MargaretMort

Jainen, that was my thinking also. I was hoping Taxbilly would see this and respond because I am sure this would be discussed at CPE classes. While I also live in FL, I am a "fur" piece from where most of the local courses are held. I told the client I felt the answer would be no but told him I would check. Quite frankly, the question has never come up at any CPE courses I have taken. Always has to be a first. MM

I have a client who wants to know if the PIP required of Florida auto owners is deductible as a medical deduction on Sch. A. I said no but pulled out my auto insurance and read what it said about PIP. Now I am wondering. Thanks for your input. MM

Yup! She is my next door neighbor so I walked over to see what I could find out. She received a statement from SS that her medicare premiums were being raised in 2009 because her 2008 income was above the norm for a Single filer. And, yes, she had a once in a lifetime money event in 2008. 2010 is back to normal. Learn something new every day, thank goodness. Thanks for the input. MM

Just curious. Have any of you had a client who had more than the normal Medicare Part B premiums deducted from benefits? I have one which shows $2312.40 deducted. I told her to add up the amount she received each month during 2009 to see what that total is and then to talk to our local SS office. This also shows a large increase in the total SS she received over 2008. Think there is something sadly amiss, makes a difference in her total income and taxes owed. MM

Hadn't seen this one before. Thanks. MM

probably a really good idea to throw it away if it was black licorice with or without lint stuck to it. That could raise his blood pressure and doing taxes does a really good job of that without any help. MM

Thanks for the help. MM

New problem, of course. Client received a check for $17.40 from the Putnam Investments Distribution Fund--apparently the SEC found Putnam guilty of something to do with mutual fund market timing activity and each client was awarded money based on whatever formula was set up. That part is immaterial to the question--just some background. Client did not receive a 1099 but, being an honest man, brought the paperwork he received with the check. Of the $17.40, $7.29 represents share of advisory fees and may be taxable income. $0.53 of the total represents his share of post-judgment interest which is taxable interest income. the remainder represents his share of losses due to market timing activity. I went back in my records and found that he sold his Putnam shares in 2005 at a loss. I could, as I did in my own return, show this as a short term gain, show it on line 21, I could ignore it, especially given there is no 1099. To be perfectly honest, I should add $1 to his interest income, $7 on line 21 and the remainder, $9, on a Sch D. What say you? Many thanks for any and all comments. MM

I found the bunny hops just hopped and hopped and ran me in circles. I think both the L and M are make work forms that just frustrate. MM

going to try to paste the IRS alert. Don't know if it will work. Subject: Instructions for Completing Form 1040 Schedule M We have received numerous e-file returns in which the Form 1040, Schedule M was completed incorrectly causing high fallout to the Error Resolution System (ERS). E-file returns that fallout to ERS may cause a delay in the processing for 2 to 3 weeks. The YES and NO boxes should be checked per the Schedule M line instructions. If the NO box is checked on line 10 or line 11 of the Schedule M, please do not enter an amount on either line. On a joint return, if both spouses received an economic recovery payment in 2009, check the YES box and enter $500 on line 10 of the Schedule M. Then, if both spouses received a government pension or annuity in 2009, check the YES box and enter -0- on line 11. On a joint return, if only one spouse received an economic recovery payment in 2009, check the YES box and enter $250 on line 10 of the Schedule M. Then, if the other spouse received a government pension or annuity in 2009, check the YES box and enter $250 on line 11. On other than a joint return, if the taxpayer received an economic recovery payment in 2009, check the YES box and enter $250 on line 10 of the Schedule M. Then, if the taxpayer also received a government pension or annuity in 2009, check the YES box and enter -0- on line 11. Back to Top Thank you for subscribing to Quick Alerts for Tax Professionals, an IRS e-mail service.

I am inclined to think it is a pain for everyone because it doesn't want to let you put in the info required without over-riding and doesn't make a lot of sense. I have a client who receives a small pension from the VA. I had to override to put that in. I had an IRS email concerning the Schedule M, thought I had printed it out but can't find it. My impression was that everyone is having trouble. MM

I asked the other day for help with the Form 5405, today I was implementing the suggestions when I started reading the general instructions. This person previously owned and lived in a trailer. She purchased a home, signed contract 1/22/2009. She was under the impression she was entitled to the $8000 credit. I thought so too, until I started reading the instructions which I find to be contradictory and confusing. For a first-time homebuyer, you bought after 12/31/08 and before 5/1/2010-correct. You did not own any other main home during the 3 yr period ending on the date of purchase. Wrong? Long-time resident, previously owned a main home for any 5 etc. Yes she did. Purchased new main home after Nov 6, 2009. Nope. As I now read this, she is not entitled to anything. The WHO CANNOT CLAIM THE CREDIT doesn't apply to her circumstances. Please weigh in on this. I really need to hear others thoughts! My sincere thanks. MM

Wow, finally got back to doing taxes today and figured the 10% penalty. He had 10% withheld which covered his basic taxes with a tiny bit left over. Now he owes that 10% again. Sure am going to hate to tell him that. MM

Makes good sense to me. Will do that. Many thanks. MM

It was and is "NO". Any other suggestions. Since I am running into these little problems that no one else is having makes me wonder if I need to re-load even though I have been up-dating frequently. MM

His birthday is correct and I don't see anything on the two 1099s he received that shouldn't be there. I looked back at 2008, he made a direct rollover to a qualified IRA from a company pension plan. He won't be 59½ until March 2010 so I assume the program should calculate the penalty but it didn't. MM

But it doesn't. Nothing but zero is in Line 4. Frustration is now my middle name. MM

Back again, darn it. I feel so darned stupid this year, please excuse my frequent questions. I was working on my first 5405. The only way I could get it to show the $8000 credit was to over-ride. I updated, didn't change anything. I am perfectly willing to over-ride, just feel I might be doing something wrong. The purchase price and the 10% are correct, line 3 shows the $8000, Line 4 shows 0 and the bunny hop only works if I over-ride. Line 3 is less than line 2. Modified income is more than $8000, no credit.!!!!!!!!!!!!! Such aggravation and it is too early in the season. Please lead me down the proper path! Thanks. MM

Client was prematurely "retired" two years ago. He was 59 this past September. Rolled his retirement into an IRA, took two disbursements in 2009. The program isn't figuring the 10% penalty for premature disbursement. What am I doing wrong? Has to be me, right? Thanks for any help. MM

I swear,and I am, this tax season is out to get me. I am trying to do our income taxes which really shouldn't be so hard since I figure them out months in advance. BUT....we received a check for $62 which was our pro rata share of a stock that crashed some time ago. We took the loss when it occured, this is a "supplemental distribution" as a result of a law suit. Okay, big whoop. The payment is recorded on a 1099 Miscellaneous income in box 7 as nonemployee compensation. Now, where should it go on the 1040? It isn't wages nor self-employment which are the choices in the drop down box on the 1099 Misc. and so it doesn't show up anywhere. It isn't any of the items listed in the bunny hop from line 21. Quite frankly, it is Other income but that isn't a choice. I plan to put it on line 21 with an explanation but what a total pain. Any suggestions? And, as always, thanks for any assistance. MM

Sorry, I should have mentioned the type of work. She worked at a grocery store. I think she came here to earn money because "things are bad" where she lives in Russia. I didn't think about the fact that the Corp. was the one required to withhold and pay the SS and Medicare, was simply brought up short by the fact there was none noted on the W-2. I will call the local grocery store and inquire. In fact, there is a Russian working as a checker at the closest one to me, maybe they will be forthcoming with the info. Will let you know if/when I get the answer. MM

My first client this year just left and left me with a problem. He met and married a young woman who is Russian and was in the US on a work visa. She has a valid SS card but, when issued, it was for for work only with DHS authorization. They are in the process of getting her a regular SS card and the other business of permanent residency. The problem arises in that the company she worked for did not withhold any amount for SS or Medicare. I hesitate to file the return without this info. I do plan to call Social Security later next week and the IRS for guidance. I looked at Form 8919 but I don't know if that is the right way to handle this. I am assuming the business--large corporation--handled the W-2 correctly but I also assume SS and Medicare needs to be paid. Boy, do I need guidance on this. Thanks in advance for any help you can give or the right direction to go to get the correct info. MM

Actually, I am only looking into it as a favor to a friend--I do not do their taxes. I have seen the property but not the house. My guess would be they maybe paid $12000 to $15000 when they bought it. Did they still carry any kind of insurance? Probably not. Was there an insurance pay-out? Probably not. I will ask a couple of more questions because I don't want to give them wrong advice but my strong feeling is that they did not suffer a deductible loss. Thanks for all the responses. MM

Why would they have a capital loss? The house was deteriorating and unlivable. The property is still there and still theirs. Actually, the property is, or will be if the economy ever turns around, a heck of a lot more valuable than when they originally bought it. MM