joanmcq

My clientele....I've gotten exactly zip, zero, null, none. I did have to explain why one guy who's return I'm working on now (see SE health post) that he was getting a max of $300, not $600. and I did get an email on the 'where's my refund' type (NOT rebate), but nada on the rebate. love it.

Thank you. That's what I thought, but then was unsure which 'allow' meant what. Head spinning is slowing down. I'm glad I'm not a lawyer or maybe I should've been with all the pondering over the exact meaning of words I've done lately. I think I need a vacation.

So where are you moving to? Somehow my 1st thought was somewhere around Tahoe park...(my stomping grounds).

Its because all of the CA state tax he is paying is penalty on early w/d of IRA (3% in CA), which is reduced by the amount of the deduction of medical expenses on Sch A over 7.5% of AGI. I agree this is really wierd, but the reduction of the 10% penalty is more than the 7.5% increase in AGI. Code section 213 (which covers the medical expense deduction) refers to 'any amount ALLOWED under sec 162' so I figure it comes down to does 'allowed' mean taken or what could have been taken, as the famed 'allowed or allowable' in the case of depreciation. My brain is spun as to which means which at this point.

That is if you are SE and have SE health insurance? The question comes up because I have a new client that fell on hard times and took an early IRA distribution. because all of his tax is SE and the penalty on early withdrawal, it is actually more beneficial to put all of his health insurance on Sch A as a medical expense rather than take a portion as SE health (the SE health deduction is limited by the SE income, so part goes to Sch A anyways) because the allowable medical expenses on Sch A reduce the penalty for early w/d. So is taking the SE health mandatory if it is allowable, or can I put it all on Sch A? The only state tax he is paying is the CA penalty for early w/d, so every dollar of medical expenses gives him $2 of tax reduction.

Ouch. did he tell his financial planner of the plan to withdraw 150K? Hopefully in writing? If not, I don't see how you can blame the planner in begging for a penalty abatement. Were the funds rolled back in when he learned of the mistake? If not, I don't see how you can request abatement. He may have recourse against the planner...

yes. Guess if you don't check the 'qualifies for child tax credit' box, the IRS didn't put the $300 into the computation.

When I started, I got a demo disc for free; a full functioning Max. I think I asked for it in the summer, and I could do current year returns even, before October. Then I got a client with unfiled years and bought 97-2000 forn $20 each. A few years I bought PPR + 1040 office, and when I transferred computers a few years ago and couldn't get the PPR working, (none of my business returns would open, and I couldn't access any remaining returns) the tech support just gave me the unlock code for Max for those old years rather than go through PPR. It made sense since the prior years were pretty much dead except for the occaisional late filer. I haven't had to call CS but once this year, and really hope I don't have to. CS was always one thing ATX had going for it. And if lowering our taxes made revenues go up, why is there such a deficit? Or is it that our taxes really werent lowered, but it was just smoke & mirrors?

Hey, if Dade merged into Siemens, then she couldn't have sold Dade stock because Dade stock would have become Siemen stock by some convoluted formulation at the time of merger. From the OP, I had thought she had left the employer. This changes a lot; she is still working for the same employer. The employer should have given her something that explained EVERYTHING regarding how many shares of Siemens she got per share Dade etc, and given her an output of what was what, and if the ord income was included in her wages. Oh, jlkcpa was not the OP. Ok, David, a lot of times the ESPP was on the w-2 at time of purchase because it was sold the same year. been that way since at least 2004 because that's when I started doing a lot of employee stock. Disqualifying dispositions are often included in wages, but the stock still has to be sold. Since the holding period affects how much ordinary income is recognized you cannot report ordinary income until the sale. BTW, I just checked my 2004 quickfinder, and the rules were the same.

The only one I did the actual on was myself too. 2 landlines and one cell, and I have all the bills. gave me an extra $100. I gave the form to one client that brought in all of her cell phone bills and said she could figure it out herself if she wanted. was about $2 more than the $30 so no go. A lot of early returns were being audited because of the refundable nature...the whole phone bill bit, and people requesting thousands of dollars. A bit odder acutally for a large biz to be audited, since businesses had to use the actual if I am not mistaken.

The ordinary income is usually added at time of sale because the holding period dictates whether it is a qualifying or disqualifying disposition. Of course, by this time it would be a qualifying disposition. Were the shares still held in the ESPP plan when he quit? Qualifying dispostion ord income is often NOT on the W-2.

Danke Schon!

I've only done ESPPs in ATX where the ordinary income was in the wages on the W-2. Could you put it on line 21 if it doesn't affect anything revolving around earned income?

I had the same problem when I got locked out. Activation code they had was not what I had from my packing slip. Although what I had on my packing slip activated my software. off by two numbers.

I'm glad you are on the forum right now. AR audit, guy has part-time National Guard pay. not active duty. does he qualify for the military deduction of $9000/6000? The instructions say ALL military pay. The Tax Book says US Military Enlisted/Officer Compensation. This makes me believe the DFAS pay for National Guard qualifies. 'The box' screen says its US Military Active Duty Enlisted/Officer Compensation. So which is it? Trying to figure out what TT is doing (and also wondering about Proseries since it is essentially the same programming) is a real pain in the patootis. Trying to discern what the average Joe reads into the instructions (and what they did to screw up their returns) is even worse.

I heard that they were going to scrutinize payments that weren't the standard. But just a rumor, not set in stone. Since it is a refundable credit, I can't imagine them not scrutinizing some of them.

ATX will import a spreadsheet.

Ok, add another one; we have 4 audits now. This one COULD be input error or qualified because it looks like it is a 401(k) or other plan, but the same form. Another reason not to ask the box!

The software is not ATX; it is a, shall we say, popular DIY brand return that I am fixing. And trying to figure out why it did what it did. Seems that no matter what age you enter, as long as you have an IRA distribution, this software automatically takes the pension deduction. And this isn't the only return; this is the third MI audit we've gotten on the same issue.

TP has a $12,000 early IRA distribution used to pay for his daughter's tuition. There's no penalty on the federal side because it was used to pay for higher education. MI gives a deduction for amounts paid out of IRA for higher ed, so he gets a $12,000 deduction on Sch 1 line 20. Software (not ATX) is also giving deduction on line 12 for qualified retirement plan. He is only age 48, and from reading the instructions, it seems to be a qualified distribution he must be over age 59.5. Also, it doesn't seem right that he would get two deductions for the same amount if he was over age 59.5 for the same distribution. Am I right, or is the software right?

I did not have any problems with the program this year, and only called CS once to get onto the website since I had gotten locked out. I'm paying about $10 per return with Max with about 100 clients and I know that whatever states I might get clients from, I've got the forms. I rarely use the CCH Express Answers..I'm really used to Quickbooks, and have been getting The Tax Book for the last two years (have QF at work and TTB at home biz). I may research other programs...the only thing I dislike about ATX is that it is a memory and hard drive hog. So I guess I'll up and renew early for the discount...and if I've paid in June when I'm flush from tax season, it sure helps the budgeting!

Are they actually incorporated? Sounds more like an associatation of some sort. Do they even have a filing requirement if NOT tax exempt with only $300 of income?

Ok, I just did a stimulus for $20. My cheap returns are actually somewhat of an 'early bird discount' the one W-2 EZ filers that come in the last week of January. The former tenants I even let pay me when they get their refunds. I know they are good for it.

Hey, you lucky; gas here is $3.93. lucky I drive an accord, I might get a tank &1/2.j My van conversion wont' even get a tank.

I love the fact that I started a 2 page discussion. new floor (lino, not underflooring), new stove (5 year dep, yay!). new cabinets, since old ones unusable. new window, old one deteriorated to point of necessary replacement. New counters. Rent did not go up. That kinds stuff section 8 would require done, or they wouldn't approve the rental (but this isn't section 8). Client said they were afraid someone would get hurt because of deterioration. My kitchen is 70 years old and the cabinets are fine (and very simple, very cheap construction, but hand made by previous owner). Any change would be capital improvement. some of the windows in my house were held together with duct tape, but we replaced them with double hangers we found at a garage sale (same for same) so repair. I'm wondering for the one window that is still boarded up, and has been since the house was bought. Is putting a window in an improvement or repair? Bought the house with a missing window. The one apartment building I had, we had to rip out cabinets, counter and sink etc, to do repairs, and it made no sense to put back originals because they were so deteriorated. I didn't have to make the call at that point because it was all an expense of sale, but I think that is close to what was done in the case under discussion. Arghhh! at least the client is happy I am spending time on this. And this is what we do off season, quibble enlessly on minute points of tax law. If these guys had come in in march, they would've gotten depreciation 27.5, NEXT! but because they came in so late they went on extension, I have time to research....