Gail in Virginia

If the mother and father lived together until December of 2018, then neither of them can claim Unmarried Head of Household for 2018, regardless of who claims the children. They would have had to live apart for at least six months of the year to qualify for HOH status. Their choices for 2018 are MFJ or MFS. For 2019, they will have lived separately for the required six months, so it will depend on who the children live with (who provides the household) as to who can claim HOH. But it is possible the divorce will be final by the end of the year and the other parent can file as Single. OOPS! Just re-read the post from ILLMAS. If the divorce was final in 2018, then parent who pad the bills for the house they were both living in would have the better claim for HOH. If they were split evenly, then I don't know what to tell you. They both lived with the kids, they both provided the household - this is why I hate these situations.

I would have expected the partnership to pay VA tax on his behalf. Unless he has a lot of income from this partnership, I would not expect him to have a filing requirement in VA since he doesn't live here.

I am seeing most lawyers around here include a substitute form 1099S in the closing packet. Then the client tells me they never got a tax form, and even if they look through the packet they will most likely overlook it because it doesn't really look like a tax form. I usually just put it on the return figuring what can it hurt?

I would agree. But I am not an expert.

I am inclined to agree with you although if the litigation resulted in compensatory damages, I would not have though it would be taxable or reported on a 1099.

I used to have a client that stapled a color coded scrap of paper to every form that she brought me labeling the form (W2, 1099, I don't know what this is...) I guess she thought she was helping me.

I thought you used that syntax intentionally to emphasize your point

Their definition of scholarship is sometimes a little different than mine also. I would not consider amounts paid from a 529 plan as scholarships, but one Virginia university did in at least one case that I looked at. I would not consider a loan to be a scholarship, but at least one Virginia university did in a case that I looked at. I am not even sure they get the half time student box right because at this point I don't trust anything they put on those forms.

This is an extension of time to file AND pay unlike a regular extension. However, the interest still begins on April 15 and I don't think this waives the penalty for being under-withheld, only the penalty for paying after April 15. The penalty for late payment would begin June 15 for an overseas taxpayer. At least that is my understanding.

Margaret, I had not had that problem previously but it did occur just now and identically to what you described.

My fax machine broke down this year, and rather than get a new one I went looking for an electronic service. I tried eFax but they could not port over my current fax number for some reason (probably because of the rural area I live in.) However, RingCentral was able to port my number and I have been very happy with the service so far. And I love deleting the junk faxes instead of finding them printed. And I can save the file as PDF instead of printing. I did have to pay for the service because I wanted to keep the same fax number we have had for the last 20 years.

I don't think you can treat IL as his tax home. It might be his home, but his tax home is going to be either CA or Liberia, or first one and then the other, IMO. Unless this contract is expected to last for a year or less. Then maybe it could be considered temporary.

I am trying to remember if their is some kind of exception for abused spouses. As fast as this went south, I wondered if that were the situation. But I really have nothing without doing some research and maybe not even then.

Have you been doing th e8606 every year to show the basis and the total balance in the IRA's? Part of this is going to be taxable because you have to withdraw taxable (earnings, deductible contributions) pro rata with the non-deductible amounts withdrawn. In other words, you can't withdraw only the non-deductible contributions from a traditional IRA and then withdraw the earnings later. But the 8606 is the form that should calculate the amount that is a return of basis and therefore non-taxable. Did you complete Part I before you completed Part II?

I am not using ATX so my only suggestion is to check the EIN and Names on any 1099s or W2's on the return to make sure they match. Especially on the state line of the W2 or 1099.

I don't remember the details, but I think the IRS has gone back and forth on the fingerprints and at one time required them, then did not, then did again (and still do, as far as I know.) So it was a timing thing.

I can deal with the smell of hard work if I have to, but those who bathe in cologne or perfume drive me insane! Definitely a case of if a little is good, a lot must be better - NOT!

I think unless you are subtracting this income from the income on VA it is eligible for the Other State Credit. You just need to attach a copy of the non-resident WV return to the VA return when you file it.

Good to know, but won't affect Virginia state balances due as far as I know.

I have a client, Virginia resident all year, who received a 1099MISC showing royalty income with PA tax withheld. They had a 1099 for the same place last year, but no tax was withheld. The amount went from less than $1500 to $1886 this year. The income is listed as being PA income this year. Last year it did not indicate a state but I am sure it was the same. If I fill out the PA non-resident taxes, they owe $4 more than was withheld even though this was their only PA income. But I hesitate to mark the box "not taxable on Schedule E in Pennsylvania" without know why it would or would not be taxable there. Any PA preparers (or smarter than me people) who have any advice?

For insurance purposes, I don't think it matter whether the child(!) is your dependent or not. I don't know why she is putting him down as a dependent for the Marketplace, but she can consider him a dependent for insurance purposes until he is 27 now. If he is making too much for marketplace insurance, can she carry him on her policy at work?

According to the instructions on VA, 20 Income from Virginia Obligations - Enter the amount of income from Virginia obligations that you included in your federal adjusted gross income. Income from Virginia obligations would include interest on Virginia state bonds or municipal obligations and gains from sales of those obligations that are included in your federal adjusted gross income. Italics are mine.

That is the way I would interpret the code section Judy referenced. The character of the asset did not change because it was repossessed since he resold it within a year. If he had a gain, he would have still been able to defer the gain. Since it is a loss, and remains a loss, I think it is still a personal loss. But I have to admit I have only had one of these before and it was a gain.

I think the code section is very much on point as far as the type of property - personal residence or investment - after repossession. And i don't think the fact that this was a loss transaction affects that.

How was listing price decided? I can list my house for a million dollars, but that doesn't mean it is worth any where close to that. However, if I consult a realtor and she gives me a list of comps, and assets/liabilities for my house compared to the comps and suggests a listing price - that might be close to market value.