Yardley CPA

Good morning! Client has a "Designated Bene Plan/TOD" account with Charles Schwab. There are dividends and broker transactions reflected on the 1099 Composite form. I believe all the activity is taxable and should be included on the 1040 but wanted to make sure my understanding is correct? Thanks!

Client has new adopted daughter who has yet to receive her SSN. Can you indicated that a dependents SSN was applied for ?

rfassett, Thanks! Appreciate you posting and confirming. Yes, warm and fuzzy...very fuzzy.

I have a client who received the following: K-1 from Partnership: - Net Long Term Capital Loss -7 - Other income © -1 - Other Deductions (k) 2 - Other Information (b)2 Interest Income 106 Ordinary Dividends 1,805 Qualified Dividends 1,696 ATX includes form 4952 and also includes a warning in yellow that "Form will not be included in efile. Per IRS efile spec, either Investment expense, carryover or deduction must be present" I have never completed form 4952 before. In looking at it, there is a fillable line g "enter the amount from lines 4b ($1,696) or 4e ($930 which is the Net Gain from the disposition of property held for investment) that you elect to include in investment income. Can someone please give me a summary of this form and it's purpose and what maybe the right move in this case? Thanks very much!

I have a client who sold land in 2014. I've completed the 8949 showing a long term capital gain: - Proceeds: $15,000 - Cost basis <$3,200> - Realty Commission: <$1,650> - Long Term Cap Gain $10,150 Can someone please tell me if the realty commissions are added to the basis for the Pennsylvania return? I cant seem to find an answer for that. Thank you!

Work associate asks for "some help" with her daughters 1040 return. Gotta love those work associates. Anyway, she has me questioning what I believe I know. Work associate tells me that her daughter works in New York City and is currently a NYC resident having moved to NYC from New Jersey prior to 2014. Daughter received W2 from employer showing her old New Jersey address. W2 has NJ wages (about 50% of the federal total) and NY wages (only New York withholdings.) On the W2, near the State information it does say "NY RES" which would seem to indicate she is a NY resident. She is checking with her daughter to see if her daughter ever notified the employer of the address change. It would seem she would need to complete at least a part year NJ resident return, no? Thanks!

Great post, KC! For those interested here is the Princeton University Pi Day Facebook page. I live about 15 miles from Princeton. https://www.facebook.com/PrincetonPiDay?fref=nf

For my one clients, Foreign Taxes Paid was $3...without a date paid or country entered, the refund on 1040 amounted to $2,713...after entering a date of 12/31/14 and entering "Other Country" the refund increased by the $3 to $2,716.

JMovich...thanks for the response. I've used "Various" in the past but ATX does not provide that as an option this year and you cant type it in.

When you process a clients 1099 Div and there is an amount in Foreign Taxes paid, Box 6, assuming you do not know what country is involved in this transaction and nothing is listed in the detail of the 1099, what country do you enter in the ATX entry form..."Other Country?" Also, if there is no indication of what date the foreign tax was paid, do you enter a date in box 6B...maybe 12/31/14?

What am I missing here? Is mrichman333 looking to prepare nonresident returns (in addition to the NJ 40) for the 1099's his client received from NY, PA and VA?

I'm curious how you complete form 8283 on items like donation of clothes, shoes and housewares?. Is the amount you use as Fair Market Value the same as the Amount Claimed As Deduction? On items like clothing, shoes and housewares, I normally indicate the method to determine FMV as being Thrift Shop Value. Does anyone have an approximate percentage that reflects Thrift Shop Value? I've normally seen 15% to 20% of the cost or adjusted basis as being Thrift Shop Value. Thoughts?

I am currently a 1040 Office client of ATX and had the need to purchase a 1065 return. I used their PPR and the business return cost me $35 (tha included the accompanying state business return.) I believe personal returns PPR are $25 each.

What a wonderful forum this ATX Community is! Thanks to each of you!

From the Commonwealth's Website: Is retirement or pension income subject to state and local taxes? As long as you retire and receive distributions from a PA qualified pension plan by either meeting years service or age requirement in the plan, your retirement income is not taxable for state purposes. If it is an early distribution as the number 2 distribution code indicates it would be taxable on the PA return.

Following all of your suggestions (including the link and information Jack included on his submission) I directed my clients to contact the IRS. They did that and the IRS did cofirm that someone used both of their names and social security numbers (with a different address than theirs) to file a 1040 form. The IRS would not provide any additional information to my clients and we will now move forward and and paper file the return including form 14039 and the forms of identification that are required. I also have to paper file two of their state returns as both states require a copy of the federal return. Thanks to all of you and thanks to Jack for posting the link.

Thank you again.

Jack...I'm just curious, did you get the same exact rejection as I got? Rejection code: R0000-902-01 Duplicate Condition: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return. In other words: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.

Thanks for all your responses.

Good morning...it was predicted that we would have a "trecherous" commute to work this morning with up to 8 inches of snow throughout the day (beginning at around 11 last night). Reality...light snow and a coating on the ground this morning in the suburbs of Philly. Rolled 1040 for a MFJ couple with three dependent children. Nothing has changed since last year. I received the rejection notice below. Can anyone lend any insight? All the SSN's are the same and as I mentioned, I did not change anything. The rejection makes it sound ilke the TIN has already been accepted on another return that has been efiled? Rejection code: R0000-902-01 Duplicate Condition: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accpeted electronic return for the return type and tax period indicated in the tax return. In other words: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accpeted electronic return for the return type and tax period indicated in the tax return. Thanks very much!

Thanks very much for your answers. Appreciate it very much. Had neither son had wages/income, I assume they would be eligible then?

Established client whose two sons live with her for the entire year. Sons are both over 24 years old and both had jobs, one earning $4,900 and the other $14,400. Both sons received W2's. Client pays more than half their care, has them on her health insurance and pays for their cars etc. Client wants to know if she can take them on her return as dependents? Based on the rules for claiming children, I do not believe they qualify as dependents but wanted to obtain views from the board. Rules for Claiming Children When you’re claiming a dependent who is a child, there are further requirements: The child has to have lived with you for at least half of the year. The child has to be related to you. That means your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of those. The child must be 18 or younger at the end of the year, or 24 or younger if a student. To be a student, the child must have attended school full-time during at least five months of the year. The five months don’t have to be in a row. The child must be younger than you (or your spouse, if married filing jointly), unless the child is disabled. Thanks!

KC...I agree. That does seem to be the key phrase. Thanks to both of you for chiming in.

I think the letter provides you with an edit option, no? If so, you can go in and change the verbiage as you see fit.

I have a client who is married to a citizen of Honduras and has lived in Honduras for many years, working as a teacher there. She has 4 children (all US Citizens) under the age of 17. We have always filed MFS. Her income is minimal and I obtain a letter from the school which indicates what her wages are and it converts the wages into US Dollars. Her earned income from the school is normally around $25,000. She has a couple of hundred dollars in interest and dividends combined. Its a fairly straight forward return and one where I've always used the 2555ez to exclude her foreign income. The 1040 reflects her wages on Line 7 and then Line 21 shows the wages as being excluded. This results in only her interest and dividends in AGI which ultimately results in no taxable income. My client informs me that at some point after her return is filed and accepted the IRS sends her the necessary paper work to claim the Child Tax Credit. Since it seems she is eligible, I would like to calculate it on the return when I prepare it. In the past, while I included form 8812 on the return, it never calculated a child tax credit. In looking at the form more closely this year, I notice that ATX has a fill in box on the 8812, Part II, Line 4a - Earned Income. If I input her wages earned on this line it does calculate a Child Tax Credit. I was always under the impression that the 2555 wipes out the earned income and that she would not be eligible for the credit...but I guess that isn't the case?? Can anyone offer any insight? Thanks! PS...I did find this on an older KPMG Tax Alert directed at "US Taxation of Americans Abroad": Child Tax Credit A taxpayer may claim a child tax credit for each qualifying child. A qualifying child is a child that is a U.S. citizen, national, or resident; is claimed as a dependent on the taxpayer’s return; is the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (i.e., grandchild, niece, or nephew); is under 17 at the end of the tax year; did not provide over half of his or her own support for the tax year; and lived with the taxpayer for more than half the tax year. The maximum amount of the credit is USD 1,000 for each qualifying child. The taxpayer’s total child tax credit is phased out as modified AGI exceeds USD 75,000 for a single individual, USD 110,000 for a joint return, and USD 55,000 for a married filing separate return. Modified AGI is determined without regard to the section 911 exclusion for foreign earned income. For some taxpayers, a portion of the credit may be refundable (i.e., may result in a refund if the credit exceeds the taxpayer’s tax liability).