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I just signed for the Marathon that takes places on April 15th every year.

Yup.....26.2 miles....Why? I don't really know...But The Columbus Marathon will be my next life challenge....assuming I get past this tax season!

I feel I have put up a valiant effort for my client...I always want to make them happy...but more importantly I want to prepare their taxes correctly. After reviewing all the publications and regulations in depth and getting opinions here and elsewhere, I am back to my original opinion...MFS with no EIC. I just don't think I will sleep well preparing a return that I do not believe would stand up to IRS audit/scrutiny....and the penalties for me and client are too great when it comes to EIC. I got the client to understand that the absence is due to military service and thus nullifies the exception....she just has a problem with the term "temporary"...because in her words "it's not temporary, its for almost 1-1/2 years because he will be stationed there until 10/15/16". But it is not forever...this temporary. Thanks again to all on here for helping me through this....Your combined wisdom and knowledge is both valuable and humbling.

If you prepare this return, prepare it correctly with the data you are given and have knowledge of, not however you can best finagle it to hide what really happened with his overstaying his visa. That is your job. You should also explain in writing that he caused this problem by overstaying, and also compute the potential tax impact of that inaction on his part so that you've made him aware and put the responsibility back on him. That gets you off the hook for any blame that he may try to place later and tries to hold you responsible for the interest and penalties that will be assessed. Once you show him the impact on those back taxes, suggest that he amend to get ahead of this, but the choice of amending or waiting to see if this is caught should be his. You can't force someone to amend a return.

I know you are struggling to come to a decision because of the "temporary absence" aspect included in the requirements to be considered "unmarried". In other pubs such as 504 for divorced or separated individuals, it also has a section for HOH and unmarried and temporary absences. For temporary absences it says this (bold is mine for emphasis): Temporary absences. You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. It must be reasonable to assume that the absent person will return to the home after the temporary absence. You must continue to keep up the home during the absence. With the above in mind, isn't it reasonable to assume that this couple will live together at the end of his duty? Maybe not, but you've already said that at the end of his duty in 2 years, this couple plans to live together. (your post #13 on page 1 of this topic). They are married at the end of the year, and I would file this return as either MFJ or MFS. I think HOH no longer applies, no matter how much you or the client wants it to. Just my 2 cents.

good for you bob!!!!!!! keep us posted! you can do it!!!!!!!!

Can not speak to the tax aspect but knowing a bit about you from your posts, says you will do what is legally and morally correct. The "feeling bad" on your part is unwarranted --- he knew the requirements about the two years and CHOSE to stay. If he has problems with that, that is not you --- that is was his choice and is between him and the country. Feel proud and well that you are giving him good council ---- regardless of his bad decisions.

JB, One night can mean everything --- if they had married (been pronounced) on December 31 at one minute before midnight, they would be considered 'married" for the entire year. I know this as a personal fact as I married two attorneys at 1 minute after midnight on technically January 1 (I specifically asked and they wanted to be the "first married couple" for that year, rather than the last couple for the previous year). NOTE: I made sure and had the attorney's also research --- as I do not like to do something an attorney can come back on --- say, if the date of marriage, etc. might eventually mean something. If the IRS considers the very last moment of the year as "marriage", would they not consider a few minutes, etc. as "living together" and scuttle your HOH? Therefore --- yes, just one night, moment, etc. can count. MFS or MFJ --- NOT HOH.

I stand corrected on my earlier post and I totally see where others are coming from. In Judy's and KC's answers the "temporary absence" is well defined and does include military service. So, I have retract my earlier statment and agree that the only choices here are MFS/MFJ. I would have to file it this way to be 100% comfortable with the return. I know this isn't what you want to hear JB, but whether he was ever in the home or not doesn't come into play. The fact remains they were married on the last day of the tax year by your original post.

I think you are being too literal. His absence is due to the military service, and if that wasn't the case, wouldn't he be living in the home with his wife now, so isn't the "absence" due to the military posting with the expectation that ultimately they will live together when his military duty ends? I just wouldn't be comfortable at all filing the wife's return as anything other than married.

Good thing they only ask about smoking. This stuff is going to drive me to drink like a fish since I am not allowed to smoke like a chimney. /s

Way to go, Bob! Columbus is a great course with great crowds. I ran as a coach a few years ago and might be there again this year. I will be running the Queen Bee Half the week before and the full Flying Pig next May. That would be my 8th and last (famous last words) full but hope to keep doing half courses. Are you training with a group or on your own? If on your own, do you have a schedule? Let me know if you would like one as I have several years from training groups. What is your goal? I have found that those runs during tax season are great stress relievers. As I work from home, I often would run during mid-day just to get out. Be careful on slippery routes. I fell 2 weeks ago on a 5 miler and ended up with a black eye from the black ice. Good luck even though luck has little to do with success. All the miles you put in will determine the outcome.

We will be rooting for you both!

In case anyone here downloaded the instructions like I did, the IRS made some revisions a little more than a week ago and posted this on the IRS website: Changes to Instructions for Form 8965 -- 23-Jan-2015 If you downloaded the Instructions for Form 8965 before January 22, 2015, please note the following. The Types of Coverage Exemptions chart on page 2 of the instructions has been revised. A checkbox has been added to the "Claimed on tax return" column on the line for the coverage exemption labeled "Income below the filing threshold." If you are not required to file a tax return, your tax household is exempt from the shared responsibility payment and you do not need to file a tax return to claim the coverage exemption. However, if you choose to file anyway, you can claim this coverage exemption on Part II of Form 8965. The Types of Coverage Exemptions chart on page 2 of the instructions has also been revised to remove the checkbox from the "Granted by Marketplace" column on the line for the coverage exemption labeled "Resident of a state that did not expand Medicaid." The coverage exemption described on this line can be claimed on your tax return. However, if you applied to the Marketplace for the similar coverage exemption for individuals who resided in a state that did not expand Medicaid, see the line on the Types of Coverage Exemptions chart for the coverage exemption labeled "Determined ineligible for Medicaid in a state that did not expand Medicaid coverage." Line 10 of the Marketplace Coverage Affordability Worksheet has been revised to read as follows: "Enter the monthly premium for the second lowest cost silver plan premium that covers everyone in your tax household for whom a personal exemption deduction is claimed, who is not eligible for minimum essential coverage (other than coverage in the individual market), and who does not qualify for another coverage exemption for the month. To find the second lowest cost silver plan go the Marketplace for your area." The revised version of the Instructions for Form 8965 is available for download. Page Last Reviewed or Updated: 23-Jan-2015

We tried that..............The ones in yellow hats are still in traction...

Whew. MFS or MFJ or find someone else to do your tax return.

Affordability worksheets for the 8965 were added to the ATX form yesterday about 1830 hrs.

Talk to her about MFJ. It might save them both some money.

Ms Tabby, I hear you loud and clear about not wanting to be any more involved or waste more time. If you do cut him loose, I would at a minimum write him a letter making him aware that because he overstayed, that taxes may be assessed on those prior years. If you don't want to run those calculations, at least make the situation known to him so to put that responsibility back to him, not on you for not making him aware.

Nope; he needs one of two things. 1. A serious come-to-Jesus talk from you about how HE overstayed, so now HE owes back taxes and that's the cost of over-staying, or 2. A referral to someone with MUCH MORE experience, who might know legal and ethical ways to deal with this.

Do you have an answer or just wondered if I knew to use gross income? Anyhow I'm hating having ACA questions over here all lonely and nobody looking and sniff, sniff.

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.

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

At least they knew to make accountants handle this instead of Philadelphia lawyers. /s

I have been saying here for years, forgo the fixed prices, bill by times and the cost per form. Charge what you think the return is worth, you knowledge utilization in the return etc. I once had a client that was heavily involved with an out of state project. He told me what their accounts said and simple said they are wrong and the should look at ****. 2 months later, turns out I was right, the bank mortgage was successfully crammed down and send an invoice for $10,000. It got paid because my saying "they are wrong" was worth it. [btw 2 partners in this project were also cpa's who were unaware of a specific rule that benefited them]. In the rare chance a client asks how I got to my bill, I simply say, that's what it is worth, as is your access to me when you ask me if you should buy or lease a car, refi etc. that's all part of my fee. Of course a straight w-2 is just that and for those I am probably cheaper than the big box operations.

Form 3115 as part of return with pdf attachments for any worksheets I create outside the return. Still have to mail a second one to Ogden or where ever. Only a very specific list of documents get mailed with 8453.

Great. I've always had to lay off during tax season. Never ran a full marathon, a few halves years ago. Now just the 10K on Thanksgiving Day in Cincinnati. Been fairly consistent for 38 years.

So many people are ditching the gym for running, unfortunately I can't do either.

I signed up for the Psych marathon on USA Network. May follow it up with concentrating on the back of my eyelids. Good for you, Bob. The janitor life agrees with you, apparently.

Have I told you I'm glad I haven't been studying this $%^& for eighteen months?

I just looked at the new worksheets on Form 8965. Follow the steps on the affordability worksheets and it will properly calculate if they are eligible for exemption or if they are subject to the "Shared Responsibility Payment" (hereafter referred to as penalty).

I tried to correct... I meant to say that because I prepared the return, I will signed it. BUT I wanted to over emphasized that I felt strong about the return I prepared.. but after I read it sound that there are returns I don't sign. The only return I don't sign in any shape or form is mine.

Now that we are on agreement, I would like to point two things. 1.- I like that example that you married someone at 11:59PM on December 2014. Unless you don't care people seeing you and are very quick, you will not consummate your marriage and you will NOT live in the same household at any point in 2014. BUT according to the law you will be married at end of 2014 and therefore you will have to file as MFJ and MFS. 2.- You tell this lady that she must file MFJ or MFS and show her the door. She comes to me and I asked her "Were you married at any point in 2014?", she says NO. Do you have any children living with you? yes. Do you support them? yes. Is the support more than 50%? yes.... blabla bla. At the end of my conversation and 300 worksheets, I say to her "You qualify for HOH". Let me prepare your return and I will put my signature on it because I feel very comfortable with the return I have prepared for you. End result, IRS gets ripped off, Janitor Bob looses a client, I gain a client and feel very strong about the return I prepared. What will happen? 1.- The return never gets audited. Client is happy with me and pissed at Janitor Bob. 2.- The return is audited. IRS finds out she is married and ask her to return the money and some interest. Is the punishment fair for that Tax Payer? Isn't it too little punishment?

KC - that West Virginian does not have snow. Send him a couple hundred miles north to my place (or over to Catherine place) (or up to Eric's place) and we will show him snow. I do not think his snow removal method will work in the 18 to 20 inches we got over the past 48 hours. Cool video though!

From the tax professional section of Virginia Department of Taxation, "Guide to Tax Form Changes:" Last 5 digits of VA Driver’s License Number - New field(s) added to the Forms 760 and 760PY (not Form 763). The Department requests this information from each taxpayer who has a Virginia Driver’s license. However, it is not required information. The agency is requesting this information to better serve taxpayers i.e., additional information to assist with identity fraud detection. I think it has to be optional; some people who are required to file may not have a driver's license.

T OK, I see it in the "tip" under the chart, p.6. Thank you, thank you, thank you.

Rita, if this is a single person with no one else whose MAGI is included in his household income and the $6000 is the only income on his return and then he has the 1/2 of the s.e. tax to factor in to arrive at MAGI, then this person does meet the exemption from the penalty for his MAGI being under the filing threshold. It's covered in the instructions for 8965, part 2, lines 7a & 7b.

Isn't that directly from Pub 17? I am surprised at all the answers to the contrary of what has been the rules for decades.

Yes, I'm pretty sure they were tired !

We are also running out of places to put the snow. The banks made by the snowblower are high enough that we can no longer blow over them for much of the driveway. Last time that happened, my husband went out with snowshoes to pack down the piles. Doesn't help that our driveway is bounded by stone walls, so we have to start off going above the level of the walls. It was bleepity bleep-bleep freaking fracking COLD out there with the wind blowing ice crystals back in my face!

From the information you have provided, they are married. MFJ or MFS are the only options. Yes, even one night negates the "abandoned spouse" intent of "considered single." Auditor would throw out the HOH.

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.

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 !

The central figure is "Faith" and she points to heaven. She is holding a well-read Bible. http://www.christianheritagemins.org/articles/Binder1.pdf and http://www.constitutiondecoded.com/forefathers-monument-tour-19oct2013.html

I would NOT file her HOH for the simple reason that they do NOT meet the rules for that special 'exception' which is designed for an abandoned spouse.

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

Deposit tickets may have a different number than the checks, even in the same checkbook. ALWAYS use checks.

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.

Disclaimer: I don't have any clients on Medicaid, but I think your client, the parents, might have a problem. Here are my thoughts on this. According to the instructions for form 8962, the person or couple taking the dependent exemption for someone in their "tax family" are the ones that must reconcile any amounts received as advanced premium tax credit, but because the daughter & granddaughter are not required to file a return, the daughter's and granddaughter's MAGI isn't included in the calcs for reconciling the APTC. Because your question is an interesting one, I did some poking around on the internet and found a site for WA state medicaid expansion. One of the points states that the new methodology for determining Medicaid eligibility is based on MAGI and also that household composition mirrors federal tax filing rules in most situations. This is the site that I was looking at; see item #3 on this page: http://www.hca.wa.gov/hcr/me/Pages/faq.aspx Please don't take this as any kind of final answer to rely on because I really don't know if this is correct, or if the site I was looking at is even the program in your state that the daughter and granddaughter supposedly qualified under, but reading some of that, I'm beginning to wonder if they truly were Medicaid eligible. I hope we have some others from WA that will weigh in, or that you'll post how you end up handling this because I'd like to hear what the final answer is.