kcjenkins

Not subject to payroll taxes in this situation. Report it on Line 21.

If it is a regular W-2 [same amount in box 3, 5 and 7] then it is normal taxable income. If it is a work-study W-2, the income will be in box 3, but not in box 5 or 7, because that kind is exempt from the payroll taxes. But still taxable for Income tax. Often has no withholding because it is not enough to be taxable, if that is the only income. Of course, if she has other income, that may not be true.

National Taxpayer Advocate, Nina E. Olson has delivered her 2007 report to Congress and is touting many of the same problems she underscored in her 2006 report. Specifically with respect to the Offer in Compromise program she recognizes what so many professional tax advocates are seeing, “The IRS’ Offer in Compromise Offer program is no longer being used to any significant extent as a viable collection alternative.” She goes on to point out some telling statistics from the IRS’ own data. “In fiscal year 2007, accepted Offers generated 17 cents for every $1 owed,” Olson said. “ By contrast, IRS research indicates the IRS has historically collected only 13 cents for every $1 owed on debts that are two years old and virtually nothing on debts that have been outstanding for three years or more.” http://www.taxdebtorshelper.com/offer_in_c...mise/index.html

Yes, the assumption would be that the employer would be paying him based on his actual use.

Ray, I'd have real trouble with those numbers, because assuming a 5 day work week, and 51 weeks a year, he'd be driving about 200 miles a DAY. That is just not believable to me, in that business. I'd assume that the employer reimbursed him for his actual mileage with that large a 1099, and tell him he's pushing it at that. I would not second guess the employer, but I would not be taking extra mileage on that one.

It may not seem fair, it may not be fair, but it is the law. That's the way Congress wrote it, so we are stuck with it.

Eli, do a search on his SSN, and also check your backups. Hopefully, if you did delete it before sending the efile, you still have the backup, and you can just add the new W-2s and efile it. I do not think the program allows you to delete a return once it has been efiled, unless the efile is rejected.

Folks, you know that I do like some 'chatter', jokes, etc. here, and from time to time contribute a joke, puzzle, etc. But I have to say that as the work load gets heavy, I'm finding it a bit hard to find time to read the board for all the clutter of posts that really do not contribute anything but a 'yeah, I agree' or a run-on of a joke that has already gotten old. Please, could we cut it back just a little bit? I'm not saying it does not have a place, it does. But too much of anything spoils it. And especially, with all the sarcastic meaningless replies to sincere questions. Please, if you don't like a question, just skip it, OK?

I don't think he's asking about that form, I think he's talking about the residential energy credit form. The 5695

Sandy, I think I overreacted, and for that I am very sorry. I hope you will forgive me, I know that I am over-tired and stressed, and I apologize for coming down on you like that. I think what the difference might be is that some companies are taking the returns, and then holding them until the date the IRS will process them, while some are transmitting them anyway, because the IRS has said that if they get them, they will accept them but not process them until 2/11.

IRS said Feb 11th.

There are requirements for a builder to become a 'qualified' builder. It is not practical to do the things required for just one home.

I just want to share a bit of a response I got on a forms question, which I think might be welcome to a lot of us. To answer your previous questions - Your ATX Forms Developers are still down in Ft. Pierce and our programming department is still up in Caribou. We have already started planning the 2008 MAX enhancements, and I'm pretty excited about some of the new possibilities on the table. We should have the big ATX 2008 enhancements scheduled and announced sometime next month. If you ever a form suggestion, please use the Forms Pipeline as these are seen directly by myself and the other Tax Managers. Thanks, John Abel ATX - Director of Tax Compliance That Forms Pipeline, by the way, is almost a 'hidden feature', as to find it you go to the MySupport, click on Find a Form, and then look at the second paragraph for the little blue link called Request a Form. That is what he means. I don't know why it's not easier to find, or using that name, but hey, it really does work well.

As a Maine resident, he should report that income there. He reports ALL his income to his state of residency. No credit, because he paid no taxes elsewhere.

I THINK YOU ARE LYING, BECAUSE THE IRS WILL NOT ACCEPT THOSE FORMS. I hope other ProSeries users will expose your lie.

I would also suggest you give them a discount coupon FOR NEXT YEAR, as part of your apology. Usually, good clients accept that we are human, and do not hold it against us. But still, it does cost them a loss of time in getting their refund, and I think when we show in a positive way that we understand that, they are more forgiving. And next year, if the thought of that mistake comes up in their mind, it will be in a more positive way if it's combined with a thought that they have that discount. How much? That depends on the size of the refund, size of the fee, clients need for getting that refund fast, etc. And, of course, how bad you feel. But it really is not the size as much as the recognition that you are trying to make it better, and accepting your responsibility for the error.

It is not required, but yes, I would reset it. Each year is going to be different because of the year number, but why not start over each year? Seems neater and more logical to me.

There are a couple of KBs about that problem, which might help you fix it faster. Happened to me two years ago. Don't remember the fix, but I remember I found it in the KB.

Social Security and the Internal Revenue Service (IRS) moved the “Employee’s Social Security Number” (SSN) box on the Form W-2 from “Box d” to “Box a.” The “Control Number” box, used optionally by some employers to identify individual Forms W-2, was moved from “Box a” to “Box d.” The Form ID number (“22222”) and the “Void” boxes were also relocated to the top left corner of the Form W-2. These changes were made to enhance processing efficiency and to protect the employee’s SSN from public disclosure when employers provide Forms W-2 to their employees using a window envelope. Problem: Social Security has received numerous paper Forms W-2 with the SSN in the improper position. Improper position of the SSN can delay processing. In addition, there has been a large number of paper Forms W-2 with the surname in an improper position. In many instances, the surname is overlapping the preprinted “22222” in the top left corner of the W-2. Other problem areas on the paper Forms W-2 include: · SSNs in the Employee Identification Number (EIN) box, · Data overlapping the VOID box, · Forms W-2 with 2007 printed on them, but are not the new revised forms, · Forms W-2 showing no Form ID box, and · SSNs printed in the top left corner. Solution: Review your paper Forms W-2, especially Copy A, to ensure that they are printed accurately prior to mailing them to Social Security’s Wilkes-Barre Data Operations Center. For a copy of the Form W-2 Instructions go to www.irs.gov/pub/irs-pdf/iw2w3.pdf.

Yes, and I had a client who had an EIN that he operated under for 13 years, and suddenly the IRS informed him that he was using a number that had never been issued. Amazingly, I had a copy of the original letter from the IRS assigning that number to him. It still took three letters, but eventually they 'assigned' his old number to him again, to get their records straight. Of course, they never came right out and admitted that the error was theirs, but anyone that thinks the IRS never makes mistakes is dumb.

Yes, and I had a client who had an EIN that he operated under for 13 years, and suddenly the IRS informed him that he was using a number that had never been issued. Amazingly, I had a copy of the original letter from the IRS assigning that number to him. It still took three letters, but eventually they 'assigned' his old number to him again, to get their records straight. Of course, they never came right out and admitted that the error was theirs, but anyone that thinks the IRS never makes mistakes is dumb.

Joan, the point is, if there is no exception to claim, you do not need the 5329, because it is going to all be subject to the penalty. You only need the 5329 when you have an exception to claim.

Look at the very top of the page [above the form itself'] on the SE and you will see a box to check for client who has an approved 4029 and one for 4361. Once you mark that, it will work correctly.

No, templates are used to quickly pull up a 'set' of forms for a new client. For a prior client, you don't need that, because when you roll over last year's return, it will pull forward all the forms in last year's return. So you might set up a template for a new client with a Sch E, another for a new client with a Sch F, etc. In those templates, you would have the 1040, Sch A perhaps, Sch E or F, 4562 and asset entry, SE, state forms, client letter, state letter, billing form, efile forms, perhaps, etc. Then, when a new client comes in with rental properties, you just select Templates, the one named New w/E, and you are ready to start entering data. For prior clients, be sure you open the 2006 converted file, and make sure that it contains all the forms you think should be in it, BEFORE you roll it over. At that time, you might want to add the "Comparison' form, so that it will roll over with the 2006 info in the Prior column. This year, it will make it easy, then, to compare changes, and easily show a client why their refund is a lot higher or lower than next year. If it's not in the 2006 file, you can add it to this year, but then you will have to fill in manually the 06 data.

But Kerry, if you put the Hersey under the marshmallow before you microwave it, you can use just one square, and it will taste just a good but make you feel a bit more noble for halving the chocolate. Plus you can then eat more of them, because the Hersey bar lasts twice as long.