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Yes, You have to do a policy allocation. They can agree on the percent, if they can't agree on the percent then it is 50%. The instructions for form 8962 has an example that will assist you in reporting the 1095A correctly for the dad, and I would make a copy and give it to the Son so that his taxes can be completed. IRS does require each to reconcile the credit. There is actually nothing wrong with dad getting insurance with son thru exchange, but now comes the reconciling of everything and depending on the outcomes possible having to pay back some of the subsidy.

And don't you just hate it when things are thrown in that are unneeded but really important stuff (as advertised and listed on my renewal form) are left out to be obtained separately. I am in a not very nice back and forth again really angry that online and on my renewal form ATX advertises for ATX MAX Package, "Unlimited individual and business e-file returns for preparing federal, state, and municipal forms." Except one has to purchase a separate Ohio package to efile RITA returns. And more municipalities are going to RITA annually. What is it about the English language that WK cannot understand about '(u)nlimited individual and business e-file returns ...municipal forms?' RITA forms are for municipal returns. I believe this is false advertising and am just so annoyed. And it isn't even listed on my renewal form. One might think, with an Ohio address, that I just might need or use that software. Grrr...

This is sec 133 from HR bill1628: https://www.congress.gov/bill/115th-congress/house-bill/1628 Yes, I think your thinking is correct, it increases the premium for a full 12 months, charged by the insurance company. From what I've read, there are no exemptions for hardship. I really think it's too early to discuss this since the Senate is working on their own version of the law.

+1 I also had a person bickering about how much taxes they had to pay and this is BS and they are an employee and so on, I said fine, I'll prepare a special form to let the IRS know what's going and you might lose your job..... The person had no problem paying the tax.

Terry: You do have the correct plan to eliminate S/E tax by about $140, plus associated penalties/interest. Maybe a total of just under $200 total savings. The Form 8919 will probably work, and nothing will come of it due to the relatively small amounts involved. However, there's also the possibility that the IRS will contact the employer. Your niece worked there for two years, but can we assume that she isn't working there now and has no intention of doing so in the future? I ask that because if the IRS does follow up with an inquiry to the employer, that will probably end any future opportunities for her to work there in any capacity. I've had this sort of situation in the past, and when I posed that question to the taxpayer, they decided they didn't want to burn any bridges just to save a couple of hundred dollars. (minus my fee in those cases, but the decision was based mainly on the desire not to burn any bridges)

I know! I know! My clients are constantly asking me about these things...(although occasionally preceded by "How much is my refund?")

Agree 100%.

Rich - My quote is exactly the same as Margaret's ($1,421) and dated 4-1-17 (like yours); mine is for the "ATX MAX Package" (I assume hers is too). Your quote is for the "ATX ADVANTAGE Package" and it has numerous features mine doesn't. Those I don't have are (as listed on your invoice): User Guide PDF, Tax Prep Partner 1041, Tax Prep Partner Standard Bundle, Practical Tax Expert, Complete Tax Library, Practical Tax Bulletin, Paperless PLUS, Advanced Calculation and Compliance, Conversion Services, Concierge Care (Sounds like American Express), Enhanced Asset Management, 6 Concurrent User Licenses (Mine has 3). Then too, of course, there's the "Add 5 User Licenses" (nice discount: Retail price-$299/ Your price-$299). I'm just doing 1040s and suppose you're doing lots more, but, as you know, sometimes those sales reps throw in the kitchen sink whether you need it or not.

Much obliged for the good thoughts guys, and Catherine - I'm not going to try discussing thermos (dynamics or coffee either one) 'cause last time I injected some all-Greek math in a post, you easily translated it and threw in a schooling on Planck lengths (quite interesting) to boot . But...since I'm already here, what the heck does PV-nRT (forever or a day) mean?

Rich, what are you using? My Max package is actually the same as last year. You must have all the bells and whistles as my package without shipping with discount is $1421.

Neither do the people who work the system.

That's always a bizarre issue. In training I was told to call and check on it after a week. Every time I call the IRS acts like they are shocked I'd call so soon - every time it's in the system. It's a very weird system - no clue how it works.

Same people will complain about not being able to live on Social Security benefits. Oh, is that the Karma Bus coming down the You-Did-It-To-Yourself Road?

Nailed it !

The IRS has 10 years to collect any debt from tax payers when returns are filed. I have heard some tax attorneys to suggest to people not to make payments when 10 years are around the corner because after 10 years the statue of limitations kicks in and the debt is gone. So if your client will receive a huge refund this year and the statue of limitations for a debt will expire in August, since you are busy, you will put them on extension and file in October, correct?

Well, Terry is the one saying it's very small, but yeah, everybody that tells me, "I really didn't make anything on that," really made something on that. Same as "but they held out the tax already". Uh, they held out SOME tax, not THE tax.

You said the amount is very small. Is the potential savings of S/E tax, penalties, and interest on that amount worth what you will charge them for doing the work? If not, maybe leaving things as they are is the better choice, even more so if the daughter has any expectations of ever doing any more work for the company involved.

I disagree, there is no age limit for a self employed person. I agree that the preparer had no choice but to file subject to SE tax as 1099 was issued for earned income although as she did work/labor it should probably have been filed on 1040-Sch-C. If your niece wants to contest the status (for employee) I believe there is an IRS form 8919 and SS-8, for procedure of doing that with an amended tax return. Search IRS for "Misclassified Workers to File New Social Security Tax Form".

I switched to Drake in 2014 and did find the that a number of things seemed awkward. However, once you get the hang of it, it goes very smoothly. Just can not say enough about their customer service. Not only is it the best in the tax industry, it is the best of any industry. No waits, no holds, the phone doesn't even ring. May be it is 5 seconds before the phone is picked up even on a day like today when you would expect the lines to be jammed. The employees are courteous, patient and knowledgeable. OUTSTANDING!!! As for the pricing, you can get in for $300 and that gives you 15 free returns. Then it is 20$/return until you hit around 75 returns. No need to shell out a large chunk unless you want to take advantage of their discount.