Max W

For the 8% exemption, the taxpayer has to apply for an exemption. That Exemption number (ECN) would then go onto form 8965. The 13 page application asks for financial information and substantiation. The Marketplace will determine if an exemption is granted. There are no calculations for the preparer to make. • Unaffordable Coverage Options- People who would have to pay more than 8% of their household income (MAGI) for the lowest priced Marketplace Health Insurance after subsidies qualify for this exemption. or if employer insurance is unaffordable, costing more than 9.5% after employer contributions for self-only coverage, you will likely quality for this exemption. You must apply for this exemption. Remember that your MAGI is not your taxable income; it includes the amounts you invested into non-taxable savings accounts, income from Social Security, and educational expenses. NOTE: If your employers coverage is considered affordable (less than 9.5% of your household income), you will not qualify for an exemption from the fee yourself, but your uninsured dependents will be. The fee is 1/12 the fee per month for each family member without coverage.

I fail to see where there is any conflict with helping someone apply for an exemption and state insurance sales requirements. Each application form has an Appendix page where the client can appoint an authorized representative, akin to a POA. Charging for that service seems appropriate enough,especially for the hardship and unaffordability forms. Most clients can probably navigate the other applications without help. BTW, for Indian Tribes, the application only has to be made once and it is good for all future years.

If there was nothing at risk, there can be no loss. To paraphrase -"Nothing risked, nothing lost".

There has been a lot of discussion about ACA, but there is barely any mention of the exemptions, either here or in the IRS info. In order to properly fill in form 8965, an ECN (Exemption Certified Number) is required. To obtain this number, one of 7 different application forms -depending on category - has to be filed with the Health Insurance Marketplace in London, KY. They say that the response takes 10 to 14 days - assuming that the application is complete. One application form - Unable to Afford Coverage - is about seven pages and requires much of the same information as a 433A. Documentation is also required. If a client wants to claim an exemption, this will delay preparation of the return 2 or more weeks.

Margaret, this woman is a chiseler and manipulator. You can be sure that she does this with everyone she has dealings with. Just write her a businesslike note - "Thank you for the $150 partial payment of the $250 invoice. When can I expect the balance of $100? Wishing you and your family a Merry Xmas ( or whatever) Margaret Either she responds and you will never hear from her again. She will also avoid you at the book club.

Interesting!. They call it a fee and SCOTUS ruled it a tax to legitimize ACA..

Thanks, Joan. That was very thoughtful of you. It will certainly help.

Anyone in CA familiar with this company? http://lowpriceinsurance.com/bondapp.html

The $11K and $42 K are not taxable only IF they were not taken as a deduction. I would guess that the $42 K was taken as part of the CG calculation for the sale of the house. That return could be amended to make the 2/3 part not taxable. The 1/3 of the $11K can go on 3903 for the year of the move , or the following year. The $23K could get messy. Ideally the company should send a corrected W-2,. Otherwise the repayment would have to go on Schedule A Miscellaneous. BTW - 22 +23 + 42 = $74K. Was something left out?

The PMI is included in the House version of the extenders bill. Now, it is up to the Senate. See 5th bullet point https://www.congress.gov/bill/113th-congress/senate-bill/1859

Once an S-corp converts to a C-corp, it can not convert back, for at least 5 years. After rereading your question, I would be almost certain that the original S-corp was not properly terminated using form 966 and that the same EIN was used for the C-corp.

Maybe the outside firms will do a better job than the IRS.

When a state return is filed in the state of residence and the address is in another state, that state will pick it up from the IRS exchange of information. The address state has no knowledge of the residence state filing and will make inquiry as to why the address state has not received a filed form. I have had to deal with this several times and a copy of the residence state return with a short explanation suffices. However, when the residence state is a non-tax state, the problem becomes more difficult and all sorts of documentation showing residence are needed. No overthinking here, Jack.

There should not be any problem with the feds, but unless the son lives in one of the non-tax states, the state could come looking for their share of the tax pie. The son might then have to get involved with proving the actual residency of the parents.

Was the S-corp election - form 2553 - timely made?

Thanks again.

Thanks, Catherine. Am prepping both a 1065 and personal returns for 2012 & 2013. So, are you saying no MA efiling at all? -and to check the box on the MA1. Is there anything similar on the MA 3?

Does MA still accept efiling for 2012 returns? TIA

A separate form has to be filed and franchise fee paid by Apr 15. http://www.tax.ny.gov/pdf/current_forms/ct/ct5_4i.pdf

Thanks Jack. it will come in handy.

Under certain circumstances - MFS - the wife can be claimed as a dependent, but not for 1/2 a year , of course.. If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. http://taxmap.ntis.gov/taxmap/pub17/p17-013.htm

As I recall, it usually shuts down the day before Thanksgiving and resumes the 4th week of January.

It would be foolish not to take the NOL. As Jack says, keep shopping around until the right bank is found.

Thanks, that's the way I interpreted 3 years ago, but wanted a 2nd opinion because the client has been coming up with dozens of questions and hypothetical scenarios of living part year here and part year there, giving up her US citizenship, and on and on.

Disagree. Because the income and additional fica/med is a W-2 issue, the employer is responsible because he hasn't complied with the regs.