AnnieR

Yesterday I was talking to a friend (an EA) about the MWP credit for the $74 GM w-2s. She told me that she didn't feel it qualified because it wasn't earned income, so she had just been over-riding the credit. Today a client came into her office (during a rather bad snowstorm we're having...roads closed, etc.) and said he felt the letter he received on Sat. from the IRS was important. It was a notice informing him that the IRS was increasing his refund by $8.21 because the MWP credit hadn't been taken on his original return. Guess the IRS wants to make sure everybody gets every penny they deserve.

AnnieR

GM retirees are covered under a legal services plan, reported on a W-2, in the amt of $74. Every year they have to pay $6 in taxes for SS & Medicare, not withheld. I just did my first one this year and the software is giving a $5 Making Work Pay credit. Is this legitimate? or just a software glitch. If I have to do these returns so these retirees can pay $1 to the govt, it will not be pretty!

AnnieR

Client is a diemaker who was laid off from a Chrysler plant, got a job in another (not Chrysler) plant in MI. He was told at the time that he would be working as an independent contractor for 6 months, after which he would be hired as a full-time employee. The company hired him after 6 months, then let him go after a month as a w-2 employee. He had picked up his insurance from his previous full-time job with COBRA. Is the COBRA deductible from his 1099 MISC income (Non-employee comp)?

Thank you

AnnieR

Enter it on Line 13, schedule A.

AnnieR

One of my clients owns property in West Virginia, one of the areas of the new gas leases. He is a resident of OH. Which WV form do I use to report the lease amount (reported on the 1099 as rental income)? I also have one for North Dakota, same situation with OH resident, so any help would be appreciated. At least the Ohio leases won't start until next year!

TIA

AnnieR

I filed one with that this afternoon, wife of 54 had $17000 earned income, husband, 65, has SS. Of course there wasn't much EIC, but the return was accepted with the EIC approved. In fact, I just got the ack for it.

AnnieR

It is now 10 pm EST and I got my first ACK.

AnnieR

I have decided to offer bank products again for several reasons that I won't get into here. Have always thought they were too expensive considering you can get a direct deposit in 10-14 days.

Back to the topic: I am wanting to have a prepaid debit card funded with the tax refund. ATX has a product Moneywise PPD Mastercard and I would like to know if anyone here has used it and what your thoughts are.

Also, I know you can't have bank products and fee collect so are there these same type of restrictions if you use the card.

Thank you

Karen

There was an article in this month's NATP Monthly Newsletter explaining that the IRS would be sending letters in December to people who used RAL's last year, telling about the option to receive their refunds by prepaid credit cards. You might be able to access it on the website. But it is the IRS, I believe, that is offering this.

AnnieR

Almost 24hrs later and I still haven't received my temp password via email????

Mine was delivered to the spam box.

AnnieR

I don't have the answer, but if this is in reference to "fracking" here in eastern Ohio, Pa, WVa I'm certainly interested in what everyone has to say about it.

AnnieR

Thank you so much for the good wishes. I'm at the age where every birthday is a blessing. My husband's birthday is in August too, but at 50 he started counting backwards...he'll be 22 this year! Only problem is, sometimes he actually acts that way!

AnnieR

So, Annie, you really have been "together" only about 21 years!

My first husband traveled overseas, maybe three weeks at a time then home for two. That's how we stayed together for almost 20 years; it was really only about eight years of living together.

You're right, it was quite an adjustment when I retired!

This past Monday my husband and I celebrated our 52nd anniversary. Until I retired from my "normal" job about 9 years ago, Jim worked days and I worked nights, so we were actually together only on weekends. Needless to say, our first year actually "together", was kind of hard...but then, he discovered "fretwork", which he had never done before and spent most of his days in the garage doing really beautiful woodwork, so we were sort of back on the same schedule. Now he does just about all the cooking from January to April, but of course, I'm still looking for pots, pans, dishes, spices, etc. from this winter!!! Reallly makes for a great adventure!

AnnieR

Client had an aunt who passed away on 01/09/07. The last of the estate was settled this week. There are 4 heirs, client received a check from the executor, along with a letter telling her to divide the check equally among the heirs. Only question she has is: money received is from sale of stock...must she determine the basis (Daimler Chrysler) and issue 1099s or just divide the check into 4 equal portions and send the checks. Considering the company, I would imagine this would be a loss, so would it just be considered a non-taxable distribution...write the checks and mail them?

Thanks, AnnieR

Kinda old for a student. Is he still an undergraduate?

Yes he is. In this area of OH, it is not an unusual situation. Our unemployment rate is over 15% and obtaining more education is the only way to get ahead. It's a good solution, a few of my clients have given up working in factories, such as GM, Chrysler, the suppliers of those companies, the list just goes on and on, and they are going back to school, usually in the nursing (health) profession.

AnnieR.

Clients have a 31 year old son who lives with them, is a full time student and has no income other than his student loans. I know his parents can take an exemption for him, but, can they also take the American Opportunity Credit? Thanks in advance,

AnnieR

I just talked with them, too. I was offered the same deal, but had to say "No."

I really prefer ATX over any other program I've used, but I don't do but 1 or 2 business returns. My preference is the 1040 package, but with efile fees at $6 fed/state, it's just too expensive. I do lower-end average Joes that don't have a lot of confidence in keeping up with the changes, so try to keep my fees low.

I'm going to have to go with TRX and change my attitude and learn a new program, I guess.

I've done 2 returns on TRX's program, and it took a long time, but I've got all summer to play with it. I just hope they don't keep switching programs every year or two.

Cathyann,

I tried to take TRX's ATX program last year, signed up and paid before April 15, and somehow my data got "lost", so I found out in November that I wasn't going to be able to get the program through TRX, took another month to get my money refunded, but that's another story...and why I would never go with TRX. Anyway, when I called ATX to order the 1040 program, I was told that I could order the unlimited e-file for $200, as long as I bought it before I had e-filed the 100 free e-files. I did it that way, because I too do a lot of e-files and that saved me a lot of money.

AnnieR

SEEMS LIKE SOMETHING'S GOING RIGHT.

ANNIER

Error message is now gone from server. Might be a good sign, transmission accepted.

AnnieR

Old Jack is exactly right on this! The qualified dividends will lower the tax, years back I had the wife of the Vice President of the college in town obsess over this very same thing. Once I printed out the worksheet that showed the calculations, I set her at ease.

Thank you, I printed out last year's worksheet and figured out the difference. And Old Jack, you are a treasure.

AnnieR

I am preparing a return and am totally confused. Client's agi is $65,000, last year's was 67,000. The only large difference in the two returns is interest and dividends, last year 4700 of ordinary dividends, 7595 of qualified, int of 1181, this year is 617 of ordinary div, 500 of qualified and $173 int. Last year, with higher agi, tax was 5054, this year tax is $5683 on less income. Can anybody please explain? Other income was rental, pensions and w-2, nothing particularly different.

AnnieR

Thank you, I have a call in to the client already. He already gave me his statements, so I have some of the information. Thanks to all of you for your great help.

AnnieR

I haven't dealt with Roth distributions before and I really don't quite understand it. Client,37 yrs old, takes distributions from 2 different funds in his Roth. I have a 1099R with taxable amt not determined and a "J" code. If the distribution is taxable, isn't it being taxed twice? once when deposited and once when it is withdrawn? Any help would be greatly appreciated. Thanks,

AnnieR

Thanks so much, living close to the PA line, I do some PA returns every year, usually OH residents working in PA. Just never had a retiree before.

AnnieR

Just when you think it's going to be easy, it shifts gears. Client, retired person, SS, pension, and a small amt of forgiven credit card debt. She lived in OH for 1/3 of year, PA, 2/3. The 1099Rs divide the pension exactly as they should be, in fact she has 2 1099s, one with OH income, one with PA. From what I have read, PA does not tax retirement income...why does my software do that? Should I just not report it, the 1099C was issued with the OH address. HELP!!!

AnnieR