taxtrio

Agreed!

More information would help, as always. Did they live together? Did the niece work? Did the mother support herself, or is she being claimed by someone else? All questions I would ask. If they did not live together, and she supported herself, or was supported by someone else then why would we think he should claim the the child?

We still have a lot of quesitons, and no answers. There won't be any answers (what we need to know) until they actually pass something through congress. From what they are saying on the news, it is supposed to be automatic. The IRS will figure what they should get, and sent it in well, they say, about 10 weeks after they pass the bill (whatever it is). The feeling I've gotten from information I've seen is that it will probably be based on last years returns; (2006 tax return). But we'll have to wait and see. And if you notice they are saying people will get a "maximum" of so much and it will "phase-out" at a certain income level. So people are probably not going to get what they think... just like last time. I'm taking a waiting attitude, "it ain't over until the fat lady sings" as they say. So I just keep reminding people, "they haven't passed anything yet". MTF (more to follow) as my old boss was fond of saying when she didn't have the answers. I still have freinds that work at the big green box, and last Saturday they already had people walking in the door asking "where is my check??" Ahh Clients, they never change!!

I agree, 1040 input is more consistent. The first year I used ATX I tried using the 1040A input when it seemed appropriate. Turned out to be a mistake. I found that the input screens were slightly different than on the 1040 and I caught a mistake, thankfully before filing. When I input the Soc Sec Income screen, I admit I went on "auto pilot"... dangerous!! We are creatures of "habit". Our fingers get to know how many enter, enter, enter's it takes to get to the line we want. I accidentally entered the Medicare w/h on the Fed Tax w/h line on the 1040A input screen. Guess what, because you don't use sch A on the 1040A, there was no line to input the Medicare w/h. Oops! It ended up on the tax w/h line instead. Here in Michigan we need the health insurance paid to flow over the the MI 1040-Cr -- so I always input it. I caught the problem immediately when I reviewed the 1040A and had a large refund, and realized there was Fed Tax w/h showing when I hadn't input any, the jump to feature took me right back to the error on the input screen. Quick fix, but I learned my lesson. Be consistent. use the 1040. I hope my story helps someone out there from repeating my mistake.

Maybe I'm mistaken, but I thought it was approved for efile, just not for mailing?

I thought I read somewhere that we have to "order" checks and supplies this year... it's automatic.. Anyone else read this also?? Not a big problem for me and my small practice, most of my Ral/Rac's do direct deposit anyway.

I too love my HP Laser Printers. I have a 1300... (the upgrade from the 1200). It's a workhorse just like the 1200. Fast and dependable, and I can get toner cartridges that print 4,000 copies. I also have a HP 1015 at home, smaller, and a little slower but just as dependable. The 1015 you can get for around 100.00 on the hp website. sometimes cheaper on their outlet for refurburbished models. I recommend them both highly. Taxtrio

I decided to print labels for my January mailing from the 2007 Max program instead of 2006. (More options for sorting files. can print by zipcode etc.) So I rolledover all returns from 2006. Updated addresses. etc. etc. The help screen lists labels to use. I have the Avery 5160 (30 to a page address labels) Yes, they are on the list... But... The labels don't line up. I've tried to adjust.. No go!! They are all too far to the left. A lot of extra blank space on right side of page. Anybody else tried this yet??? I think there is a flaw in the label printing software. So I found an option to export the list as an excel file. Then I figures out how to bring the client list up into Microsoft Word and print the labels there. At least they line up properly. Thought I'd share and see if anyone else had done this yet.

I'm using one on each of my computers, work fine... easy, economical.

I agree, a necessary evil. But 3.75%!! Wow!, but I suppose if it's only an occasional client... Have you checked into the merchant account available to NATP Members?? I'm thinking of switching to the company that gives a discount through NATP. The good thing for someone small like myself is that the monthly fee is only 5.00 per month with no contract and no minimum; and you can use them for just the tax season (4 months) each year and save that way... The only thing is I have to get a credit card machine... They offer one for 343.00 (or close to that)--- they will let us pay in 4 installments for the tax season. But I've bought one second hand, a couple of years old but supposed to work. I'll let you know how it works for me, and their rates are less than 3.75%..

I would like a connection between the return manager and the efile manager... Need an indicator that shows on the return manager screen what the efile status of the return is. As it is now, I have to print both the return manager screen and the efile manager screen and compare the two "by hand" to make sure all returns have been efiled... this is a huge time waster!! For those of us that efile almost everything we do---- this is a must!! ATX hope you're listening!!

In reading the FAQ section of the irs link given. It appears if you only use a website to advertise information about your firm, no registration is required.

In conversations I have had with the TRX representative, I asked her what else do they require? She said I don't have to add TRX to my name, can if I like, but don't have to. And I can offer RAL/Rac's but don't have to. They just know the more preparers are in the group the better discount we can all get. Talk to them they are helpful. By the way I am still working with their demo... no decision yet for me. I hate to learn new software!

You might want to check out the TRX Alliance. You should be able to google it and get to their website. I've been considering going with them because of the price. They are a group of independent preparers that have joined together to get a discounted price on software and efile services and bank products (if you so desire). The are a licensed distributor of the ORR Tax program. If you join the group for 299.95 (price good till end of june, then 499.95) They send you the complete program from 2003 thru 2006 so you can get started and do present and past returns. You get the 2007 program when it is released at the end of November 2007. They will send you the demo, and I am still working with mine. The TRX Alliance gal has called me a couple of times to answer my questions and walk me through a few items. The program is complete Federal 1040, and all business programs (1041, 1120, 1120S, 1065, etc.) And efile is included at no charge. They will even provide you free client folders and other materials. Very temping for 299.95. Has anyone else out there ever used ORR Tax?? Comments??

Just to clarify, he did work for the majority of his lifetime. He has enough credits for retirement already. He had bad family troubles, and it threw him for loop for a number of years, and he has been living on his investments and savings. I agree his scheme is just as wrong as a person "fabricating" self-employment income to get an EIC. He's just afraid if he were to become worse off physically, that he has lost the benefit of all the money he has paid in to social security in the past. I think it is unfair that a person that has paid in all his life, and then doesn't work for a few years-- then looses the disability benefit he has paid for all his life. BUT, like I told him.... the IRS would not go for his scheme. Just thought I would share the craziness with the rest of you.

Strange question from a client today... He has a C-corp that has had no income since 2002. He got his Social Security Earnings Statement recently and has been concerned that it shows he no longer qualifies for Soc Sec Disability. Has not had any "earnings subject to soc sec/se" in a number of years. He has been living off of money from house sold. This is his "question". Can he hire his own corporation to do repairs on his personal home, and pay the corporation out of his personal funds. Then the corporation will "hire" him to do the work on his own home. This will create "earned income subject to soc sec/se". He figures this will allow him to earn more credit with soc sec. I told him I didn't think the IRS would like his "scheme". Sounds like taking money from your left pocket and putting it in your right pocket to created a tax liability! Your thoughts are appreciated...

I use paycycle here in Michigan. I can't answer for Ohio, but for Federal and Michigan it works well. Pretty mindless. Once you've set-up your client, you just choose an employee, enter the hours and it calculates everything. The system sends me email's whenever something is due to be filed, or paid. I use the versacheck option, prints on blank check stock... same check stock for all my small accounts. Call them, they are pretty helpful on the phone.. Pam

I agree that we all fee betrayed by ATX. But after many years working for HRB -- I learned one thing. You cannot trust what a corporation promises. "Sorry, that wasn't written in stone you know", and "trust me, this new pay plan is an enhanced compensation plan". there way of saying -- here comes another pay cut! No matter what company you buy your software from, you can't trust them that everything will stay the way you like it. I'm not a pessimist.... just an Optimist with experience. So I will use ATX for as long as it's price and features suit me and my needs. Trust them? Of course not, not any more than I will any other corporation. Long ago someone told me that people are under the impression that GM is in the business of making Cars... Not true! Gm is in the business of making money... just like any other corporation. They are all going to get a new CEO etc. with a stupid idea, trying to make a name for themselves. So whatever software you use, watch your back, and keep your options open. Just my thoughts as an Optimist with experience.

Last return picked up, paid for and efiled as of 3:30 pm today. My husband and I went out to dinner, looking forward to a hot bath... On the drive home, my cell phone rings. A gentleman says: is this Pam? I answer yes, he says "are you driving a white mini van?" Yes, I say. He says I saw you just now on the road.... do you have time to do my tax return before midnight? I guess it is back to the office for me. I should have taken my magnetic signs off the van sooner!! Pam

You're Welcome... Happy April 17th!! Pam

New Client came to me in January... looking for new "accountant". She has a Partnership Business ... Said she was tired of having the old accountant ( a family friend... giving them a so-called "deal" on their taxes).. of filing extensions and not getting their returns done on time. She wanted someone who would get it done on time. I file very few extensions... get most everything done by deadline. I have been dealing with her since then-- trying to gather information to do return. Sunday I emailed her... I filed extensions for you.. Still don't have ending inventory, don't have auto mileage info., don't have last years 1065, or last years 1040. Don't have most of partnership information. She finally emailed me a quickbooks P/L on Saturday. Doesn't make sense. Maybe now we know why the old "accountant" always filed extensions for her...Now she'll have to wait for me. I'm done!!

You can only claim the credit for tax paid for another state if your are a full year Michigan resident who is also being taxes again by another state. Michigan is correct, a part-year resident subtracts income earned before becoming a resident of Michigan using SchNR and Sch1. Prorates the exemption allowed accordingly. You cannot double dip. If you don't watch your software... ATX will automatically put the tax paid to another state on page 2 of the MI 1040 and calculate the credit even if you are doing a Part year form. That's probably where your problem started. IMHO Pam

Chuckle of the day.... A lady opened her refrigerator and saw a rabbit on one of the shelves. "What are you doing in there?" she asked. The rabbit replied: "This is a Westinghouse, isn't it?", to which the lady replied "yes". "Well," the rabbit said, "I'm westing." Hope it made you chuckle. I'm looking forward to a "west" myself.

U. S. Citizen, must declare "world wide income". I believe taxable if doesn't qualify for 2555. IMHO. Anybody Agree?/Disagree? Unless special treatment under some tax treaty with Germany?

Work out your numbers on the 8606 form. If he has a "basis" in his traditional IRA's then this form will work out what is taxable, and what is left in his basis; if any. And yes, you have to include balances in ALL traditional IRA's to compute taxable, and nontaxable amounts. No loss can be claimed until ALL monies are w/d from ALL traditional IRA's. Doesn't matter how many traditional IRA's he has, they all are treated as if they are one account. If he has no basis, no non-deductible contributions, then he has no loss-- because he never paid tax on any of the money in these accounts. Clients some times think they have "a loss" because the value of their IRA's go up, and down. Whenever it goes "down" they feel they have a loss, even if they still have more than they started with... just less than they had yesterday. Just like when they own stock, if it goes down and they still own it, they think they have a loss... but no loss really until they dispose of it. Sorry, long day, I'm rambling... hope something here helped you out.