8863 Education Credit

[Black Bart]

I have a client coming in tomorrow who's getting a $1,046 credit (Lifetime), but when I printed out the return it says "Not Approved for Paper Filing" across the front of the form. From this I am assuming that electronic filing of the form would be okay. Is that right?

I just now loaded the latest (ATX) update, but it still says that. Does your software print that same message on the 8863?

Seems like there was some mention of this education credit connected to the AMT delay and I wonder if that's going to delay those returns until February as IRS first said it would. But if that's the case, why would EF be okay, but not paper?

[Jesse]

Bart,
It is delayed by the AMT legislation late passage. I think February 11th is the first day for efiles, but I did have a client come in today and HRB told them February 14th.

[Bonnie]

It is delayed by the AMT legislation late passage. I think February 11th is the first day for efiles, but I did have a client come in today and HRB told them February 14th

My information says it can't be filed until Feb 11th. It will not go electronically nor will they accept it if it is mailed in before the 11th. With Tax Slayer it is impossible to E-file those forms not accepted before the 11th. The program won't let you. You have the option of going back and deleting the forms if you choose to go that route. I had a pick up today of a return with the Ed Credit. She wanted to pick up the paperwork but I won't file the return until the 11th. The 8863 printed out with big black words across it DO NOT MAIL. I explained to her what that meant and she was OK with it.

Bonnie

[taxxcpa]

Feb 11

My software provider tells us they will update the program as soon as the Education credits can be taken.
Some people e-file without the credit and file an amended return later.

I inadvertantly did that, having omitted both an education credit and a retirement income credit. I have the 1040X ready to submit as soon as filing the education credit is available.

[oceanlovin'ea]

Bonnie

I have TaxslayerPro too. I had a return today with an education credit. I explained to client that it could not be transmitted until Feb 11th and told him when his refund would be deposited in his bank account.

BUT the program won't even let you print a receipt to go with the payment or to give to the client. I sent an email to support and talked to someone who said she would pass on my complaint. But she said that is the way they chose to handle the situation.

Personally I prefer to have the option to print my receipt. I know at times I am forgetful but with the big red diagnostic on the screen, I don't think we would try to efile those returns. They would just get bounced back if we did.

Linda F

[Gene V]

Looks like February 11 should be good for E-filing

ATTN: Software Developers, Return Transmitters State Taxing Authorities, and
Authorized IRS e-file Providers/EROs

PATS Testing of AMT Forms

The following forms that were temporarily disabled as a result of the AMT
legislation will be enabled for PATS testing on February 6, 2008 beginning
with the 11:00 AM PATS drain.

Form 5695, Residential Energy Credits
Form 8396, Mortgage Interest Credit
Form 8859, District of Columbia First-Time Homebuyer Credit
Form 8863, Education Credits (Hope and Lifetime Learning Credits)
Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers

You may transmit test scenarios using these forms prior to transmitting live
returns on February 11, 2008. This will ensure that the changes to your
software meet the required IRS individual e-file specifications.


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This has been an IRS e-file QuickAlert

[Black Bart]

I'm glad to hear that

they're on schedule for Feb. 11th. I didn't see much of a problem with this originally, but now it seems like about every fifth client that walks in the door has an education credit (they're a lot smarter now or we were a lot dumber then).

Anybody noticed how much teachers make nowadays? I'm flabbergasted. Had one come in Friday with a $40K W-2. That's probably not much to you Yanks on the board (what do y'all pay 'em "up North"?), but around here it puts you in tall cotton (average pay's about $25K for anything). She's off in the summer, so 39 weeks into $40K is...umm...what (I wasn't a math major)...$1,000? Lordy, Lordy; a thousand bucks a week. And I felt like I was gettin' the short end of the stick payin' her minimum wage.

Funny thing -- I guess all you need to get by in any profession now is the credentials. This particular teacher (who regularly said "ain't") used to work part-time for me. She's a nice girl, but she gets in out of the rain and that's about it.

Oh well; Granny wanted me to be a doctor (granddad was), but I was too smart to pay any attention to that kind of talk. Guess I'll shut up and go back to scribblin' on this short form for a few kopeks. Maybe Bees Knees and the Californian poster-folks here are right about jackin' up our fees...

[DTS]

Teachers

Anybody noticed how much teachers make nowadays? I'm flabbergasted. Had one come in Friday with a $40K W-2. That's probably not much to you Yanks on the board (what do y'all pay 'em "up North"?)....Maybe Bees Knees and the Californian poster-folks here are right about jackin' up our fees...

Good morning, Bart!

Why not try $65,000-85,000. This does vary, can go lower, but I've never seen one higher.

Dennis

[Bonnie]

BUT the program won't even let you print a receipt to go with the payment or to give to the client. I sent an email to support and talked to someone who said she would pass on my complaint.

Well, I did print a receipt for my client. Not sure why you weren't able or how I was, but I do know I did give her a receipt.

Bonnie

[veritas]

Bart

What's that old saying?

Those who can do,

Those who can't teach

[JoshinNC]

In my humble opinion (ok, I'm not humble)

they're on schedule for Feb. 11th. I didn't see much of a problem with this originally, but now it seems like about every fifth client that walks in the door has an education credit (they're a lot smarter now or we were a lot dumber then).

Anybody noticed how much teachers make nowadays? I'm flabbergasted. Had one come in Friday with a $40K W-2. That's probably not much to you Yanks on the board (what do y'all pay 'em "up North"?), but around here it puts you in tall cotton (average pay's about $25K for anything). She's off in the summer, so 39 weeks into $40K is...umm...what (I wasn't a math major)...$1,000? Lordy, Lordy; a thousand bucks a week. And I felt like I was gettin' the short end of the stick payin' her minimum wage.

Funny thing -- I guess all you need to get by in any profession now is the credentials. This particular teacher (who regularly said "ain't") used to work part-time for me. She's a nice girl, but she gets in out of the rain and that's about it.

Oh well; Granny wanted me to be a doctor (granddad was), but I was too smart to pay any attention to that kind of talk. Guess I'll shut up and go back to scribblin' on this short form for a few kopeks. Maybe Bees Knees and the Californian poster-folks here are right about jackin' up our fees...

Some teachers should make more than 40k, some less (like 0). Pay should be tied to student performance (test scores, graduation rates, etc.) with the highest performers getting higher pay and the lower performers flippin' burgers. In my area experienced (more than 3 years) make roughly 40k. Never seen one higher than 55k, and that was after nearly 30 years of service.

[Jesse]

Some teachers should make more than 40k, some less (like 0). Pay should be tied to student performance (test scores, graduation rates, etc.) with the highest performers getting higher pay and the lower performers flippin' burgers. In my area experienced (more than 3 years) make roughly 40k. Never seen one higher than 55k, and that was after nearly 30 years of service.

Location should determine wage as well. No way would I want to be in some of the bigger cities where the gangs roam - I've heard some scary stories.

In our rural communities our teachers are spoiled yet many whine they don't get enough. They start out in low 40K and many that have been there a few years are 53K and up. This is fantastic pay that some Mom/Dad in our area combined barely make.

I think it was Mitt just complaining about how the poor teachers in America don't make enough and they have to take a second job flippen burgers just to make ends meet - in my opinion that's just not true.

[DTS]

Jesse

Many teachers take on second job in the off-season. In addition, they all tutor, as much as possible. They can make very good money that will support a comfortable lifestyle. All the teachers I know do not have to take on second jobs "to make ends meet".

Dennis

[S T]

Calif Teachers

Don't know if it is still true, but years ago, Calif Teachers use to take part time jobs at Disneyland, particularly over the summer vacation.

Let us not forget, that in California a teacher making 40K-60K earns a very healthy retirement, and in the past has lifetime medical. They actually only work approx 180 -220 days per year, considering all the in service breaks, school holidays, and summer vacation if they are not on full track teaching.

Sandy

[Black Bart]

For the defense.

I want to put in a plug for the educators to avoid charges of teacher-bashing and because it's almost never accurate to judge by group -- we've got lousy tax preparers too (just no union).

Years ago teachers' pay was crumby (less than $10K here), then it caught up, and now it's far above average. What gets everybody's dander up is that it exceeds the community norm due to a strong union which rewards slackers right along with outperformers, while others compete on merit (or a brother-in-law's influence).

People here don't like teachers making more money than others for what they basically regard as a clerical job (which may be why our state's in the cellar in this regard). But I know an outstanding teacher who regards her profession as a noble calling. She eloquently/earthily argues (and who can stand against it?) that the formation of young minds is at least as important to the republic as the proper installation of a commode. Summing up the pay scale, she remarked "All I know is that plumbers are worth more than teachers and police officers."

The merit-based pay mentioned earlier seems to be a better idea than the rising tide union lifting all boats and stirring up public resentment. But in any case, judging from kids' usual behavior in my office, I can't think of any (reasonable) amount of money that would make me endure it day in and day out for nine months.