Gail in Virginia

OFF TOPIC - KC I just noticed your new tagline quoting Thomas Edison and I love it!

As long as the child doesn't provide more than 50% of his/her own support, I think either parent can claim her even if one parent provided more support than the other. Normally, it comes down to which parent the child lives with but that does not seem to be an issue in this case.

Good Point! It doesn't always pay to strike back.

I don't have a Mac, but I have not had any problm using firefox for the wheres my refund site.

From what you said about the cost of the internet, this was not an accountable plan where she turned in the cost of the internet and the hospital reimbursed her. Instead, they compensated her at a rate they set for the use of the internet and equipment in her home. Therefore, including it in wages is the correct way to treat this amount. That said, does she have her paystub showing what she was actually paid so that you can compare that with the W2? This would be helpful in determining whether or not the money has been reported somewhere.

The term is "imputed" interest and not only the IRS but GAAP insist on it.

I think that federal holidays are the same day that the post offices are closed, so you should be good until Tuesday. I hope you feel better soon. It is hard enough to be miserable when you can just lay around the house in your jammies - when you have to go in to work because you just can't let your clients down this time of year, it is MISERABLE!

I have a bushel of golden delicious apples sitting in my office right now. Anybody want one, come on over.

According to the person I spoke with on livechat at the Virginia Department of Taxation, they do not accept prior year returns.

Might be hard to prove who said what if you are inclined to turn them in, BUT if they are negotiating refund checks for their clients they are in violation of Circular 230 and that should be easy enough for OPR to prove. I have never turned in another preparer although I know some preparers do report egregious violations like this. I don't think any of us want honest mistakes reported.

From Pub 17: Eligibility rules. You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all of the following tests. You were entitled to file a joint return with your spouse for the year your spouse died. It does not matter whether you actually filed a joint return. Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. You have a child or stepchild for whom you can claim an exemption. This does not include a foster child. This child lived in your home all year, except for temporary absences. See Temporary absences , earlier, under Head of Household. There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. You paid more than half the cost of keeping up a home for the year. See Keeping Up a Home , earlier, under Head of Household.

I am glad you posted. I would have thought prior to this that because he was "working" for this money, even in an academic environment, that it would go on Sched. C even though reported as box 3, other income. So now I have learned that grants are not subject to SE tax. Good to know.

I got curious and tried to log in to the ATX community just now. We did not renew this year (switched to ProSeries) but I still logged in without a problem. I don't know what the difference is.

Virginia does not accept prior year's returns electronically.

Fortunately, even if you change software they don't kick you off of this forum! But I am glad ATX is working this year, even though we jumped ship early on after last season's fun and games.

Or unless you actually take possession of the tiger....

According to the 2013 Individual e-File Tax Preparers and Electronic Return Originators Handbook, Taxpayer Opt Out Form – VA Form 8454T – Eliminated Starting TY2012, the Taxpayer Opt Out Form, VA Form 8454T, is eliminated. Tax preparers, who are required by Virginia law to file Virginia Individual Income Tax returns electronically, and are filing a paper return for the taxpayer who want to opt out of electronic filing, are required to provide Code 02 (Taxpayer opted out of electronic filing) in the Election Field on the Individual return. So short answer, you are right.

But that is really true for any tax law - congress can, and sometimes does, change laws at any time during the year. They have even been known to do it retroactively. I routinely tell my clients that everything I say is subject to change any time congress is in session.

I don't know. They might think we are all washed up.

I think it would take a Wisk broom to clean up all of these puns.

Yes, but if you are liable for the 28% tax anyway, and are going to pay it anyway, as KC pointed out in her post, that means that effectively you have paid the contractor both his fee and the tax you sent to the IRS. So wouldn't the 1099 reflect that?

I hope that she will return in some form, but I do understand why she left.

So if they pay in the 28% they should have withheld on the contractor's behalf, do you gross up the 1099 to show more income than they actually received and the tax "withheld?" That seems logical...

I sympathize that clients want to know if they can afford to pay me before they hire me, so I will try to give them a range. I will also offer to give them a price for the previous return so they can tell if I charge more or less than their previous preparers. But in the end if they can't trust me to give them a fair price how can they trust me with their financial information?

Dan, as far as documentation I did not look up the rules, but taking section 179 on property is an election that you make. If it were mandatory, I would expect it to either be no choice at all or, like the bonus depreciation, something that had to be elected out of. The instructions for Form 4562 consistently refer to it as an election. Generally speaking, since Virginia allows section 179 but does not recognize the bonus depreciation, I have never had a reason to want to skip 179 in order to take bonus. Of course, your mileage may vary - that is part of the fun of doing taxes, no two situations are identical.