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Grammar saves lives!

That happened to me twice. Now I have a new MO. I hold every dependent return until the parent's return is accepted. Standard Operating Practice now. It will never happen to me again. Then, I have a jello shot. Right, Rita?

If I had a nickel for every time I said that...

Terry, no way would I touch those returns without talking to the people involved. Those are not HIS returns to make decisions about, just because he prepared them. HE does not have a legal right to show them to you, or anyone else.

"Cough syrup"

I just made a rule that there would be no filing of dependents' returns until parent returns cleared!

I have made this very mistake - once. After that I vowed to always file the parents' return first, and then the dependent's return. Oh, and the year I made this mistake I did not charge the parents for the returns. I didn't wait to file the parents, just made it a paper/mailed return with an explanation cross referencing the dependent's amended return.

I have many old...sorry, longtime clients who are well trained by me to send a fairly complete package every year. But it is their kids, the 20, and the 30 somethings who year after year send me such a disorganized mess, missing docs, and with round numbers in the 100s or 1000s, and after multiple phone calls (they hate talking on the phone that's why I call) and e mails (their preference) it takes forever to get their file out of the rack. One even forgot to tell me they had a baby, after I congratulated him, which I found out from the grandparent. Makes me crazy, thank goodness for Motrin.

Terry D, we had a young woman appear this year who is a child of one of our clients so we charged her half price. I didn't do her return but was called over to answer her questions because the preparer was with other clients. Our return showed a $2k+ refund, but she did it in TurboTax and was getting over $4k and wanted to know why. So I actually interviewed her (the original preparer never even met her) and discovered that although she had a child, she was under age 24, a full-time student, lived with her parents, and no way did she supply over half of her own support. Her refund changed to $19. She started to cry and said that if she couldn't claim herself she would lose her FREE state medical insurance, her financial aid for school, should she change her address to her boyfriend's, blah blah blah. She ended up paying us for our work but asked that we not file the return. I am certain she went back to TT and got that $4k, free medical insurance, a big grant for college. Her parents make more than I ever did. And as a taxpayer, I am the one paying for that insurance and college and great big EITC. What is wrong with this system? As to helping a fellow preparer with questions on a return, it's a wonderful thing. We do it on this board all the time, and I get calls from preparers in other firms for help quite often. (I find CPAs are not so willing to help, as they see it as taking away business or something.) I think we realize none of us can ever know every kink and turn of our convoluted tax code and therefore are willing to share what we have mastered. I am not worried about someone taking away business. We have more clients than we can handle and either have to cull our client list and/or hire more help. That said, the person asking your assistance is clearly not a fellow professional, he only thinks he is. You made him realize he is indeed in over his head, and maybe he'll give up the endeavor when you point out tax code intricacies he doesn't understand. I'd let him swim.

Rita, I sure am glad you added that comma.

Well, the commercials and lack of IRS audits mean everybody with a computer is a tax professional. Shoot, your guy here is a professional with just a pencil. This is killing us. Other professionals can charge what they want because people can't do their own lawyering or doctoring or tooth pulling or insert your own example here. You can charge based on the problem you solve. If there's no problem with preparing an incorrect tax return, they don't need us.

Welcome! So glad to have you in my world!

I would include the education expenses on Mom's return. I believe tuition paid with UTMA accounts is treated like Student Loans and can go on the return of the person claiming the dependent. This is from Pub 17: Who can claim a dependent's expenses. If an exemption is allowed for any person who claims the student as a dependent, all qualified education expenses of the student are treated as having been paid by that person. Therefore, only that person can claim an education credit for the student. If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit. Expenses paid by a third party. Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. However, qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. Therefore, you are treated as having paid expenses that were paid by the third party. For more information and an example, see Who Can Claim a Dependent's Expenses in Pub. 970, chapter 2 or 3. ************ To me, the only verification would be that the parent contributed more than 50% of the total support, which you have already verified.

Very nice KC....A method, as from the old school.

UNLESS lived in by beneficiary, an inherited house is considered investment property. Always long term.

Yes, I often nap after the last client leaves! But I've started getting kinda chatty with them too. I must be starved for social interaction. But I got to leave the house TWICE this week!

Oh yeah........ (and yes, that's a bit of my desk underneath)

I am amazed you managed to leave them untouched long enough to photograph them!

You love torture teasing us, don't you?

Who said they were thinking?

Clients(New) brings there information in today, has all the deduction, and they have taken the standard for the last two years, then I ask what abut income, they did not bring there social security, brokerage statements and pension statements, they will go home and look for them, and they have paid for the last two years. What are they thinking of?????????????????????

Catherine, I've got nothing to add. Others have given you the best advice with Sch D. One thing I can add is I hope you are feeling better and moving forward.

And in the coffee, and Monsters and Rock Stars......

Client has a terminal disease and got a W-2 from The Guardian Life Insurance that reads: Box 1: $26,878 and nothing else no box filled out. On box 13 it reads: Third-party sick pay. Depending on how this benefit was paid for, it could be fully taxable, partially taxable, or not taxable at all. Any other advice that you can share before I contact this client? How do I report this w-2 in ATX?

Thank you.

yes you are right. did a search in knowledge bases and found the answer. Now I need to change it back because its too small to see anything. I had it on medium and that was perfect. thanks for your help.

I am assuming you are using the old excellent OS Windows 7. If you only have one printer installed (click start, devices and printers), install a second printer using the same output (wire or port) as the printer you had but this time install HP Officejet 4532 printer or something below the one you have. You should check if you can print from other programs, if not, click to start, control panel, services, and stop and start the "print spooler" service and make sure it is set to automatically. Make sure you are admin while running this.

It is also in the client letter

Wonderful video Catherine, Thank You....

Hallelujah Chorus this morning and I spent some time last night brushing up on the alto line thanks to YouTube (note-perfect, for those interested). They asked me to join the choir so I guess I acquitted myself well. Cupcake reception after service. The church was packed; wish it was so *every* Sunday! Here is a lovely little video (less than two minutes) on Easter: Because He rose

B: The partnership may have changed preparers, and instead of not reporting anything in Box 14 like they had in the past, the new ones put something in that box. ATX also changed some things, and is now defaulting to putting something in box 14. Your client gets a W-2 for her wages. Correct? While some may state that is incorrect for a partner to get a W-2 from the entity, it actually works in many respects. She should just have a guaranteed payments line for $100,000. This 1.51% interest is her share of the profits after actual business expenses, and clearly part of the "limited" partnership interest. I would ask for a corrected K-1. You may not get it, but you can ask. Sometimes it alerts the Tax Prep firm that they screwed up. File the 8275 if you want. Support for it is that the treatment is inconsistent in THIS year by the firm. Rich

It was not business property so no to 4797. I would report on 8949/Sch D. Basis equal to value at DOD of dad plus expenses not deducted elsewhere.

Spoke with client. He expects 2016 to be a big income year so I suggested he apply an amount TBD to his 2016 estimated taxes. He likes that idea. This year I have been slow to get there...... Bad things about home office:. Pretty lonely sometimes, no really fancy copy machines, no admin assistants. Good things about home office:. The afternoon nap .

I know. I used it at Block when it was spreadsheet based and thought I might use it in my own business. But, I chose something else as working more the way I work. I still benefit from the wise and humorous people on this site, though, and love you all.

I only e-file 1099's. I only electronically transfer W-2s. One main and overriding reason. ACKNOWLEDGMENT. If there is ever a question by the IRS, only electronic acknowledgment will be accepted as proof of filing. This also goes for extensions.

Taxable amount goes on Form 1040 line 7. Enter this W-2 like any other W-2. Of course, if the amount in Box 1 is not all taxable, I'd enter it all on line 7 and then subtract the nontaxable amount on Line 21. I bet it's all taxable, though. But, you never know if a form is correct or not. Unless you did it yourself. Yanno?

Here's another one. I had a highly educated individual ask me why the HRB software online was telling him that he used up his education credits and no longer qualified for them. Well, we both know he didn't repeat this exactly or didn't understand what it was telling him. I told him it was probably referring to the AOC credit as his doctorate work doesn't qualify for that particular credit. I also told him that if his income exceeded 130K then no tuition and fees deduction. That he laughed at so is he going to hire me??? Nope, gonna struggle this week to see if he can figure it out on his own. I told him that when he was ready to wave the surrender flag I would prepare his return for him. A doctorial candidate and using HRB free online software. Hmm so much for higher education.

In the 11 years I have relied on Eset NOD32, absolutely NO virus or malware has infected either my Windows-based primary desktop or laptop. One desktop in my network inhaled a rootkit Trojan, once, when an assistant downloaded it from a French site. (At no extra cost, an Eset tech talked us through the process of extirpating the rootkit.) That's the ONLY time any platform in my network has been infected in any way. In the past three years nothing has infected my spouse's Apple-based platforms; she didn't use any third-party antiviral before that. Eset offers a more wholesale Security Suite, that I simply haven't felt the need for, given my experience with NOD32. I started using Eset because, at the time, it was the only antiviral that hadn't failed a VB100 test. Eset has stumbled in a couple of the quarterly tests since then, I've read, but it really has kept up its perfect record for me.

Elderly client made appointment weeks ago. Two daughters are handling his paperwork. We start the return when they all three get here, and I get the information about his rental property and medical deductions from one daughter. She asks what else I need. I tell her all the 1099s for interest and dividends, the social security statements, his charitable contributions, his wife's IRA withdrawal. Other daughter says, I have all of that, I can drop it off tomorrow. What are they thinking??????????

You might also request a copy of the member agreement. If she was told she had to invest and has no management decision input, there should be something in the member agreement. It might help support your position if you go the 8275 route.

So, this guy is preparing returns, I suppose they are being filed, but we're not sure. Then he is hiring you to review them. I doubt he would ever tell any taxpayer what he's doing, so I'm not sure how you'd be in trouble. If he can't do them correctly the first time, he wouldn't know how to amend one either. I bet he's not thought that far ahead. May not even know we amend returns. He may think he can just take your work, do the returns over, and everything is peachy. Having said all that, the reason I wouldn't review returns he's done for others is that I'd be training him to take business away from me.

COPIED FROM THE ATX BLOG: Federal and State Tax News Highlights,I.1,IRS Releases Revised Form 3115 and Instructions; Transition Rules Provided (Ann. 2016-14),(Mar. 25, 2016) The IRS has revised Form 3115, Application for Change in Accounting Method, and its instructions . The current Form 3115 (Rev. December 2015) replaces the December 2009 version. The IRS will accept either the current Form 3115 or the December 2009 Form 3115 on or before April 19, 2016, except where the use of the current version is specifically required in guidance published in the Internal Revenue Bulletin. Taxpayers filing Forms 3115 after April 19, 2016, must use the current version . Regardless of the form used, taxpayers must provide all the information required by Rev. Proc. 2015-13 , I.R.B. 2015-5, 419 (or Rev. Proc. 2011-14 , I.R.B. 2011-4, 330, if the taxpayer is making a change under the transition rule in section 15.02(1)(a)(ii) of Rev. Proc. 2015-13 , as modified by Rev. Proc. 2015-33 , I.R.B. 2015-24, 1067). Beginning in January 2016, the duplicate copy of Form 3115 for an automatic change request should be filed with the Internal Revenue Service, 201 West Rivercenter Blvd., PIN Team Mail Stop 97, Covington, Kentucky. 41011-1424. A taxpayer filing its duplicate copy of Form 3115 (Rev. December 2009) before April 20, 2016, with the IRS in either Ogden, Utah, or Covington, Kentucky, may file its original Form 3115 with its return on either the December 2009 Form 3115 or the December 2015 Form 3115.

Client brings in Feb 15, 2016 letter saying IRS has resolved an issue with his 2013 return and will be mailing him a check for $8.73 in two to three weeks. That's after amount applied to tax owed for 2014 $4.67. We didn't even know there was a 2013 overpayment or 2014 underpayment. Well, we didn't know there was a 2014 underpayment that small; his 2014 balance due was $98,201.

Well, he's gotta save some of that windfall for a rainy day.

The deductions are always on the top of the pile too!

Guy called me Friday the 5th, can I drop off Saturday the 6th, no, please wait till next week. He drops off Saturday the 6th. I refrain from killing him because I knew he would do that, and my daughter is here in the office studying. And I love her and don't want her to see a dead body until she gets out of grad school. He comes in with another form Wednes the 23rd. No, I hadn't done the return. I know better with him. That's right, you better say my hair looks nice. That's right, you better come to a rolling stop as you lay that gently on my desk and turn around and don't let that door hit...

Me: You gave me all the expenses for your 3 rental properties, but you didn't give me the rental income for each of them. Client: OK, I'll get that to you later. By the way, how much tax do we owe? Me: Uh-h-h-h