kcjenkins

I think you are right, and your choice of solution is the right one. It has the unfair effect of leaving the extra payroll tax behind, but that is a small amount on that much income, Medi only. And while it may be audited, it is probably less likely to be than any other alternative. I'd also file that one on April 14th. While I know they audit a % of returns filed on all dates, it's a simple fact that the number of returns filed that week are the largest single 'pool' of returns, so that improves his odds just a little.

DITTO !!!!

It's here now, Peggy.

I'm guessing that the person who filed that out did not know what they were doing, and just meant that box to be informational to the client, as to how much was paid to the attorney, which amount may be deductible.

Alos, you could use the last tab, where you enter 'r9ollover explanations' to be sure it goes with the 1099R info. I'm not sure if the 'lists' go with an efiled return. Of course, if it's paper, no problem. But really, you are doing it perfectly now, so really you don't need to do anything else, unless you just want to.

It's available now.

Personally, I don't see a release of the 1040X ion the 26th to be unreasonable, when the IRS only released their own approved form on the 21st. But that is just me. I do wonder what the problem is with the 1116, but the few clients I have that actually need that form are always late filers, still waiting for brokerage forms, K-1's, etc at this stage.

Jan through May to first state, June through Dec to second state, assuming he also moved his residency.

You Bet!!!!! I never trust the temp workers they hire, to know where to look on anything that is not a standard W-2. Heck, they mess those up sometimes.

You are correct, and I read his post too fast. I just took from it that he put it in and then took it back out, which would work. But I agree with Linda and Deb that you really don't need to put it in at all from a 1099-A.

Well, the IRS hates for us to file 'current year' amendments this early, so they don't usually process them very fast anyway. I'd be inclined to wait. But, if you don't want to wait, go ahead and amend in this year, print out the draft, program and any pages that need to go with it. Then, in the O7 program, open a 1040X form, fill it out with the numbers on that draft form, and attach the pages as needed, and you are good to go.

Nope, it's still 'Pending'. But in the mean time, if you must have it, use the one in the 07 program. You enter the year at the top, anyway, you know.

Charge whatever YOU think is fair to YOU, JB. But remember, if you then back down, he will never trust you the same way, because he will then think your fee is just 'what the market will bear, plus a bit'. And remember also, those extra forms are either 1) required or 2) save him tax dollars. So they are worth him paying for them. Never be embarrassed to charge a fair fee. You are selling not just your time, but also your knowledge.

Sure, it's not actually a "tax form", it is a worksheet. They tell you to use the worksheet from the Pub, so why not use the one in the program, which is just like the one in the Pub?

Most likely the student is getting a mix of scholarships, grants, and loans. And the parent is on the loans. You can not take the tuition that is paid with scholarships or grants, but can take the part paid with loans.

Sometimes it's the easy ones that slip by, Maragret. You'd have thought of it after a while, I bet.

My Lord~! How can someone that stupid even function, and presumably hold a job, even?

Thank goodness we have NO CITY income taxes in my state.

Why not just do him a zero 1099, and mark it corrected. That should be all it takes.

Well, just as with any other Sub S, as long as he takes a 'reasonable' salary, the remainder of profits can be taken as 'distributions, which is one of the major reasons for popularity of the Sub S. Because it is often abused, it's also the current 'area of interest' for audits, of course. So explain to him that his salary needs to be reasonable, with all that that means. If his business requires a significant capital investment, not just his labor, then it does make sense.

OK, so what does "NNS1231LPY" mean?

Probably missed checking some box, or answering some question, would be my guess.

Yep, based on one single court ruling, which, IMHO, mis-ruled on it by going against the clear, unequivocal language of the statute, which is what both Tom and I were relying on. but I guess that is what makes our jobs so necessary, right? Still, I still don't see how this client, who was not employed under one of the categories that statute lists, would be eligible? Both Mabry and Pickart were police or firemen, which are covered by the statute, while Tom says this client was not.

Why would you want a lower tax credit, which means a higher tax?

That is just the point, Until this new position, they were all subject to SE tax. Lots of retired farmers who are still getting them felt that was unfair, and now the Congress has agreed with them.