AnnieR

I haven't had any problems at all with my OH Acks. In fact, they seem to be coming through faster than other years.

AnnieR

I'd put in on Line 21 and not do a Schedule SE.

Include an explanatory note on the line "Military Recruitment Bonus - per IRC Sec. 183".

(Thanks to Taxbilly in a previous post for that last part of the entry)

He might get questioned about it and you'd maybe have to write a letter, but I have a feeling IRS is seeing lots of these. If there's a W-2 from the military they should be able to add up the facts.

Thank you very much.

Client is in the military, he got a "bonus" of $1000 because a friend of his signed up. This is shown on a 1099 from "Document and Packaging Brokers, Inc" as

Non-Employment compensation (Box 7). Is there anyway to report this without having to do a C-EZ and SE? The young man is not in the recruiting business but that's the way the military treats it.

AnnieR

Why are you paper filing the federal? Because of the home credit? Because you are requesting an ITIN? or simply because you want to delay the refund?

In any event, pretend for a moment that you are leaving out the event that forces you to paper file the federal return. Prepare both the federal and state efile files, but do not piggy back it. The go to efile and send only the state efile file and continue working on the paper federal return.

The situation occurs when the filer owes federal but is getting a state refund that will cover the federal debt. Filer e-files state, takes his refund and paper files the fed along with a check in payment.

AnnieR

If you leave the efile forms in, and complete them just like you were going to efile, then you go to 'create efile' and there you select, if your state allows the option, the state as a 'stand-alone' efile, you can create the efile for just the state. That pulls info from the federal 1040efile page, but does not efile anything except the state. After you efile the state, you paper file the federal, and you are good to go. Just because you have the efile forms in there does not mean you have to efile it. Nor do you have to remove them to do a paper return.

Thanks, KC, that is the way I have always filed OH (state only) e-files. When you go to select which returns you want to send, choose "state only" and nothing else.

AnnieR

We have a 26hp Sears lawn tractor with a 45" mower deck which is my husband's new boy toy! We also added a snow blower to the front of it...and that was really great with all the snow we had this winter. Of course we have an acre and a half of grass, plus he mows a neighbor's who can't do it for herself anymore, and he clears out our driveway and the neighbor's on either side of us. Keeps him busy and entertained! AnnieR

I have a new client, MFS, has been separated from wife for a year. They are not divorced, she has a restraining order against client so he cannot contact her. I have filed his return 3 times, well, today is #4, with 4 different last names. He says the SS# he has for her is correct, but return has been rejected 3 times. Tried the 4th name today. What do I do and how can my client find the correct name? I told him to contact his or her lawyer, but, neither of them has filed for divorce or has a lawyer...him because he is unemployed with no money. He tells me that he left with only his clothes, has no paperwork from the marriage. What do I do next?

AnnieR

OMG, it actually does work. That is amazing!!!

AnnieR

This should be simple...son has no income, lives at home, attends ITT Tech, financed by education loans. Only a little glitch, son is 30. Can his parents take the AOC? The son, by his age and lack of income is a qualifying relative, but what about ed credits?

Fellow "students" tell the son that he can take the credit even though he has no income...any ideas? Don't know where these people come from. Oh, I know, we're in Traficant country!

TIA

AnnieR

Unless you live in this area (Youngstown, Mahoning County) you absolutely cannot understand. Jim Traficant is an idol. I truly believe that he could run for office under any political name and he'd probably win. I'm not originally from here and I am usually embarrassed to admit to it. Hey, this week they sent an alcoholic, gambling addicted female judge to jail for 27 months for taking bribes from "a member of the Cafaro family" who had many cases pending in her court. C'mon, this is more or less the norm around here.

AnnieR

Thank you, I knew about the MFS "problem" of $4000 but I didn't think about amending his 2008 return when they weren't married.

AnnieR

Client called today to set up appointment, will qualify for FTHBC...BUT...can he file MFS and claim the entire credit on his return? He bought the house before he and his now wife got married last year. They had planned to file MFJ until she told him (a week ago) that she owes back taxes and has been notified that her refund will be taken when she files. I know you can split the credit however they want to, but in this case, can he claim all of it. Thanks for any ideas.

AnnieR

I am doing return for a family in which the husband, wife and 20 year old son are all full time college students. Can they all take the AOC? The husband is the only wage earner, the wife has unemployment compensation, son is dependent of the parents. TIA

AnnieR

I have one of those to do, but also had one from Deutsche Investment Management Americas, Inc. Settlement. It was for considerably more than the Putnam ones I've seen and put on hold until I could find out how to handle it. I called the phone # at the bottom of the receipt from the check (Fund Administrator). My client gave me permission to call...(yes, signed) and the person I talked to told me how to handle it...the account it was to go in was closed and she would NOT be getting a 1099 because it was not taxable.

AnnieR

Thanks,

i'll check it out

I had one rejected twice until I deleted her name and re-typed it. Seems there was a space before the first letter of her last name.

AnnieR

There is no "250" coming from any state.

The $250 is determined on Schedule M for those who are not in the social security system and receive a government (Federal or State) pension.

taxbilly

Thanks, Taxbilly,

I have a client who is employed but gets a survivor death benefit from his mother's pers. Calling him isn't an option because he's deaf and I have to call where he works so the office personnel can contact him and have him come back to see me. This is a whole lot easier.

AnnieR

BTW, IT'S SNOWING AGAIN!!! THERE IS SO MUCH SNOW IN THE DOG PEN THAT MY LITTLE DOG CAN CLIMB OUT, AND IT'S A 36"

FENCE!

I have one family with 4 dependents, the children were injured in an accident and as a result the settlement is in accounts for them until they are 21. The kiddie tax hits all 4 of them, the youngest was injured the worst and got a larger settlement. That is the one that the tax hits the most.

AnnieR :scratch_head:

I know this is going to sound stupid, but....client brought in a receipt for an enrollment agreement and tuition fee paid of $1395 for modeling school for her 11 year old daughter. I really don't believe an education credit is available but she seems to think she can write this off "somewhere"...Just when you think you've heard it all!

AnnieR :dunno:

They are coming through fast now. Even got OH acks for returns I transmitted this afternoon.

BTW, congratulations to your daughter on her achievements.

AnnieR

Not a one...can anyone say getting paranoid?

AnnieR

Prospective client called a short time ago...husband and wife married on October 11, 2009, husband sold his house (which was in his name only) on November 4, 2009. She expects to close on a new house on January 26, this house is in her name only. She has never owned a home before, can she claim FTHB credit if she files MFS? and can she claim it on the 2009 return?

Thanks in advance

AnnieR

This afternoon, after I downloaded the latest edition for 1040, I started having problems with the dependent worksheet. The boxes for "check if qualifying for child tax credit" is NOT AUTOMATICALLY BEING "X'ED", and even though I checked for children living with you, it IS AUTOMATICALLY BEING MARKED as "other dependents". It will really screw up a return, no child tax credit and no EIC. Don't know if it's me or the software, just want everyone to be aware.

AnnieR

Do we know when efile tax season begins?

Individual (1040) e-file Began January 15, 2010

This is from a 12/14/09 notification from the IRS...guess they didn't know that January comes after December.

AnnieR

I just received it!

I must be special, I got 8 and each of them had a different password. I am definitely not answering them.

AnnieR

Now if they'd just refund my money, I'd be happy. I "joined" on April 9, called and verified, all the good stuff. When I called again in October, they couldn't find my order, somebody screwed up and I cannot get ATX through them, even though I have proof that I "enrolled" in April. So, I have to buy it through ATX, but TRX still hasn't refunded the money I paid. They admitted that whoever was taking care of the payments through paypal had some problems entering it in their data base. Of course, that was from just one of the many that I have talked to. Now they're not returning my calls.

AnnieR