About JohnH2

JohnH2 · ‎June 5, 2019

With a significant foreign earned income exclusion, you may see no change in your taxes if all the taxes paid are being refunded. The best way to trouble shoot this condition in the on-line system is to use the “Preview My 1040” feature. You can check to see if Line 21, Form 1040 is showing a negative number with the explanation referring to Form 2555. Form 2555 supports the calculation of the exclusion. You can see your Form 1040 in process in the on-line system with the following menu path: My Account Tools View Tax Summary Preview My 1040 (Menu choice at top of screen)

JohnH2 · ‎June 5, 2019

Yes, you can. The annual cost of your tax software is a good deduction. If you are doing two returns, your 1040 and your Schedule C, you can split the cost evenly between Schedule A and Schedule C. For your Schedule A, the fees are input in the Federal Deductions and Credits section of the program under Other Deductions and Credits as Tax Preparation Fees. For your Schedule C, you could enter this as “Other Expenses.” In the Business Income and Expense section of Business.

JohnH2 · ‎June 5, 2019

If you claimed expenses for the business use of your home, TurboTax will prepare the Form 8829 and include it in your e-filed return. The carryovers to 2016 are listed on the bottom of this form. You can print your Form 8829 with your return. Worksheets are not filed with the return because they are not official forms. If you use TurboTax for 2016, your carryovers can be automatically transferred forward from 2015 from the data on Form 8829. If you did not use TurboTax for the prior year, your carryforwards can be input in the following year. The following TurboTax posting, in this forum, discusses the input of your carryforward: https://ttlc.intuit.com/replies/4692430

JohnH2 · ‎June 5, 2019

The menu path for this is: Federal Taxes>Wage & Income>I’ll choose what I work on>Interest and Dividends>Dividends on 1099-DIV>Start>Did you receive any dividend income? –“Yes”>Let Us Enter Your 1099-DIV>”Import from my bank or brokerage.” After you type in your broker’s name, the program will provide a drop-down box where you can select your broker’s name. For TD Ameritrade, you will need your account number and the document ID from the upper right corner of your 1099. You will need to view your 1099 before the import to determine this.

JohnH2 · ‎June 5, 2019

You may be able to obtain a college tax credit, depending on your filing status and your Adjusted Gross Income. If you are filing a Married Filing Joint return, the American Opportunity Credit (AOC) phases out at an Adjusted Gross Income of $180,000. The Lifetime Learning Credit (LLC), for the same filing status, phases out at $130,000 of Adjusted Gross Income. TurboTax will give you the best education tax benefit between the three available options: American Opportunity Credit; Lifetime Learning Credit or the Tuition and Fees deduction. The following TurboTax link provides additional details for the two Education Credits. The following TurboTax FAQ provides additional guidance on the Tuition and Fees Deduction: https://ttlc.intuit.com/replies/3302271

JohnH2 · ‎June 5, 2019

TurboTax no longer supports the e-filing of a state return by itself unless it meets one of the following conditions: A state return can be e-filed after a Federal return has been e-filed and accepted or, at the same time as e-filing a Federal return. You will not be able to e-file your state if your Federal return was or will be paper-filed. See the following TurboTax FAQ: https://ttlc.intuit.com/replies/3301358

JohnH2 · ‎June 5, 2019

Many states have residency rules that require more than 183 days in the state to be classified as a resident. Some states, such as California, say that if you are in the state for other than a temporary purpose, you are a resident. Some states define a resident as a person who has a domicile in the state. Changing your driver’s license would not have a major impact on your residency status.

JohnH2 · ‎June 5, 2019

View2 has a good point about this being in the context of a rental. For a rental it would be best to capitalize and depreciate.

JohnH2 · ‎June 5, 2019

This is the preamble to IRC Sec 195. The following Section, IRC Sec 195(b)(1) provides for "Allowance of Deduction." The key is the phrase "except as otherwise provided . . . "

JohnH2 · ‎June 5, 2019

Your rental start-up costs would be amortized on your Schedule E, not a Schedule C. Your start-up costs are accumulated until you become operational. Expenses such as pre-operational acquisition costs, investigation costs, proof-of-concept costs are included in start-up costs. In the year you become operational you can deduct $5,000 of start-up costs with the balance spread over 180 months beginning with the first month you are operational. You would list this expense in your return as “Start-Up Expense Amortization.” Improvements and betterments to your rental property, however, would be included in the depreciation base for this asset.

With a significant foreign earned income exclusion...

Yes, you can. The annual cost of your tax softwar...

If you claimed expenses for the business use of yo...

The menu path for this is: Federal Taxes>Wage & I...

You may be able to obtain a college tax credit, de...

TurboTax no longer supports the e-filing of a stat...

Many states have residency rules that require more...

View2 has a good point about this being in the con...

This is the preamble to IRC Sec 195. The followin...

Your rental start-up costs would be amortized on y...