Dan

The student has $1500 (1099-misc-line 7 non-employee compensation).  I would think she needs to file a return because of that fact but whether the parents can claim the student (child) as a dependent is the big question?  So far I have the student if you don't count scholarships, grants, federal subsidized and unsubsidized loans, federal work study, church matching funds with around $9003.  The parents have contributed around $11000.

I also read in the instructions in Part 1--Refundable American Opportunity Credit is says you don't qualify for a refundable American Opportunity Credit if 1 (a,b, or c), 2, and 3 below apply to you.  But what if under 1.c. your earned income is more than one-half of your support?  

Jasdim - so are you saying only the parents can take the AOC if their child is under 25?  As far as I know, the client is in her second year of college and has never taken the AOC.  I am working on who provided the most support, the parent or the child.

Question:  Is there anything in the tax rules that says you will only qualify for an education credit if your were not a dependent during 2017?  If this is the case, you could not qualify to take the American Opportunity Credit in 2018 if your parents had you as a dependent on their return in 2017.

Question:  What are they talking about in the Form 8863 instructions when it says under American Opportunity Credit that students must have been issued a TIN by the due date of the 2018 return as one of the requirements in order to claim the credit?  

Thanks Taxman!

I also read an article from Stalcup Ag Service about the 199a deduction.  It mentions:  "If you are the operator of a farm operation reporting your income on schedule F, your farm profit is QBI.  This is a pretty clear case."  It also says:  "If you sale farm equipment as an operating farmer the sale of farm equipment reported on Form 4797 as ordinary income will qualify as QBI."   Thanks for sharing the health insurance involvement in this.

Question:  I have another question concerning the 199a  ATX Worksheet.  The question is this:  If you have a gain on form 4797 part II does that mean you add that amount to the amount you have on schedule F and subtract from that total the amount you have on schedule SE line 6 which is 1/2 of your self-employment tax?

For example:

Farm Income is (Schedule F-line 34):                     $73,947

Sales of Business Property (Form 4797, Part II):  $34,832

Minus amount on Schedule SE line 6:                     $  3,936

Total to include as Qualified Business Income:  $104,843

Is the above information correct or am I missing something?  Does the worksheet have a place to enter the amount of business property sales from Form 4797, part ii?  Or do you just add it like I have done with the income from schedule F?  Thanks for your early response.

QUESTION:  What do you great tax prepares do when you have Federal, Kansas, and Oklahoma returns to efile?  You live in Oklahoma but have income in both Kansas and Oklahoma.  Kansas requires a copy of the Federal return be sent with Kansas return when its address is outside of Kansas.  Oklahoma requires the Kansas and Federal return to be sent with it.  I can efile the Federal return by itself.  What about efiling the Kansas and Oklahoma returns with you have the above requirements?  In the past, I have just had the client send the state returns in by paper form.  Thanks for your thoughts!

Thanks!  I have tried to call ATX a number of times and don't seem to get through to anyone.  If all I need to do is change my information in the Preparer/ERO tab that will be easy to do.  Thanks again.

How do you let ATX know that your address has changed?  This is in regard to your elfin address and ptin address.  

Thanks for the replies.

Question;  Are truckers with W-2 able to use the M&IE rates (standard meals and incidental expenses rates) for 2018?

Schedule F shows up on the Activities Sec. 199A worksheet but not a 4797 when you have a 1245 gain on sale of farm equipment.  How do you add the 1245 gains from 4797 to that worksheet?

Question:  How do you enter gains from sale of farm equipment on the Qualified Business Income Deduction Worksheet?  Income from Schedule F shows up on the worksheet but not 4797 gains from sale of equipment.  Example: the sale of a combine.

Question:  Does the qualified business income deduction include gains from form 4797 sale of business property used in your trade or business?  I read in some articles that you can't use those gains from the sale of property used in a trade or business and in other articles you can.

One article says that:  section 1245 gain is treated as business income similar to what would show up on a schedule F.  

Another article says:  the new section 199A provided a definition of "qualified business income" that was ambiguous about whether gains resulting from the sale of property used in a trade of business (section 1231 property) would be eligible for the deduction.

There might be a difference between 1245 and 1231 property which I have not found yet.

Question:  Where do you enter gains from sale of equipment on the Qualified Business Income Deduction Worksheet?

Thanks Abby, it worked for me also.

Abby, are you saying to delete the return and roll it over again or just delete Schedule F and form 4562?

Why is depreciation not rolling over on schedule F from 2017?  Do any of you have that problem and what have you done about it?

Yes, the "Where's My Refund" has been done and it says "Return Received."  There are no credits on the return.  What is on the return is the standard deduction and the exemption.

I have a return that is now 20 days after being e-filed and still not approved.  Why?  The return contains a 1040A return with one W-2 in the amount of $8272 and federal taxes of $1167.  All the federal taxes are to be refunded to the client.  I have called 1-800-829-1040 but there is no way to be able to talk to an IRS person that I can see from that number unless I am missing something.  Can anyone provide me some answers to this problem?  Thanks for your help. 

PLC stands for "price loss coverage", a government program payment.

CRP is a payment received for putting the land into grass.

Some are vacant and have farm machinery of it.  Only used for that purpose.

Some are vacant but may have a building on some of the lot and machinery on the other part of the lot.

Question:  Are property taxes on vacant city lots deductible on (form 1040 Schedule F) if you store farm machinery on them or use those lots to put your machinery?

Question:  If you need to file both forms (form 1040 Schedule F) and (form 4835) do you need to separate the CRP payment from the PLC payment or can you put both payments on the schedule F form. 

The farmer receives the CRP payment because he is in charge of the land that has the CRP. 

The tenant farms the ground where the PLC payment is concerned, he getting 2/3 and the landlord getting 1/3?

If you must separate these payments, how do you do that in ATX when you only get one 1099G form?

On 2/9/2017 at 5:39 PM, Jack from Ohio said:

2005 and prior should only be used on a computer with Windows XP.  Otherwise, do it manually with IRS.gov provided forms.

I could not get 2010 to load on my Windows 7.  So I am wondering if it is 2010 and prior?