Dan

I have a question concerning the Self-employed health Insurance Deduction Worksheet. This worksheet is on Form 1040, line 29. Question: Why are the following words not listed on line 4 of that worksheet. Enter your net profit but ("Do no include Conservation Reserve Program payments exempt from self-employment tax")? (CRP payments) It makes a lot of difference how much you can deduct on Form 1040, line 29 when you include the CRP payments. On Schedule SE these CRP payments are shown on line 1b and reduce the self-employment tax. Looking for an early reply.

Instructions to Schedule F (F-4) says in one place, "However, if 2011 was the year of damage, you can elect to include certain proceeds in income for 2012." What does it mean by certain proceeds? It also says, "...if you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds..." Wheat is one crop and Milo is another crop. It does not say crops. Must you defer all crops (wheat & milo) insurance proceeds if you want to defer any? Does the statement mean all insurance proceeds of wheat or all the insurance proceeds of both wheat & milo? Looking for an early reply. Thanks!

Question 1: If a person receives three checks during 2011 from Crop inurance proceeds (2 checks for wheat and 1 for milo) can you defer to 2012 only the wheat checks? Question 2: Do you need to include in the deferred amount 2008 and 2009 disaster payments received in 2011. For example, if you defer any 2011 crop insurance proceeds to 2012, must you also defer any 2008 and 2009 disaster payments received?

If you put more than one date (say three dates) on the line it causes an error. If you put just one date (on date) on the return there is no error. When you do a check of the return you see an error with red identification. If you try this out on the return according to what I have written on the first post you will understand the problem.

jainen If you look on page 11 of Publication 225, page 11 it says, check the box on 8c and then it says: "attach a statement to your tax return." It goes on to say on that same page that the statement must include: "the cause of the destruction or damage and the date or dates it occurred." Problem in regard to previous question.

I would more to respond to the question. Thanks

Question: There seems to be a problem with line 6c (Sch F (1040)) - Election to Defer Crop Insurance Proceeds to 2012. On the form you have the words: "Date of destruction, damage, or inability to plant." You can only enter one date on that line. If you enter more than one date the line turns red. In Publication 225, page 11 it says: "The cause of the destruction or damage and the date or dates it occurred." According to the IRS instructions here it says to me date or dates. If you have more than one date of destruction (for example three) what is a person to do with the other two dates when the destruction occurred? If you can enter more than one date when you received a check on that same form why can't you enter more than one date when the destruction occurred? Look for your reply. Thanks!

I am looking at a Form W-3 "Transmittal of Wage and Tax Statements." In the section, kind of Employer is has a number of boxes and you are to choose one. If you are doing this for a local church, which box should you check? Should it be the box that says "None Apply" or the box 501c non govt? How do you choose? What information must you know before you choose either of those boxes? Again, this is for a local church. What does the letter c stand for in back of the number 501? Looking for your soon reply. Thanks!

Thanks for all your responses! In the instructions for Schedule C (C-1) It says, "For example, a sporadic activity...does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Form 1040, line 21..."

No! The son is not in the business of farming. He has a full-time non farming job. But if you help your father-in-law during your vacation from your full-time job and he pays you in wheat and a cow; how do you report that income. Going back to the previous question.

Thanks for replying. To some of your questions, the wheat income came as a result of helping father in harvest on the farm. The cow income came as a result of helping father take care of the cows.

Question: How do you report wheat sold in your name and a cow sold in your name when you are not a farmer? How and where do you report this income on a tax return? What form would you use? Thanks!

Question: where do you put box 3 (form 1099 patr) amounts on schedule F? Box 3 says "per unit retain allocations?" Thanks for your response!

Thanks ATX master for your response. Does the information you share mean that an individual could have a new signature pin assigned to him/her each year if they so desired? So, if that is the case, you would not have to keep record of it. Where in IRS material does it say you can change the signature pin? What publication or etc.? Thanks again!

Question 1: What do you use in Form 8879 for the taxpayer's pin if you don't know what they used last year? Question 2: What do you do if the previous tax professional used the same pin number for all tax payers? Question 3: Can I generate a new pin for my customers? Where in the IRS material does it say that I can generate a new and different pin number? Looking for your reply. Thanks!

When I called the IRS yesterday concerning when we could efile, they told me February 14.

Question: What do you charge to do W-2's and 1099's? I tried to do a search on this site for this information but did not find it. Could you help me. Thanks! What is the lowest, average, and highest charges?

I have a welcome letter. There is nothing on that letter that says the number is provisional. It does say on the welcome letter the need to take a competency test given by the IRS. This test will be available soon after June 1, 2011.

Question: The government has passed a rule that if you prepare 100 or so returns that you must efile them. My question: If the client owns money on the return, what are the rules if the client wants to send the amount due on the return by check? I sure don't see any information regarding this in the !040 instructions.

What I have read from the Kiplinger Tax Letter says, "For 2011 only, the 6.2% tax rate for the employee portion of Social Security tax will decline to 4.2% This will replace the Making Work Pay Credit, which provided a max saving of $400 for single filers and $800 for couples.

Catherine, thanks again for sharing your document checklist.

I received mine today.

Question: Catherine I was wondering if you have put together a new tax organizer for the 2010 tax year. I remember you having one for us a few years ago. I really appreciate you sharing it with us. What tax organizer will others use for this new year? Is there a cover letter that goes with it? Looking for some ideas.

Question 1: You have question 2 marked as no. Can you deduct 1/2 of the credit or $750 dollars if you get the roof on your half of the house by the end of year 2010? Question 2: Do you need to own at least 1/2 of the house before 2010? What year? Thanks for responding.

Question 1: Can you take this credit if you are putting a new metal or asphalt roof on the home you live in but do not own? The reason you do not own the home: There is a trust and your name along with your brother's name is in the trust to receive this home. You live in the home but your bother lives in another town. Question 2: What happens if the trust finally deeds half of the home to you and the deed is recorded. How much can you take as credit to the question above? Question 3: Does the roof need to be completed before you can take the credit? Look for your reply! Thanks!