kcjenkins

Conservation Reserve Program payments, Jack. You must not have many farmer clients, huh?

Also read §22(a) because while the disability income is taxable, it may play into the Credit Of course, almost no one actually qualifies for that credit, but you still have to check it for that rare exception.

Yes, it shows the political power of the retirees, that's for sure.

But if he went through bankruptcy, there should not be a 1099-c at all. And nothing will need to be reported. But the way you did it should work OK, Steven.

Well, the PS gave me a good laugh, anyway.

Was an 8594 prepared as part of the sale? If not, you still need to do one. I'd take the large items, list them and then do a column for FMV of each of them, as best you can estimate. Of course, the larger the amount involved, the more liklely you are to need him to get appraisals. But say its not that much, just give it your best shot. Then add up all the amounts, and then take off a small amount for supplies, and then devide the amount paid in the same ratios. Say you have three big items: ITEM FMV % OF TOTAL A $1000 10% B $5000 50% C $4000 40% Now, if he paid $8000 for it all, and you think the supplies are worth $500, then you are going to take 10% of $7500 for item A, 50% of $7500 for item B, and 40% for item C.

I agree with Jack, this is too complex an issue to be able to give you a complete answer here. This one should be tossed to the attorney to clarify, and getting something from him in writing as to the taxabilty of the first distribution is essential to CYA for you.

Hint for the future. If someone 'inherited' something, please use that term, rather than 'received'. Received implies a gift, while an inheritance has very different rules than a gift has. So someone either 1) purchased, or 2) inherited, or 3) received a gift. If you ask the question vaguely, you may well get a wrong answer, as you force the readers to make assumptions that may not be correct. PS We are all still wondering why you need to amend 07?

You might not need any entries on Stmt 2, but you do normally need to fill out at least part of Stmt 1. I'd recheck to be sure that I did not skip something I should have done on that page.

Well, working couples have always had to make adjustments. There is no way the tables can take that into account.

Yes, you include the secretary's wages too.

The distribution code is correct. It is on the 5329 that you enter any exceptions that apply. The issuer does not know what exceptions may apply, nor the amount of any such exception. Also, if he spent the same amount on medical bills that he withdrew, not all of it is going to be excluded from penalty. Because you can only exclude the amount that is allowed as a medical deduction, which is the amount AFTER the 7½% haircut. It's not really fair, but that is the way the law is written.

David, I think you mis-read the post. He's asking about deducting the difference, when the actual is larger than the reimbursement. And that he can do.

Well, we are not talking about the sort of 'loan' where you get sent a check for the money you borrowed. We are talking about paying premiums not by sending them a check, but by paying it out of built up 'cash value'. So, no, he will not have a loan document, and he won't remember that loan, just that they told him he did not have to pay the payment if he wanted to take it out of his cash value.

In that case, ignore the March 1 date, and file him just as you would anyone else.

Too bad you can't 'fire' a niece. ;~)

Yes, he's always allowed to deduct actual, as long as he reports the reimbursements on Line 7, if those were not included in box 1 of his W-2.

If his income is primarily from farming, and he has not made any estimated payments or had withholding, filing by the first of March allows him to pay then with no penalty. If he has a loss, or other payments that cover him, he can file on 4/15 if he wants to.

Certainly it will be, but Feb is a little early, I expect that the IRS has not approved it because they are busy with other forms. THe form itself is already in the program.

If they filed him MFS just because 'she did not have any income', they were totally in the wrong, and she should demand that they file the 1040X at no charge, and refund her payment, as well. She should be raising hell with them over this goofup.

Prosecutors have asked a federal judge to send former Washington, D.C., mayor Marion Barry to jail for failing to file tax returns for eighth time in nine years. He hasn't paid taxes for eight years straight. So it's either jail or a Cabinet position in the Obama administration. Take your pick. --Jay Leno

:bday:

I'd try to get them corrected to show her SSN, but if you can't then I'd just go ahead and report them on her return, and keep copies of them and copies of her detail statements for DIV and INT, so that when she gets a letter from the IRS and/or the state, you can simply respond with his date of death, and copies showing that the income was reported on her return, as she inherited his portion of the joint accounts. Warn her that she could get a notice, sent to him, but not to worry about it. But first, do try to get the 1099s corrected, as that will eliminate the problem not only for the 08 year, but for future years. I've seen this problem repeat itself, if the issuers are not notified, as they should have been. And the problem could get much bigger if she then sells the stock or other assets, that is generating the dividends and interest. So she needs to get this cleared up anyway. It's not just going to go away by itself.

I printed them out the other day, for a pastor client, and mine did not have 'draft' on them. I attached them and sent them in already. The form did generate a message that it was not ready for efiling, but the form itself looked fine. So I took that to just mean that it had to be sent in on paper, which the 8453 does. And the program added that form, so I took it that way.

Yes, if you get a letter from his doctor saying that he needs it, which is normally very easy to get.