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If the daughter provided more than 50% of her own support, she cannot be claimed as a dependent by the mother.

The advice to "file early" to prevent an identity thief from filing for you has been given by many sources, particularly after the Anthem breach. The problem is that the professional tax prep system does not have the capacity to file everyone early. We can hardly handle the crunch of returns coming in right now (with loads more to come). What would we do if ALL our clients give us their data the first week of February? Unless we can extend the number of hours in a day and the number of days in the week, and override the human need for food and sleep, there is just no way everyone can file early.

Not the snow. Well that too. But I just took another head count. There are 112 returns setting here waiting to be done. And I have 35 compilations to year-end finalize to get ready for returns. So I guess that is 147 returns in house. At one point today I was receiving info via email, through my client portal, through the mail, at the front desk and via a phone call. The door this morning was like a revolving door. Anyway - no complaints Just an observation.

My undone piles...

It might depend on who the charity sells it to. There is a different handling if the charity sells it to a needy person at an amount greatly below its value. Here's the IRS pub specific to donors of vehicles that explains each of the limitation regarding donated vehicles: http://www.irs.gov/pub/irs-pdf/p4303.pdf

We don't charge extra since there's no significant extra work in filing late. Surely there's nothing extra in filing from Apr 15 to Oct 15, other than calling our extended clients to remind them to come in before the extension expires. We efile it like before. And after that, it becomes a "prior year" filing, which we always paper file. The paper filing takes a little more time, but it's folded into our base price anyway... we paper file for no extra charge, for example when your federal efile gets rejected and we have no other option to fix it. Our pricing structure has driven a few preparer employees a bit batty. Naturally these are the prima donna types, and largely they get ejected from our seats soon enough since they become unmanageable. But there's a strong association between the PDs and outrage that we're "leaving money on the table". I need to keep sifting through employees until we find a few stable ones that will obey our rules and not prey upon our clients. Our prices are designed to grab market share, not scrape the last bit of financial flesh off each client. (I could write an entire thread about the prima donna problem.)

Under the old rules where shareholder health insurance could be paid by the S-Corp, shown on the shareholders W-2 as wages not subject to FICA, and then deducted on the shareholder's 1040 as SE Health Insurance, the rules for what constituted health insurance premiums did include LTC premiums. that is perhaps what the client is referring to.

Gail, the real significant change is that the number and size of 'refundable tax credits' skyrocketed in the 80's. In the 50's and 60's there was nobody paying NEGATIVE income taxes. Then the geniuses in DC [both parties] decided to make the IRS part of the welfare/safety-net system. That changed the whole direction of the trends. This is not meant as political commentary, it's just the direct cause of these trend lines.

I have charged more to prepare prior year returns due to having to review prior year laws, working on something that's not fresh on my mind nor anyone else's. Or, I've taken my price for the highest priced year (taxpayer filing multiple years at once) and used it for all the years, even when a year might be simpler, for the same reason, dealing with multiple year's laws. All that is for the clients that have brought their materials after the year, after 15 October or the next year or years later. I have had years where I had their returns in what might've been a not too late time, but something like Hurricane Sandy or ear surgery or whatever delayed my preparation. In those cases, I hold the price on multiple years the same. Or, discount a single, almost current year. It's not a punishment for filing late. (The governments will take care of that.) It's due to needing more of my time to review, proofread, etc., when I'm not working in the most current tax year. Line numbers are different on forms. Laws did or did not get extended. Tax prep software evolves. Fewer people around to ask that could be working on a similar issue from a prior year. That sort of thing.

It doesn't help when people are being bombarded by TV commercials showing tax preparers shoving pallets of money out the back of airplanes & floating down into their living rooms. It feeds their perception of the "handout" mentality surrounding the free money concept of tax refunds.

Oh, I could not agree more! I have oft said that most of the HRB and the other big box clientele have no idea that it costs something to have their refunds, oops, I mean tax returns prepared. The fee comes out of their refund which comes out of yours and my pockets and the client is concerned about one thing and one thing only - how much am I getting back. I would never last at HRB because I would tell those folks - NOTHING, you did not pay anything in and you can get "nothing back". You had to go there on this wintery Saturday morning, didn't you?

Client who gets back about 8,000 in refundable credits said his neighbor had to pay in about $10,000. He then says to me, "How does anybody have to pay 10,000?!" I am convinced that there are a lot of people out there who have no clue that a tax return is not an application to determine how much money they print up for you. Well, ok, on the other hand...

I was caught up until my assistant came in today and started downloading the portal, plus dealing with all the ones that came in Saturday and yesterday. I did call a client today who thought there was something wrong, and I'm like, no it's just done! Yours was one that had all the info & I had no questions less than a week turnaround.

I am not trying to be political about this. I agree that getting huge refunds when you have paid NOTHING in is a mis-use of the tax system. I am just curious as to how much effect that has actually had versus the changing income structure in this country, and a longer trend line would show that. I am also curious as to how the actual income distribution over the same period of time has changed. I think that the negative refunds are not the ONLY cause of those trend lines.

Off the cuff, that's her way of telling you to lie to get her the money. If she won't accept that you're going to file it your way (i.e. the legal way) then send her to H&R Block et al.

The only required fields are routing and account numbers. There is NO IRS requirement for the other information. Not sure the reason ATX put that information in the worksheet. Too much extra effort.

By smelling their clothes.

And it doesn't work when many clients don't get investment 1099s or K1s until much later.

Someone been drinking a little too much Jim Beam

I customized the master and all I have to do is if client is a paper check then uncheck two boxes otherwise I do nothing different than last year and mark on the efile infor form

Yes, the rte & account number are that is REALLY needed. HOWEVER --- I would like the IRS and subsequently ATX to reguire proper names, etc. It would definitely help if they matched more than numbers here --- could a thief (yes they can do anything but realistically) open multiple accounts under numerous names --- it would make it harder to get unwarranted refunds, etc. Again, when direct deposit first was offered, names, accounts, etc. HAD to MATCH or it was a paper check or possibly a "hold" until contacted. Given the attitude of being "afraid" to offend the IRS (read congress, probably) opened it to less than secure ways. NOW they (congress) want to back-pedal WITHOUT offending anyone (except those big-mean-hearted-criminal-less-than-hard-working-practitioners). fact sharing and RANT over.

Gosh, I'd totally forgotten about Swiss Colony! I used to love their petits fours. Think I will check out their website.

I too leave them blank and refunds appear to be going as directed. At least the ones I have checked.

Sometimes I give up on something I want to post cause I don't want to take the time to pre-address every misconception that is going to happen. And we are the people who pay attention to detail.

I find it amusing how folks tend to read into this original post. I said "he smokes" I never said he smoked in my office. I would NOT let that happen. I too am a reformed smoker from over 30 years past and can't stand the smell. From this guy it was a combination of smells but the sour ugly alcohol smell is what just about made me sick. I work out of my home and have an office that is attached but separate from the rest of the house and I can close a door so no one can see the rest of the house, but the smell from this guy leaked into the laundry room and kitchen. Kinda reminded you of pig pen on Charlie Brown with the cloud of dirt following him.

Nanny probably should issue a 1099 to Mom if Mom is an IC and Mom's compensation from Nanny/work for Nanny was an expense to Nanny's business. If Nanny didn't use Mom in Nanny's trade or business, then no 1099 needed from Nanny to Mom. Mom issues a W-2 to Nanny if Nanny's a household employee of Mom. Mom has childcare expenses documented by that W-2. Mom may also have SE income if your explanation of the 1099 to Mom has a business purpose.

Oh sure, blame the dog!

Or a gift card to a nearby deli or restaurant that delivers, for those inevitable late nights at work.

The only fields needed are routing and account number. I leave all others blank.

Yes, I have checked "let the program decide" and there is no state return. I'm done with this issue until I have some free time, which I guess will be May, but I appreciate the comments and suggestions. I just wish the program did what it has always done and print the mailing address on the letter when you have a 1040X. Just leave $#^& alone already.

My client base is pretty much middle income, from about 50k to 150k. The higher end tends to be two earner couples. Have a few in the 300k range (doctors, nearly all), but just picked up a neighbor who is on SSDI and earns a little as his daughter's in home health care person. That guy I'm happy to compute EIC for. Especially since he managed to buy a house on his limited income!

Last year I did a return and the total tax was around $100,000 right after that return I did one for a guy that paid $0 and still got a $5,557 refund. I wanted to scream

I had three delinquents and a current last year, all from the same person. I got a retainer up front for half and DID charge more than I normally would have, but I didn't think of it as charging more for a delinquent return. The IRS would have prepared his SE returns from the transcripts otherwise and I was able to save him several thousand dollars. Since we were already working with an agent, I guess I figured if I didn't get the second half, I would still be OK. However, client was pleased with the results and paid up. What I was charging extra for was the unnecessary waste of my time, especially when he turned out to have two years when he didn't even owe.

A few are paying attention to the fact that I put my foot down last year and refused to file the returns until I was paid. They are coming in check or cash in hand. Amazing....and they are sending new clients. I did seriously judge one client who ran several scenarios past me; such as taking her friend's three children as dependents because the friend was on disability. The next one was, could she take her boyfriend's daughter because the mother was willing for him to take her as a deduction this year. Then the mother changed her mind because he was behind on child support. I told her to come and pick up her papers. She was always at least a year behind in paying. YES, I am judging.

I recognize this is not the most professional approach, but I would not be able to listen to that. I would have to mention the spirit of the EIC is for those who find themselves out of work and not for those who choose not to work. Yes, there are many who freeload and the EIC is not perfect by any means, but I wont have someone like that sit in front of me and complain about low EIC refunds and not catching a break on hospital bills. It's her choice not to work and it's her choice not to have health insurance. It would be my choice not to complete her return. I couldn't complete it and would place everything back in the envelope and hand it back to her, telling her to go to H&R. May not be the right approach to increase my income, but it certainly would be the right approach for me personally.

Marilyn, Sounds like it's time to open the Comparison form...but hooray for you if your clients will let it slide that they have a balance due for "no apparent reason". The Comparison form will let you nail what happened in 2014 that was different in 2013. I usually find a change in jobs together with a change in withholding (claiming more exemptions) is usually the culprit. Once I show my clients that it was THEM and not my preparation skills, they leave satisfied with plans to correct their withholding....or plans to call me BEFORE they take an early distribution from a retirement account as 20% is usually not enough withholding tax. On second thought, maybe you do have the right idea with the "no apparent reason" theory. Take care, Cathy

If I file early, then an identity thief cannot file a federal, CT, or IL, return using my SSN. But, he can file in other states. Lots of other states.

The wife who tries to clean up her husband's messes. You can imagine what she goes through. Hope someone works an intervention soon to get her into a shelter and and eventually to forge her own life.

Abusive clients - I run a highly respectable and professional practice. I have had a couple situations over the years where a client was verbally abusive to either myself or one of my employees. I never ask the employee for an explanation when it happens, I simply sever the tie with the client immediately. One that sticks in my craw - the guy became verbally abusive with me and started on me with personal insults and all of that. I am bigger than trying to go toe to toe with these folks. When he was done with his rant, I told him he was not welcomed here anymore. His wife called back a few hours later and told me that her husband was sorry and they truly do appreciate me, my staff and our work. In a weaker moment, because she reached out, I said all would be forgiven as soon as the husband calls me and apologizes for the personal attack. That was some ten years or so ago - I am still waiting for that call. I guess he wasn't all that sorry after all. There are enough good clients out there who appreciate us. When this crap happens, tell them to hit the bricks and don't look back.

Since you forced hinm to find someone else and pay more, I think you should reimburse him the difference. Good client relations and all that stuff, you know. After all, whatever happens to him has to somebody else's fault - may as wel be you.

Oh please.... I had a guy (I think I wrote about this a few years ago...when I was new here) who still owes on his student loans. He's almost 70. Anyway...a few years ago he gave me a 1099-C for $35,000....and he went ballistic when I told him he had to pay tax on the forgiven debt. I asked him if he knew he wouldn't pay off the debt...why did he spend the money. His response "They gave it to me". Then he hung up on me. Anyway...he came back to me the next year...and I told him he would have to pay me in advance. (I mean...I had done all the work..plus spend an hour on the phone to IRS just to confirm I wasn't missing something). He got mad...and said I forced him to find someone else the prior year who charged him a lot...and how he had trouble finding someone (we live in NYC...there are perhaps 1000 tax prepares per square mile).

Cry me a river, Build me a bridge -- and GET OVER IT.

I just read a comment in an organizer. Client is a teacher and teachers are paid very well in these parts. Base income is great and all of the benefits that I can not afford to pay for myself make for a very good package. The comment: "Insurance is changing July 1st. We will have a $2.600 deductible (I will have to pay every dollar until $2600 and then the insurance pays everything) and I still have to pay the $140 per month premium." [To insure three people.] It took all of the compassion I could muster to give her a big "boo hoo". My costs surpass hers inside of 2 months. Cry me a river.

Oh, don't get me started! (Too late!) I had a guy in here bragging about how they finally got out of debt. I look in his crap, and there's two 1099Cs. He can't believe he owes tax on that. Hello??? You got $15,000 of shoes and make up at your house that you never paid for.

Reminds me of the client who called yesterday and told me that her SE artist husband got a commission of $19000 for illustrating a book. When I asked how much he put aside for SE and income tax, she said, "Oh, we had to pay bills and we needed a new car." At the same time, in the mail yesterday she got a CP 2000 re a cancelled debt that she never showed me. She swore she never had any debt cancelled, but after much questioning, she said that the holder of their second mortgage had adjusted their interest rate because they couldn't make both payments. I need to see THAT paperwork. The worst part of this story is that this is the girl who worked for me for the past two years during tax season. As I told my husband; she learned absolutely nothing and my decision to get someone else this year was dead on. This couple is also used to the EIC, etc.; but I warned her last year that her credits were falling off. ARRRRGGGGG!!!! Thanks, Rita, for reminding me.

Yes, and I believe it is absolutely NOT the REAL American way, and it is depressing as $#&&.

In all the years I've been doing this...I have heard this a few times and only from Non-Americans. They have low incomes....and they have kids. EITC! Out of habit...I say "refund". I have been asked..."How do I get an $8000 refund if I only paid in $1000?" So...I have to explain "The American Way".

Correct, only the wife's information goes on the 8962. The EITC levels are higher to further promote poverty in my opinion. Seriously, I don't think comparing the poverty level for determining the affordability of insurance to the EITC is a fair comparison. Plus if the poverty levels for the insurance affordability were raised to equal the EITC levels, there would be a ton of Code A exemptions which would defeat the Government's claim of affordable care insurance plus they couldn't make additional tax revenue.

I think we should force ATX to make the error message RED for silence and yellow for Rita's lack of pulling.