Diane

I used the NATP worksheet to calculate the amount of carried over NOL that was used in 2008 and that worksheet is telling me that none of the NOL was used in 2008. But, the software is still saying that 519 of the 36935 was used in 2008. I also used the NATP worksheets to calculate if there was an NOL for 2008 and that showed no new NOL. So, who's right? Diane

OK, got it. I guess I shouldn't be doing this tax return this time of night. I just couldn't get the figures straight. Thanks very much for your help. Diane

OK, redid the numbers. But, the software is using the State Tax refund as business income and now calculating the carryover as 33090. (36416-3326). It now says that I used 3326 plus the 519 for a total of 3845. I still don't know where the software came up with 21714 used in 2008. Diane

I have an NOL from 2006 of 49103 (this is the carryover from 2007 which was not used yet) which was reduced to 36935 by a cancellation of debt from a bankruptcy. Put 36935 on line 21 as a negative. AGI came to (25322). Item deductions 28438, exemptions 14000. The software is calculating that 21714 of the NOL was used in 2008. Income consisted of 66029 of wages, 3326 St tax refund, (65510) loss from from 4797, 7768 early distribution from an IRA. For the life of me I cannot figure out where 21714 came from. I can't get my math to work to this figure. All my calculations show that the whole 36935 gets carried to 2009. What am I missing? Diane

Thank you. Sometimes you need to know that you are going in the right direction. Diane

1099-C for COD on credit card. Bankruptcy box is checked. I'm going for non-taxable. I have to fill out Form 982 and check the appropriate box. But, I also read that if there is a NOL carryover from the prior year, that I have to reduce the NOL by the amount of non taxable canceled debt. Am I on the right track? Diane

I had the same problem. I don't have an FEIN. I just deleted my name that automatically appears in the 'Company' field since I don't have a 'Company' name. Then the 7004 efiled. Diane

Client sold his share in the partnership. Sale $316,000. Basis $28,256, 1250 Recapture $30,256. How to report? 4797? Schedule D? Diane

What I've read says that an individual with 'Earned Income' is eligible for the $400 tax credit for 2009. Does pension income qualify? Just received April's pension payment and the withholding has been reduced by $68.00/month. We are also receiving Social Security, which means that the $400 will be reduced by the $250 payment received -- which leaves $150 left over -- if pension income qualifies. Otherwise, we will be in the hole next year on our withholding. If the pension doesn't qualify for the $400 and other taxpayers' have the same problem with the withholding, there will be a lot of retired folks screaming next year because of the drop in withholding. Right now I plan to call the Administrator and change the withholding back to the orginial amount by adding extra. Diane

Where Oh Where are my glue balls! Diane

I remember when we had Telephone Operators and we had to tell her the number. Usually 2 numbers and a letter - we had party lines. Diane

Thanks, The capital gains are capital gain distributions from the 1099. Diane

The child's investment income is less than 1,800. Diane

Client has a 4 year old with 1,773 of unearned income, of which 1,473 is capital gains. If I use Form 8814 on the parents' return the tax is increased by 87.00. Apparently a return is required if gross income is more than 900.00. If I file a tax return for the 4 year old, the tax is 0. Am I doing this right? Or am I missing something? Diane

Does anyone use an online ink supplier? If so, who or what do you recommend? I have Epson printers and will be needing ink and don't like the prices at Office Depot/Staples, etc. Diane

Thanks for the replies. I probably will enter this on a Schedule C. Diane

Client buys sports tickets, then sells them over Ebay for a profit. I've been putting these sales on Schedule D as a short term gain. I felt that this created an investment sale, and not a self employment transaction since he is not in the business of selling sports tickets and has a regular job. He never makes enough to create any self employment tax and it's not a regular thing, although he's done it for a few years now. What is the right way to handle these sales? Diane

Thanks everyone. It helps to have someone else to talk to when these situations come up. Diane

A potential client called. He permanently lives in Florida, is in Maryland on a job. The job started in 2007. The company paid his living expenses in 2007 and did not include on the W2. Which, I believe, was correct since the job was supposed to be Temporary. He is still working in Maryland (worked all of 2008). The company paid his living expenses and put on his W2. He thinks he should be able to deduct these expense on a 2106 (he heard from a friend in Florida). My take on this is that his tax home has changed to Maryland; therefore, he cannot deduct any living expenses while here. Am I thinking corrrectly? Diane

New Client - H&R prepared her tax return last year. 1040, small Schedule C (2 expenses), state, 2 W2's, 3 kids, no interest, no itemized deductions Charge was $446.00. Diane

You have a point about the unemployment. I didn't think of that. And he probably wouldn't be able to collect any unemployment if his business goes under. At least in Maryland, (I think), if you have control over the company and you make the decision to close the business you can't collect. Diane

I talked to him today and asked why he was doing the W2 -- cause that's the way I've been doing it since day 1. Quite a few years apparently, and he's had no comment from IRS. He did give me a balance sheet and P&L; no depreciation statement from last year (CPA won't give it to him). So, I think I'll do what Old Jack said; I'm not sure this guy would handle estimated payments well since he's been doing the W2 and not having to worry about it. I will mention the Sub S option also. Diane

Thank you for your help. I just wasn't sure how to handle this. I didn't do his payroll or his bookkeeiping, so couldn't control how it was being done. And, apparently this is the way he has been doing it for a while. I just needed to feel that it would be OK to continue with the status quo. Diane

New Client - Last years tax return shows a Schedule C as an LLC. There is a loss. But, the single member owner pays himself a salary, withholds SS and MC taxes and issues himself a W2. Deducts his salary and the other employees as an expense. I don't think I've ever seen this before, so I'm a bit confused about the W2. I thought that if the single member of the LLC didn't elect to be treated as a Corporation, they filed a Schedule C and paid self employment tax. No W2. Am I wrong? Can he pay himself a salary because he's an LLC? Diane

That's exactly what happened to me. Also, I had set up my info with TRX so I could efile if I used that program. I was then unable to efile thru ATX because of the identical EFIN's. That took 2 days for them to finally figure out! I was also given the $299 credit toward ATX Max for next year with the same price quote of $699, $400 after the credit. I don't know how they would be able to market the software at $699 and ATX at $1,100. I guess we will find out. If I don't get the credit (toward anything) I will be calling and insisting on a refund since we were able to purchase both software packages without knowing that we wouldn't be able to use both. Their fault, not ours. Diane