unread messages. Oh, the pain of extra keystrokes!

Recently I have been getting this message when I have finished reading all posts: Giant exclamation mark followed by Sorry, there is a problem There are no unread content items. Error code: 2S136/J Then I have to choose Forums to get back to General which shows as black as if there are unread messages. But there are none. I used to just be redirected back to the main General page. This began about the time one topic was moved to maybe e-file. Related? How can I get rid of this nuisance? Thanks

I had one, similar situation. From the Edward Jones form: Do I need to Report the information on Form 1099-Q? If the fund distributed from a 529 account are used to pay for qualified education expenses, generally the distribution is not subject to tax and does not need to be reported on an income tax return. What Amount is Potentially Taxable? The contribution basis shown in ox 3 is nontaxable. This shows the basis in the gross distribution reported in Box 1. The earnings in Box 2 may be subject to taxation. I will assume that all was used for qualified expenses so you have no reporting. My clients had too high income to qualify for any other education credits. I do recall another client in years past that did have to include some amount of the earnings in income. There is a calculation involved to determine that and it is included in Other income as Qualified tuition program (QTP) distributions and earnings (1099-Q) that would be taxable for nonqualified expenses. I just don't remember now the calculation.

ATX does appear in the comparison chart you can click on (incredibly tiny). I think the article just mentions enhancements and ATX is the poor, unenhanced, stepchild of WK. For me and my clients, we really don't need the mobile access and data entry from the client. YMMV

Gail, et al, the wife minister's W-2 was entered as spouse and Special type, clergy. The 1040 Clergy worksheets were completed. Husband, filer, had $325 non-employee compensation. Somehow, the SE created was short form for filer and should have been long for for spouse. The amount of SE tax was actually almost correctly calculated, off by just $15. I can't easily find out why but it was in their favor. The remaining issue is that the SE tax was reported for filer, husband, and not spouse, minister wife. So I will still pursue the path Max recommended as the tax difference is less than $50 and we just need to be sure she gets the proper credit. Thanks again, all, for great guidance! What a group of fine professionals on this board...

Max, thanks so much for this! I would never have thought of it. Since this was for tax year 2016, wouldn't it be already posted so the client can do this now? Also, would both husband and wife follow this procedure as both are incorrect (I haven't read it yet but will)?

I usually include (taught to do so at my first firm) copies of 'as originally filed, do not process' (stamped multiple times) forms. That always included corrected numbers in the margins but this one won't. Thanks again!

When preparing the recent return, I noticed somehow that for 2016 I had filed the return with SE for husband (who had less than $00 in SE income) rather than wife, a minister required to file SE for housing, etc. What is the best way to amend? Just send in the 1040X with incorrect SE stamped DO NOT FILE and corrected SE showing spouse instead of filer, maybe highlighted? Other suggestions happily received!

Thanks for replies, friends. Always good to have support or correction as appropriate. My guess it is too late to set up a separate account but not really sure it would be needed anyway. Nontaxable income, well publicized as fund raiser and should be easy to trace the payouts for medical expenses and contributions. I will ask about possibility of retroactive accounting. Hey, most of our other clients do that, right? Happy weekend!

Client held fundraiser for daughter's medical expenses. Employer of daughter donated restaurant profits from that evening and several folks donated auction items. As nothing was passed through an established tax-exempt charitable organization, I'm pretty sure the income would be construed as gifts and not taxable and also not deductible by any donor. Client wants to make donations from this cash to epilepsy groups but that would then be personal contributions from client, as I see it. Any other opinions out there? If so, please provide cites for my continuing education...and thanks!

In an online discussion recently, it seems Ohio wants to or is creating nexus if trucks drive through the state more than a minimum number of times. No deliveries, just driving through. The compliance would be a nightmare.

Remember how much they were appreciated? So much that we funded a barbeque to send them and they sent a photo back of them enjoying it. The good old days, indeed!

A return was transmitted then rejected due to dependent anomalies. I tried to re-transmit and system is down. Client wanted to paper file. So I gave a paper return expecting a rejection again (included Form 8948) as client did not want to wait and see. Is there any way I can stop the federal return from being processed or just wait for the expected second rejection? That is, if ATX comes back to life again.