ACS41

MaryBeth and Karen Lee are correct. The credit is for health insurance, not payroll taxes. By crediting (or reducing) health insurance expense you are effectivly taking into income the amount of the credit.

the box borrower is personally liable for this loan.

Linda

They will eventually get one once the bank sells the property.

I think the cap for SEP is 40% of income, NOT $15K.

25% of W2 wages. Wages were $60,000. That is how the $15,000 is derived. Taxpayer is sole shareholder os S corp.

Yes, 1120S would need to be amended for this correction....not the 1040. Since you didn't prepare the s corp all you can do is tell him to amend the scorp and then amend his 1040 accordingly unless an extension is filed to get the 1040 right on the first try. I wonder why the preparer let this happen? Are you sure its not a solo 401K which would allow more contributions?

Julie

No, it is a SEP. Yes, the 1120_S should be amended. However, he personally has excess contributions of $55K ($70-$15K) that are subject to a 6% excise tax.

Taxpayer is sole shareholder in S corp. We are only preparing 1040. Taxpayer took salary of $60,000. Come to find out he made a SEP contributions of $70,000. He is not very willing to have the excess returned to him by April 15th. What line on the 5329 does the excess get reported? I do not see a place for excess SEP contributions in ATX. Should I inform the client that his deduction on the s corp is overstated? Thank you.

I guess I'll find out soon enough.

I don't understand. Form 5405 is a federal form. If your state allows stand-alone e-filing, you can e-file the state return even though you could not file the federal due to the 5405, but that would not involve e-filing form 5405.

Thanks. In South Florida I file virtually no state returns and am not used to filing these. This particualr one has 10 state returns.

Can you e-file form 5405 at the state level through ATX?

Thank you!

Taxpayer lived in NY and moved to Florida in early June 2009. During the time taxpayer lived in NY, client worked in various states and had taxes withheld in these states. When filing the NY IT-203 (Part year resident) can credit be claimed for the taxes paid to these states? I do not see such a line on the return (that is available if a full year resident (IT-201, line 41).

Thank you.

Go to the original return and correct it there, look at the bottom of the page for the original 1099 to see where to enter the correction info.

Yes, That is it! Thank you.....

I cannot seem to remember how to correct a 1099 in ATX. Do I need to make the correction in tne original file, check the correction box, and e-file, or do I need to create a brand new file before making the correction. Have not had to correct for several years. Any help will be appreciatted.

You need not issue a 1099 to a corpration unless they are a law firm.

Consider the 4 "C's"; Carat weight, clarity, color, & cut. When it comes to Diamonds, size is only one component.

Congratulations!

Thanks everyone. Took a 7 day cruise to celebrate/party and some needed r & r.

Pretty sure you can easily do it in ATX. I did one a couple years ago, and was surprised it was so easy. I think the form is at the bottom of the W-2 input screen. Just follow the instrux for the form.

Thank you.

I have to correct one W2 in a company that has 10 employees. Can this be done from ATX, or do I have to perform this function manually on the SSA website? If it can be done through the software, I want to make sure that the other 9 employees do not get transmitted a second time. Thank you.

I received also recevied around 7. Yes, some dated mid January. What is the scoop of the 'audit shield"product ? Is it anything more than a product to sell a client in case I screw up his/her return? If so, I would not want to buy it if I were a client. If it is a decent product, what is the "sales pitch" yuo should use?

Shareholder loans to a C-corp in excess of $10,000 are required to pay/impute interest at the minimum of the federal published rate applicable to the terms of the loan with a 1099-INT issued. Loans can get paid back tax free, but it is not easy to redeem shares of stock if the company becomes successful as redemption is usually with a taxable gain or taxable dividend to the shareholder thereby creating the double tax. Capitalization and issue of stock is a tough call that must be left up to the shareholder.

Thank you. I'll be speaking with the client today.

New client (C corp shareholder)made about $95K in loans to corporation over the 8 years of existence. No note, no interest expense, no repayments ever made to shareholders. Company has only had one profitable year and is carrying a NOL. This year will be a big loss funded in part by additional shareholder loan. Capital stock is $1K. It is not likely these loans will be paid back anytime soon based on my review of operations and the past tax returns! Should interest be accrued (and a 1099-Div) issued, convert the loan to stock, or let it be? The client is not keen on a 1099-Div when they are losing their shirt. Also, the sharholder who provides sweat labor does take reasonable salary. My opinion is to have the shareholders convert the loans to equity.

Have not seen any of their ads this year. Of course we are all familair with the general theme of such ads. My take is that no matter what business you are in, you cannot be all things for all people. Block has a target market, as do I. Candidly, I have no interest in bargain hunters and hopefully I have seen my last EIC return. To directly answer the question; they do not irritate me at all.

It seems banks should be helping their customers like any good business would! When I was Controller of a bank we would accept virtually anything resembing an 8109-B. This includes ones that say "copy only do not use" or the like. If it was on a napkin and contained the required elements, it worked for us.

Sage Secure Send is a product where can send up to 1000 megs a month of data for FREE. To be totally secure, you can provide the recipient a password. You log in, write your message, and attach your files. Ir is a great way to send any type of return that contains a SS#. The recipient receive an e-mail with link to a secure website where they input their password.

If the bank accepts it

When I was Controller of bank we would accept a photcopy. The bank does not actually send the 8109-B anywhere. They retain it in the Teller's work and transmit the funds through the FED system.

Go with 2007. The Excel is so much better. Yes, the look and feel is different, but once you get used to it, you will be happy you did. I've been using 07 for 1 1/2 years.