Christian

​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.

I have installed mine and tried to rollover my own return only to be told the program could not locate the prior 2013 information. Maybe it's just a bit too early for full functionality.

Like everyone else I have been boning up (laughs) on the ACA. I've got a handle on it more or less. Most of my folks are unaffected BUT it finally occurred to me that there are not a few out there who file their own returns who are not going to have a clue as to what to do. Looks like it will be an interesting season. Of course, it's reassuring to know we have this handy forum available.

I suppose ATX will again this year not send us an archived disk ?

An older client (93) has been unable to get his material together and will file after October 15. He invariably gets refunded and filed an extension. If memory serves me right he will not receive a penalty by virtue of his having fully paid all tax due. It's been ages since someone missed the deadline but am I correct on this?

You just gotta love this board.

As a childhood friend of mine said at his piano recital as he set motionless at the piano "It would appear I have forgotten". I had overlooked a critical piece of info . Well at least nowadays I can give age as the reason .

Despite my best efforts I was unable to get the Simplified Home Office figures to transfer to the applicable Schedule C's from the worksheets. Did anyone else have this problem ? Nor was I able to place the info on line 30 of the Schedule C by override.

Thanks KC. I called to ask the son if this annuity was established through his father's employment but have yet to reach him. I doubt he will be able to supply the answer. The info provided on the back of the 1099-R indicates payment from a non qualified annuity and further that it may be subject to NIT. I suspect I am pressing on a string but if I can help a client I have the responsibility to at least try. I was given to understand his dad had never taken any payments from the annuity so the entire balance was left to him and he chose to cash it out.

After working for quite awhile on this return I found that one of the 1099-R forms was for an annuity his father owned not an IRA account. He cashed out this as well. Since his dad was born in 1934 it occurred to me the son might qualify for 10 year averaging on the taxable portion of the annuity. The coding in box 7 Distribution Code is 4D. My reading on this indicates this would be a non qualified annuity payment which would not qualify for 10 year averaging. Any input would be appreciated.

Thanks for y'all's responses. The father's estate was not large enough to file an estate tax return. The son's return is for 2013 for which an extension was filed along with a payment. He has that and some withholding. Still he is single and cashed out somewhere in excess of $100,000. The tax bill may not be as bad as I suspect. On the other hand he did not pay Virginia a dime.

Thanks Jack. As so often is the case the client RARELY checks with their taxman beforehand on something like this. Eager to get his hands on the money he not only cashed out but did not have ANYTHING withheld. Not looking forward to his pickup appointment.

​A client's dad died last year leaving his son as beneficiary on two IRA accounts. The son took full distributions from both accounts with all benefit amounts indicated as taxable. He is not yet 59 1/2 years old. I am unsure as to whether he is subject to the 10% early distribution penalty or being a beneficiary is he excepted from this ?

A retired client has been elected to serve on the board of a local bank. As this is regarded as self employment income by the Service it seems to me he is entitled to deduct his medical insurance premiums against this income on line 29 of the Form 1040. What do y'all think ? He deducts NO medical expenses on Schedule A.

A client who always files by extension has miscalculated his 2013 income. The upshot is he has paid and withheld more tax than was owed on his 2012 return but owes about $1300 on 2013. I am wondering what the late filing penalty might run. My experience has been that if full payment is made with the return the Service not infrequently simply ignores the penalty.