Christian

Kamman purchased Pro Tax early this season after all the ATX problems.

A separated female has come in and will be filed as head of household having two children living with her. In looking at her info it appears her half of itemized deductions will exceed the standard deduction for the head of household filing status. Can she file as hoh and use itemized deductions ? I've never seen this before but I see no reason she could not except that her spouse may file as married filing separate and use the standard deduction.

I did as TaxMan 60601 indicated. The figures matched almost to the dollar. He will simply have to adjust to the new reality or get another practitioner.

A client who trades stocks is doing handstands over the new reporting requirements. His repeated wash sales have eliminated his trading losses for the year according to his broker's annual 1099-B form which is ,of course, reported to the IRS. He wants me to enter the individual trades reported on his individual trade forms furnished to him with each trade which do not indicate a given trade is a wash sale. I have advised him to send only information on Form 8949 and Schedule D which comports with the annual Form 1099-B provided by his broker thus matching the broker's and the IRS figures. Is this not correct ? All his transactions are reported in box A of Form 8949.

Is there an IRS form for a taxpayer needing a payment plan? I rarely have anyone who cannot pay on time and don't recall if they have one although they have a form for everything else.

Also, by filing mfs for this year and claiming the three children he will avoid his refund being attached for her loans right ?

Are you saying I can file a Form 8379 for last year for the husband by itself or attach same to an amended return for that year ? Like other marital matters he was unaware she owed these loans. The wife had no income in 2011.

Thanks for all of your responses. Since old dad claimed her as a dependent then only he can file for the credit. Apparently he is unaware of his good fortune and since his daughter paid for her schooling I suspect he will remain ignorant of it.

Every year a new wrinkle. A client married a girl who has three dependent children one of whom is his. Last year he filed as mfj and thought he was going to get a large eitc but because his new wife had outstanding unpaid student loan debts (conveniently forgotten about) his credit was taken to pay her loan obligations. This year he wants to file mfs and ,of course, will loose the eitc but expects he will get most of what he paid in back. They live together so he cannot file hoh buts wants to claim the three kids which ,of course, live with him. Under this filing status can he claim all three children ?

Aieeeeeeeeeeeeeeeeeeeeeeeeee ! Chi wah wah.

The service rep on the toll free tax pro line held that all of the health costs except the medicare insurance premium paid through the wife's social security qualified. I see her point as all the other premiums are in fact paid by him.

A young woman incurred college tuition expenses in 2009 and 2010 which she paid herself. She lived at home with a parent who listed her as his dependent but did not himself claim either of the two available education credits. The tuition amounts are reported on Form 1098-T and show the amounts paid under the young woman's social security number. She filed a return for both years as well but claimed no exemption for herself. My reading is she can file an amended return for both years and claim a credit. Any input would be appreciated.

I'll try to avoid that by noting it as a one time fee.

No she is not in the business. This is likely a one time event. My understanding is fees such as these on a continuing basis are subject to self employment such as a bank director but not an individual serving in this capacity very infrequently.

Is the administrator's fee for a decedent's estate subject to self employment tax ?

A retired client operates a sideline timber appraisal business. He and his wife pay medicare insurance premiums, long term care premiums, and medicare supplemental premiums in their names.Recently medicare premiums were allowed to be deducted as self employment health insurance premiums. I note the ATX worksheet also indicates ltc premiums can be added to the medicare premiums for the deduction. Are all these insurance premiums allowable as a deduction on Form 1040 line 29. His has no separate business name using instead his own.

A grandmother contributed $3000 to a Roth IRA account for her grandson some three years ago.In 2012 grandson withdrew some $1000 of the account. The 1099-R indicates no taxable amount with the distribution coded as J which means he owes the 10% penalty being under 591/2 years of age. My question is is the $1000 fully taxable as well.

She finally advised he has lived in the house the eleven months she has been gone. Further, he has made eleven months of mortgage payments. Looks like hoh is the best option. I HAD MORE HAIR BEFORE INITIATING THIS DISCUSSION.

Her husband lives in the home and she lives 150 miles away. Filing as mfs gives her only one half of these deductions. He has consented to her using all of them owing to child support arrears and therefore I am wondering if she could not use them all.

A client separated from her husband for some eleven months last year has provided me a list of expenses deductible on Schedule A. She advises her husband will not file and feels she ought to be able to use these deductions on her return. I have advised her she can use only one half of these even though her husband may not file a return and for this reason the head of household filing status is more advantageous for her. I am reasonably certain this obtains but would appreciate any input from youall.

Do expenses incurred for dependents at summer camp qualify for the child care credit ? I have not seen this before and rather doubt those expenses qualify.

A new client has walked in with ten W-2s which is the most I have ever seen a single individual bring in. Will efile accept this many ?

Thanks for your reply. Being deceased evidently trumps the requirement of having to live in the country for six months or more.

A client age 45 died in May of last year. His final return shows an Earned Income Credit of some $442 dollars. He was a single man leaving everything to a parent. Is this payable even though the taxpayer is deceased ?

I was never fingerprinted. Of course, at the time I was working for the poe lice.