neilbrink

I use the "Completed" column to check off those returns that are completed, whether they have been accepted or for some other reason, including the example of your incident. I then check the "incomplete" box on the left hand side and only the returns that need some form of resolution are still shown. Hope that helps. Neil

This reminds me of the story about George Burns when he turned 100 years old. He said he had been offered a contract to perform at Cesaers Palace in Las Vegas once a year for the next five years. He said he turned it down, because he wasn't sure Cesaers Palace would be around in 5 years.

When I open the lid and when it wakes up my screen is totally upside down. That happened to me one time, and when it did, I turned the computer right side up, and it's been OK ever since.

Thanks, KC.

Client inherited farmland last year which she is renting out. Part of the Farlmland was tiled in 1999 and 2000 that was being depreciated. The land was in a trust briefly before the assets were disbursed. The person who prepared the trust is telling my client that she can begin the depreciation over again for the entire original cost of the tiling done back in 1999 and 2000. Can someone take me through the reasoning behind this process? Thanks. Neil

Even though it is not deductible as a federal tax deduction, you may want to check to see if your state allows it for a tax deduction or tax credit.

Thanks, Maribeth.

I have completed a very simply trust return (Interest and Rental Income), all income is distributed each year. My question has to do with the $300 exemption. When I have completed the form, there is a -$300 Taxable income shown due to the $300 exclusion. Should I be taking the exemption before the income is distributed and if so, where do I input that amount on the form? Thanks. Neil

OK, your birthday is over. Now get back to work!!!

Good for you. Good for you.

Illinois is not asking for this information, New Jersey is. If he lived the entire year in New Jersey, then he needs that information to complete the New Jersey form. Find out where your client lived in New Jersey, and enter that information on the New Jersey tax form.

Maybe what you are saying is that your girlfriend (fiance) is into the Pain thing!! Hey, that's cool. What happens between two consenting adults .....

It's probably a good idea to keep the 8853. The employer's portion flows from the W-2 to the 8853 and the IRS may just spot check to see if there is any other activity on the 8853.

Eli, sorry about your hand. How's the other guy looking? (just a joke). The MSA requires that a specific high deductible health plan be in place to be eligible for the MSA (Medical Savings Account). Funds that are deposited into the MSA are pre-tax and can be used to pay for medical expenses not covered by the high deductible. Funds withdrawn from this fund for those medical expenses are then tax-free. If the emloyee did not make any contributions to the MSA, but only the employer did, there is really nothing you need to do on the 8853 contribution-wise. If the employee did make additional conrtibutions that were not pre-tax, then there is a work sheet for Line 5 on Form 8853. You will need to verify with the client that he is indeed on a qualified high deductible plan, whether it is for self only or for family, and what that deductible amount is. You can than complete the worksheet (it's easiest if he was in the plan all year rather than starting mid-year). You will also need to complete Part 3 if he took distributions during the year from the MSA. Hope that helps. Neil

She doesn't read this Board, does she? How great to have a partner to share your life! My best. Neil

I just now received a reject from ATX on an efiled 940 that was sent on 1-28-08. Reason: "The Tax Period End Date (2007-03-31)is not valid for the Form Type (940). Please see custom description for details. Does anyone know where the custom description is? And how could that have been validated by EFC and and then sat for over a month ? Anyhow, is it too late to efile the 940 timely? March 31 deadline? Thanks. Neil

It is up to the the individual to keep track of the amount each year that is contributed to an IRA that is not deductible. It is calculated each year when the tax return is completed. ATX has a great worksheet that is used to calculate that amount, and that basis is then forwarded to the next year so the total basis is up to date when he starts to withdraw from the IRA. You will need to look back on previous tax returns where he took a non-deductible IRA and total them to get your basis now. Hope that helps. Good luck.

It does create the efile when you leave the bank info blank. Looks like either ATX has not updated the program to accomodate or IRS is not allowing it to be efiled this way.

I go ahead and rollover the returns that I will be dropping and then delete them after they are rolled over in the 2007 program. This gives me a better picture of which returns are still left when I click on the "not rolled over" button in the Rollover Manager.

Good one, Eli.

Yes, the earnings on the excess is reported on the 2006 return and I have done that. I was concerned about the correct flow from the 2007 1099-R to the 2007 1040. I didn't want the IRS to infer that there should be some taxes and penalties due for 2007. Thanks.

I just discovered that if I separate the box 7 codes with a space on the 1099-R, it flows correctly. Insread of typing in PJ, I typed in P J (space between).

In 2006, client contributed $4000 into a Roth IRA. Upon completing his 1040 for 2006, it was discovered that he did not qualify for the full amount, but had an excess of $3057. He requested a withdrawal and received the excess amount before the filing deadline, April 15(no taxes or penalties should be applied on the withdrawn excess, but only on the earnings while it was in the account). The 1099-R he received this year shows the $3393 Gross Distribution (Box 1) and $336 Taxable Amount (Box 2). Box 7 Distribution Code shows J and P. ATX is pulling the full amount ($3393) on to the form to be taxed and also to be penalized on Form 5329 ($339 penalty). Am I missing something here? Is there a way for me to code in the ATX program that the excess withdrawal should not be included in penalized income but only the earnings on that excess? Should the 1099-R have been coded differently? Any suggestions? Thanks. Neil

Dan, Go to the Schedule EIC and click on the Qualifying Child Tab. At the bottom of that form, there is a section (highlighted in blue), that you can add Qualifying Child Information for just the EIC. Don't forget to check the box on the left side for each child. Hope that helps. Neil

I received my final one today, also. Now if I could just get my final 940 accepted, then I will be able to breathe. (Gasp, Gasp)