Gail in Virginia

I like Pub 17, probably as a holdover from when I took the HRB course in the '70s. But it is not considered authoritative for a position taken on a tax return, so it probably is time that I learned to rely more on other sources. There are just so many changes this year - did we really have to have this one at the same time?

Very good question. If someone has an answer, I hope they will post it.

Happy New Year, my friends! I hope this next year is the best ever for you!

More soup for you!

According to the classes that I took, Michael is correct - there has to be a filing requirement before income must be counted,

The older I get, the more I am realizing that people will assume my work is worth what I value it at. If I am inexpensive, they will assume that I am not worth much. I tell myself that every time that I am tempted to match a competitor's price. Besides, as someone (might have been the late, great Robert Anson Heinlein) once said, "Free advice is worth what you pay for it."

I guess we were, but it hasn't started yet...

Did you try a PM to Jack in Ohio? He was very helpful to me on a domain server issue I was having that was not related to ATX. He is probably the most knowledgeable person on this board about domain servers. And if asked, I have always found him willing to share his expertise.

I am glad someone is testing the program so that I don't have to (at least not yet!)

If it was such a dumb question, why didn't the presenter know the answer?

My bet would be on multiple dates. Maybe as early as January 29 for really simple returns, then around mid-February for returns affected by extenders, or even late February if they have depreciation. And my bet would be that we might as well get used to it.

Typically, compensatory damages are not reportable because (at least in theory) all they do is restore you to wholeness - there is no profit or income. Now in this particular case, I am not sure what kind of damage was suffered that resulted in compensatory damages...

If they are not a 501( c) (3) they are most likely a 501( c)(4) from the little bit of information you provided., which is a civic league or a social welfare organization. If that is the case, they would still file a 990N if they are under the requirements for a 990EZ. I don't know why they were denied for filing the 990N. When did the IRS say they were like a rotary club if you have not heard from the application for exempt status?

I think the point might be to pay the new taxes before they get any worse, and let the statute run on the oldest. Grandparents might be able to cough up enough to pay the newer years in full, but not have a chance on the oldest year. Is he or she a candidate for OIC?

I thought they had already expanded it by requiring all tax preparers to audit custody and EITC issues.

FL is one of the states with no income tax. I agree that you can use any address without a problem as far as the IRS is concerned. But if the son happened to live in Virginia, and a federal return was filed using his address for the parents, then unless their income is less than the filing requirement for Virginia, Virginia will be in touch looking for that state income tax return. I suspect most other states that have an income tax will also. That being said, I would use the son's address and just be prepared to document where the parents actually maintain their residence when asked by the state where the son lives. I find that if I tell my clients to expect a letter they are not nearly as upset by it as they are when it comes out of the blue.

Lion, I am not sure that I agree with you. Yes, there are 365 days in a year. But if the child spent 182 nights at Mom's house, 182 nights at dad's house and 1 night at a friend's house, then the child spent an equal number of nights at each parent's home without a leap year. And in the first year of separation, if the parents lived together for two or three months, they could have an equal number of nights and yet both of them have more than 1/2 of 365 nights. I do agree that it is very, very rare that they spend exactly the same number of nights per year with each parent. Just saying that it can happen.

I just love an uncluttered kitchen - the bare design of this is great!

I knew you knew the difference, Jack, so I wasn't going to refer to your post. Sometimes when we are typing we don't always get what we mean down on the screen - but we knew what we meant!

We charge $35 per payroll up to 5 employees, and $1.50 per employee over that to do payroll. Reporting is about $75 at the end of the quarter for the 941 and VEC reports. We will prepare those reports quarterly for people that do their own payroll, but the charge is higher. On a fee basis, we probably are not very competitive. And for a few customers, we just lump it in with their bookkeeping and charge one flat monthly fee.

And if the entire amount paid as reimbursement for the cell phone and auto expenses is included in boxes 1,3 and 5 of the W-2, then it is treated as regular income and the entire amount that the employee pays for those expenses that are job related would go on form 2106 - not just the amount above the reimbursement.

Or VA.

Me too, Joan. I have been off the board for a couple of days catching up on my personal life and just now saw your post. Sorry I did not get a chance to vote for you. Remind us earlier next year!

I am too chicken to touch this conversation...

If not claiming the NOL would result in EIC, then I think you are required to claim the NOL just like you can't leave expenses off a Sch. C taxpayers return to hit the sweet spot on EIC.