Cathy

Does anyone have the number handy for a client to call in regard to an FMS debt code indicator on the ack? Thanks, Cathy

Chowdahead, I'm telling my clients that in watching the news so far, it seems that both Democrats and Republicans agree that individual assistance will come through the lowering of the payroll deduction for Federal withholding taxes. "They" say that the money will get into the hands of taxpayers sooner, rather than having to wait on checks to arrive. Also, the general consensus of the outcome of the stimulus checks sent out last year were that taxpayers paid off old debt rather than buying new items. Irregardless, I believe February 13th is the target date that is tenatively set for the new legislation to be ready to be signed.....just have to wait and see how it all goes down. Cathy

New link below that H & R has to introduce their preparers at local offices. Just enter your zip code and it will take you to a listing of offices and a profile on each of their preparers. Be prepared to have a chuckle or two, or three, or four. The answers to "Why I prepare Tax Returns" are interesting, to say the least....also the amount of experience of each preparer, which in my case was 6 of 11 with 0 years experience...several others with 1 year who I remember from my new clients last year after they botched up returns, etc... Wanna bet this is the 1st and last year this site will be available? http://taxprofinder.hrblock.com/SearchOpti...choption=office

JRS, Also see: http://www.irs.gov/newsroom/article/0,,id=187935,00.html (Form 5405)

In addition to irs.gov, from time to time I've used : http://www.unclefed.com/ and woud not start the tax season without desk handbooks (1040 Quickfinder and Small Business Quickfinder) available at Quickfinder.com where you can also get CD versions of the books. Have handbooks for every year so it's great when amending prior years tax returns or preparing original tax returns from years back. The handbooks are VERY user friendly. From time to time, I've also used the following links: http://www.taxlinks.com/rulings/findinglist/revrulmaster.htm http://www.access.gpo.gov/cgi-bin/cfrassem...gi?title=200126 http://assembler.law.cornell.edu/uscode/ht..._sup_01_26.html Cathy

This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format: Q. What is an Economic Stimulus Payment? A. It is money that the federal government will send to taxpayers. Q. Where will the government get this money? A. From taxpayers. Q. So the government is giving me back my own money? A. Only a smidgen. Q. What is the purpose of this payment? A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy. Q. But isn't that stimulating the economy of China? A. Shut up. Below is some helpful advice on how to best help the U.S. economy by spending your stimulus check wisely: If you spend that money at Wal-Mart, all the money will go to China. If you spend it on gasoline it will go to the Arabs. If you purchase a computer it will go to India. If you purchase fruit and vegetables it will go to Mexico, Honduras, and Guatemala (unless you buy organic). If you buy a car it will go to Japan. If you purchase useless crap it will go to Taiwan. And none of it will help the American economy. We need to keep that money here in America. You can keep the money in America by spending it at yard sales, going to a baseball game, or spend it on prostitutes, beer and wine (domestic ONLY), funerals, weddings, or tattoos, since those are the only businesses still in the US.

Taxbilly, Check the box on line 39c on the second page of the 1040, then bunny hop on line 40, then click on "1040 Std vs Itemized" and it will bring you to a worksheet for the property taxes. You don't need the Sch A at all unless you have enough to itemize. Cathy

Just to let everyone know, I just got off the phone with technical support and there seems to be a bug in e-filing form 4864 when a taxpayer does not itemize deductions....it's something new this year for specific losses, such as a loss in a Federal declared disaster area. I got to a tech support person very quickly and she reviewed the e-file errors I was receiving when trying to e-file and has now sent my file to the proper department to check for the bug that does not allow the return to be e-filed. Fix shouldn't take long from what I was told...just wanted spread the word. Cathy

With the new administration talking about increasing the EIC, I feel certain that the "2009 EIC max" will "go through the roof"! Also, for the ones of us that once used the good old pen and carbon paper method of preparing taxes, remember when a "Health Insurance Credit" was available in addition to the EIC for those taxpayers in certain income levels who purchased health insurance polices? Then...it was decided to include the extra credit in the EIC so taxpayers could have the money up front to help provide health insurance for their families....that's why I cringe when I hear once again about giving tax credits on tax returns to help taxpayers purchase health insurance. Guess there aren't too many left in Washington that knows it's already been done.

I normally have 2 types of clients who receive and EIC: 1. Young couples having been married a year or so and have a new baby. They can't believe me when I tell them they are getting more taxes back than they paid in. The next year they come in and IF they qualify at all for the EIC, it is a much lesser amount. Each year the couple(s)' income increases to the point that they never see the earned income credit again....and it doesn't take years and years for them to increase their income beyond EIC limits. I am always happy for these type of clients as I really feel that was what EIC was designed to do many, many years ago before it became a political giveaway. OR 2. Those that come in EACH and EVERY year earning the minimum amount to receive the largest EIC possible. Their income rarely ever increases and they seem to care less. The jobs are there for people who really want to work. When raising our kids, if you didn't make enough $ with your job...you went and got a second job...or even a third job...whatever it took to make ends meet. We had NO EIC, NO child tax credits, NO education credits, etc...and we survived. It's all about survival skills....these type of clients listed here don't have them and never will. BUT JUST WAIT.....we haven't seen anything yet....the 2009 EIC maximum amounts are going to go through the roof!

RC, Does the state you live in have a state agency such as an Insurance Commission? We do in Louisiana and can call their legal department with questions/complaints such as what you are dealing with. I agree with KC and others that your original agreement should be honored. If you do have such an agency and receive a favorable opinion, the "Insurance Commission" is normally far more scary to providers, etc.. than "insurance fraud". Good Luck! Cathy

KC, Thanks for sharing with us. I'll keep to my routine in not renewing until the last minute, however, I think we all have put too much time and effort into making ATX the program it is today to switch to another software with the fear that the new software company will be bought out also. I guess I'm just too old to have to go through growing pains again. I remember being badgered by ATXers years ago when I first came on board and wondered out loud why there wasn't a feature in the program to delete W-2's that were no longer needed. Someone was listening as ATX had that feature the next year. We have ALL worked hard for the many, many changes to the program since, and I'm just not ready to walk away from "OUR" creation...not yet, anyway. Hope your husband is doing better. We will continue to keep you and him in our prayers. Cathy

I like John's response! If that doesn't shut em up, nothing will. In the "for what it's worth department"....I think I found a pattern of the "minimum rebate payments" not being made as stated on IRS's chart of direct deposit dates. Makes sense when you think about it...those who actually paid taxes should get their payment first.

Seems we really aren't too old to learn new things. I will think twice before encouraging clients to apply overpayment to next year's estimated taxes. They keep your $...no interest......if you owe additional taxes then tax plus interest and penalties even though they have use of your refund (interest free at that). From IRS.gov: Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2007, you can apply part or all of it to your estimated tax for 2008. On line 75 of Form 1040, or line 45 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. The amount you have credited should be taken into account when figuring your estimated tax payments. If you are a beneficiary of an estate or trust, and the trustee elects to credit 2008 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2009. The credit will be applied to your payments in the order necessary to avoid the penalty for underpayment of estimated tax. You cannot have any of that amount refunded to you until the close of that tax year. You also cannot use that overpayment in any other way. Example. When Kathleen finished filling out her 2007 tax return, she saw that she had overpaid her taxes by $750. Kathleen knew she would owe additional tax in 2008. She credited $600 of the overpayment to her 2008 estimated tax and had the remaining $150 refunded to her. In September, she amended her 2007 return by filing Form 1040X, Amended U.S. Individual Income Tax Return. It turned out that she owed $250 more in tax than she had thought. This reduced her 2007 overpayment from $750 to $500. Because the $750 had already been applied to her 2008 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. Kathleen could not use any of the $600 she had credited to her 2008 estimated tax to pay this bill.

You sea, Byron, I don't no what yew or talking about. Should I due a pole of the community? Their has too be someone out their who can tail me what yew or talking about! :spaz:

Thanks for the vote of confidence, Lion, but I am one of the aging baby boomers TOO....hence the reason for morphine. I will say this past season was quite enjoyable....percocets January through April 10th, then graduated to morphine on April 11th....and gosh, I did get a lot of work done dispute horrendous pain! Maybe all we boomers need are percocets or morphine! :D

Bart, See the instructions for Form 5329...it shows the place on the form (second page toward the bottom of the form if memory serves me correctly) where you enter the 50% penalty if you are asking for relief. You enter -0- in the actual block on the form with initials R.C. (again from memory...I'm currently on morphine for ruptured disc....so double check my memory) then the 50% penalty amount to the left of the block. Also you must attach a statement as to how the RMD(s) were handled and what the taxpayer plans to do to rectify the problem for future years. I have clients sign up for "automatic withdrawal" for January of each year of the entire RMD when there is a fowl up. That way, I can verify with the client that the withdrawal has been made for the year when the tax return from the preceeding year is being prepared....if current RMD hasn't been automatically sent to the client, client/you have the rest of the year to make sure it is withdrawn. I attach a copy of the "automatic withdrawal request" to the tax return in question along with proof of having withdrawn the prior year's RMD at the time it is discovered. In your case, I would try to rectify the earlier years RMD problem under the current tax return....IRS will notify client if it won't fly. My clients have never been denied the penalty forgiveness. Elderly clients will tell you that they were not notified by the IRA institution of the RMD....they will also tell you they like your green shirt even though it is red and blue. Some will give you 10 cents ($.10) to buy your gasoline if you run an errand for them! The reason I have always used is "due to the failing health of the taxpayer(s)"......you're not lieing.....normally it is due to failing memory or inability to comprehend the tax code...further complicated by one's age...go figure!

Damn! If only I lived in Denver and my crystal ball hadn't broken, I would have been glad to have helped!

jasdlm, Good job! You are correct that both of those retirement incomes are non-taxable for Louisiana residents. Go page 2, Schedule E and click on any of the lines you see for Line 4A....this will take you to the worksheet to enter the retirement benefits. Also, another often overlooked item on the Louisiana return is the credit we take for "hurricane assessments" on our property insurance. Click on "Resident Info Sheet" at the bottom of the LA return. On line 20 you enter a 100% refundable credit on these assessments paid on property insurance policies such as homes, rental homes, camps, etc. You can file amended returns for 2004 until 5-15-08 and have even more time, of course, for 2006. Holler if we can help with any other questions! Again, good job! :)

Here's the link to the IRS stimulus payment calculator: http://www.irs.gov/app/espc/

Eli, I've never had a return corrected for any income info omitted and I've been preparing returns for 32 years now. I'm a one person office so I first prepare a pen or pencil sheet....three columns...I (Income) F (Federal) S (State). All income and withholding recorded and totaled and then I enter info into program from the w-2's, etc.. Takes just a couple of minutes extra...most of the time under a minute, but sure beats having another employee to check my work. I check total of AGI, itemized deductions, Sch C, LT or ST cap. gains etc... after I've entered figures to the program. I never trust ANY program to properly transfer figures to proper lines on the 1040...or any form for that matter. You are too good of a preparer to find yourself in the predicament you are now in. Back to your original question...has it ever happened that the unemployment didn't get properly transferred to the 1040...probably so, but I caught it before the return was released. I hope you don't take my response the wrong way...I've been very impressed with you over the years and just hate it that you have this situation. Cathy

Very specific instructions: http://www.irs.gov/pub/irs-pdf/k1040a3.pdf

The following is taken from Pub 502: Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility. Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Long-Term Care, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Publication 503, Child and Dependent Care Expenses. You can also include in medical expenses part of the amount you pay for that attendant's meals. Divide the food expense among the household members to find the cost of the attendant's food. Then divide that cost in the same manner as in the preceding paragraph. If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant.

Gosh, I didn't know you could do this either! IRS doesn't even know you can do it...maybe someone needs to let them know! :blink:

Another thing to consider with nursing home residents: The director/client of a local nursing home told me that if the patient is Medicaid funded in whole or partially, DO NOT pursue the rebate as it will go to the nursing home anyway and create a lot of unnecessary paperwork for both the patient and the nursing home....seems to make sense. However, if the patient is a private pay, by all means, file the stimulus return provided that the patient is not claimed as a dependent on another's return. Cathy