kcjenkins

:bday: You and I share a birthday with this board, so we are in good company, right?

And I personally thought that this board was my birthday gift, two years ago, when Eric started it. So I am very happy to share a birthday with it. Hope it's still around even after I'm not. And I'm going to click on the 'donate' button myself, to leave my gift.

THANK YOU ALL. I do appreciate all the kind words, and loving thoughts. I'm working today, but will take off early [PM] and plan to not even think the word tax for the rest of the day.

It is not 'required' but should be used if someone actually ASKS for confirmation.

NO, the repayment of PRINCIPLE is not deductible, just as the loan was not TAXABLE INCOME. But any INTEREST that he paid on the loan would be deductible. Think of it this way. Say he borrowed the money to buy equipment or pay bills for inventory, payroll, or such. He deducted those expenses he paid, so he's already deducted that cost. To allow him to now deduct the loan again would be double dipping. But hey, this is the perfect year for him to report a capital gain, since the tax rate on cap gains is ZERO this year.

Is that picture a Mallard duck?

As long as the calculations match up with what actually happened, it should not generate a letter, I think. Because the IRS gets deposit info from the banks, brokerages, etc, which means that their data should match your 8606, so no conflict, no letter.

NO.

OUCH !!!!

Very cute, and great timing. Hope all that waving does not slow him down too much. I've two grandkids who are looking forward to his visit this Sunday.

Rita, the tax fee increase is a great idea. Wonder what this 'financial advisor' really does for a living? I'd be willing to place a small bet that he will, for a 'small fee', set her up with an S corp, so that she can save all that money.

Yes, until age 18. See Pub 15, page 9 for details.

A magazine ran a "management quotes" contest. They were looking for people to submit quotes from their real-life dysfunctional managers. Here were the top ten finalists: 1. "As of tomorrow, employees will only be able to access the building using individual security cards. Pictures will be taken next Wednesday and employees will receive their cards in two weeks." 2. "What I need is an exact list of specific unknown problems we might encounter." 3. "E-mail is not to be used to pass on information or data. It should be used only for company business." 4. "This project is so important, we can't let things that are more important interfere with it." 5. "Doing it right is no excuse for not meeting the schedule." 6. "No one will believe you solved this problem in one day! We've been working on it for months. Now, go act busy for a few weeks and I'll let you know when it's time to tell them." 7. Quote from the Boss: "Teamwork is a lot of people doing what I say." 8. My sister passed away and her funeral was scheduled for Monday. When I told my Boss, he said she died on purpose so that I would have to miss work on the busiest day of the year. He then asked if we could change her burial to Friday. He said, "That would be better for me." 9. "We know that communication is a problem, but the company is not going to discuss it with the employees." 10. One day my Boss asked me to submit a status report to him concerning a project I was working on. I asked him if tomorrow would be soon enough. He said, "If I wanted it tomorrow, I would have waited until tomorrow to ask for it!"

Cute.

:bday:

:bday:

You are very welcome here, Sasha. I think support has done a pretty good job this year, even tho on some of what should be the easy stuff, like problems changing passwords, they have done the poorest. Still, the main test is that I've only had to call a few times, and most of those few were at the beginning, about one problem. And that was not a problem with ATX, except indirectly. It was with my computer's net.framework files.

Well, this hits close today, because I had a client in today, who in the past usually had several thousand in refund. Last year it was "only $1200". This year, he owes slightly over $37K to feds, and slightly over $7K to state. Why? Well, he quit his good-paying job to start preaching, went from W-2 with withholding to self employed but no estimated payments. [Yes, I warned him last year] But the worst was, he took &80K out of his retirement [he's only 50] to 'pay off credit cards and cars, cause he's making so much less now'. Not one penny withheld on that $80,000, even tho the penalty alone was $8,800. And of course, it threw him up to the 25% bracket,as well. And he lost the $2000 of CTC that he'd expected to get. I used the comparison pages to help him see, and reminded him that those big refunds came because he was starting up his wife's business those last few years, with fast write off of her equipment, and now she is making a good profit, with not much expense. And over and over, throughout the discussion, I reminded them, no estimated taxes paid in...........

I got the AGI directly from your numbers, Line 7 81881, opps, sorry, I used my 'Test' return, and forgot I had another W-2 in there. OK, now it's AGI of $111415, and the tax goes to $224, same logic. Look at the worksheet behind line 44, to see it more clearly.

The 9325 is only required if a client asks you for it. I've sent one since the first year or efile, when almost everyone who got one called me to ask me what it was, what it meant, did they need to do something, etc? So I stopped, after about three weeks, sending them, and never have sent one since. It IS required that you have the 8879 signed before you transmit the return, however, MAS. At the worst, the client might die before signing, or just disappear, and you are left having transmitted it but having no signed authorization to transmit. Or, more commonly, they might not pay for the return, and you have no leverage.

You must be doing something wrong. I get AGI of 116,415 less 55873 ID and 14000 exemptions is taxable income of $46542. and tax is $723. Looking at the worksheet behind the line, regular tax would have been only on $7240, because the tax rate on qualified dividends and net cap gains is zero for 2008, and that is $39302 of the taxable $46542. The tax on the remaining 7240 is $723.

I have had a couple of rejections that said the name control does not match the EIN. After trying one a dozen different ways I figured out that someone at the IRS enters them with the first name of the trust and not the last name as the instructions indicate. Now when I get the rejection I enter the first name and they all have come right back as accepted.

Caregivers who work in a taxpayer's home, and who are not hired through an agency, are considered "household help." Their earnings are reported on Schedule H of the payer's income tax return each year, and you are responsible for paying employment taxes (Social Security, Medicare and federal unemployment tax) on their wages. You can either withhold their share of Social Security and Medicare taxes with each payment, or pay it for the caregiver (which effectively raise the caregiver's income). The instructions for Schedule H state that if you do not have to file a tax return (1040 series), you file the Schedule H as a stand-alone form (preparer signs form) by 4/15/2009. State unemployment tax also needs to be paid, and this does not go with the income tax return, but must be filed with your state office of unemployment, with which you must register. In some states, you must also purchase a workmen's compensation insurance policy. You need to check this out locally.

Folks, it's working, it's just getting a LOT OF INPUT, just like we are, as many returns are finally being completed, and the volume always goes up in the last two weeks, due to not only a lot of returns filed, but also a lot of extensions being filed. Just be patient, if you get a server message, try again in a little while.

Make sure that there are no extra spaces in the name, or punctuation. If it's ABC Inc one place, and A B C Inc another, that is a non-match. Or Jones and Sons LLC vs Jones & Sons LLC.