redux

When I updated forms this morning, I noticed the program components were also updated. Some of you may want to get the latest updates.

Wayne

Thanks for the head's up Wayne.

John, I'm not an expert in Excel, but I took a similar spreadsheet that I had and collapsed it to the subtotal amounts and then I just simply clicked on the cell in the 1st row of the column under amount and then clicked on the sort down button (the button with the arrow pointing down), and it sorted the rows by amount in descending order. My spreadsheet only had about a hundred entries instead of 4,000, but it should work just the same. If my description is not clear, let me know and I'll try again. I did learn something from your post. I didn't know that I could collapse the spread sheet down to just the subtotals.

Gene

John:

Data can be filtered to show only the parameters you want. Private me, and we can work out something.

... but I find myself liking the company less each day.

Gene

I don't, I've reached the bottom.

I got one stating I had to renew by June 20 to be entered in the contest.

So far, we're now up to at least three contest entry dates. It appears they had their minds made up...in a way that could be changed easily.

And mine....in fact, I am almost certain that when the notice came of the June 20th extension; it said that if you had already renewed, you did not need to enter again. I don't have that particular e-mail on this computer, but will check it when I get home. Also, I did not receive the one congratulating the winners. If, indeed they did draw on May 31, congratulations to all. If they know about this board, it would be nice if they would identify themselves.

You are correct, it did say if you have already renewed you will be automatically entered, here it is:

Dear ATXer,

You know that you can receive a 10% discount if you renew your ATX software by June 30. Well, if you renew by June 20, 2007, you'll be automatically entered in a drawing for one of three prizes.$5,000, $3,000 and $2,000.

That's right.we're giving away a total of $10,000 to three ATXers just for renewing early this year. You don't often get the chance to win a lot of cash for doing something you were going to do anyway.

So what are you waiting for? Call one of our Account Management Specialists today at 800-944-8883. Or simply renew online at offers.atxinc.com. Your savings code is: xxxxxxxxx

Your ATX Total Satisfaction Team

P.S. If you have already renewed, then you will be automatically entered in this drawing.

However, to be fair, they could still have ended the first contest as they stated, May 31 and those persons re-entered into the next contest, except, I would hope, for the winners of the first contest.

My sense is that it was an attempt at deception, they're getting good at it, I'm sorry to say.

It looks like there are indeed two contests, but I bet it wasn't planned that way from the beginning. They may have read some of the comments that have been made on this board concerning that and decided that maybe they had better make it another contest. Just my thought.

Gene

Not just your thought Gene, mine also.

Many of us were solicited and told that if we renew by May 31 we would be entered into a drawing for the $5,000, $3,000 and $2,000 prizes. Then we received another message on the 5th of June stating that if we renew by June 20th we would be entered into a drawing for $5,000, $3,000 and $2,000 prizes. Since we have so little faith in the New and Improved ATX many of us assumed that this was an extension of the previous contest. Apparently we were wrong... see:

There's still one day to qualify to win up to $5,000 just for renewing your ATX software for the 2007 tax year. Our special contest ends on June 20--tomorrow. And anyone who renews by then is eligible for one of three prizes--$5,000, $3,000 and $2,000.

By the way, we recently drew the winners of an earlier contest for ATXers who renewed by June 1. First prize goes to Paul Kirkland of Kilgore, TX (customer since 2003), second prize goes to Karen Graham, Liberty, MO (customer since 2001) and third prize goes to Michael Sapera, Mandeville, LA (customer since 1999). Congratulations all!

a message I received today.

It would be nice and more believable if the winners would come forward and identify themselves on this board so we could be sure they, in fact, exist.

Sent in my 3X5 card today. I wonder what I'll do with my $5000 ... :~))

taxbilly

With your income - we'll assume a 28% tax rate, so after taxes you'll have $3600 then you can share it with us, of course. 3600/258 = $13.95 per member. I need mine right away, so just send it as soon as possible. If you don't win...I'll return it :lol:

Are strike benefits included in earned income for purposes of the earned income tax credit?

Yes, strike benefits are considered earned income for purposes of the earned income tax credit. Rev. Rul. 78-191 states that earned income includes strike benefits paid to union members who picketed even though the same benefits were paid members who didn't picket.

SORRY I meant "Interesting tax question about earned income" as the title, it seems that we cannot edit titles.

Yes, this was NATP's question of the week in "You Make the Call."

I just got a case like this, and knew I had read in depth about investment lawsuits somewhere recently. Thank god for this resource!

BTW, what is the 'TMI board'?

Joan, the TMI board is the one published by "The TaxBook" see:

http://www.thetaxbook.com/forums/forumdisplay.php?f=2

"We don't know that he would be worse off with just this income amount known. It would depend on his "Other" income...his itemized deductions, if he has enough to exceed the standard.

If he exceeds the standard by a substantial amount, then the $2,000 becomes significant in reducing his "taxable income" and the $283 SE tax on the $2,000 would still give him a net savings of $1,717.

Moreover, while we're talking about insignificant mileage amounts, the cost of the disk would be deductible.

So without knowing ALL of his annual details, it would be difficult to answer his question, except to repeat that his services are NOT deductible."

You are completely wrong and thinking like my clients... They think that if they donate $5000, the IRS will refund them $5,000. Sometimes they are married filing jointly and the $5,000 donation is the only itemized deduction they have. I tell them "the $5,000 donation will benefit you... ZERO".

The only time you will benefit by reporting $2,000 on Schedule C and deducting $2,000 on donations on Schedule A is... if you need to increase your SE income for retirement plans or you need additional income in order to get SS credits. Keep in mind that your salary is increased by $2,000 and then it is reduced by $2,000... leaving you with the same taxable income at the federal level but you have to pay $283 on SE taxes.

First of all I’m not sure any of us have the ability to detect exactly how someone else is thinking. If you can, that's a skill you should hone.

Now, let me say, you're completely wrong in what you said. I neither said nor did I mean that such a donation will result in an equivalent refund.

Yes, no question that the income will increase by $2,000, BUT if the conditions are right that can be nullified by an opposite and equal deduction in taxable income. Leaving him with the same taxable income as though he didn't have the additional income, just as you said.

Yes, I was wrong, his “net savings” is larger than I first said. He must pay $283 SE tax, (half of which is deductible from his income to arrive at AGI – Line 27), so he actually deducted $2,142 from Income to arrive at a taxable income. Therefore, $2,142 - $283 = a “net savings” of $1,859 in taxable income at whatever tax rate he may be in.

Contributing to one’s future by adding to your SS account is not ever a bad thing in my mind. Even small amounts such as $283 can ultimately be beneficial.

Stick a fork in me, I'm done!

I think it's worth noting that the heading for this part of the Forum is "General Chit Chat",

not "General Chit Chat Except Politics, Religion, or Something Else That Might Offend Someone "

Well said and duly noted John.

So he'd be worse off by doing that. Why would he want to do that?

What he can do is to deduct any mileage he might have while doing the work. But odds are he's already doing that, anyway.

We don't know that he would be worse off with just this income amount known. It would depend on his "Other" income...his itemized deductions, if he has enough to exceed the standard.

If he exceeds the standard by a substantial amount, then the $2,000 becomes significant in reducing his "taxable income" and the $283 SE tax on the $2,000 would still give him a net savings of $1,717.

Moreover, while we're talking about insignificant mileage amounts, the cost of the disk would be deductible.

So without knowing ALL of his annual details, it would be difficult to answer his question, except to repeat that his services are NOT deductible.

KC:

The process is a little tricky, but he could still make money on it by holding a "Calf Lottery".

If he sells 50 tickets at $10 each, he will clear $490 after expenses.

Ok, throw this around. If ERC sells the program to the non-p at full price and later donates an amount equal to the difference that he asked about, he would have SE tax to pay on the full amount - but would likely be entitled to a deduction for the donation of cash. (with the appropriate proof, of course.)

Even if you donate a program that's worth $2,000, if you made the program with your time and effort, no deduction.

That's where to debate would begin, I guess. Suppose you design and build a lawnmower, or any such device and you donate it to some non-profit...is that not deductible as far as its FMV is concerned?

So saying I'm donating computer software worth $2000 is not correct?

When I say computer software, I mean the chunk of code that is their online bill pay system, for example.

If you're donating a physical program that you wrote, that is tangible and would likely not be challenged as a legitimate donation. The way you first posed the question was that you wanted to donate your time and deduct it.

So here goes. I'm a computer nerd, not a tax geek, so this may be common sense to you guys.

I'm working on a website, brand new from scratch, for a local hospital. They're a non-profit.

I've been working on this site for more than 5 months. The project has grown far beyond what it started out as, and I'm not getting paid a lot for it. (I'm not sour about this, I just really want to be able to finish it before I go nuts.)

My question is this:

I've been (loosely) tracking my hours. They're paying me for the project, not hourly. If you figure my hourly rate multiplied by the time invested, the difference is roughly $2000 and growing by the day. Can I claim that difference somehow as a donation to the organization?

Well, you cam to the right place for tax questions.

Unfortunately No! You may only deduct donations that are. lets say, tangible and things like mileage. Services are not deductible.

Bob:

I'm thinking about your commission - I want to do what's fair.

Given the mindset inherited from ATX, I'm thinking I will decide that only whatever is in my best interests will constitute what is fair.

I guess "fair" is in the eyes of the beholder. Here I give you good solid financial advice, after years of training, and you seem to think it's a gift.

The very least you could do IF you win is to reimburse my $0.41 plus the cost of my 3x5 card, envelope, oh yes, and a little bit of ink I used to mail in my 3x5 card. I won't be able to deduct that as gambling loss because I didn't win anything. You, on the other hand could deduct your $0.41 plus the amount paid to me as reimbursement which you could classify as a cost expended in the course of winning...you know, "financial advice."

We're so lucky to be tax advisors....

Bob:

I'm glad you posted that.

I think I'll enter with the postcard.

If I win, then that MIGHT help me make my software decision.

My commission is...

For those who may be motivated to renew early in order to be entered into the contest, you should realize that renewing is not required in order to enter. The contest rules stipulate: "A purchase is not necessary to enter, and will not improve the chances of winning. To enter without purchase, send a 3x5 card with your contact information to ATX Renewal Contest, P.O. Box 1040, 63 Sweden Street, Caribou, ME 04736. All entries must be postmarked no later than June 20, 2007." Good luck!

I rename the return 2007 Smith, John and Mary. That way it's at the top of my return manager list and I know quickly which returns were used for a possible future scenario.

taxbilly

Hey, it must be very difficult finding a particular return if they're all name the same....just kidding

I've had a few clients this year where I've made multiple copies of returns, to try different scenarios either for 2006 tax year or to see the effects of proposed future changes. These included buying or selling rental properties, changing dependency exemptions, all manner of things.

Most of these trial returns can be deleted once I'm done. However, in a couple of cases, the one I finally used for 2006 and want to keep is now named "Copy (1) of Smith, John and Mary".

How can I rename this file (after deleting the "Smith, John and Mary" that _didn't_ get used, of course), to read "Smith, John and Mary"??

Couldn't find anything in the knowledge base or the book or in-program help. Figured someone out here would know.

TIA!

Catherine

Open the return that you want to change the name. Click on "Returns" scroll down to "Rename Return." Type in the new name.

And also that your membership is subject to approval by their board of directors?

Why do I feel that tonight at the dinner table the husband, wife and kids (the board of directors) will discuss new memberships?

Changing the odds and class action will not fly because the rules of the drawing clearly stated that ATX can cancel, call off, stop, abandon, withdraw, annul, revoke, terminate, rescind, repeal the drawing as they wish. They also can change, alter, modify, vary, transform, revolutionize, adjust, amend your odds as ATX wishes.

Do you see how important is to read the rules of engagement?

Boiler plate one-sided agreements, such as the one stated by Pacun, generally speaking, do not always succeed in court. That said, however, I doubt that any of us would like to expend either the funds or the manpower to pursue a suit for such a small reward that may be available here.

I think John and OldJack have the right idea, about the NEW and Improved ATX's (NIA) attitude toward their clients as well as the low class mentality they have adopted.

I have not made a firm decision about renewal, yes, I know I stated earlier that I decided to "re-up." Call it vacillating, it is. Ever since NIA pulled the rug out from under us I have felt an overwhelming sense of dishonesty, trickery, deceptiveness, and deceit on their part. Not because they canceled the forum, that in and of itself is an insignificant act. It was the method they used that left me with the feelings I have.

Don't think for a minute that this year's ATX software is going to be the SAME as last, or other, years. My profound distrust leaves me wondering just what is going to be in their programs this year. They have so many products that it would make sense for them to "step" them in terms of quality. So, for instance, suppose they decide that the "old" ATX software is going to be their lowest quality product, it would not be a giant step for them to remove some of the features while keeping the price where they have currently advertised them. Other product lines would be a little higher in quality and price and so forth. We, of course, wouldn't know what (if any) features of the "old" ATX software have been removed until we purchase it this year. Think about it folks, does it make sense to have two or more product lines that compete with each other in the same company?

So I too am going to sit this one out. To me, it isn't worth the small savings or other "incentives" they offer. By the way, have you ever noticed that a product that is selling well, such as a car, offers NO incentives. It's when the sales are low and they want to increase the sales that the incentives appear.

I will make my decision later after all the demos have been tested. If my decision later is to stay with NIA, I still won't know anything about the program so I'll still be taking a chance. But that distrust will certainly be part of the calculus of my decision.

So, everyone must make the decision that is best in their mind. I am not suggesting that anyone else take my position, I'm simply sharing thoughts with you as others have done.