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Christian

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Everything posted by Christian

  1. 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.
  2. Christian

    MFS

    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 ?
  3. Aieeeeeeeeeeeeeeeeeeeeeeeeee ! Chi wah wah.
  4. 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.
  5. 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.
  6. I'll try to avoid that by noting it as a one time fee.
  7. 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.
  8. Is the administrator's fee for a decedent's estate subject to self employment tax ?
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.
  15. Christian

    W-2s

    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 ?
  16. Thanks for your reply. Being deceased evidently trumps the requirement of having to live in the country for six months or more.
  17. 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 ?
  18. I was never fingerprinted. Of course, at the time I was working for the poe lice.
  19. After reviewing the rules I've decided to use the Lifetime Learning Credit. The college indicates she was not a half-time student and this would likely disallow the AOC. She evidently needs only a few courses to complete her degree.
  20. A twenty five year old married mother received a 1098-T from a college she is attending. She is working towards her BA degree but because of family matters she was unable to attend for four years continuously. Box 8 (half-time student) is not checked on her form. Even so I plan to compute her AOC education credit since she is finishing her degree requirements. Is this correct ?
  21. Some of us have been sending efiles since the program was initiated.
  22. Does a first time efiler still have to receive their refund by check ? This was the old rule and I am wondering if it has been changed allowing them to receive the refund into their bank account.
  23. It is reported in Box 12c as $2000. The only reduction in gross wages is is 401k contribution. Since it is through their Cafe 125 plan I expect to show no deduction on Form 8889 and show the distribution as non-taxable. I have not yet seen the distribution reporting form as it is in transmit to me by mail. I've not seen this before hence my wanting to be correct in what I enter on their return.
  24. Every year a new wrinkle ! A married couple who work for the same employer each have an HSA with the company. Along with the employer they each make voluntary contributions to the plan. The plan is part of their Cafe 125 arrangement. If I read the rules correctly they are not entitled to a deduction for their contributions. Is this a correct reading? Their voluntary contributions were within the applicable limits. My reading is their contributions are not deductible and their distributions are not taxed. They are both in their twenties.
  25. Christian

    EIC

    A single mother with two dependents has come in. She clearly qualifies for the EIC but also receives some public assistance. In checking I can find nothing that indicates her income from public assistance in any way limits her EIC. Is this correct?
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