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Tax Prep by Deb

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Everything posted by Tax Prep by Deb

  1. Have any of you had problems with client sending the payment with the amended return only to have it refunded later because they have nothing to pin it to? Then get a bill for the amount due when they finally get around to posting the amended return? These has happened several times for me, so much so that I don't have client send in the payment but rather have them wait till they get the bill. I have even had a couple where the amended return shows a refund and instead my client got a bill. Back when IRS would actually talk to you we were able to get it straightened out when the agent saw that a number had been dropped when they keyed in the amended information. They made the correction on the spot and client did receive his refund. Close to two years ago I did an amended were the client owed a little over 300. Because of my past problems I suggested not sending in a payment and a few weeks later he received a refund check of over 6,000. To this day we still have a descrepency, but I believe the client is going to pay just to get them off his back. What a mess! And the sad thing is the clients sometimes think it's on our end, but I rechecked everything and I was right, but again I believe a miss keyed figure was the blame.
  2. Totally agree! I did attend one of their presentations and was totally impressed! I had previously obtain a trial version of the software and didn't like it much, but after attending the presentation and having the ability to ask questions and see live demonstrations I was sold!
  3. First year Drake user and even when ATX offered me a terrific deal I will not go back until Drake gives me a reason to! I just don't see that happening. Their support cannot be beat, their product performs for all my needs, and their price is something I can afford!
  4. Yes. What little problems I did have I was able to post on the Drake forum here on this community and was helped. The only real problem I had was with a client who had multiple rentals and for some reason ATX had empty spaces (Numbering of the properties), but all I had to do was reassign the proper for number and everything worked ok. I won't kid you, there is a learning curve but I found Drakes knowledge base very helpful. The one problem I did have was in using the portal that is available. I had a small issue with files that were restored from my laptop not wanting to go into the working portal, they wanted to go into what is called an archive portal. But I called Drake (spoke to a live person within 3 rings) who tried to figure it out. He promised a call back and about a week later he did call with a fix. Very impressed with the program and customer services! Plan on early renew which I haven't done with ATX since 2012.
  5. I wasn't keen on learning a new program either, but decided to jump boat this year because I could see the pricing was getting out of hand. I went to Drake and will save quite a bit of money over ATX. The learning curve was much easier than shelling out more dough!
  6. Can someone tell me how to enter the dates clients left California to go to Oregon? CA calculates income by days spent in CA, but I can't find any place in Drake to input the info. Any help will be greatly appreciated!
  7. Just had a situation similar. Parents specifically said they would not be claiming son so Medicaid in California would cover him. It was one of those situations were they thought they were getting something for nothing but ended up losing out on a big education credit. I would file the deadbeat son as if he could be claimed by someone else and just don't claim him on the mom's return. The rule is even if no one does claim him, if he could be claimed he cannot claim self.
  8. Thank You! I will give that a try. I tried just about everything else!
  9. Any Idea how to do this in Drake Software?
  10. Prior to death it was a revocable living trust. From what I have been told the only assets at time of death the trust had was stocks. The stocks were not sold by the trust but was split up and distributed to each person listed on the trust. I'm still looking everything over, but was hoping for some guidance on starting.
  11. This kind of, sort of, should be, a rather simple trust. At least that is what I am hoping for. My client is the trustee of a trust (belonged to his mother who passed away 02/2018) and has already got the tax ID number for the trust (Yah). To start with the preparer who prepared the taxes last year has already entered her date of death on the 2017 tax return (she died before it was filed). I have some documents that came under her tax id number, (social security, pension, and some investment accounts). My thinking is I need to prepare a personal return for her for all income up to date of death correct? That's the easy part, most of the income listed on her ss number for her investment accounts are showing transactions after date of death. Do I report based on the tax ID number (keeping all income together under that ID) or do I separate out based on date of death and report everything after death on the trust (even though the tax ID numbers will be different)? Any help will be greatly appreciated! Deb!
  12. My auto correct is going crazy! I meant to say my client who is a single member LLC is a smog shop with less than 250,000 gross income. He hasn't hit the magic number yet so only had to pay the 800.
  13. I keep telling my clients that they are not cheap. One is a smog shop smock. So far he hasn't but the magic number but I'm sure his day is coming.
  14. If income is over 250,000 They will owe both. One is the corporate tax and the other I believe they call a fee.
  15. Question, I have several clients who are full time students this year but who have worked during the year and are now providing more than 1/2 of their own support therefore not able to be claimed as a dependent on their parents tax return. This year I am using Drake, so I am a little not sure of myself when it comes to California EIC. I know that under federal rule, the fact that the child is a full time student, lives with parent, is the right age, ect…. can qualify the parent for EIC so therefore (especially being they are under 25) not eligible for EIC, however the good state of California changed the age to 18, and I can not find in their rules at all the stipulation that the child cannot qualify someone else for the credit, only that they can not be claimed as a dependent. So Drake wants to give them California EIC. Any other California preparers running into this?
  16. That is the case. I actually have two of these situations were the kids do very well in school and have a great amount in scholarships. Both come from low income families, so even in the past the Kiddie Tax wouldn't be much different between either child or parent, but with the new way it is being taxed it is hitting these kids hard.
  17. Yes I have the actual account transactions and they are matching to the 1098-T. Even with the 12000 standard deduction the taxes are over 4,000. I guess it is what it is, but honestly the only way I would have ever caught this was Drake flagged it. I used ATX last year and nothing, but looking over the instructions for the kiddie tax form it has been this way for quite some time. I will have to look at last years and see if it would make a difference. I really don't believe so because to be honest with you the kid makes more in scholarships than his parents do working.
  18. I need a second set of eyes on this one. I have a client who is a student at UCLA. He is very smart and as a result has scholarships that way exceed his tuition. His scholarships and grant is $36,107 his tuition is $11,754. So he has taxable scholarships of $24,353. In addition he has a W2 for 3,219. Because the taxable scholarship isn't counted as support for himself, his parents are still able to claim him, thus causing a form 8615 situation by which they want over 4,000 in taxes. Am I understanding this correctly? Did I mess up last year and not figure Kiddy Tax for him based on the scholarship be non earned income? He was in the same situation last year, however I didn't do the Kiddie Tax Return thinking that non earned income was basically interest dividends, investments ect… I never would have though of scholarships in that classification (he worked hard, in my mind earned it). What say you? Am I missing something?
  19. I can not clear an error for e-file on a single member llc California. It tells me the phone number of officer must be present but I can't seem to find a way to make it flow to the 568. Can someone point me to the right direction?
  20. Drake does it! I switched this year and love it!
  21. I have a client that is in kind of a unique position. Never been a problem in the past, but those kids grow up and start working and put all kinds of wrinkles in the norm! Client's son turned 18 and got a job after graduation. His income is such that he provided more than 1/2 of his own support. (his income went up, parents went down). So I am filing him single and not a dependent on someone else's return. Because of his age, residency, ect… he still qualifies his parent for EIC correct? Support is not a requirement for EIC and he meets all the other test, I should be able to file him as mentioned above and yet his parent should still be able to claim him for EIC correct?
  22. I have that problem but uninstalling a re-installing didn't work. ATX did show me a work around and it only happens when I first open ATX.
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