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My client had a very sick child for all of 2009. One of his coworkers donated some sick leave to my client so that he could be with the child at Children's. Client received a 1099-Misc reporting the value of the sick leave as Box 3 Other income. Is this correct? Could it be treated as a gift and backed out? I know I have to report it on Line 21 but if it could be backed out that would be great. As an aside, the child passed away. Do I need to report date of death for dependent? Will there be any problems e filing this return? Thanks! Bonnie

Server is backup and working.

Thank you for calling and sharing this info. I was having a problem but wasn't sure if it was just me. Fortunetly, I had e filed all my extensions all ready.

Per the refund cylce chart, the direct deposit is to be sent on Friday's. Second person called saying where's my refund is giving them a date of Tuesday. Did something change? Is anyone else having this problem? I do not give a concrete date but do tell them when to expect it. Thanks! Bonnie

I have a client who was paid back wages from 5 years ago when he was a California resident. He was paid $6368 and it was reported on a W-2. Is he required to file a California tax return? His total AGI is $111,682 of which 109,000 is wages. ATX is calculating zero tax but I don't want to advise my client incorrectly. He is MFJ with 2 dependents. Thanks for the help. I do a CA return about every 1 out of 5 years. I find their instructions to be confusing. Bonnie

I also use Tenenz. Whenever I have called, I have gotten a live person, not a machine. Website is tenenz.com

The system will not allow me to create e file becuase the clergy worksheets are included in the return. Is this a temporary problem or will I not be allowed to e file this return at all? Thanks!

Child is home schooled and taking courses at local community college that qualify for college credits. The box is checked that she half time student. Do these costs qualify for education credit since she has not "graduated" from high school? These courses will count for her degree and in theory will reduce the amount of time needed to attend college. I say in theory becuase it may still take her 4 years, who knows? Thanks!

Thanks everyone. I will read Pub 908. The client is providing me with all the documentation regarding bankruptcy. Then, I can finish the return.

Client filed Chapter 7 bankruptcy during 2009. It was also finalized during 2009. Included in bankruptcy was rental property. However, client recieved a Form 1099-A for the property. I thought if part of bankruptcy, no 1099-A was to be issued. Do I need to show sale of Rental property on tax return or just remove the rental property from the return? Where is the best place for guidance on this topic? Thanks!

A friend of mine's 2 1/2 year old is very sick and in need of a heart transplant. I have been asked some questions relative to fund raising and am not sure of the answers. People in the community are interested in giving donations to benefit the child. Can a tax exempt entity be set up to receive the donations? This would provide the donators with a tax deduction and provide the family with means to pay the large medical costs. What type of entity should it be - as in 501 c 3 or something else? Their is now an immediate need to have some serious fund raising. The costs in the next few months could be quite high. Any guidance would be appreciated. Thanks!

I have an individual tax client that had a large loss in 2008. The loss was on the rental properties. The large loss was allowed due to large capital gains. The rental loss created an NOL. I'm confused by the new law and whether I can carryback the loss 2 or 3 years. The law states for small business. Where is the definintion of small business? It would benefit to carryback to 2005. Thanks for your input.

The taxpayer was in his 80's. There were no assets in his name. The daughter received some money that was in a savings account. That money was used to pay burial expenses and some medical expenses. There is no money left. What will the IRS do to try to collect this money?

Taxpayer died during 2008. On the final Form 1040, there is a balance due of $750. The taxpayer's return is being filed as single. There is no money in the estate. Who, if anyone, is responsible to pay this tax? Thanks!

Client received correnspondence from IRS regarding the decision after they were required to complete the form ss-8. Of course, as I had originally advised, the individuals have been reclassed by the IRS as employees not sub contractors. The SS8 division does not send a tax bill. You need to calculate first and take care of yourself. Then the bill will come. My question is will the IRS catch up with this. Meaning, the client does not want to file the forms. For 2009, they are doing it correctly. I recommended the client have me prepare the forms to make things correct for 2006 and 2007. If the emplyment forms are never filed, will the IRS ever catch up with it? Thanks, Bonnie

Client invested $75,000 in a travel club in Las Vegas during 2007. There already was an LLC in existence. My clients actually invested through one partner who owned 33% of the LLC. The K-1 for 2008 is issued in the original partner's names but provided to my client. It shows a large loss. The partner who my clients invested through took the money and disappeard. The business went belly up. How do I treat this loss? they never really owned any of the LLC per the document. Is this a business bad debt with 100 % fully deductible in 2008? There is a warrnet out for the partner who disappeard and a police report was filed. Thanks for any guidance.

Thank you everyone for the birthday wishes. I had a wonderful day!

Good Job JB. I am officially done for "tax season." I will be back next week but I am leaving in the morning for some R&R with my children. They are on spring break this week and we are going to enjoy it. Thanks to all for the great help this board has been to me.

Thanks. That is what I needed.

I have several clients who have Maryland K-1's that show MD Non resident withholding from the company. The tax returns are done and ATX tells me I need to fax or e mail the copy proving the withholding to MD before they will process the return. However, I prefer to fax and cannot locate a fax number for the e file department on their website. Does anyone have the fax number?

Happy Birthday KC. You truly are a blessing to many of us here. Take a little break for yourself today.

I too had an HP to begin my business. Way to slow. I upgraded to a Fujitsu and it works wonderfully. Fujitsu is a reliable brand that is only found on the internet (I believe). I bought from newegg.com. My current scanner duplex's and is very fast which helps with my efficiency. It cost $800 but was worth every penny to me.

Taxpayer purchased property several years ago to help daughter who could not receive financing. Daughter paid loan payments directly. During 2008, they "sold" the property to their daughter at a significant loss. I believe this is a non deductible loss due to related party. Client of course would like to deduct the loss. Deductible or not?

If you are e filing, you have to attach a copy of the receipt to the Form 8453 and mail it to the IRS within 3 days of acceptance. If you are not e filing, I assume you must attach the Form 1098-C or substitue form to the return. I just had a client of mine provide me with the letter from Kars 4 Kids and the letter states it is the sustitute for Form 1098-C. I believe this is new procedure for this filing year. I have done this on several clients.

They were paid for the right of the company to come and look for the resources.