kcjenkins

Generally, the IRS will, when it's a worker working out of a Union hall going to different jobs, set a 35 mile limit. Inside, it's not deductible, outside, the extra mileage is.

Yep, that's the correct solution.

Only problem, michaelmars, is that they will not necessarily schedule them during 'off-season'. Other than that you have a point, but remember that audits bring out the worst in many clients, and when they lack good records, their favorite defense is to blame you. Just saying....... :dunno:

Question is, does she make separate, extra trips to do that shopping? Or, highly more likely, she buys her own groceries at the same time. So no extra expense.

Yes, actually you could file a new PAPER return, but honestly, given how easy it will be for the IRS to screw this up at their end, I would not do it. I'd go ahead and do a 1040X, because then they will automatically link the two, and they will still TREAT THE 1040X NUMBERS AS THE ACTUAL 'FILED ORIGINAL RETURN' in their records, if they process it before 4/15/10.

TR, Jainen is correct. The divorce decree does NOT control the TAX treatment, period. If an auditor told you otherwise, they were wrong. There are numerous tax court cases backing this up. And, in fact, there are IRS rulings and procs as well, that make it very clear that it is PHYSICAL custody that determines both who can claim the child, and who can claim HOH.

Terry, it will not affect the withholding because the worker will get credit for the withholding whether the IRS ever collects from the employer or not. Linda, enter the W2 as it is, then enter the net check as a negative on Line 21, with short explanation there. And make a copy of the bounced check to keep in your files, and tell the client to hang on to it for at least 5 years.

Yes, even if we do add TaxWorks discussions to the mix, which we can do if there is a demand for it, we'd set it up as a separate forum just to reduce confusion.

I think they 'blotted their copybook' with CCH when they started recruiting through the community boards. CCH honored that year's sales, but cut them off for all future sales. Understandable, IMHO.

Since this is a Corp, not a Sch C or 1065, how much social security he draws will be based on what he is paid in salary. Dividends do not affect SS earnings. So he can continue to own as much of it as he wants to, and it will not have a thing to do with drawing SS, as long as he does not take an inflated salary. It makes good business sense, however, for him to give his son, who is running the business, at least some stock in the business. But inheriting the bulk of it makes better tax outcomes than getting it all as gifts. Although who knows what the tax code will be when Dad dies. And, of course, there are a lot of issues more important than tax results, in a case of this sort. It's unlikely he will want to give his son total control now. And probably not a good idea, either. Not because of taxes, tho.

You can not install to the root directory [C:/] but you can set up an ATX directory, and install each year into a folder in that, which is what I did a long time ago, and continue to use. C:/ATX/ATX___ with the year in the blanks. I have not had any problems with this setup, and it makes it easy to back up that whole directory, plus I just don't like having EVERYTHING in C:/ProgramFiles/ and I don't like, when looking for the program to have to type Programfiles when I could just type ATX.

Subject: Clarification for the correction to ERC 1103 – Legacy e-File Forms 1040/A/EZ ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs: Savings Bond Please be advised that returns are rejecting in error due to a programming problem with Error Reject Code 1103. The Error Reject Code will be modified on March 30, 2010, for the 11:00 a.m. drain. Note: The language in Publication 1346 for Error Reject Code 1103 will not be changing. We apologize for any inconvenience. A subsequent QuickAlert will be issued prior to implementation.

As mentioned, the majory question is whether the partners have reported their share of the income and expenses? Not knowing that, I don't dare give any advice until I hear the answer to that.

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I haven't, but I'll ask one of my computer expert sons what he thinks about the Server 2008. And perhaps Eric might have some insight here? You might send him a PM about it.

The test is 'gross income' not 'taxable income'. So yes, the whole amount would count, so he had enough income to be over the limit.

You have to wonder, was the tipping point the affair, or the taxes? :scratch_head:

Yes. In fact, if you just want to add them to efile them, it's still the easy way to add the forms to a whole batch of files. Set your printer to the pdf printer, when it asks you to select where to print to, so you don't waste paper printing them out if you don't need them. Then when you open the file, you just click on efile, and it lets you set up the efile 4868.

Yes. Even tho... The point is that it is not preparing him for a new occupation, it's merely improving his skills in his current job, which normally can lead to promotions over time. Almost all education does that. It's only when you get specialized education that prepares you for a different occupation that it is not allowed. So a nurse taking courses that broaden her nursing skills can deduct it, but if she took courses to become a doctor, that would be a new occupation. An accountant getting an MBA would be able to deduct it, but if she was getting a Law degree she could not deduct that.

Depends on what sort of statement you mean. If you mean the sort of thing that goes on Item M, you enter the Explanation on the "Detail - Items" tab. There is room for 5 lines there. For Line 20, Code Y, it's entered on the Global Info tab near the bottom of that page.

The main thing that has changed is the users. By this point in the season, all the standard newbie calls that clog up the lines have been dealt with, and the call volume is down and the experience on both ends is higher, so things get resolved faster.

The program is already pretty cheap, but if you install the old version from the ATX program, then go to the website and choose 'upgrade' you can get the current full version at a discount. And it's worth getting because of the extras you get with the full version. I strongly recommend it. There are some free pdf programs out there that are pretty good, but pdfFactory is worth the price.

Yes, you do need to show it. The reason is that the 1099S only shows the sale price, so if you do not report it, it looks to the IRS matching computer like you left off a lot of reported income, and you get a nasty letter from them about that. When you file the D, you show not only the price, but also the basis, so that the matching is satisfied. Remember, the IRS does not know it's a loss until they see the Sch D.

Box 3 is Per Unit Retains. What that means is that he got income that the Co-op held [retained] for payment to him at a later date. Often 20 years away. It IS reported as income in this year. Down the road, when he finally gets it, it will not be taxable, because he's already paid tax on it when 'earned', which is when it's reported to him in box 3. If you are using ATX, I'd make a note of it in his Permanent file. I like to keep up with them, there, for my farmers, especially when they become 'retired' farmers. I agree, by the way, that the income should be on the 4835. The rent, if it is CASH RENT, should be on the E. If it is crop share rent, however, it should be on the 4835.

Subject: Modernized e-File (MeF) - System Not Available Modernized e-File is experiencing a systemic problem resulting in a "invalid certificate path" error message. The IRS is actively working to resolve the problem as quickly as possible. Please refrain from accessing the MeF Production or ATS systems to transmit or pick up tax returns, get acknowledgements, or submit any other service requests. We will issue a Quick Alert when the problem is resolved. We apologize for any inconvenience caused.