10SorTAX

Tuition or medical expenses you pay directly to a medical or educational institution for someone are exempt from the $13000 gift tax threshhold. A car is a different deal altogether, and would be included in the $13000/year gift limit.

I purchased the $699 package yesterday. It finally occurred to me that buying ATX from TRX at a discount was similar to buying QuickBooks from Costco instead of directly from Intuit. It's the exact same software and it saves me money. Support is not an issue for me as I use community boards for both software packages. I think I called ATX twice in 9 years. This board is the best!!

This info might be too late to be helpful to you, but ATX Knowledge Base Document ID #1511 says to test the W2 using the .asc extension and then transmit using the .zip extension. Worked for me.

I received a voicemail from them about two weeks ago asking my husband, by correct first and last name, how his experience with e-services had been. He has never prepared a tax return in his life and certainly never signed up for e-services. That told me they were telemarketers of some sort and I didn't respond.

Yup, me too.

I certainly don't qualify as a QB expert, but I can help you with this one. You set up the payroll item under Lists>Payroll Item>S Corp Medical. When you create the paycheck you enter the S Corp Medical Insurance under Other Payroll Items, not in the Earnings section. It will not display in the Employee Summary (so no need to gross up for zero result) but it will show up on reports. It will be added to taxable wages on Forms 941 and W2, but will not be included in SS wages or Medicare wages. Hope that helps.

Thank you so much!

Thank you for your replies. I thought the rent income should go on a Sch E, but the other tax advisor made me second guess myself. Thanks for the confirmation. For clarification, my client does own the home and the office is definitely for the benefit of the employer. The employer (Board of Directors) offered to pay her for the space since the business operates exclusively out of her home. She and other employees work out of this office in her home. She is an employee but not an officer of the corporation. The BOD is suggesting $700/month for the two rooms (the going rate in the area) and taxpayer's family is in the 25% tax bracket, and is aware what the tax hit will be for $8400 of income. Neither the employer, my client nor I want any question of impropriety, or reclassification to payroll, but I also don't want her to pay more tax than is required. So, she is not allowed to take any expenses on the Sch E? I thought she could take the sq ft % of utilities, just no depreciation. Not so? (I know, I can hear you..."What part of no expenses do you not understand?" I just have to hear, or see, it again.)

My client's employer wants to pay rent to her for the business to operate in two rooms of her home. I thought the rules for taking OIH expenses were different when rent is paid, compared to working at home for the convenience of the employer, but now I cannot find anything on this. Additionally, another tax preparer has suggested treating this as a reimbursable expense, with client/employee tracking OIH expenses like utilities, insurance, depreciation, etc. so that it would be a rent expense to employer but not taxable income to the employee. Any thoughts on this? Would depreciation still have to be recaptured upon sale of the home if it is considered a reimbursable expense? Client wants to avoid OIH on tax return, but is OK with Sch E, and of course, not reporting at all is appealing, to say the least. Thanks!

I, too, am from Colorado and am able to e-file in CA and NY (and other states) thru ATX with no special registration or enrollment with the respective states.

Yes, this is a publicly traded partnership. Thanks very much for the confirmation of how to treat (ignore) this.

Taxpayer received a K1 for a partnership he has in his IRA. K1 is issued to "taxpayer's name, Charles Schwab Cust, IRA Contributory," and ID# is an EIN, not taxpayer's SSN. Type of entity for this partner is IRA/SEP/Keogh. I believe I do not enter this on his 1040 and am looking for confirmation or correction of this thought. There is a business loss in box 1 so I don't want to miss anything beneficial to my client of course, but it seems it does not apply since it is in his IRA. Any thoughts? Thanks!

I happen to know...there's more potasium in african bananas than frikkin bananas!

You're correct. No such penalty on the Colorado return.