taxguy057

510 can also occur when a dependent files a return as the primary or secondary. Probably more likely that one of the dependents filed a tax return and claimed their own exemption. Do you know which field the reject is on?

the taxpayer ssn field is hi-lighted on form 1040..

Received an rejection code 1040FD510 which states that the SSN of the taxpayer and or spouse was used as an depenedent on another return. My client has been with me for 5yrs now 39yrs old and has 3 dependents. Never had this reject before. Does it mean she has filed her tax return already? I asked and she says she doesnt know whats going on. Any ideas on what may be causing the reject to occur?

THX!!

TG

Jackson Hewitt’s key bank has reportedly cut off most of the money it used for tax refund loans.

Regulators ordered Santa Barbara Bank & Trust to stop providing the loan money, which covered about 75 percent of Jackson Hewitt’s financial products program, according to a regulatory filing by Jackson Hewitt reported by Bloomberg. Shares of the company, the No. 2 tax preparer behind H&R Block, dropped $1.34 to $4.50 on Thursday.

The Office of the Comptroller of the Currency told Santa Barbara Bank & Trust on Dec. 18 that the lender would not receive regulatory approval to originate the refund anticipation loans in 2010, according to a statement from the bank’s parent, the Pacific Capital Bancorp. A bank spokesman, Tony Rossi, said that “the tax refund loan business is a sort of niche business that falls outside of what would be considered core banking operations.” The bank signed a nonbinding letter of intent with a private equity firm to sell the tax business, the statement said.

Tax preparers are locked in a battle for customers, with Jackson Hewitt vowing this month to regain market share from H&R Block. Firms can attract clients with refund anticipation loans, in which customers who need cash immediately can get a short-term loan, typically lasting a few weeks, that is based on the expected amount of their tax refund. Jackson Hewitt, with 6,600 outlets and almost 3 million clients, has been losing customers to H&R Block and Intuit, which makes TurboTax software. It suspended its dividend in March and has hired Goldman Sachs to explore “strategic alternatives,” language that typically means a company may be sold.

WOW!! Seems to me that there my be hope for us small businesses after all!! IF they do away with the RAL's and HR JW Liberty cant provide the trumped up service fees they been doing to stay in business and have to fold then we have alot more lil fishies in the pond now who will be looking for affordable tax prep services firms like ours!! Just a thought...

Also, has his filing status changed? That could also affect the payback.

My clients have been bringing in the letters they received from IRS. But in the case of a husband and a wife, each received a letter claiming the payback of 250.00.

Just a thought!

Deb!

Was MFJ but house is in wife name but they filed together the year receiving the credit and this year so would that make a difference? And got letter from IRS which states they got 7500 credit and payback for next 15 yrs would be 500.

Did the taxpayer get the full $7500 credit. Whatever credit he received needs to be divided by 15 for his annual payback. Just an idea.

Yes received 7500...

I have a client who received the first time home buyers credit in 2008. Of course this year have to payback the 500.00 installment. I submitted the return filling out section IV on page two of form 5405 and recieved an error stating "First-Time Homebuyer Credit Repayment Amount cannot exceed the credit received." Now if memory serves me correct and there hasnt been a change in our numbers system as we now it, isnt 7500.00 more than 500.00?? LOL!

What have I screwed up??

Thx!

TG

SMH? Another term I don't know but think I need this one, too!

And you are correct - we really don't get the respect we deserve for all the knowledge and education we must have with constant updates. No, we don't and can't know it all at any given time but, unlike the generic program, we can know our client's situations and how to answer the questions narrowly and broadly as they apply individually.

Marilyn, I do hope that $30 return wasn't really worth more than about 10 minutes of your time. I wish the TT users would begin to wise up about the add-on and hidden costs of dyi and "xxx not included." I hope this young person does learn the lesson. Grandma is wise in that but maybe should not be subsidizing his fees. My guess is she won't any longer.

it means Shaking My Head!!! :lol:

Client calls me yesterday and says that he and a friend are trying to "do" his taxes on Turbo Tax. TT is asking them all these weird questions that they don't know the answers to and could I lead them through it. (You all know the answer to that, but I was polite about it). I asked him how much it was costing to use TT and he said $27. I said I only charged you $30 last year and your Grandma paid it. He said that if they didn't get it figured out, he would be dropping it off. It makes no difference to me, is a large family and his Grandma has been with me forever. Makes no difference to her either. She says let them learn a lesson.

The nerve of some folks...

People think it so easy to do taxes themselves....if so then why are there so many of us out here. Even though you can represent yourself in court,9 times out of 10 you going to hire a lawyer right? Why can we not get the same respect!! I even had a client last year who went through somebdy else to file and had nerve to call me to check and see why they havent recieved their refund yet...AHHH! think u need to be calling "your people" on that is what i told her. SMH !!!

I had a situation like that a couple years ago. One of my clients referred a friend to me bc they had tried Turbo Tax and was having problems with sending the return. you see they tell you its free for federal but dont tell you there is a charge for efile of the state return. thats where they get you. Anywhoo, there were errors popping up on certain forms they filled out bc the questions the program ask are broad so you think all apply to you. I spent like an hour trying to figure out what was going on with the return, finally got it right but they wanted to take the efile fee out of the return which Turbo doesnt do....Go Figure!!!! So i explained that I could do it with my software but of course they would have to pay normal cost of the tax prep. Needless to say they appreciated the service and skill i showed in handling everything decided to let me do the return....got more money because they missed things with Turbo and are still my clients to this day!!! :D

it worked!!! thanks kc your the GRAND POOH BAH!!!! :spaz:

im sorry.one child 2yrs old. let me go check these lines. i think i forgot to click spouses w2 on the wife's form...

Hey Old Wise Ones...

Im trying to file a form 2441 for a client and his spouse. MFJ, AGI: $75,313 Child care expenses $9701.00. My Form 2441 wont calculate the credit amount... Only thing I can figure is they have maxed out somewhere. I was gonna research but got so many other returns to get started on so was hoping for some buddy help on this one !

THANKS!!

TG

I am just giving you more information but MCB39 already answered your questions.

Answer to question 2.- Let's say you and your wife earned 40K in 2010 and you have 3 kids, ages 12, 21 (who is full-time student), and 33 (who is permanently disabled) As long as none of them provide 50% to his her own support and live with you, you can claim them and claim EIC. This will be true even if 12 year old child supports both brothers but not more than 50% of his own support. Another example: This will also be true even if the 12 year old (or any of children) made $4 million while staring a movie, as long you put that money on the side for his college, retirement or simply have it under the mattres. I am hoping someone will be interested on this and comment.

Answer to question 1.- a person who is eligible to be claimed as a dependent on another person’s return will have a 2010 standard deduction limited to the greater of $950 (the “minimum” standard deduction) or the taxpayer’s earned income plus $300, not to the exceed the normal maximum single standard deduction of $5,700).

Example: Mavis Williams, age 17, is claimed as a dependent on her parent’s return. Her 2010 earnings consist of $1,200 interest and $400 wages from a paper route. Mavis’s 2010 standard deduction is $950 (the minimum standard deduction).

Example: Assume the same facts as the previous example, except that Mavis has $980 itemized deductions

in 2010. Mavis would itemize and deduct $980.

Example: Assume the same facts as the previous example, except that Mavis’s paper route earnings

were $1,300. In this case, the standard deduction would be $1,600 (the $1,300 earned income from

the paper route plus $300). If paper route earnings were $5,980, the standard deduction would be limited

to $5,700 (the maximum standard deduction for a single person in 2010).

So lets stretch this a little further.... what will the parents claim on their return for standard deduction or itemized deduction? Will the amount they claim on the return be reduced as well??

First of all how is he paid or should i say how will they show income paid to him at end year....w2 or 1099? This will help in determining which way to go with this... :dunno:

Welcome back and I am sure we will all be leaning on each other for one thing or another. Even if it is to vent, rant or just escape all the tension for a while it is nice to know we have a place of commonality (is that really a word)?

i believe it is like "supercalifragalisticexpyallydious!!!" lol! now question is that a word and did i spell it righ t!

Hey Everyone!!

Just a quick note to say welcome back to another season of headaches stress and pains in the a** all over again!!! lol!

Hope everyone has a profitable season and I'll probably be leaning on you for more help like always !

Check out:

http://www.ncesc1.com/individual/faqs/siteMap.asp

If you'll look about halfway down this page, you'll see several choices under "Individual Services", which include "Form 1099" and "View Your Benefit Payment History". Your client will have to set up a password and jump through a hoop or two to get access, but it's probably the fastest way to get info on one or perhaps both years.

thx!

I have a client who has last two year tax returns that need to be filed (2007&2008). He had unemployment compensation for each year, but the state unemployment commission could not provide copies of the previous year's compensation and said he would have to petition the irs for those copies. My question is what form or process do I need to follow to get copies. I stay in NC if that has any affect on how this is filed.

Thanks for any help on this matter.

TG

Thx all! He says he was waiting on getting books from whomever keeps them but he never called back so not going to worry....

Whats the deadline for a corp return? Is it apr 15th also? last min client calls and want an extention....

HELP!!

Got a client who drives for trucking company and has to use his personal cell phone to conduct business communication between he and his dispatch. Can he claim the unreimbursed phone expense during the course of the year while out driving for the company?

Have a feeling he can, but I know its a certain percentage he can deduct. Just too tired to research it right now so asking my guru's out there.... Pacun please if you will if Jainen is "sleepy house!" LOL!

TG

Thx to you both! :)

I have a client who brought me '07,'08 and this year's taxes to prepare. I know i can do '06 also but she hasnt found all the papers yet. My question is which year was the Stimulus Package payments under Bush Admin come out? That was '07 correct and you could claim on '08 if not received. I know I will need to file the '06 for the basis to qualify. Then Obama's was last year. Is my client still entitled to that money from the payments if we file those past returns? If so, I totally have a brain fart on where they go in the return to recieve it...

Pls advise O Great and Knowledgeable Ones!!!

TG

well it referenced 8606 in the worksheet so i pulled it to look at it. Now he also contributed to his Roth IRA too which i know is not deductible.

Got a client that wants to make a contribution to their Traditional IRA before Apr 15th for 2009. I found the worksheet and filled out info and Form 8606 with the estimated amount he wants to put in but no changes occurred on 1040. I must be doing something wrong please help...

TG