Lucho

Thank you to Pacun and Hahn1040 for both of your detailed post concerning my question. May God bless this forum and its members Lucho

Thank you Pacun. Lucho

Is it optional to choose Income taxes or General sales taxes for the deduction in Sch A? or do taxpayers need to add up sales taxes paid during the year for all personal items and compare the amount with the state taxes withheld? Maybe a silly question, but this year I see my client would benefit if choosing the general sales taxes. Thank you for your comments. Lucho

A taxpayer is attending college to take especial courses to keep his job but not pursuing a degree and wife is also in college taking general education. In the “Questions and Answers” from IRS website I read: Who is eligible for the American opportunity tax credit? A. A taxpayer who pays qualified tuition and related expenses and whose federal income tax return has a modified adjusted gross income of $80,000 or less ($160,000 or less for joint filers) is eligible for the credit. The credit is reduced ratably if a taxpayer’s modified adjusted gross income exceeds those amounts. A taxpayer whose modified adjusted gross income is greater than $90,000 ($180,000 for joint filers) cannot benefit from this credit. Does this mean that any taxpayer for the only fact that attended to an accredited school and pay tuition for whatever course is eligible for the “AOC”? Do these taxpayers qualify for that credit? Right now I am having trouble downloading Pub. 970 because of my computer (I don’t know what wrong with it). Any help please. Lucho . Thank you

Does this have to do with paper filing only? I already transmitted two with contributions that were accepted almost immediately. Whenever I print a return I am getting the message that the form has not being approved for filing. Any comment Lucho. !Extra! I had my first experience this year: New client asked why I charge so high. The client has never hired a practitioner; a friend of her was using Turbo Tax to prepare her returns from past years but finally someone let her know she could be entitled to some credits and that is why she came to me. Now that she is getting a better refund she wants to amend prior years. After I finished with her 2010 return I told her that the fee I was charging was lower than my normal one and if I did it was because she was referred to me by a good friend of my; to make it short I also told her that if she came to me next year she will pay me my normal fee for her return. Will client come back? Sorry if I bothered you with this comment. Have a blessed and profitable Monday Thank you and good night.

Thank you for your help JRS, I really appreciate it. Lucho

What term or code do you use to enter the amount for line 14 in W-2 when the box has CAVDI as the reference? Most of W-2 box 14 show amounts with code CASDI. What does CAVDI stand for? I assume stands for "California Veterans Disability Insurance" (it is not in the drop down list; my clients are itemizing. Thank you Lucho

Taxpayer withdraw the whole balance from a ESA account (close to $1000.00) but did not use the money for tuition or anything related for education purpose; there is no earning reported in Bx. 2 of 1099-Q, just $distribution amount in box 1 and the distribution code is #1 She opened the plan 7-8 years ago. According to what I read in Pub. 970 the whole amount is taxable (even though the contribution was an after tax money) or I am wrong? Any help will be appreciated. Lucho

Taxpayer withdraw the whole balance from a ESA account (close to $1000.00) but did not use the money for tuition or anything related for education purpose; there is no earning reported in Bx. 2 of 1099-Q, just $xxx.xx in box 1 and the distribution code is #1 She opened the plan 7-8 years ago. According to what I read in Pub. 970 the whole amount is taxable (even though the contribution was an after tax money)or I am wrong. Any help will be appreciated. Lucho

Good morning and thank you Pacun. Hope one of these years Congress gives us a break with no tax changes to relax a little at least one tax season. Have a wonderful and profitable business day. I am just packing up to go to my main 8 hours job and will come back this evening to continue with "Taxes" Lucho

For 2010 taxpayers with ITINs still will not qualify to claim the Making Work Pay credit. Am I right on this? I have a couple that got married during 2010 but the husband does not have yet a SS#. but ITIN (the wife does have a valid SS#) The program is automatically calculating $800.00 credit Would the couple qualify for the whole credit (400 each)just because they are married and one of them has valid SS#. I am trying to find the answer to this question but so far I have not being able to. I would appreciate any help to guide me on this Thank you. Lucho

Thank you Terry D Lucho

Does anyone has read or knows if the fact that a student doesn't have a valid SS# will disqualify to claim the American Opportunity Credit? I don't find a yes or no answer in Pub. 970 Thank you for any help. Have a blessed Monday. Lucho

Thank you to all of you for your post. It really helps. One poster states that the boy 21 can also claim The 19 year old sister; the girl 19 W-2 shows $10,000, and that is 50% of what his older brother made and that make me think that it can be a problem for her brother 21 to proove he provided more than 50% of her support. Thank you again. Lucho

One of my clients referred a family to me; I trying to figure out the correct way for them to file 2008 and 2009. The scenario is as follows: The couple has 4children ages: 21, 19, 13 and 7. For 2008 and 2009 the couple (mom/dad) made little income and they just need to file those years to claim a little refund for both years (no dependents claimed) The 19 has a 2008 W- 2 with income close to 10,000; will file as single not claiming any dependent too; she also has 2009 W-2 and a 1099 –Misc. and will file same status as 2008. Now, the boy 21 has W-2s from 2008 and 2009 with compensation of 19,000+and 21,000+respectively. Reading the instructions 1040/2008-2009 about EIC and CTC, I feel confident that the 21 year old son can file as HOH claiming as dependents his 7 years old brother and his 13 years old sister to claim the EIC and CTC. I need to mention that all this family live in the same house. I would like to read your comments on this topic to help me go ahead on this and if I am wrong I will appreciate your guidance. I am leaving to church at this moment and will back as soon as the preacher dismisses the congregation. May God bless this forum and all his members Lucho

For year 2008 the recovery rebate credit was for taxpayers with valid SS# or for taxpayers that were in the military (disregarding whether they have or not a valid SS#)Am I right? I have a couple filing the year 2008 and don't see they quality for that credit because they have ITINs If wrong, I will appreciate someone to correct me. Thank you. Lucho.

Thank you and have a blessed day

I created the E-files (Federal and State) exactly the same I have being doing the years before; the program tells me that the test E-file is ready to transmit but when I go to E-file manager no files show up. What am I doing wrong? Any help please. Lucho

Thank you "Mcb39" Lucho

I started E-filing most of the returns since year 2002 without any problem so far. Is there anything new to comply with for EROs this year? Or I don’t have to worry about if I continue providing exactly the same service as prior years. Lot has being said during 2010 relating to E-filing that makes feel a little nervous. I will appreciate any comment. Thank you Lucho

Thank you 'JohnH".

Good morning and happy new year. Can someone tell me what is the standar mileage rate for charity in 2011. Last year it was 14$. I can not find the information for this year. Thank you Lucho

Thank you Michaelmars" Now that I know what NYPTRIN means, can you tell me where do I enter my PTIN# to make it flow to the form. I have it in the E-file section but I don't find a box in the preparer section. In the preparer section the only option I find is a box for SS#. Thank you again. Lucho

Hello everyone. I wish all of you have a happy new year and a successful tax season. I have a question: What does NY PTRIN in one of the preparers' section boxes stands for? I assume is the same for the PTIN# as before. Or Am I wrong! Thank you for any help (talking about 2010 program) Lucho

To rfassett, Oldjack, Jainen, Mcb39. Thank you very much for your posts. I will meet with the taxpayer and his Good Samaritan friend this coming weekend. Lucho