JACKSORH

Has anyone used Ultimate Tax? If so, how does it compare to ATX. I know it is cheaper than the software ATX offers. What are your impressions of this tax program?

OK Thanks to all of you that responded to my post. lt is a pleasure to have so many astute tax practioners answering all of our queries when we need help.

No, I'm not adding the excess (8,603) income back into the parents income because the scholarship is never treated as income to the parents.

Daughter is in her 2nd year of college with income of only $160.00. She received a scholarship of $55,000 and her education cost box 2 is $46,397. Her parents is claiming her as a dependent and claiming the AOTC. The parents AGI is 73,173. What do we do with the excess of 8,603. Parents stated that daughter used it for room and board off campus. So is the excess taxable to parent or child.

I generally use this wording and it has worked for me in answering those questions about the dependents, "Personal Knowledge".

Client will not be getting a refund for the federal but he will for the state. I am using the fee collect feature and would like to know if I can still deduct my fee from clients state refund. Thanks for your replies.

Father receives medicare and meets the essential coverage of being insured for the year. Son is 20 yrs old and just moved in with father after finding a job. Is he required to get insurance through the marketplace if his restaurant job doesn't offer health insurance to him?

MY client was a teacher/principal for 30 years and I was reading that if you were a part of the teacher retirement system, e.i., WI retirement and Milwaukee Teacher's retirement that you could subtract the total pension you received ($70,000.) from total income when preparing your WI Form I state return on line 11 under other subrations thereby lowering your total wisconsin income of 109,000 to 39,000. Does this sound correct? Thanks for your help.

I went to the IL dept of revenue and couldn't find there ein number for the 1099G. If anyone knows it please post it so that when I check the return, it wont render an error message. Thanks

Client received a 1099 A for a timeshare that they abandoned in 2013. Box 2 and box 4 show the same amount (7078.82) . Nothing is check in box 5 and box 6 says a timeshare. Do I have to wait for a 1099 C before I can determine whether the amount is taxable or not.

An oversight on my part. I didn't put the state abbreviation in the box for payer 1.

I could not create the efile because on 1099R (payer 1) states: The state abbreviation should be entered for State 1. The 2-letter abbreviation for Illinois is IL. Each time I key it in and try to check for errors, that error comes up. What should I do?

It has worked well for me. I understand clients may not have the money to pay right away for their tax return so I give them this option and they seem to like it. Of course the fee I pay for it, I pass along to my clients. My fee has been deposited on time every time into my account.

He is retired and that amount was in box 7 as previous stated. I know if it was in box 3 I could include it in the wages. The supplier is a window company. I guess they had a drawing and this couple won the windows, hence a 1099M was issued to them.

My client received a 1099 Misc. for which he won some windows that were installed at his personal residence. The supplier issued him a 1099 and the amount is reflected in Box 7 nonemployee compensation. How is it recorded on the 1040. Generally, a schedule C and SE would be prepared, but I don't see how in this case I would prepared this form. Need your help, it was a prize that my clients won and now they are asked to pay taxes on the prize. How do I handle this one. Thanks for your speedy reply.

Each time I try to create the efile I get this message. The SSN on second SE(1040) must be entered and must match the spouses SSN. How can that be if two of the Sch. C's 1 & 2 are the wife's and the third Sch. C is the husband's. What am I missing to create the efile. I need to efile this return as soon as possible. Thanks for your help.

The owner abandoned his property and received a 1099A which shows in box 1, the date of lender's acquisition, box 2 shows bal. of principal remaining(66,600); box 4 shows fair mkt value of property(54,452) and box 5 shows that he is not personally liable for repayment of debt. How would this scenario be dealt with. Would I only be preparing form 4797 because it is rental property and not sch. d? Would the sales price be the 66,600 since he is not personally liable for the debt and nothing is done with box 4. How is his loss or gain determined. What am I missing? Thanks for your help.

I inadvertently missed 2 stock sales which I failed to included on Sch. D in 2007. I amended the return to show how much was owed to IRS. In the CP2000 notice they are assessing interest and an accuracy related penalty to my client. Is there anyway I can get the latter penalty abated because I feel it is unfair to penalize a person for an honest mistake. It was an oversight on my part. Please let me know what steps I can follow to get the penalty abated. Thanks,

Yes, I was questioning what he told me that the CPA told him that was a little astonishing. If he had already take some of the loss, I know that the rest 2,276 must be carried forward. Yes, I think you are right, my client must have misunderstood. I saw a note on the K-1 that he or someone wrote also home taxes for house can be taken in 2008. I agree that real estate should have been added to the basis and a 2k-1 was filed also in which CPA listed on line 11 - short term capital loss carryover Fed. amt.(5276), and State (5,276). On sch.D (form 1041) listed below it he writes in the description of the property "Residence of the Deceased" which I question. The father had no other income. I wanted to make sure that my queries weren't in vain so that I could tell my client what my perspectives were regarding what was written in pencil at the top of form 1041 so that he could echo what his CPA told him to do for next year. I am sorry that the facts were nebulous but even though I felt disappointed in KC's response to my queries, but I did understand what he was saying. I accept your apology KC and I have been with this board for over 10 years and have learned a lot from all of you and again I want to say thanks for all of your help and no harm no foul.

I was only echoing what the CPA told my client and the reasoning behind my query was that something was wrong. As far as residence of the deceased, this is what the quote "CPA" put as the description of the property which I felt was incorrect. We are here to assist when possible, I thought, not to belittle or use spurious comments or degrade an individual K.C. because everyone is not as smart as you sir and if you had read the quote you would have surmised what I was getting at, however, thanks for your comment and I hope you come off of your high horse.

My client's father passed away in 2007 so he had a 1041 prepared for his parent's estate. The son is the beneficiary and was left the house that his parents lived in. He sold the house 3 months later after the death of his parents for a loss. The preparer filed a schedule D listing the sales price(78,000) and the cost (83, 276) leaving a net loss of (5,276). I see on line 4 of the 1041 that the loss taken was (3,000). Does my client carryover the remaining 2,276. on his personal return for 2008 as well as deducting the property taxes he paid on his deceased father's house of 2008. His tax preparer told him he could deduct the net loss of 5, 276 and the property taxes paid on parent's house for 2008. Is this correct. Should he only carryforward on sch. D the 2,276. or the 5,276? Also, would the description of property be listed as "Residence of the Deceased" and show the date acquired and the date sold for a short term loss. He only had possession of the property from June 2007 until Jan. 2008. The CPA told my client to use for taxes for 2008 the loss on parent's home and also real estate taxes paid on his parent's home. What are your comments? Thanks, jacksorh

Each time I e-file my clients return, I get a rejection by EFC. When I click on display selected rejection error, no results were found. I am not enrolled in bank products, just fee collect, however it is showing that my bank app. is yes and also fee collect. Could this be the reason why I am getting a rejection. I only have fee collect for this client and have not enrolled in any bank products. Please advise.

When I check the return, I get an error message that states when fee collect form is in return only the fee collect refund option may be selected. Please check this option or discard fee collect form. I am using ver. 8 and I still get the error message. My client uses direct deposit for her refund, yet the aforemention error still comes up. Any help would be appreciated.

As stated earlier, they received SSI payments which amounted to $7200 which because of their rental payments, they qualified for a homestead credit for Wisconsin. This is the only form that was filed for taxyear 2007. Again, I think IRS was in error in sending the $300. stimulus payment to my client.

Clients only income was from SSI payments which does not qualify for a rebate. However, they did receive a $300. payment. Am I wrong to assume that they did qualify. I believe IRS made a mistake. Please respond.