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Denne

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About Denne

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  • Birthday 01/12/1950

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  1. I am working on a return with Railroad retirement for both the taxpayer and spouse. She is telling me she is not receiving SS or the RR equiv. Her RRB-1099 says in box 3 and 5 that she has benefits of $29,327.00 for the year....box 8 on the RRB-1099 also says she has 2012 Tier 1 paid. She has only received checks for $1285.33 per month total. She did elect to have withholding of $3523.00 withheld during the year. No way could she have received the $29,327 that the form says she did. Her RRB-1099-R says in box 4 and 7 that she received $12,758.22. That is much closer to what her annual income was. Her husband received $2948.45 per month. I think his forms look pretty close to just what he is telling me he received if we use box 5 on the RRB-1099 and Box 7 on the RRB-1099-R. Is box 6 on the 1099R for Supplemental Annuity included in his box 7? Nothing seems to calculate backward on these forms.... Not my favorite tax return this year! Please help me understand this if you can??? She obviously did not receive the $42,085.22 that the form indicates....or I think indicates!! The more I write the more confused I am getting ;~/ Thanks for any help you can offer!
  2. Denne

    Kiddie Tax

    Thank you so much Judy. I knew it had to be there some place! I have printed and will show them the reason why they can not try to avoid the additional taxes. This is my first experience with a child making enough to need to file on their own. I think I did so much reading that I finally couldn't even think the issue through. So wonderful to have your assistance.....thank you!!
  3. Denne

    Kiddie Tax

    I have been searching for information on reducing the Kiddie Tax for a client. They have asked me why they can't just let the child claim himself to avoid much of the tax. The child is 8 and of course not independent. It would seem that there is something I can print off for them to either show that the child can or can not claim himself. The child's investment income came about, in part, because of trying to move it to a different account and ended up being investments sold to do so... Nice income of nearly $13,000 and parents income is nearly $200,000 this year and in a much higher tax bracket than the child would be if claiming himself. Ideas or advise....my first return with Kiddie Tax this high and know he has to file his own return, but struggling with it for sure. Thanks for your assistance.
  4. Denne

    Tax Return Verification?

    I had a phone call earlier yesterday regarding wanting my email address. Later in the morning I got an email from an Audit/Investigation company asking me to verify the tax return from 2006 of a client that has moved out of state. Any ideas about what they are looking for....really? I do know that he borrowed money for several rental/flip properties and lost his shirt. That was in perhaps 2010 or 2011. He isn't my client now and hasn't been since he moved. Mom is a client here so that is how I know he is no longer here. I did do the tax return and if anything I think he claimed every little deduction on his rentals that he could. I haven't looked to see if the return they sent to me matches the return from 2006, since my home/storage has been flooded and I don't have access to those old files at this time. This inquiry seems strange to me... after 7 years. I may not even have copies back that far if those records were destroyed with the water damage. I sure don't want to give the impression that I am not cooperative if this is a real investigation, but sure seems like someone is looking for something or to collect money on something to me..... The company doing the investigation and/or Re-Verification is Research Consultants Group Inc....out of Charlotte, NC. Any information, experience with this type of matter or advise is appreciated greatly! Thanks for your time!
  5. I just got additional information on this today. There was a revision.... She sent me something from her broker that said the cost basis of the annuity was $51,551.13 and the interest earned ws $37,291.35.....at 4.9% maturing 11/13/13. The interest is through the end of 2012. Wouldn't there be a penalty for taking the funds before the end of the maturity? I think she should know that before and too..... Thanks for the most appreciated replies!
  6. I did forget to add that the one year anniversary of her mothers death is just ahead and the broker now told her she must make a decision prior to February 25th.
  7. I have a client that is to inherit her mother's annuity. It is not an IRA. She was told by her broker that the annuity can not be transferred into her name because it is not an IRA. He is telling her she can hold on to it in her mother's name and then take it as a death claim or do a 5 year deferral. I am really lost on this one. The broker suggested that the annuity be converted o a brokerage account and then pay the taxes on all interest earned in that annuity. I am a bit unfamiliar with this product....it is called a Protective Life ProSaver guaranteed annuity. I really would like advise on the handling of this matter or at least letting her know if the broker is giving correct advise. Of course the broker stands to make more with a brokerage account fees most likely too..... The total amount of funds in this account are about $100,000.00 however it doesn't say how much or if all of that is in the annuity. Thank you for your assistance.......
  8. Denne

    It's Over

    I haven't been on the computer for several days and just finding out that Don has passed. I am so very sorry for your loss. You will be in my prayers and keep me posted as to how you are doing.... It has been a bit of a long journey for you, so rest and take care of youself knowing how much you are loved and appreciated by your family and friends. Blessings KC.
  9. Denne

    So confused about Ohio RITA

    Would a non resident pay that type of tax, if not how does he get a refund?
  10. Just working on a taxpayer that lived in Michigan, worked in two cities in Michigan and in Fremont Ohio as well. Re maintained his Michigan residence. On his W-2 he has Fremont withholding as well as something labeled OH7202. I have no idea what this is or how to treat it. It looks like it might be included on the RITA return perhaps instead of part of the Fremont return??? Wow.....hard to sort out all the city returns to begin with and sure don't understand what is going on in Ohio. Please help! Thanks you for your assistance, in advance ;~)
  11. Denne

    Turn employer in??

    I just had a call from a tax client, with lots of questions and information. During tax season we had a difficult time getting any information from your employer or the insurance company regarding her pay for taking care of a woman that requires care or at least someone to be there. Here is what I know so far and need to know which direction to send her. She started this job as a live in with free rent and a small salary to take care of the gal. A few months after she moved in the gal started charging her rent. My client made her sign a statement as to how much rent she was paying at that point. She never received the pay she was supposed to...even though she was paying more in rent that what she received from her employer. The employer was supposed to pay her $2600 for the period she was there but only paid her $1100 and said to claim the $2600 on her taxes...still has not been paid what is owed to her. The employer did not give her a W-2 or a 1099 and neither did the insurance company that is paying the employer for this care. She tried getting something directly from the Insurance Company herself....no luck. While staying in this home she overheard several conversations that lead her to believe the employer is scamming with other businesses she owns. My client's questions are.... Should she turn her in to the IRS for income tax evasion and get a fee for doing so?.....Advised by her police officer brother....not me ;~) Should she turn her in to Wage and Hour to see if they can get her pay and risk more stalking by the employer? The past employer has been stalking her by phone for months. My client said right after she thinks the employer realized she had overheard some phone and personal conversations that would incriminate her. She was basically evicted out ot the rented area of the residence, about the time she started asking questions..... My client has also talked to other employees working at the house and horse farm. No one ever gets tax forms and from what she could gather no one files taxes either, since they don't get tax documents of any sort and one said she didn't know how to file without anything to file with. What direction would you send her and what do you think she can expect? Sorry this is so long....lots going on with this one!! Thanks..............as always for all of your great advise~~~
  12. Denne

    Sick pay....paid back???

    Thanks jainen.....I just realized that I hadn't taken time to tell you I appreciate your ideas.
  13. Denne

    Sick pay....paid back???

    I have a client that received Sick pay during 2010 and had taxes withheld and of course paid tax. He received a settlement from his employer this year, but part of the settlement was that he would be paying back all of the sick pay he had received. That sick pay was withheld from his settlement check. He brought up a good question today. If he paid back the sick pay then why should he have paid taxes and how does he get those taxes paid back to him from 2010. There will be not document to reverse the sick pay at this point. Shouldn't there be a Corrected W-2 coming his way? If not.....how would we properly document his reduction in income for 2010? Thank you for your help ;~)
  14. We had a sewage back up and required assistance for clean up. When the cleaning up was going on, the clean up company manager was here he said not to worry about carpeting because they would get it for us at cost and save us some money. I already had an estimate for carpeting I liked, since the adjuster told me we would need to replace it all and I wanted to keep things going. Well...we were assured that we would save money with similar carpet through the clean up company. When we just got their billing it was the exact same figure as the adjuster had given us...of course no discount for the carpet being at cost and $2200 higher than my first estimate. I asked the the carpet invoice and have not been able to get it. Are we incorrect that we are able to keep any of the money that we saved in finding better pricing for the same carpeting as we had? My understanding is that we are being reimbursed for making repairs to make the property the same as it was. The Clean Up company appears to be making extra money from the carpet guy than what they pay him. They seem to be scamming either us or the insurance company to me....suggestions on proper handling of this matter.....other than being so stupidly trusting! I know this is not a tax question really, but needed to check with smart people for help!! Thanks!
  15. Denne

    Mortgage Interest

    I have a friend just aske me a question that I am very uncertain how to answer. She has been living with mother for several years. Her mother passed away leaving the house to her.....along with a mortgage payment. She has been paying the payment for four years, since it is the only the payment could be make. Her mother had nothing else that would pay the mortgage and in fact the daugher paid the mortgage many times when her mother was alive. The daughter us unable to finance the home in her name because of some old debt she has. What she was asking is how she can claim the mortgage interest on her taxes..... The 1098's she showed me are in the Estate's name...of course the estate can't pay the mortgage and she can and needs to in order to have a place to live. Your suggestions????? She has already tried to put the mortgage in her name since she is paying the payments, but can't until her finances improve. Quite a mess, huh? Thanks for your advise.....
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