Christian

Thanks for your response. I could not see why an individual could not claim their own state tax payments and individual contributions etc. I rarely if ever encounter a MFS request and this clarifies the issues I had. They are married but the wife is a guarantor of payments on a son's college education loan which he cannot pay and is on the hook for principal and interest payments. Imagine her surprise to find she will be unable to deduct her interest payments using MFS.

The wife of a married client wants to file separately beginning this year. My understanding is their itemized deductions are split down the middle for both of them no matter that he has paid much more state income tax than she has. Also she wants to deduct interest expense on a son's college education loan but here my understanding is this deduction is NOT allowed to the MFS election. Is this correct ? The son is from a previous marriage and not her current husband.

I have used this form sometime in the past but her benefits are not per diem. Her insurer simply directly pays the charges directly to the health care provider. She does not receive any payments at all. These benefits are clearly not taxable. She is ,of course, chronically ill and has been so certified.

A client has come in with a Form 1099-LTC which shows gross long term care benefits paid in block 1. In block 3 they are all shown as Reimbursed amounts. According to the instructions on the back of the form these benefits which are paid directly to the company who sends health aids to her home are not included in the client's income. I am just wondering if there is a federal form I need to fill out even though I am not including the amount in her income.

When filing a separate Schedule A for a couple filing separate returns. Do you split all the deductions in half. I can see doing this for real estate taxes on a home. But what about individual property tax on each of their cars, state income tax paid by each, and individual charitable contributions. No one I serve does this and it has been ages since I prepared one of these. Any input is appreciated.

A few clients still file on paper. The Taxpayer Choice Statement. Is it signed and retained in my office or a copy sent with the Form 8948. Or both ?

The ATX program sorted all this out.

In reading the instructions I see the -$40,821 in box 14 is carried to Form 8960 which may resolve any issues there. With respect to the ZZ entry in box 14 I still don't find an answer although I suspect it has no relevance for my client. He has never paid any AMT.

Schedule K-1 Form 1041 are forms I see from time to time. This one is from a decedent's estate and contains three entries I have questions about. Any assistance would be appreciated. Box 5 -Other portfolio and nonbusiness income is a figure of $40,821 which is added to the beneficiary's income. In Box 14 There is an H code and an amount of -$40,821. Is this amount deducted from the identical amount in Box 5 ? Also in Box 14 there is a ZZ code and an amount of $2,851 which is identified as Amt Long Term Loss Carryover. Is this to be carried to his 1040 and if so where reported ? The Schedule K-1 Form 1041 is not a form I am unfamiliar with but this one has the two items which I do not fully understand.

It's been years since I have had one of these. The insurance will cover about 60 percent of what was spent to repair the home. The appliances replaced were all depreciated out. This leaves the other 40 percent the client paid out of pocket for. This will be expensed for 2024. Does the depreciated value of the house remain the same? I am making the assumption it will.

It's been a hectic day and I failed to inquire about insurance but planned a follow up. Yes they had insurance which will cover a substantial part of this which makes my job much easier. If it covers most of this I can simply credit it to repair expense. I am running into an unusual number of sticky wickets this year. They did buy a number of new appliances which will take five year schedules. The insurance payment may eliminate a huge chunk of my problem.

A client who owns a small rental house had difficulty evicting a renter. On taking possession of his property he found a disaster and incurred over $30,000 in repair and remodeling expense. Some of what was done is structural to the house. New siding, bathroom upgrade, floor replacement, while other things done are basically repairs. My assumption is the structural changes must be depreciated over 27.5 years and the repairs charged off last year when incurred. Is this correct ?

I have encountered a new wrinkle with which I am not familiar on a student's Form 1098-T. In box 4 and box 6 identical amounts are entered. A statement indicates this as a payment apparently refunded to the student I suppose for tuition billed in the prior year. Not having encountered this before I am wondering what if any action is required. I read an amended return may be needed for 2023 and since the student got the AOC for that year am a bit unsure how to proceed. Any info is appreciated.

Windows did update earlier this week I believe.

It resolved after an hour or so. It's possible I signed on when their techs were making adjustments or something.