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Final "Star" week 4/7 - 4/17/18


jklcpa

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Over the last few days as we come to the end of tax season, after the following instances happened over the last week, I have realized that sometimes we are unwittingly surrogate parents to some of our younger clients. 

I called one of my Ivy League graduates whose return I completed nearly 2 months ago asking if she forgot about me, she has a nice refund coming.  She said no, but has no checks to pay me and she's too cheap to get new ones and if I would take PayPal.  Sorry, no, why don't you use Bill Pay from your bank or brokerage account?  She never thought of that. 

The second happens to be her brother, another Ivy Leaguer going to law school on a scholarship.  He emailed to tell me he wasn't filing this year because he learned in law school that he didn't make enough to file.  I said good, how much did you make?  $8,000 for consulting work with at risk kids. Did you get a 1099Misc?   Oh yes, it says I was a non employee.  You know the rest of the story.

The 3rd one is an actuary, I admire her as it is a profession I once aspired to.  I mailed her return last week and a few days ago I get an email from her that she is sorry but forgot to tell me she moved.  I said I already mailed it and it would take a month for the PO to forward it.  She owes money to one of 4 states she worked in so I sent her an encrypted copy with instructions to beat the deadline, I wanted her to get it in because she is struggling and has a big federal refund.  I worry about her. 

I'm sure many of you have seen these things happen with your younger clients, they do know to call you during the year for guidance, because their real parents told them to when questions arise.  Something they can't do with the big box preparers.  My being independent lends to being receptive to them and because their parents are longtime clients.  They will keep me in business for the rest of my life if I decide to continue working.

Each one of these made me smile, I remember being young once, too bad I did my own taxes.   I could have used the help.

Take care of your kids.

 

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My most amazing client story is that of an almost 30 y/0 son of a deceased doctor. His dad had set up trust funds for the TP, overseen by the TP's uncle.  Trust terminated last year and TP now in charge of managing his $.  His tax docs , received last week, reflected IRA distiprivutioms, code 4, of about $200,000 and not one dime of withholding. I asked him what was he thinking tomwhich he replied he didn't consult with his mom because his uncle had already tried to talk him out of withdrawing the $. He never thought to call me beforehand. He now works as a police officer in a small podunk louisiana town. 

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These stories make me think their parents made things too easy for them growing up.  I remember asking my Dad to help me fill out my taxes when I was in college and he said sure, here's my copy of Pub 17, read what applies to you and you're good to go.  I liked reading it because there were nice stories of examples that I found interesting.  The rest is history.

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We had to prepare a short form in high school personal finance. I still remember so much from that class. My son did not have anything that taught him common sense in high school or college. He learned a lot, but I am still trying to teach him to shop sales, use coupons and have a budget. I have so many "kids" in their 30s that have their parents bring in their taxes to be prepared. 

 

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Young clients - married couple with young children - withholding was way too low because job income increased substantially.  Knocked out several credits (EIC, etc.), and no HI so penalties.  Tried to talk them through what was different and encourage immediate W4 changes.

Fast forward a few days:  They have decided they are not going to file.  They have been advised that they don't have to file every year, and that as long as they change their withholding this year, it will all even out, and they can continue to only file in some years.  They will pay me for the return. Kudos for that offer.

OH, AND he (the President) said it was okay.  He is trying to help the working class, and this is part of it.

I've had amazing conversations, but this was my first foray into the 'you don't have to file every year; only some years' thread of advice.

 

***Postlude*** - talked them down from the tree, and they are now making reasonable, rational decisions.  'They trust me'.

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This one hit yesterday evening.  Doctor; spouse is a doctor.  Spouse has a W-2 job but t/p is self-employed.  NEVER makes estimated payments and owes big time.  

We had his return finalized in a rush after getting the last tidbits from him because he was agitating for finishing.  He came and picked up, brought signatures back next morning and left.  We had not gotten around to e-filing him (phew) when we get an email saying "what was my SEP contribution?"  SEP contribution/ --What SEP contribution?!  First we had heard of it! 

Back-track dance commenced... and turned out to be a good thing.  'Cuz I did a stupid and entered the state 1099-MISC income a line too high, so it got double-counted, once on Sch C and once on Line 21 - and in the rush to finish for him, no one (meaning ME) caught it.  We need new signatures; he was actually happy because his federal tax went down, and I (re-)learned NOT to let clients pressure me into rushing!

I eventually found some time to wash the egg off my face.

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4 hours ago, FDNY said:

Thank you Judy, great job,  hope you do this again next year.  Well needed laughs and diversion.  You should get a star for being the earliest riser on here, I see why you get so much done.

 

Nope, I'm one of the night owls and awarded that star before retiring for the night.

 

We'll have to figure out something fun for next year. Should we leave this year's stars up indefinitely, start over next season, or something else?   

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3 hours ago, jklcpa said:

 

Nope, I'm one of the night owls and awarded that star before retiring for the night.

 

We'll have to figure out something fun for next year. Should we leave this year's stars up indefinitely, start over next season, or something else?   

My vote would be to have it continue where someone could wind up being two or three time annual star winner.   I could see it now, Abby and Rita in their office proudly wearing their awards, makes it easier to raise prices due to merit, in case client gives an argument.  :D

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