Gail in Virginia

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 I know that there is a possible deduction for benefits withdrawn from an IRA of up to $2,000 but I can't find in the instructions in there are any requirements to qualify other than taking money out of your IRA.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.

I updated a few days after it came out. I immediately had an issue with one of the workstations not working at all (panic attack!) but I was able to get it back without a lot of difficulty. Since then, I can't say that I have noticed much difference. The completed box may work but since I have not had time to go back and try to mark all the ones that I lost I can't really say. I just still feel like I am working through molasses. Particularly on a complex return, I have to stop and wait for the computer to catch up on input, and loading takes forever!

I would calculate the mileage expense and then treat the lease payment as reimbursement from employer. Depending on the numbers this could result in deduction or possibly even income.

I filed some 1065s already this year without a problem.

Not all states require an attorney to handle an estate. In Virginia the executor handles everything and just files th inventory and accounting with the commissioner of accounts, who may be the only attorney involved. I have never known the commissioner of accounts to mention to the executor that they need to file a 1041.

If this is a systemic problem for all FTHB with repayments, you might be able to get the Taxpayer Advocates office to look into it. Systemic problems are supposed to be part of their mandate.

My fear is not that I will file the wrong return - it is that I will miss filing a return that I should file!