Author Topic: any accountants out there that i can ask a question?  (Read 277503 times)

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #80 on: March 10, 2014, 12:45:41 PM »
Your parents pay US taxes? But you aren't a citizen?

Offline myb821

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Mar 2011
  • Posts: 7574
  • Total likes: 12
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: New York
Re: any accountants out there that i can ask a question?
« Reply #81 on: March 10, 2014, 12:52:04 PM »
Right? It's weird.
Very. Now I need to debate if i should amend my taxes from this year so in 4 years I can get an extra year of credit. Im not worried about an audit or anything as the amount of tuition just from half a year is still enough for the entire credit. Maybe just starting next year I will only claim half the tuition and continue from there. Decisions Decisions

Offline MC

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2013
  • Posts: 1743
  • Total likes: 46
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: NY
Re: any accountants out there that i can ask a question?
« Reply #82 on: March 10, 2014, 02:25:44 PM »
You should also figure out whether you would end up getting back more if you filed as independent and get the tuition credit than what your parents get for claiming you. Might be worth it to do that and then pay your parent back what they lost. (That's what I did when I started school)

Offline @Yehuda

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Oct 2013
  • Posts: 9852
  • Total likes: 172
  • DansDeals.com Hat Tips 5
  • Gender: Male
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #83 on: March 10, 2014, 02:38:25 PM »
Your parents pay US taxes? But you aren't a citizen?
Was that to me? I never said I'm not a citizen...

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #84 on: March 10, 2014, 02:43:57 PM »
Was that to me? I never said I'm not a citizen...

lol, seems I've been responding to 2 people thinking it was the same one.

Offline @Yehuda

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Oct 2013
  • Posts: 9852
  • Total likes: 172
  • DansDeals.com Hat Tips 5
  • Gender: Male
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #85 on: March 10, 2014, 03:43:51 PM »
lol, seems I've been responding to 2 people thinking it was the same one.
Lol

Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7273
  • Total likes: 289
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #86 on: March 11, 2014, 07:34:02 PM »
Need to bump this cuz I didnt get a clear answer: Turbo tax is not giving an EIC because passive losses from partnership activities are reducing w2 income to zero.

I know that generally passive losses are not netted against regular income. Can someone at least explain this paragraph from the Regs to me:
Quote
(2) Earned income.  Earned income is reduced by any net loss in earnings from self-employment.
Are passive partnership losses called "net loss from self employment"?

Also, here is worksheet 1 from pub 596 Can someone please confirm that passive losses reduce the EIC?!
Quote
Investment Income If You Are Filing Form
1040 Keep for Your Records
Use this worksheet to figure investment income for the earned income credit when you file Form 1040.
Interest and Dividends
1. Enter any amount from Form 1040, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b . . . . . . . . . . . . . . . . 2.
3. Enter any amount from Form 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report
your child's interest and dividend income on your return. (If your child received an Alaska Permanent
Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line.) . . . . . . . . . . . 4.
Capital Gain Net Income
5. Enter the amount from Form 1040, line 13. If the amount on that line is a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter any gain from Form 4797, Sales of Business Property, line 7. If the
amount on that line is a loss, enter -0-. (But, if you completed lines 8 and 9 of
Form 4797, enter the amount from line 9 instead.) . . . . . . . . . . . . . . . . . . . . 6.
7. Substract line 6 of this worksheet from line 5 of this worksheet. (If the result is less than zero,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Royalties and Rental Income From Personal Property
8. Enter any royalty income from Schedule E, line 23b, plus any income from the
rental of personal property shown on Form 1040, line 21 . . . . . . . . . . . . . . . 8.
9. Enter any expenses from Schedule E, line 20, related to royalty income, plus
any expenses from the rental of personal property deducted on Form 1040,
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Subtract the amount on line 9 of this worksheet from the amount on line 8. (If the result is less than
zero, enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Passive Activities
11. Enter the total of any net income from passive activities (such as income
included on Schedule E, line 26, 29a (col. (g)), 34a (col. (d)), or 40). (See
instructions below for lines 11 and 12.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total of any losses from passive activities (such as losses included
on Schedule E, line 26, 29b (col. (f)), 34b (col. (c)), or 40). (See instructions
below for lines 11 and 12.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Combine the amounts on lines 11 and 12 of this worksheet. (If the result is less than zero,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 13.
14. Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Enter the total. This is your
investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Is the amount on line 14 more than $3,300?
Yes. You cannot take the credit.
No. Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the
credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule
7, next).
Instructions for lines 11 and 12. In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss)
included on line 26 of Schedule E or any amount included in your earned income. To find out if the income on line 26 or line 40 of
Schedule E is from a passive activity, see the Schedule E instructions. If any of the rental real estate income (or loss) included on
Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26.
Worksheet
[/glow]

Thank you!

Offline Bostener

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2012
  • Posts: 1501
  • Total likes: 2
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NYC
Re: any accountants out there that i can ask a question?
« Reply #87 on: March 11, 2014, 11:32:57 PM »
I don't want to sound self serving but it's time to go to a paid preparer.
Airlines sending me "We're in this together" emails.

Bruh, where were you when my suitcase weighed it 51.50 pounds?

Offline avrumy

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Sep 2011
  • Posts: 799
  • Total likes: 5
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: NJ
Re: any accountants out there that i can ask a question?
« Reply #88 on: March 12, 2014, 12:12:49 AM »
Need to bump this cuz I didnt get a clear answer: Turbo tax is not giving an EIC because passive losses from partnership activities are reducing w2 income to zero.

I know that generally passive losses are not netted against regular income. Can someone at least explain this paragraph from the Regs to me:  Are passive partnership losses called "net loss from self employment"?

Also, here is worksheet 1 from pub 596 Can someone please confirm that passive losses reduce the EIC?! [/glow]

Thank you!
isn't google copyright?  Anyways u must of selected something u should not have or visa versa as that shou ld not have a effect on ur eic.
The answer to ur other question, u can have a negative number on self employment if ur expenses exceeded ur income.

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #89 on: March 12, 2014, 12:15:12 AM »
I don't want to sound self serving but it's time to go to a paid preparer.


Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7273
  • Total likes: 289
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #90 on: March 12, 2014, 12:31:42 AM »
I don't want to sound self serving but it's time to go to a paid preparer.
the "paid prepare" doesn't know... The client is stuck with this prepare for various reasons and asked my advice. Besides, what's the advantage of a paid preparer?



How about answering yes or no?:)

Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7273
  • Total likes: 289
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #91 on: March 12, 2014, 12:34:35 AM »
isn't google copyright?  Anyways u must of selected something u should not have or visa versa as that shou ld not have a effect on ur eic.
The answer to ur other question, u can have a negative number on self employment if ur expenses exceeded ur income.
the EIC worksheet (from IRS.GOV)  has a section where you input passive losses. This would imply that passive losses do affect the EIC credit.

Offline yitzf

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Mar 2011
  • Posts: 2657
  • Total likes: 51
  • DansDeals.com Hat Tips 4
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #92 on: March 12, 2014, 01:14:48 AM »
If you wan't to roll the dice, you can have the IRS figure out the EIC amount for you.

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #93 on: March 12, 2014, 09:28:54 AM »
the "paid prepare" doesn't know... The client is stuck with this prepare for various reasons and asked my advice. Besides, what's the advantage of a paid preparer?



How about answering yes or no?:)

Well, if you hire a guy to prepare your return, he ought to be able to figure this out. I don't imagine it's a very hard question, and is probably easily answered by tracking through the definitions in the statute and regs.


Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7273
  • Total likes: 289
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #94 on: March 12, 2014, 09:38:29 AM »
I don't imagine it's a very hard question, and is probably easily answered by tracking through the definitions in the statute and regs.
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....


Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #95 on: March 12, 2014, 09:40:19 AM »
Turns out its not so simple...The many paid preparer's on DDF dont have enough incentive to spend the time tracking through it....

Alternatively.

Offline MarkS

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Dec 2009
  • Posts: 3747
  • Total likes: 34
  • DansDeals.com Hat Tips 5
  • Gender: Male
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #96 on: March 12, 2014, 09:40:49 AM »
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....
want to spend time researching the answer since they aren't being paid

FTFY :)

Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7273
  • Total likes: 289
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #97 on: March 12, 2014, 09:41:51 AM »
Alternatively.
Right, since its not such a unique situation, I expected that this would have came up in someones past experience. I guess not.  :-\

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3904
  • Total likes: 435
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #98 on: March 12, 2014, 10:04:20 AM »
Right, since its not such a unique situation, I expected that this would have came up in someones past experience. I guess not.  :-\

Well it is not theoretically unique, but practically, how many people have passive losses and are eligible for EITC?

Offline Bostener

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2012
  • Posts: 1501
  • Total likes: 2
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NYC
Re: any accountants out there that i can ask a question?
« Reply #99 on: March 12, 2014, 05:22:09 PM »
Well it is not theoretically unique, but practically, how many people have passive losses and are eligible for EITC?

A lot.
Airlines sending me "We're in this together" emails.

Bruh, where were you when my suitcase weighed it 51.50 pounds?