Gail in Virginia

If all the work I did in my sleep actually got done, I would not be as far behind as I am!

This also accounts for charitable contributions of merchandise. One of the hardest things to explain to clients who want to deduct at retail when they donate merchandise!

Actually, while 10,000 will get an automatic report filing by your bank it is my understanding that they at required to report any suspicious cash transaction or pattern of transactions. So making two deposits of $5,000 might not prevent the report from being filed.

Thank you! I new it had to be somewhere, but I just could not for the life of me remember where!

I know that I knew how this worked once upon a time. But not tonight. New client. Has 2012 form 1099R showing around 1700 distribution from 401(k). Code is 8 - excess contribution and earnings from 2011. I understand that the plan failed its testing and he had to get part of his money back but I cannot for the life of me remember what to do with this. Since it is 2011 do I have to amend last year's return? I put it in this year's information but it does not seem to flow through to the front page of the 1040. I can't wait for April 15.

Thanks, John. That is what I was finding, but it sounded too good to be true!

I am preparing a NC tax return for the son of one of my VA clients. I know that there is a possible deduction for benefits withdrawn from an IRA of up to $2,000 but I can't find in the instructions in there are any requirements to qualify other than taking money out of your IRA. In this particular case, it is a premature distribution from a Roth IRA of the entire balance and the earnings are about $6000 after excluding an even larger amount as contributions. Can they actually exclude another $2000 on the North Carolina return even though they are nowhere near retirement age?

Lynn, I am curious about this statement. What disabilities does this apply to? Is this a federal mandate, state, or local? What if there is no local school for the deaf? I think if pushed I could possibly find an interpreter, but it would take some time in the rural area I live in.

I tend to do A and B, but sometimes Jan - April it's D.

Worked Good Friday, and will work most if the day today. But I am having Easter dinner at a friend house tonight and plan to attend church tomorrow. But I will probably be working again tomorrow afternoon. Farther behind his year than usual. Wonder why?

She gifted it to her son. It was not her husbands son, so I don't think declaiming in favor would work. Nice thought, though. Thanks for the answers.

Does anyone know off hand how penalties for late filing of gift tax returns are calculated? I had a client this year whose husband died in 2011. She inherited a house from him, which she promptly gave to her son. However, no one thought to mention that to us until she had a question this year about the interest deduction. I have advised her that she needs to file the return, even if it is late, and I have prepared the return. But she has asked how much the penalty will be for filing it a year late, and I have never had that situation and don't know. No tax is due, since this is well under her unified credit amount, but some penalties are not related to percentage of tax due. Any body know?

If it is withheld by the employer, and therefore not included in taxable wages, the taxpayer cannot deduct it again on the front of his 1040. It flows to the 8889 to limit the amount of additional contributions that the employee could make on his own outside of payroll deduction. The amount that is code W on the W-2 is "pre-tax" and therefore if CA does not conform it increases the amount of the state wages.

Time to start the 990s due by May 15.

We are due for rain today, with a chance of snow and freezing rain tonight. Brrrrr!

KC, I really appreciate all the smiles you add to our lives!

Taxpayer did not sell anything if they donated stock. Church may or may not have sold the stock. The only paperwork should be the letter from the church. The donation of stock goes on form 8283.

If social security and medicare were submitted on her behalf, whose EIN were they submitted under? It looks like that would be the party responsible for the W2. I don't know if it matters, since neither party wants to provide the tax documents.

I have one who is expecting a very minimal amount of EITC from W-2 wages, no child, no Sched C, a very plain vanilla return. Return was accepted 2/5. No refund, just "processing." Finally called Practitioner Priority Line last week. They would not talk to me based on check the box authority, put client on the line to authorize and they spoke to her only. Told her there was a system problem with her return and that it would probably be 4 more weeks before she got her refund. At least they did not try to blame me.

I am with you, SFA. I will probably update just before I leave tomorrow night. But I noticed on the official site that ATX plans to re-introduce the automatic program updates as you update the forms, with no way to opt out. HELP!

I don't know that I have time now, but if I paid for this I sure would like to see it. I am kind of surprised that it hasn't somehow leaked to YouTube.

I love it!

And ask the client for a copy of the letter from IRS accepting his S status. I had the same error message on a return this year, and the client was actually able to bring in the copy of the letter. Did not let us e-file but we sent the paper return with a copy of the rejection and the letter. Hope that next year the e-file will work.

I am with Tom on this, although I will probably try to find time to test drive some other products this summer. I am afraid to rely on ATX to be fixed in time without having at least a back up plan in place that I can live with if necessary.

Technically, for a rollover the code is correct. If the client took the money out and rolled it over to a new IRA, the old trustee has no information other than the distribution that they have properly reported. You will need to fill in the rollover box on the 1099R you input and complete the explanation stating that the money was rolled over. The code G is for trustee to trustee transfers only and does not apply to rollovers.