LisaAnn

Thanks Jainen.

Did anyone ever have this scenerio?

Thanks again!

Some comfirmation is needed for this scenerio:

Taxpayer worked at a temporary 9-month assignment in another state (it was always meant to be 9 months no more not less); employer paid a $10,000 relocation fee and $2,000 in meal allowance that was included on W-2 as gross wages and taxed.

Taxpayer decided to rent an apartment instead of staying in a hotel room.

Taxpayer can deduct on 2106:

1) cost of apartment rental, electric, heat, and cable as lodging?

2) standard per diem meal allowance? 5 work days?

3) mileage deduction to/from tax home on days off/weekends?

And since the taxpayer owned a home in their tax home state........mortgage and real estate taxes are still deductible on Sch. A?

Am I in-line with this? Missing anything?

Thanks so much!

Ok, thanks. At least I know it's just not my system acting 'strange'--and there have been some strange things with this software this year.

Does anyone know if ATX allows PA-only E-file?

When creating the e-file it is saying '1040 is required to efile PA and will be selected automatically'.

Thanks!

Agree that this is a great community! I love to read the topics in discussion!

No need to worry about the test; I took it yesterday the 18th, while everything was still fresh, and passed! Yay!

The worst part was that the 1040 instructions and Pub 17 were online and not a hard copy......I guess I'm from the old school and like to flip through the booklet!

I did two amended returns for a client back in June 2011 and they were never processed by the IRS until early October 2011.

Enter the full amount of the Health Insurance on the top of the SE. If he doesn't owe any SE Tax, then just delete the SE Form to make it e-file.

I've been seeing the ATX warning about the SE when creating the efile, but I've electronically submitted and everything was fine; ack's were received and returns were accepted.

The box on page four of the NY return says: "paid preparer" . You are not a paid preparer. Why muddy the waters?

taxbilly

I put my name on everthing I prepare, whether paid or not.......but like you said, no need to 'muddy the waters' for the NY return.

Thanks for everyone's responses! I don't have time to get on here much, but when I do everyone is so very helpful! What a great group!

I don't understand your problem. If you are preparing it gratis why would you put in info that you are a paid preparer?

taxbilly

Just to show that I prepared the return. Should I just leave it blank?

I would simply split the 1099R into two. One with code G in box 7 and the amount that was rolled over tax free in box 1. The other with $3,500 in box 1 and code 1 in box 7, subject to the 10% penalty.

I agree, I've done this in the past with no problems.

I also am a PA preparer I have two clients who work in NY. I registered with the state of NY got a registration number, and so long as I don't file more than ten NY returns, there is no fee.

Is the online registration immediate or do I have to wait for something to come in the mail once I register?

If you're an EA, you no longer have to register. Although, it was suggested to me in a course that I start the online registration process, and when the page comes up telling me I do not have to register, to print that page for my files. I did that. (I was registered for the prior tax season before we EAs were added to the regulations NY uses for CPAs and attorneys.)

No, I'm not an EA, so I guess registration is required to file one return.

Yes, that should be reasonable to rely on.

Great.

Hi New York Tax Professionals!

I am a PA preparer, can I paper-file one New York return for my niece without being penalized $100? (FYI, niece's tax prep fee is 'family gratis' work)

I thought I read something that I would have to register with the state of NY in order to prepare a NY return or else I would be penalized $100.

Yes, according to their own instructions, he is eligible for the credit. Guess Congress figured [probably correctly in most cases] that siblings are less likely than parents or grandparents to make 'bargain' deals?

Thanks KC.

Now here's a twist....taxpayer informed me that they haven't moved in yet because they are doing renovations. Does that disqualify them because it's not being used as their primary residence yet? I looked everywhere for clarification on this and only could find info about new construction where the date of occupancy is considered the date they purchased. Although, I did find in an IRS scenerio that when you purchase a house it's the date of settlement not the date that you occupy that makes you eligible. Can that be used as my backup?

Thank you again for your reply.......sometimes I have a hard time swimming in the gray area of tax laws!

Is a long-time resident eligible if they purchase a home from a sister or brother?

Taxpayer wants to get the long-time resident credit; he meets all of the criteria except that I need to confirm that purchasing a home from his sister is not considered a related-party for this purpose.

Researched and found documentation in the 5405 instructions:

Who Cannot Claim the Credit

You cannot claim the credit if any of the following apply:

9. You acquired your home from a related person. This includes:

a. Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.).

b. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.

c. A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.

For more information about related persons, see the discussion under Nondeductible Loss in Chapter 2 of Pub. 544, Sales and Other Dispositions of Assets. When determining whether you acquired your main home from a related person, family members in that discussion include only the people mentioned in 9a above.

I checked out the Pub 544-chapter 2 for related-party clarification and it does state that sisters, brothers..whole or half are considered related parties.

BUT............because of the disclaimer in the 5404 instructions:

When determining whether you acquired your main home from a related person, family members in that discussion include only the people mentioned in 9a above.

My conclusion:

Taxpayer would be eligible for the long-time resident.

What do you think? Anyone have this situation before?

Thanks!

Interesting topic, but i go with Old Jack, if nothing else, in being equitable. Now if your spouse is MIA how can you even know of you can itemize or must take standard deduction? I think constructive abandonment comes to play here. In one of the cases above the person didn't even know if their spouse was still alive, hence MFS might be wrong too.

I'd go substance over form and on the rare chance of it happening, i'd deal with it on audit. On the other hand, if the irs says the spouse filed as mfs and thus you must too, congratulations, you can now find the person for child support and/or alimony.

I like your angle!

I think I know the answer, but need some reassurance:

Taxpayer wants to get the long-time resident credit; he meets all of the criteria except that I need to confirm that purchasing a home from his sister is not considered a related-party for this purpose.

Researched and found documentation in the 5405 instructions:

Who Cannot Claim the Credit

You cannot claim the credit if any of the following apply:

9. You acquired your home from a related person. This includes:

a. Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.).

b. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.

c. A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.

For more information about related persons, see the discussion under Nondeductible Loss in Chapter 2 of Pub. 544, Sales and Other Dispositions of Assets. When determining whether you acquired your main home from a related person, family members in that discussion include only the people mentioned in 9a above.

I checked out the Pub 544-chapter 2 for related-party clarification and it does state the sisters, brothers..whole or half are considered related parties.

BUT............because of the disclaimer in the 5404 instructions:

When determining whether you acquired your main home from a related person, family members in that discussion include only the people mentioned in 9a above.

My conclusion:

Taxpayer would be eligible for the long-time resident.

Is my conclusion correct?

Thanks!

I have a similar situation; the taxpayer doesn't know where the husband is or if he's still alive! It's been 3 years since anyone has heard from him. To add a twist, my taxpayer now has a child from another man, whom she doesn't live with. The state even tried to find the original husband because of birth certificate issues and they couldn't locate him. It's unfortunate because she is not able to file for EIC because of the MFS status. (She doesn't qualify for HOH-lives with grandmother who pays the house bills)

Dlete the information in the zip code field. Then use the restore button for that field. Then re-enter the zip code.

This has been working for me.

Thanks Jack, I'll try that!

I updated my program around 11:30 ET and now I'm getting zip code errors on W-2's and 1099R's when creating e-files...?? It's saying the zip codes are incorrect but I checked all of them and they are correct. Is anyone else having this problem?

Try this link, on the left hand side of this website, http://munstatspa.dced.state.pa.us/Registers.aspx

click on "find withhold rates by address."

Never go by what the bookkeeper put in box 20.

Hope this helps!

This is an eExcellent website.....I use it all the time to search local tax info!

Gene,

You should have no problem; I filed a few returns with split deposits into separate accounts last season and they all worked out fine!