Karen Lee

Thank you for your time and effort. Karen

OK... I prepare the returns for mother, father and child...child is dependent filer, father takes dependency and CTC (w/8332 attached) according to divorce decree and Mother is custodial and files HOH with qualifying child and gets EIC (no dependency or CTC or ACTC). I guess I'll follow my gut and inform Mother to let me know if this happens again so it can be addressed timely. Mother lives in Oregon. Father in Washington. No Oregon return done on Father. I feel Oregon was wrong and TP did not respond timely. It is only Oregon that the EIC was disallowed. Thanks Karen

Yes on the 8332. Standard practice in my office with divorced parents. Do YOU have any other insights besides assuming I did not follow the rules? The Oregon State denial letter states that they follow the federal rules however it does not appear this happened. Karen

The denial letter states: "This federal law applies to your Oregon return as well. It appears the child for whom you claimed the EIC is the qualifying child of another person; therefore, your EIC has not been allowed. IRC 32, ORS 315.266 Could this be a mistake on the part of Oregon Dept of Revenue? My client did not forward this letter to me timely and I can't do anything about 2006 however I believe I have prepared correctly. Just need some opinions and suggestions to avoid this for 2007 besides informing my client to let me help in these situations. I am in Washington and only prepare state returns when absolutely necessary. Karen

Taxpayer and spouse - divorced. One adopted child. Spouse (mother) has legal custody and child is under 24 and full time student. Father is allowed dependency (personal exemption) and CTC. Mother qualifies for HOH and EIC (no dependency and no CTC). Why do I post this? The State of Oregon disallowed mother's EIC on state return because it does not follow federal guidelines, "if you and another person have the same qualifiying child, you and the other person can decide which of you will treat the child as a qualifying child. That person can tall all of the following tax benefits (provided the person is eligible for each benefit) based on the qualifying child. exemption CTC dependent care credit EIC exclusion from income for dependent care benefits The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these tax benefits between you. It appears the child for whom you claimed the EIC is the qualifying child of another person; therefore your EIC has not been allowed." This was for TY 2006 Father files Single w/dependent Mother files HOH I've missed something somewhere. Isn't there an exception for divorced and separated parents? Set me straight please. Karen

Thank you for the responses. This client comes up with some doosies every year and I don't trust most of his information. One time he was right and I was wrong and I don't want that to happen again. Really wish he would try to do his own taxes since he knows so much and has me questioning myself. Thanks again Karen

OK, will try it and see how it comes out and hope for the best. Thanks to all. Karen

Usually legal fees are deductible for some sort of revenue generation practice. This client has legal fees were to settle a worker's comp claim for total and permanent disability which was granted. Since the payments are not taxable then I believe the attorney fees are not deductible. Too much thinking for today. What do you think and where would I deduct? Schedule A somewhere? Thanks - set me straight Karen

Married couple with one child. All income from husband but since a community property state 1/2 of income is hers and split as such on injured spouse form. Child gives them over $3000. in credits. Husband has back child support. (Long unsubstantiated story about trying to get custody, legal fees etc and ending up with Grandma having kids and Mom just gone blah blah) IRS really doesn't care about the reason for the back child support so we will go forward with what we can do for this couple and child. After a search on the board I saw where the injured spouse form was "overlooked" by the IRS and hard to get it recognized. I really don't want to tell my client that maybe they will get some refund if the IRS recognizes form. The client wants to "give" the dependency to a grandparent that will give them the extra refund for claiming the child. Since I won't go for that I need to do what I can to get the injured spouse through and be able to give the client a good indication of what to expect for a refund. Income 21531. w-2 Int 28. AGI 21559. Std ded 3 personal exemptions $66.00 Tax $66. CTC 2034. FWH 2184. EIC 934. ACTC Potential refund $5152. What do you think will happen? I have told my client that I have not done enough Injured Spouse claims to tell them exactly what will happen. My gut feel is that they will get all except 1/2 of FWH. Since that makes sense to me I am sure that is not how it is actually figured. Thanks Karen

From the looks of these people they may qualify for some sort of disability...and I try not to judge. I asked if there was any other income and the reply was negative...I have all the information in writing so I guess I'll go for it unless someone gives me another point of view. Thanks Karen

When I say rural I mean RURAL. Here in Morton I am in the middle of this carrier's route 50 miles East and 50 miles West, 20 miles North and very little South. This newspaper carrier has come in with $27,000. in gross income and approx. $10,000 in supplies and over 71000 miles. Two cars running everyday. Husband and wife team, one contract. No other income. What am I missing here? $34,000 in standard mileage allowance! The 71000 miles is very reasonable in this case. The bottom line seems unreasonable to me but shakes out. Am I missing something? Can they actually have that big of a loss without a trigger? Opinions please. Karen

Client is PS Corp. Income is distributive share from partnership. Only employee is himself. Has 401(k). Person (not me) doing 941's didn't reduce FIT wages for deferral plus overwithheld on SS, overpaid SS. I have done the 941C to be filed with 1Q08 941 and can't figure out how to correct Line 2 on 941 with 941C. I have not issued the W-2 yet since I do his PS Corp tax return and his personal but the deadline for W-3 transmittal is coming up soon so I have to get this resolved. If I issue the W-2 correctly how is SSA going to reconcile Line 2 from the 941's. 941C does not allow for a Line 2 correction unless I do the W-2 incorrectly then issue a W-2c with the correct figures... I have never had this problem before since I usually do the payrolls and reports and W-2's and reconcile before all is said and done. Need your opinions Thanks Karen

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment. I guess we will be making some extra money this season. Karen Lee

Wendy, Open the 1065 click on K-1 click Global Options go to Printing Options on the Global Options page check boxes to print allocation and basis statements on form That should do it. Karen

Yes...I would. But I have talked a couple of Avon reps into discontinuing being reps because they were blue sky'd. No you cannot take all maintenance costs for your vehicle because you have an AVON sign on the car and sales of $350. for the entire year and most of the mdse was for yourself. I don't like having to tell these things to my clients and I don't know how they can possibly believe all they are told. Karen

Sandy: Have to do Schedule A for gambling losses and the limit on the losses is to the extent of their winnings. When someone comes into my office and says HRB says they can do it, I ususally stop the conversation and tell them the would have to go to HRB to take the deduction. Also ask them to come back after HRB prepares and let me look at it. So far no one has done that. Pretty much do that when anyone says "someone said I can..." I tell them to have "someone else" prepare the return. Maybe I should change my attitude with HRB right down the block. Karen

Thanks for the statement will use it and keep it on file. Adult Family Home in Washington State is the alternative to Nursing Home Care and beyond Assisted Living. It was last tax season that I had to remove Mom from her condo and find alternative housing. Was really a bad season for me. I also take care of my 101 yr old grandma who is also in an Adult Family Home...closer to me here in Morton. My wonderful husband makes sure I am fed and the toilets are cleaned while I take care of his in-laws. Grandma was in assisted living until the middle of tax season last year when I had to find alternative care of her. Last year was a challenge. CCH cannot do anything to me that could compare to last year. Everyone is now being taken care of to my satisfaction, HRB is upset, ATX seems to be working well for me (knock on wood) and now I am worrying about all the unemployed ATX employees and soon to be unemployed. Thanks so much Karen

This is a topic we discussed last tax season. This concerns two of my family members and friends. I spend $5200./month for my mothers care at an Adult Family Home. She is private pay because she doesn't qualify for any aid and I am spending her savings FAST on her care. I am getting her tax documentation together including the sale of her condo and taxable distributions from her IRA, I am going to take 100% of her charges from the ADF as medical expenses. She is disabled from stroke and dementia and requires 24/7 care. I would like to be reassured from you guys that this is correct. Getting a doctor's statement would not be a problem. What are your opinions on this? Karen

Eli... I don't ever E-file a return without being the preparer. My experience is that I have always found a mistake in the return. Have to essentially prepare the return to set up for E-File so what's the sense. When I prepare my own I don't bother removing myself as preparer and have never had a problem over the years. It might be more correct to say "have never had a problem YET" Karen

For those who don't remember previous posts... HRB moved in down the block this year and I was feeling some anxiety about the impact on my business. There has been none. Last week our weekly newspaper spotlighted me and HRB, side by side. HRB not happy being next to me and the paper printed the incorrect address for them. My interview was very casual and the article was very casual. HRB article was very "professional" or staid. HEE HEE You guys were right again. I received a lot of supporting replies to my previous posts and they were very much appreciated. Just had to gloat some. Karen

Also... It is only wise not to have redundancy in product and support such as ATX and TaxWise. Good business sense on CCH's part for consolidating sales and support. Their methodology is lacking as well as the timing. Karen Lee

There is alot of truth in the comment about a few of us vocally unhappy and more just preparing our tax returns and getting on with business. HOWEVER...we have been misinformed about how CCH is going to treat the ATX product. It can be found on the web the original letters sent to ATX users that support and sales would still be in Caribou. Websites have not been updated to reflect operational changes. Just recently MyATX is being updated with"fixes". CCH continues to talk about the "future" of ATX but since I am not realizing the "benefits" of CCH acquired ATX as stated I find it hard to believe there is a "future" ATX and we will be the last to know. I don't want to renew for MAX just to have TaxWise to hit my door and I have to learn a new program. I would like to take control of my business and learn a new program and more specifically, a program of my choice, during November. Communication would be nice. A generic apology from a desk jockey is not my idea of communication. The program is changing and we haven't been informed. It is by trial and error we are finding out what is going on with processing E-Files and bank products. The process for logging in for MyATX was changed but somehow I missed the notification (if there was one) and spent weeks not being able to log in and called support 4 times, reviewed the process and find out that the "Help" instructions were not clear or maybe even wrong. I'm a one person show here. I need this forum and needed the "old" community. More problems were solved for me by just reading the forum and not having to call tech support. We had William and Kerry and others popping up to help us resolve issues. We still have KC to help us with her tax knowledge and "ATX power user" status however I think she is feeling a little anxiety about the whole ATX "future" also. I am vocally unhappy because I want to send a message to CCH. TALK TO ME AND ALL OTHER ATX USERS. I WANT TO KNOW WHEN A PROBLEM MAY ARISE NOT JUST ENCOUNTER A PROBLEM AND THEN RECEIVE AN APOLOGY. Karen Lee PS What is the official attrition expected?

The little Post Office here received Instruction Booklets and no forms for this little community. We don't have a library so that is not an easy option for our seniors that do their own tax returns. I suggested to the Post Office that I would provide one copy of the most common forms and they could make copies. I was told that since a toner cartridge costs so much the Postmaster probably wouldn't go for it. Since H&R Block just moved in maybe I will provide forms as a community service. Karen

Haven't seen any yet. I would be receiving 3 directly. (Husband, Mom and Grandma) Karen

Where do I send the check? Karen