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For all my friends in the NE

I stand corrected: According to page 3-18 of The Tax Book: Repayments over $ 3,000: 1. Claim as a miscellaneous itemized deduction subject to 2 % ( not a good result ) 2. Claim a credit for the the repaid amount on line 73 Form 1040, calculated as follows: Refigure tax from the earlier year without the income that was later repaid. Subtract the refigured tax from the tax shown on the original return. Enter the result on line 73 Form 1040 Enter "IRC 1341 next to line 73. I had no idea this procedure existed until I looked this up !

According to the Fifth Third Bank website www.53.com they have (as I suspected) various routing numbers based on region. This is why I tell my staff - no deposit tickets; get a copy of the check. I think you need to contact your client.

Should I buy heavier paper stock and charge by the pound?

I disagree --- according to Pub 17 page 20 he IS married as there are no exceptions other than stated, except possibly for HOH as stated and he (if I understood) does not meet HOH for himself. Unmarried persons. You are considered un-married for the whole year if, on the last day of your tax year, you are unmarried or legally sep-arated from your spouse under a divorce or separate maintenance decree. State law gov-erns whether you are married or legally separa-ted under a divorce or separate maintenance decree.

January 27, 2015 By Mary Ellen Biery A common mistake among retailers is selling based on price rather than on value, a retail industry consultant wrote recently. When retailers focus on price, it results in customers “cherry-picking the best item while avoiding the profit-filled add-ons,” said The Retail Doctor founder Bob Phibbs. “It’s like they go to the bargain matinee but never visit the concession stand.” Accountants who yield to real or perceived pricing pressure would do well to remember his comparison during meetings in the coming months with their tax or audit clients. Granted, your accounting and consulting services probably aren’t overpriced the way movie popcorn is. Nevertheless, just like retailers, many accountants are frustrated by pricing pressure on compliance-driven services and the resulting hit to the bottom line. Indeed, a poll by Sageworks during a recent webinar found that many accountants don’t set fees at levels they want, primarily because they believe clients won’t pay up, or they worry that others will charge less and take the client. Like retailers, however, accounting firms have important control over whether clients select only compliance-driven services, which are typically lower margin. And they can take steps to prevent prices for those services and others from being pressured even lower. Resist Discounts Phibbs advises retailers to resist using discounts as a first resort. Discounting attracts “dirt-scratchers who will only show up for the discount,” he says. Similarly, accountants may be tempted to jump into a price-cutting discussion when clients or prospects express concern about the cost of tax or audit services. Focusing on price devalues your services and sets you up for a race to the bottom. Gaining or retaining a customer only because your price was cheaper can set the tone for future upselling efforts, and falling prices generally create the need for more volume in order to cover expenses. With less time per client to provide quality services, your business with existing clients may suffer—or at least fail to flourish. And you’ll probably have less time to go after clients who need the services your firm would like to grow, such as business valuations, industry-specific strategic planning or litigation support. Rely on Value Selling When retailers sell the value of the product rather than the price, they shift buyer fixation away from the money coming out of their wallet, Phibbs notes. In order to sell the value, sales staff need skills and knowledge—not just an intimate knowledge of individual products, but also the ability to understand and listen for buyer motivations. In the same way, accountants who embrace value selling can help clients clearly see how the services meet their unique needs and how the accountant is expertly positioned to assist them. Accountants who understand what their clients need even before the clients do and who listen for clues that clients may be ready to address the need can more easily illustrate how the firm’s services can help. If your firm is providing only compliance-driven services, consider adding a few advisory services that will meet the growing needs of your clients. Value selling, by the way, is different from value pricing, though they’re both based on the idea that the value provided to the customer is what matters most. Value pricing is an increasingly popular strategy of setting prices based on the overall perceived value to the customer instead of billing at the end of the engagement by tallying up the hours worked by partners, junior associates and administrative assistants. Value selling is a strategy for having a solid understanding of the firm’s menu of services and keeping client discussions focused on the long-term benefits of these services, as opposed to the cost of them. Make Valued Services the Star of the Show Another point to consider is whether your accounting firm’s emphasis on compliance-related services is preventing clients from recognizing and seeking the advisory services you might be trying to grow. Services such as financial planning and business valuations can deepen relationships with existing clients, provide opportunities to provide new services to them, and attract more of the clients most coveted: those who pay on time and can afford to pay more for valued services. But if all your clients and prospects hear about are your basic accounting services, those may be all they seek from you. Accountants can cross-sell more services this year by differentiating their services (such as through industry niches) and by pointedly educating tax and audit clients about additional, value-added assistance and how it meets their needs. To use Phibbs’ analogy, you can’t expect a moviegoer to visit the concession stand if they can’t smell the popcorn or see people lining up for candy and drinks. To learn more about how accountants can resist a focus on pricing, download a worksheet with tips on making the most of your year-end engagements with clients, “Tax season prep: A worksheet for client meetings.” Or listen to a webinar recording, “Upgrade Your Practice: Top ways to attract and retain higher paying clients in 2015.” Mary Ellen Biery is a research specialist for Sageworks, a financial information company that provides financial analysis and industry benchmarking solutions to accounting firms.

Client now confided in me that the spouse did stay with her 11/22-12/06 while on leave.

Never use deposit tickets for RTN and ACCT# ALWAYS use a voided check. Deposit tickets RTN may not be the same.

When their eyes get big looking at my bill, I heft their thick folder and say, "You're lucky I don't charge by the pound!" Usually gets a smile as they reach for their wallet.

Thanks KC! We closed our office today after a special weather statement from the National Weather Service that said something like: "due to all the snow that has fallen and the plummeting temperatures (dropping from 30 to -1) it could get slippery". So I will telecommute today and see what tomorrow brings. I love it Elrod!

You absolutely should not base your life decisions on the result of your income tax return. IMO

I want a fat client copy so I can charge a fat fee!

Because of the fact that they got married in November, I wouldn't file as HOH but that's me. I guess I will take it back. Let's say that they met in Las Vegas, at 3 PM and they started playing and drinking.... then they went out to drink more and then they got married around 11PM and then they went to bed and they were so drunk that they didn't consummate the marriage... the next day each one woke up and found out that they made a mistake... I would file her as HOH. If on the other hand, their family knew they were going to get married and they posed as married to each other among their friends, and they have consummated their marriage, I would file as MFJ or MFS. I wonder if she ever calls his base and when they ask her "who are you?" I wonder if she says "I am his wife". I also wonder if tomorrow this guy gets killed if she is going to go after some type of money.

If he's gone the second half of the year, never to return, HOH is easy to defend for the spouse. But they got married in November! I'd suspect they spent at least a few hours under the same roof. And, he's in the military! That just screams temporary. (Either he's getting out someday or she's going to join him some day or just spend R&Rs together.) Both those choices really imply that they will eventually spend time under the same roof (and probably already have). I think it would be hard to defend that this is a permanent separation when they just got married in November. Doesn't marriage imply you intend to spend some time together? Really tough sell to an auditor. Now, if they'd been married with him in the military and her filing for divorce in November, maybe you could make a case.

Is there a big game today? What Sport? Wait...what day is this? Is there anything in life right now besides taxes?

It's lots of fun. But you also need to have a ready answer for that rare client who will ask what happpens if you accidentally shred somehting important. The answer is: "We can always get a duplicate. Most of the time it only takes 5-6 weeks." Be sure that you're shredding something while you say this. It's even more effective if the shredder is so noisy you have to raise your voice to be heard over the whining and grinding sounds.

1. The taxpayer must be unmarried or considered unmarried on the last day of the tax year. A taxpayer is considered unmarried under IRC § 7703 if on the last day of the year if they are legally separated from their spouse, according to the law if the state taxpayer resides in, under a divorce or separate maintenance decree, or the taxpayer meets all of the following tests: (a) Taxpayer filed a separate return. (b ) Taxpayer paid more than half the cost of keeping up taxpayer’s home for the tax year. (c ) Taxpayer’s spouse did not live in taxpayer’s home during the last 6 months of the tax year. Spouse is considered to live with taxpayer even if they are temporarily absent due special circumstances. For this, please remember that other rules state that a member of the military who is deployed on active duty is considered to be a temporary absence no matter how long the time involved. (d) Taxpayer’s home was the main home of the child, stepchild, or eligible foster child for more than half the year. (e) Taxpayer must be able to claim an exemption for the child. Taxpayer may still meet this test if they cannot claim the exemption because the noncustodial parent is allowed to claim the exemption for the child.

Christian, you should leave line 61 blank because not all members of the household had coverage. On form 8965, show only those that had an exemption. You do not need to show the one child that had CHIP coverage. From the instructions for 8965, it says - If you are unable to check the box on your Form 1040 series return indicating that every member of your tax household had minimum essential coverage in every month of 2014 (and therefore you are filing Form 8965 to report or claim a coverage exemption or are making a shared responsibility payment), you do not need to take any action to indicate that some members of your tax household had minimum essential coverage for some or all months in 2014.

Virginia will be the easiest PY return you have prepared. It is piece of cake. If in doubt, post the figures and we will help you.

Not buying it, and no auditor I ever met would buy it either. Unless they got married on Skype, AND CAN PROVE IT. That exception is called the "Abandoned Spouse" rule for a reason. Odds are you'll get away with it, JB, and I hope you do, but it's just not believable.

You might want to read this: http://www.irs.gov/publications/p17/ch12.html#en_US_2014_publink1000172015 >If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). >Repayment over $3,000. If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. This means that at the time you included the income, it appeared that you had an unrestricted right to it. If you qualify for this choice, figure your tax under both methods and compare the results. Use the method (deduction or credit) that results in less tax.

Ha! My wife and I were out this morning trying to dig out our plow truck that got stuck. I looked over at her and asked if she thought we had got the 10 inches of snow that was predicted. She was standing in snow that was nearly waste deep. (She is 5'4") I think we got a surplus. Digging to no avail, after two hours we decided to call a bigger plow and a tow truck. All is good now. I am a little poorer, but at least I can traverse our 2,000 foot driveway. A friend is coming over tonight to help me put the snow blower on my 2720 John Deere. We are rapidly running out of space for the plow to put the snow.

042202196 is the routing for my Fifth Third Account...but a larger bank like 5/3 may have multiple routing numbers...I agree with above...look at a check....you don't want that to be the reason for a delayed refund.

i had not run into this before in our little small town. thank you!!! voided checks only.

Interesting, isn't it, that a monument "to the forefathers" features a women in the central position? Smart men, back in those days.

It has been fun seeing physicists and other scientists getting some press recently!

Did you know the Statue of Liberty's design was based on the central figure of the Monument to the Forefathers in Plymouth MA? http://en.wikipedia.org/wiki/National_Monument_to_the_Forefathers

Good game so far, but that halftime show was a snoozer. Guess I'm just not young enough to get it.

Correct, easytax....He must file MFS.

Yardley, Yes MFS would be his only option since she is not filing with him. Janitor, under the STRICK rule as Yardley stated above, she may be HOH --- my question is (and this is the only non-HOH point I can "guess at") - reside and/or lived in separate residence --- and there is no way I can put this delicately ------ WHERE were the nuptials???, how long did they spend together, etc., etc. and would/could the IRS deem that time, etc. as residing or "living" together? Inquiring minds and so on --- Please share the end result.

You BOTH have it RIGHT or at least half/right in one case. Just shows that a person can be so good and right AND still be wrong -- sometime Green Bay first // Steelers next and Cow---something -- NEVER. I am far from the "perfect" fan but never understood those Dallas folks (and some grandkids are ones too). But then, only one perfect "fan" exists and he has not come back (yet) -- still here helping all (when they ask) but not "officially back" till it is time.

LION, THAT IS ALSO A VALID REASON, GIVEN THAT SO MANY CLIENTS ARE TOTALLY TAX-IGNORANT, AND ACTUALLY DO VALUE THEIR RETURN ON IT'S SIZE.

I have a couple like that too. One in particular did over a million dollars in business in 2014 almost by accident. But he cannot pay his four figure sales tax on time every month - matter of fact, hasn't for a couple of years. This guy is just managing the business (as opposed to owning it (mommy and step daddy own the business but are simply investors). I had a meeting with the three of them mid-fall and told the manager that his margins are entirely too tight if he cannot pay the bills with that kind of revenue. He gave me every excuse in the book why he couldn't broaden the margin. He headed me off at every suggestion. At the end of the meeting he said he needed to borrow some more money to pay the bills. I looked at the owners and simply asked - are you willing to put more at risk based upon what you have just heard? They looked at the manager and one of them said something like - make it work, we are not investing or borrowing anymore money. So far, it has been the same old, same old. Time will tell who cracks first.

They HAVE hired me to do it. And they give me the information late. Every. Single. Time. They don't think my fees are bad. But the problem is they don't even care about the penalties. People like this can never run a business. So much better off working for someone else who has some self-discipline.

It's sad that she lost some credits, but you should look at the total picture, she also gained other benefits, as his wife.

Watch what a couple of farmers can do with a drone, some cameras and a herd of cattle. Check out their amazing cow art!

Thanks for all of the great ideas for my hands. I've been using Working Hands, but it doesn't help my cuticles. I already use stress relief lotion and wall flowers. I'll try anything that might help my mood and I love the smell. You guys are the best!

Additionally --- if the IRS was allowed to do things in a sensible way --- receive data from employers, etc. up to end of January or February --- with the employees receiving there data by say mid-March or April with tax filings from "we the people" April/May through June or July so everything could be matched --- there would be a LOT LESS SCAMING from all and thusly, less money lost. Of course also have Congress mandated to have all changes for tax issues done and TOTALLY decided by the previous June --OR nothing takes effect until the following June (which means the following tax year too). Of course, common sense as mentioned by you with the PTIN system and the above seems to be NOT AVAILABLE to our elected leaders (NOT Political, as both parties seem to be at fault). By the way --- from my law enforcement days (applies to POLITICIANS too) -- there is profit in confusion!

I tell client that either organize or pay me $75 an hour to do your job. Most of them do it and once in a while I make extra money. Pay my son to organize and pay him half. Works best for me.

Two clients at home today. My total fee for opening envelopes and removing staples, would have added $35 today.

Even worse are all the staples I have to remove. Especially love when someone takes a form out of the envelope and then staples the form to the envelope.

That is the difference between export/import and restore. Restoring from a backup file will eliminate that problem.

You have two choices: 1. Use the import/export function to move the client files from the old computer to the new computer. This is what I have always used and it works pretty smoothly, never had any issues, but it does not transfer each clients efile info. 2. Use the backup/restore function to move the client files from the old computer to the new computer. Have never done it this way other users say it works fine and it brings over more client info. Either way, it doesn't bring over everything ie payer files, several days ago, ATX helped a user bring over all of the other misc files per a post on the ATX Board

Medicare definitely counts as qualified coverage. Large-company provided insurance should too. With smaller companies, who knows? My hunch is their insurance providers wrote them new plans if the old ones weren't qualified. It won't matter for filing season 2015 (tax year 2014) because the employers and insurance companies were given an extension to report these things until 2015, and the IRS has no way of checking (their admission) if 2014 plans were qualified. People who got insurance through the exchanges or don't have insurance will be the complex ones. The exchanges will provide a form showing how much advance premium credit they got, it any. I went to a seminar this week and everyone breathed a collective sigh of relief when the speaker said all you need to know is household size, household income, and the numbers on the exchange form. The software does it all! (He uses Ultratax, not sure about ATX.) Household income can be tricky though. For example, nontaxable Social Security income counts for all household members, including kids who might be getting SS from a deceased parent's account. Hopefully this was all included in the exchange enrollment questions, so there should be no surprises. For those with no insurance, the software will do it all. Unless of course the taxpayer qualified for an exception. Best to read up on those. That said, we still have to be able to explain it to the client, and that will take education. (Kind of like explaining why part of a client's SS is taxed--you can't unless you understand the math.) And there will be kinks galore. I just researched what happens if someone who gets an advance credit gets married. One would think income for the unmarried months would be used to calculate the credit. Nope. Total household income on the joint return is divided in half, as if each spouse earned half the income during the year. The credit is calculated on that amount. So if a guy who earned $25k and got a premium credit marries in December to someone who earned $75k, he would be treated as if he had earned $50k and have to pay the whole advance back. These unusual situations should be rare, but if we typically help our clients with tax planning we really need to get educated.

Nightmare tax season coming up. Tax extenders status, unknown. Filing season start, unknown. Repair reg, f3115 confusion. ACA debacle. My right hand executive administrative assistant has brain cancer and I will really miss her. She made the office operate smoothly and helped me keep my sanity. Price increases are necessary to compensate for this ACA mess, but they will not be popular, and I will be the bad guy.

I use a base price plus. My base will increase $25 if it is only the one question with a yes answer. If it is more than the one question, it will be a minimum of $75 or more, depending upon how much time it takes me to get the information from the client. I will bill this additional as ACA additional costs. I want every taxpayer to know the source of this extra "tax" they are paying.