Julie

I don't have as much time as I once had to hang out with you guys, but I still don't know how I'd get by without you. It can be scary being out there all alone, and for me, from the beginning, it's been the ATXers who gave me the courage to keep going. Love you all!

I think this is the first time I've ever filed an extension for myself. Oh, I have a few excuses: I know I have a net loss this year, and I was sick with a horrible virus from about the end of March (I'm finally getting over it, but still have a bad cough), and running an art gallery is way more work than I anticipated. But I need to do better than this. Feeling very guilty about the lax standards. You guys are reassuring, at least. I did start my return early, but not to test the software. I have a charming couple come by every year to do that: Dummy and Tax Return, and their daughter Carriage.

Without seeing it, of course, it's anyone's guess. But I would look at the k1 input and make sure that line 14 is completed correctly.

Not necessarily. Particularly in the case of a back injury, it may be necessary to buy a much more expensive mattress than one might normally buy for comfort. If you cannot stand or sit for more than a short time, the mattress is much more important than otherwise. But to be a medical expense, I would think the doctor would have to have specified a particular type of mattress, for example?

Maribeth's using the right procedure....or at least that's the way I do it.

Sorry....I'm busy enough that I can't check in every day any more . (That is good news, btw.)

Accepted. No problems.

I had one of two Sch C's disappear a couple of years ago. Client got letter (1099 was more than remaining Sch C income) from IRS. Client (relative) was very edgy, nervous. I called IRS, faxed necessary Sch C, all was okay. But I lost the client the next year anyway. Oh, well.

I'm dealing with one of these (but from 1998-2000--don't ask) The letter from the collection agency lists the amount that they got for the truck, and how much he still owed. I treated that as a sale price, because they applied that amount to his debt. So...ATX has your depreciated basis from last year. Just put in the sale date and the amount they got for it at auction (or whatever) on the dispositions page. If he still owes them (mine does) he'll probably have a tax loss. Apparently these things are never cancelled, and they owe the remainder forever. (Of course, yours may have a 1099-C....but mine doesn't.) 4797 should generate normally.

Thanks, KC. Maybe six or seven years ago, on another board, I wrote a line-by-line explanation of this one (it was a bit shorter then). I don't think I'd have the patience to do that again, but I think people do need to look twice at things they spread around....they may express one's point of view perfectly, but are they really true?

In ATX, if you've been using the loan amortization checklist, all you have to do is check the box that the loan was paid off this year.

I am guessing you have to put in the state income (even though that box on the 1099R is blank).

I just sent one off...fingers crossed.

Since they are bankrupt, your client's odds of recovery are just about zero. How about a casualty loss claim?

Let me know when you find out. I just did my first RDP, and they should be in to sign in a few days.

Interesting spreadsheet....I run at the higher end of the things I actually charge for, but there's a lot of stuff I figure is included. Example. I charge $100 for a basic tax return. But I don't add on anything for child care, EIC, education credits, retirement savings or interest income. So it's still hard to make the comparison.

Uh...I think that's in Cir. 230. Don't remember the statute, but I'm sure we do have to keep that info confidential.

I explain to them that, as of August of 2007, they need more information than previously. The new law requires that they be able to show that the item is worth the claimed deduction, and that, if they are donating anything of real value, they should take pictures in advance. In addition, the new law requires that donated items be in "good used condition," and that items of minimal value (the law mentions "used underwear") are not deductible.

Advance EIC is often a mistake. By the end of the year, that person may no longer qualify for EIC, and they definitely won't have the money to pay it back. And it's so rare that I miss it occasionally, too. As for needing the money month by month, sure they could use it. But they'll never have enough money to get that old car repaired without getting a single large check. Sometimes they already have the car in the shop, and can't get it out until they get their tax refund(and you wonder why they like RALs?). An extra $167 a month will disappear into groceries and day-to-day necessities, but a single large check allows them to buy a used car or fix the old one, with maybe a bit left over for the kids' shoes. A long time ago, working at HRB, I did see a fair amount of EIC fraud...but it was almost always caught quickly, since the legitimate parent of the child usually filed at about the same time. When we could identify the fraud, we'd send them away, but they'd go on to another office where they weren't known yet. In general, they always want a preparer who's never seen them before. In private practice, I don't see it at all. I still have EIC clients, but generally I know them well, since they've been with me since my Block days. Julie

Have you updated your software? Try a "custom" update and pick those forms by themselves.

Babysitting throws in another set of possibilities: If the "employer" claims a credit for the child care expense, and she does not file a tax return reporting the income, she will almost certainly hear from the IRS.

Look in your profile.

Well, so far, I'm being rejected by everybody. It was about 6 years ago that River City charged the $100. They seem to have dropped the practice. I still have not gotten anything from HSBC. The only bank that has not rejected me outright is Chase, and they're waiting for that loss ratio. That I can't get. I only need them for a few clients, but those are the ones who've been with me since day one, and I would feel seriously lost if I lose those few over this issue. (Looks like I've lost one already. Someone who's been with me since my days at Block and referred lots of her friends over the years. Must have RAL today. I can't do it.

Yes, believe it or not, in California, our property tax is about $350 a year. This is because it's grandfathered under prop 13, which prohibited reassessment on owner-occupied homes, back in...1976 or so? At any rate, my husband already owned our home when it was passed. This is a modest little bungalow, badly in need of repairs, but, still, a real house with a yard (and no mortgage).

My clients are calling and asking for reassurance: "It isn't the big one, is it?" "No, relax, it's the little one." "Whew!"