Christian

I have a couple who divorced last year. Before things went south they enrolled through the federal exchange in a health insurance policy which covered both of them. The husband has received Form 1095-A from the exchange showing the advanced premiums paid for by the government for both. I am filing his return and as there is no agreement as to allocation of advanced premiums have allocated 50% to each. If I read the form correctly I will need to divide the monthly figures provided by two thereby giving him one half of the premiums. This should then give me his refund or his amount owed. As this is likely my one and only client having this problem I would appreciate any input.

​A client donated a pickup truck to a charity last year. He tells me the Blue Book value is shown as $1,000. My understanding of donated vehicles is that a client can deduct only what the charity receives for the donated vehicle. What is y'all's understanding ?

Virginia Schedule OSC/CG will not populate. The form is correct but has no lines for figure entries. Any other Virginia practitioners having this problem ?

​A client wants to give his aged mother some stock he has owned for some time. I advised him he can give her some $14,000 with no tax consequences to him. She will sell the stock to pay off some debts. I am assuming her cost basis in the stock will be what he paid for it. She would then be liable for any capital gains taxes if any. Is this correct ?

I resolved this by overriding the calculation. The original depreciation was set up using the defective software for ty 2012.

In preparing a return with a Schedule E I find the depreciation module does not compute he amount for this year (2014). Anyone having problems with the depreciation function not working ?

Many thanks Judy. Since she chose not to use any of the credits I'll give them to him. Every tax season I thank my lucky star for this board.

A couple for whom I have worked for years picked last year to divorce. They had applied for health insurance through our federal exchange and obtained coverage beginning 3/1/14. The Form 1095-A provided shows premium credits in excess of $9,000. The problem is the credits are based on both spouses. The former beloved wife has trotted off and filed as a single person for 2014 using none of the credits. Now, faced with filing the husband's return I am scratching my head as how to divide these credits or do I just credit them to his return. Anyone got a clue ? The husband paid the premiums due above the credits amount.

The problem resolved itself. May have been a software upgrade or something.

I wait until my federal efiles are accepted and then mark and transmit the state. I just had the program unmark my Virginia efile of a client and not transmit it. In checking the department website I note they are having problems with fraudulently filed returns but can find nothing about not accepting returns or there being a suspension in place. Do any of my fellow Virginia practitioners know what's going on ?

I also am wondering about line 61. I have a family in which three members have exchange issued exemptions but the fourth family member is fully covered under the Chip program. On Form 8965 I find no way to indicate she is covered. If I check line 61 I am wondering if the Service will understand the coverage is only for the dependent or should I attach a note of explanation?

Thanks guys. It was unclear to me whether the parent's having both been granted an exemption number would need to report their dependents on the Form 8965. After all they have been granted an exemption why would it not apply to their dependents since the parents are responsible for the kid's health coverage? I see however that I will need to show the daughter as covered for the whole year and report the son with his exchanged generated number on the parents Form 8965. Oops Guru is a gal ! I apologizes .

Luckily most of my folks are covered by health insurance. I have a couple with two dependents. The daughter was 17 in 2014 and the son (a student) was 19 in 2014. The daughter is covered under Medicaid and the son was uninsured all of last year. The couple has obtained a hardship exemption through the local federal exchange. The son filed a tax return for 2013 listing some $4,000 he made in a part time job and, of course, did not claim himself. He likewise obtained a hardship exemption through the federal exchange which will be shown on the return he needs to file for 2014. He received a 1099- Misc form and pays the required social security himself. In filing the couple's return I can show the two exemptions provided by the exchange and can show the daughter as covered for the full year. In reading the regs I don't fully understand why since the parents have been exempted it is necessary to list their dependents on the Form 8965. Assuming I do would I use the exemption granted to the son ? All of a sudden retirement looks more attractive.

I failed to fill in a line on the Form 8606. Once corrected the 1040 filled in correctly. This is early days I feel sure I'll goof up again before April 15th.

​I resolved this. I misused a box .

It's a Roth IRA distributed to a brother who was the listed beneficiary. It's distribution code is T. I even placed a zero in the taxable distribution line 2a. The account was set up over eight years ago and is of course tax free. I had the same problem last year with an ira distribution and had to override field entries to complete the return.

After filling in a client 1099-R indicating no taxable amount in box 2a I find it included in box 15b on the Form 1040. Any solution for this other than overriding the entry ? It occurs to me I had this same problem last year.

I finally found a resolution to this problem. The couple are resident aliens and as such are subject to the ACA requirements. However, since their combined income is on the order of $25,000 or so they qualify for an exemption based on the costs of the healthcare (bronze level) being greater than eight percent of their modified AGI. As another member pointed out keep looking till you find them an exemption.

Ah yet another federal masterpiece with many regs and many more interpretations of same. I rarely drink alcohol but after additional reading related to the ACA I am inclined toward the idea of laying in several gallons of Chivas Regal for the tax season so I can retire to my couch and relieve my anxieties.

Luckily most of my folks have health coverage. One couple who are non citizens who work legally here and return home periodically have me sorta stumped. In reading the regs exemption C seems to me to be the correct entry on Form 1040. Any input would be appreciated.

I have married grandparents who still work (a farm and beauty parlor) who carry as dependents an adult daughter and her two minor children. In 2013 they lived with the grandparents but moved out for all of 2014. In reviewing the EIC regs I am given to understand that the grandparents will not qualify to use the EIC for the children because they have not lived with them over half of the year in 2014. The fact that they pay the mother's and her kid's expenses does not entitle them to use the credit. Is this correct or is there an exception that will allow them to claim the credit ? If there is I have not found it.

I download it and print out sections as needed. Incidentally, Marilyn I put my RTRP certificate in a large frame and now it's worthless. Guess who ain't hiding it ?

I am sure you are right. I feel with time and a good ZA tech I could have clicked a few toggles and all would have been well. However, I am no computer tech to say the least and chatting maybe a few hours with a tech is something I have little patience with. I went to Gibson Research and ran one of their tests I have used for years to check my security software's effectiveness and was surprised to find the Microsoft product produced an identical score as ZA. So for this ole bird all is well.

I ran into the same problem. I have stopped using Zone Alarm and now use Microsoft Security Essentials. My software loads much more quickly and so far works well. I now believe that my problems with software in prior years came in no small part from the security software I used.

Well my rollover problem is resolved. After some 2 or 3 hours a tech discovered my Zone Alarm security was the problem. I'll be using Microsoft Essentials and hope that is sufficient security.