Peggy Cobb

I tried to receive my Acks this morning and received an error message that the communication could not continued because the server was not responding. Has anyone else received this message? It suggests that I contact Tech Support if the problem continues - not a happy thought. Thanks, Peggy Cobb Mount Vernon, WA

I just pulled up my 2005 program and there appears to be the same process. Under the tab of dependents you can check and/or uncheck depending on EIC and child tax credit. I would try this with each to make sure the information flows to the EIC and child tax credit parts of the return.

Alaska residents often earn a significant more per hour and those of us in the continental US. This is because the cost of living in Alaska is so much higher (just about everything is shipped in). These maybe funds his employer paid him based on Alaska's higher wage standards. I would ask your client about his payment structure from these companies. The AK ESC sounds like the Labor and Workforce Development deduction which is the state's unemployment tax, but the intials not match what I have seen in the past. Let me know, Peggy

I would question yoru client. I don't recognize those intials. In Alaska they have a withholding tax for unemployment that is paid to the Alaska Labor and Workforce Development Department. Workmen's compensation is paid via the employer obtaining private insurance coverage. If the employee lived in Alaska long enough he may have received the Alaska Permanent Fund distribtution. Ask your client if he did. It goes on line 21 and in ATX you can bunny hop to the worksheet and put it in there. Last year my Alaska clients each received $1,654 Alaska has a number of employers that only work during the tourist season in the towns that are visited by the cruise ships. Many of these employers will paid Per Diem because of the seasonal nature of the job and the employee's tax home in not in Alaska. The intials may be related to this Per Diem. Let me know if you need help with these rates, they are found on the DOD/pentagon website.

I liked the Tiger better than the goofy professor. We should also bring back the Tiger's roar when you started the program if I remember right. Peggy Cobb Mount Vernon, WA

I forgot to add, that as a minister he can "double dip". This means that he does not report the housing allowance as income (except for Schedule SE) and he can also take any mortgage interest and property taxes as an itemized deduction. In the IRS rules a pastor is an employee, but for Social Security he is self-employed. So when you do a minister's tax return you are report to two different agencies with two different set of rules. Social Security receives the Sch SE information and under normal pastor/church setting he would pay SE on his salary and housing. But because he is not working for a church they withhold SS and Medicare. If he were working for a church you would only see box 1 and possibly box 2 of the W-2 filed in. If he were working for a church you would have to report salary and housing on the SE. But because he is not working for a church, you only need to report housing on the SE. Hope this is clear as mud. Peggy Cobb

Yes, housing is subject to Sef-employment taxes, but not income taxes, with one exception. If his housing expenses were less than the housing allowance, then the difference is subject to income taxes. If you are using ATX there is a pastor's income worksheet. I have not used it this year, so I can't say how it works. But in the past you opened an Sch SE and used the bottom buttons to add the housing amount. Then on the 1040 under line 21 you add housing allowance in excess of housing expenses.

They are here in Northwest Washington State. We have 3 between the two towns that are only separated by the river. They have two of their 3 offices in a local grocery stores. I looked up their website and they are a franchise. I got a new client this year who had their return prepared by Liberty last year. It was a simple 1040 and home mortgage interest, property taxes and some donations for itemized deductions. It took me an hour and even at my complicated hourly rate, I was more than 1/2 their billing rate. They seem to be more than the local H&RBlock. The client was very happy I explained to him the issues with RAL and how quickly the IRS really does get him his refund when it is electronically deposited. The one in the local grocery store seems to push RALs a lot. Just my 2 cents worth, Peggy Cobb Mount Vernon, WA

Just as good and easier than melting chocolate in the microwave is to spread Nuttella (I'm sure I'm spelling this wrong). You can find it with the peanut butter and jams. It is a hazelnut chocoloate spread out of Europe. Just spread it on the graham crackers and enjoy, no need for the microwave

I am wondering if the Educational Credit on 8863 is delayed for e-filing because of the AMT change. Does anyone know if this is the case or is ATX slow in getting it approved? Thanks, Peggy Cobb Mount Vernon, WA

Thanks Jack, I was hoping for a faster way, but you are right the more I think about everything.

I have a partnership that is in the process of a condo conversion. In 2006 they sold 2 of the 44 units. I have a worksheet prepared for the basis, so I am confident on this. But my problem is reporting everything in ATX. While it was an apartment I have the total cost reported in the rental depreciation schedule as one amount. Do I need to change the asset entry and divide the total cost by 44 and have 44 units in the asset entry? I would also have to divide the prior depreciation betweent he 44 units if this is the way I should do it. Thanks for any help. Peggy Cobb Mount Vernon, WA

I had a new client approach me about doing their club's annual tax return. They were under the impression that when their total revenue was more $10,000 that because they were a 510©(7) that they needed to file a 990. I have read through the 990-EZ instructions and don't see any mention of revenue more than $10,000 requiring a 990. I see the usual minimum for non-profits of $25,000. In 2006 it was $23,000 and I filed an extension on May 15th so I could research this. Am I missing something? I don't want to look more dumb than normal. Thanks, Peggy Cobb Mount Vernon, WA

KC, You said it so much better than I could have. It is sad that our schools don't teach economics anymore. I often read your posts and find we are on the same wave length. I really worry about our nation, but that just means I need to speak out more and stay active. Good Luck

In line with other tax related statements Hillary has made, I agree this one is scary. When I consider her statements that the wealthy are not paying enough and wanting to help the "working poor" I can easily see her increasing the AMT or creating some other way of increasing taxes. I agree with we would see an increase in Earned Income fraud. I also agree that the average American does not understand what she is saying. So many people don't realize how much they are paying in Social Security & Medicare taxes, gasoline taxes, state income taxes, state fees, and all the other ways we pay taxes without fiscally writing a check. You know from talking to clients that most people will tell you their net wages and don't have a clue what their gross wages or various withholdings are. To be honest, Hillary scares me because she is so scripted it is hard to know what she will do.

I was able to e-file one T/P's return with multiple states. Granted she used as 1040A and had one employer, the circus. But she had 16 state returns. Some states required a couple of attempts, just because of my ignorance. Three states we finally just paper filed because it was not worth it after the 3rd attempt. Most states she had between $900 and $400 in income for that state. I would e-file everything, correct what needs to be corrected, and if necessary paper file whatever is left.