Diane

What do they mean by a 'service bureau'? I just renewed with the 40% discount (I was a TRX purchaser last year) and was not told anything about having to use a service bureau for support, etc.

I purchased ATX last year through TRX. Was really thinking about going only with TRX this year, but the learning curve was a bit much. Didn't want to spend all summer learning a new program. Called ATX, told them I wanted to renew, that I had purchased ATX through TRX last year, and was given the 40% discount. So, am good for at least one more year.

Diane

I have to find out those things and about the 5227 as well. I will be calling on Monday to check on the Ohio cities and other forms. We shall see...

Please post what you find out.

Diane

I went ahead and bought the TRX Pro for $300, renewable for life. The learning curve is very sharp (at least for me), but at least I have a while to practice before next season. I am doing my extensions on it. It took me about 3 days for the first return (a very simple return), and the second return about a half day. At this rate I will soon get into a negative time frame where I will finish a return even before I start it (grin). I believe we are all going to have to learn a new program sooner or later. As for trust - how many of you trust CCH?

Does the Pro version have any payroll forms in it? 941, 940, State unemployment, W-2, 1099? If so, I might do what Margaret is thinking about. Renew ATX in the Fall, purchase TRX now and play with it.

Diane

Well, I downloaded the TRXPro demo last night. The hurdle is too high for me so I will spend the extra money and stick with what I know. One of the issues is screen resolution. I use 800x600 to make it easier on my eyes. I also have 2 17" monitors that take up all the space so don't have enough room to get an even larger one because I really like having two. TRX display doesn't play well with my resolution. There is no bar at the bottom to move things only the boxes at the upper right. So, for me, it's a real bargain that isn't right for me.

Now I just hope I can wheedle CCH out of paying full price for MAX since I was a defector for a year...

I had the same issue with TRX. I tried to mess around with the demo and found the learning curve a bit of a challenge. I'm so used to ATX and how to get around that everything is almost automatic. Right now I don't think I want to go through a new learning process. Also, I'm not sure how much payroll it will handle. I do quarterly and year end reports for several clients, including the unemployment reports from 2 different states. So, even with the good price with TRX I think I'm staying with ATX. Am also hoping for a discount offer.

Diane

That's what I thought. It has to do with 'forgiveness' of loan. But, they are young lawyers. The one who got the notice is going to argue with IRS. The one who received the 1099G this year is going to put it on her return as taxable income; then wait to see what happens with the other lawyer and amend if he wins. I wished them good luck. I'm not going to do their returns.

Diane

In my e-file manager several returns have been sitting as transmitted while more recent ones have been acknowledged. At ATX support, these returns are listed as accepted. I synchronized with EFC but it didn't change anything at my end. There don't seem to be any humans on the ATX support line now. Any thoughts??

Thanks, Dennis

Having the same problem. I even have one return that is listed on ATX as sent to IRS on 1/21/10 and on 4/14/10. I have one where the State is Accepted, but IRS is listed as Transmitted. I also synchronized with EFC, but it didn't help. So, right now, I have to go to ATX and check each return to find out its status.

Diane

Client received a check for $10,000 from a Non Profit to pay off their student loan for law school. They have to take the check and apply it toward their student loan. It was not a direct payment or a forgiveness of the loan balance. Just money to pay off the loan. They received a 1099G in box 6 (Taxable Grants). They think this money is not taxable because of Code Section 108F. I think they have a problem between 'loan forgiveness' and receiving money to pay on the loan. One of them received this in 2008, did not put it on his tax return, and, of course, got a letter from IRS. He is going to argue the point based on Section 108F. I could not advise them on how to handle this. I would have put it on the return as taxable income. Has anyone else seen this kind of 1099G for loan repayment money?

Diane

Dependent child owes $1.00. But, if the numbers were not rounded off, she would only owe $.66. Software won't let me use pennies. Will IRS count the pennies?

Diane

I have a client with GM stock. Can he write off the stock?

Diane

Does this mean that I will have to send Office Depot a 1099? ATX for the purchase of the software? Target/Walmart where I buy some supplies? Which means that I will need ID numbers for all of them?

Diane

Thanks for the reply. I have put both the 1099Misc on Schedule CEZ. I was kind of hoping that using Line 7 was an option.

Diane

On the same subject: I have a 20 year old (in college) who received a 1099Misc for work at a Summer Camp. And she also received a 1099Misc for some work for the American College of Surgeons. She is not self employed, just working during the summer while attending college. Would these amounts go to Line 7? In 2008 I put the Summer Camp income on Line 21. IRS came back and reclassified the income as Self Employed and charged her self employment tax.

Diane

It finally showed up on the Schedule D. Last night when I input the info on the Input tab, it did not show up anywhere. Either that or I'm too tired. This morning I deleted the entry, then reentered and - there it was. Thanks for the help.

Diane

My problem is it's a loss and not deductible. But I need to show that on Schedule D so there will be no questions from IRS about the 1099 that is showing gross proceeds of $341,000. I checked the box 'fully report excluded gain' and it's not showing up on the Schedule D form; probably, because it's a loss. What else am I missing?

Diane

How do you get the sale of the personal residence to show up on Schedule D as a non-deductible personal loss? Client received a 1099S for $341,600. I input the info on Schedule D under Sale of Personal Residence worksheet. But, as far as I can see it's not showing up on the Schedule D.

Diane

Where do you put the pass thru Foreign Taxes from a 1041 K-1? I know the Foreign Taxes go on Line 47, but, the individual's foreign taxes and the K-1 foreign taxes total more than $300. Therefore, I have to fill out Form 1116. When inputting the individual's info, I have the country, income, etc., from the broker sheet. But, what if you don't get that info on the K-1? Can you enter the foreign taxes without that info?

Diane

Yes, that section is there. But the actual worksheet on which to do the calculations that include carrying forward information from the year before is not. I just think it would be handy to have it in the program like the lump sum worksheet already is.

Go to the Detail tab of the 1099-R input; down at the very bottom of the column you will find the area for the calculations of the Simplified Method.

Diane

Client has a foreign child in their home pending adoption. He has a Permanent Resident Card. Not sure yet if he has any sort of ID. The adoption is not yet final. He lived with them for most of 2009. But not the entire year. I checked on the expenses for the adoption and they can't be deducted until the adoption is final. But, I'm having a problem with trying to figure out if he can be claimed as a dependent. Since the adoption is not final, I don't think he can qualify as 'Qualifying Child'. Can he qualify as a 'Qualifying Relative'? I am checking on whether the Permanent Resident Card has an ID number.

Diane

Here's where Making Work Pay is starting to screw up taxpayers. Client worked 5 jobs. She's a nurse. Made $30,000 more this year than last year. That increase put her over the limit for the $400 credit. But, each one of the jobs had the reduced withholding. So, with the increase in income putting her into a higher bracket along with the reduced withholding and no credit, she is looking at a MUCH reduced refund this year. Because of working 5 different jobs she wasn't aware of the reduced withholding and, of course, most employers did not totally inform the employees of the reduction. And, the IRS was a little late in passing the info along about checking your withholding and maybe increasing it to cover these circumstances.

Diane

Ok I have a client coming this afternoon and they were eligible for the $7,500 credit that has to be repaid over time, I am looking at form 5405, on the second page I see the repayment section, however it seems like form is for people that sold or disposed. On Part IV, is that where I put down the amount ($500) they are paying back for next 15 years?

Thanks

MAS

They don't have to start paying it back until 2010.

Diane

Unfortunately, ours hasn't melted and we are due for another 12 to 18 inches Tuesday night/Wednesday. We are REALLY getting tired of this. We have broken snowfall records this winter. It is time for Spring. My clients are slow getting to me, and I'm thinking it's got to be the weather. March is going to be busy. We have had enough of digging; we don't have anyplace to put the snow except into 10 foot piles of it. Oh well, I'll just keep watching the weather report.

Diane

It has finally stopped snowing! They are saying that it's our biggest snow season ever. We had 24 inches in December, around 6 inches in January, another 4 inches last Saturday, and now this. And, they are predicting another several inches next week. I think I'll make a Bloody Mary! Then, try and finish the returns that are on my desk. Clients can't pick up, and I can't deliver. So, tomorrow should be good!

Diane

A preliminary attempt to shovel out!

Diane

Yes, our weather people did a good job of predicting this storm in the Maryland/DC area. My husband did dig out the front door and a back door path for the dog. With our cars buried along with everything else, we will be a few days before we are out and about. No mail today either.

Diane