catax

I answered my own question. I guess it is just the dummy error. It is the error code that returns have if you have made a change after you created the e-file. I had never opened one up and seen the error number. I was processing so many returns at once I guess I missed a step. I am glad I didn't call tech support on that one. Nena

Does anyone know what an error code ATX962 is? I was trying to efile one of my returns with the 8863 in it. I did update first and had another return transmitt without an error. Any ideas. Nena

This does clarify it for me. Thank you for taking the time to reply. I had just understood from the client that they had received the payments from both last year. THey had also received the social security on their return for a short period of the previous year. So that is where my confustion came from for me. I understood they were reeiving payments from both all year. This may have been a misunderstanding on my part. But with your help I have the info to discuss this further with them. I have not run into this before. Thank you. Nena

I think I am getting this but for some reason it is slow to come. I thought the offset was due to the Social Security kicking in for only over the amount of what workmans compensation paid. Is what you are all telling me that Social Security pays back workmans comp and that is why it is all taxable? Nena

I'm the dim bulb in the box, I don't understand you, please use imaginary numbers (not the math variety the not real variety to explain.) It sounds like.. you are saying client received $10,000 in worker's comp (non taxable) and $1,000 in Social Security Benefits, but Box 5 of Social Security 1099 says $11,000; so the system is wanting to tax them on $11,000 instead of $1,000. Is that scenario correct? If it IS correct you have to research the flow of funds. If the social security is disability there may have been a disagreement between the worker's comp and SS, and worker's comp won. If it is Retirement benefits could be the same problem. General Motors for instance pays worker's comp UNTIL Soc. Sec. disability kicks in; (many times it kicks in retroactively) and then, their insurance company is "paid back."

As always the correct answer is "it depends." Not enough information to properly assess the situation. lbb

Here are the numbers. This is social security disability not retirement.

Box 3: 20,850

Box 5: 20,850

Description of the amount in box 3

Paid by check or direct deposit: $7644

Workers' comp offset $13,206

Total Additions $20,850

Benefits for 2007 $20850

The actually received $7644 from Social Security and $13,206 from worker's comp. However the way it is listed on the statement makes it all taxable as social security. My question is this doesn't seem correct because they received non-taxable (workers' comp) income and then the social security statement makes it taxable. If anyone can clarify this for me I would appreciate it.

I guess I don't understand your point. I am open to other interpretations of facts but I just do not understand this. My understanding is one form of compensation is taxable (social security) and one form is not (Workmans Compensation). My understanding is that the social security benefits were reduced because she received Workmans Compensation. So if they received income that was not taxable (workmans comp) and they didn't receive the taxable income (social security) why does that now make nontaxable income taxable?

I have a client receiving Social Security that has a large workers comp offset. But the box 5 amount doesn't reflect this reduction in social security benefits. Just in the type down below. In my research I am not finding any information on how I can reduce the taxable amount. It doesn't seem correct that they should have their workers comp taxed as social security. Any help would be appreciated. Nena

I had the problem with one return that included the 8863 that was not released for filing. But other returns with the same form have been able to create a PDF. The return today all forms were final. It wasn't until I completely shut down the computer and restarted that I was able to get the PDF to work it is time consuming and frustrating.

I am problems with intermittent lock ups producing PDF's inside the Print Manager within the program. Some returns have a problem some not. Anyone else having this same problem and/or know what the solution is? Thanks, Nena

The problem with this one is very little of the sale was actual assets mostly goodwill and non-complete aggreement. Anyway I have worked it all out keeping everyones suggestions in mind. It was very helpful to have feedback. Nena

Joanmcg,

Where are you located in Sacramento. I am in Orangevale. Nena

Can a part year resident return be e-filed to AZ? Second, I have never e-filed to AZ, what is required to do so. I e-file all returns in CA. I assume every state has different requirements to set up e-filing. Nena

Thank you. I just wanted to be sure that I was going in the right direction with the 4797 idea. I appreciate the input. Nena

Form #8594 Asset Aquisistion Statement. I have that all worked out. I was just stumped as to where to enter the sale of the various assets. I am finding little information in my reference books on where to actually put it. So the non-compete aggreement could flow to short term gain and be taxed at my clients ordinary rate. But is that the proper treatment. What form should it go on Sch D, 4797 or somewhere else? Nena

YES, LINE 21 OTHER INCOME. ALL PRIZES AND AWARDS.

I HAVE A CLIENT THAT SOLD HIS BUSINESS. HAVE ALL THE DOCS WITH BREAKDOWNS ETC. MY FIRST THOUGHT WAS SCH D FOR REPORTING THE GOODWILL AND NON COMPETE AGREEMENT. THE FIXTURES AND EQUIPMENT ON THE 4797. IS THIS CORRECT OR SHOULD I PUT IT ALL ON THE 4797 TO FLOW THROUGH TO THE SCH D. I LOOKED AT MY REFERENCE BOOKS AND AM NOT FINDING A CLEAR ANSWER. YOUR THOUGHTS. NENA

THANKS.

I did get locked out of the ATX program I called tech support last Saturday and they fixed it right up for me. I did have to hold 30 minutes and talk to two people first. The tech didn't know anything about taxes however. Didn't know the difference between efiling IRS and the State. I remember always have difficulty getting through in the beginning of the tax season. However, this year there does seem to be more of a disconnect. Nena

i AM PREPARING A RETURN FOR A CLIENT THAT MOVED TO AZ. IS ANY PART OF THE VLT FEE BASED ON THE VALUE OF THE VEHICLE AND THUS DEDUCTIBLE ON THE SCH A? I HAVE A BREAKDOWN OF WHAT WAS PAID. ANY HELP WOULD BE APPRECIATED. NENA

THANKS FOR ALL THE FEEDBACK IT REALLY HELPS. NENA

I think there is a big difference between fraudulent tax returns produced in order to get a mortgage loan and a person that purchases something they expect to work that doesn't. I think my client would have been very happy to have what he originally purchase to work properly. I do understand your point I suppose he could have paid down his mortgage. Who knows maybe his original down payment exceeded that amount. I would need to ask him.

Anyway, it is just an interesting situation. I had not thought of the insurance or nuisance claim angle on the matter. I am interested in others thoughts on the matter. It just seemed different to me. Nena

I have a client that purchased a new home a few years ago. It had a lot of specialized wiring and systems in it that never worked. They tried to repair it but for not. They eventually gave him a refund for the faulty equipment. They issued him a 1099 for the refund. The refund was $17,000.

This 1099 seems odd to me. Normally when you purchase something and you recieve a refund for it this is not a taxable event. Do you have any thoughts on this?

So basically if you just file separately using the clients own income information that is against the CA code. If you have the information on the other spouses infromation and you split the income the return will not match and you will get a notice. And the other spouse may not file on the other part and you have a problem there also.

This seems as if it is going to be a time consuming challenge. It seems it would be lots easier in these situations just to file with your clients own information and forget about all the splitting. I have 4 of these I have explained it will cost lots more in tax and they insist that the other spouse will not cooperate. This tax season is looking bleak.

This is the first year I have ordered Max. I had no idea I was getting this book. It arrived yesterday. I had already ordered The Tax Book. Anyway, it is always nice to get something you were not expecting. Nena

So what happens in the situation where my client files MFS and has the W2 from the other spouse for the time period of community property. So I split up the income for the community period. What happens when the other spouse does not split the income and only files on there own (which is a smaller amount). I can't imagine IRS or even CA being happy about not getting all of there tax. I do not want my clients return to be pulled and adjusted for filing properly. Any thoughts or experience on this.

I guess this is the year of divorce. I have 4 of these I am working on. Thanks, Nena