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JohnH is correct as usual, probably because he was in my Algebra class 15 years ago (falsehood), and I will add that it helps to be able to say to people that I get an extension for my own return. I also tell them I know I've paid in enough and will not owe. Psssshhh, it's all good. I will sooth fears of extensions one time and one time only. I'm happy to extend the tax season, but the people having more than one panic attack about 4/15 are given a hug and my best wishes for continued success with another preparer.

David: The secret is to take control of your business (and your valuable time & health) out of the hands of your clients and put it back into your hands, where it has always belonged. Some of them won't understand - that is not your problem and they're not worth the aggravation. Maybe they need to be ruining someone else's peace rather than yours.

I am going to need hair exentsions after this tax season I while back I was speaking to another accountant and he said he no longer sends extension if he hasn’t been given the okay by the client, out maybe 20 I haven’t heard from, only about 4 have called me to send an extension.

Tax preparers, teachers, cops, and firefighters are all unsung heroes and forgotten until something happens to put them in the spotlight. Much of my client base is teachers, cops, and firefighters and over the years I would do my best to deduct for them whatever was reasonable. Sometimes in a police precinct or firehouse word gets around that someone deducted a new watch every year, or a haircut, or gym membership. I would politely explain that if you were not a cop you wouldn't want to know what time it is? Or to the firefighter you would never get a haircut (more on this later). If you didn't need to you would not go to the gym for personal health. If all that were true we would have a bunch of hairy, out of shape public servants who couldn't give you the time of day. Those people would not be good public servants. Back in the early 70s we had a fire commissioner who didn't like the idea of new firemen coming on the job who were veterans of the Woodstock era. Regulations were put in place for parochial school haircuts and mustaches that couldn't go past the corners of your mouth. I was one of those long hairs and we took the FD to court. We lost. That started the haircut deduction frenzy, but it wouldn't fly.

I just donated, because I don't know what I would ever do without this board. This has been a stressful, weird tax season and I just wish that I could retire and do something more enjoyable. Thank God, I love almost all of my clients, because they make it worthwhile.

I love this idea and am donating this evening because of a recent post that helped me out and another older post, coincidentally started by Possi, where I found my answer to a different issue through the search function.

Wash and wax? Cut and blow-dry?

It's all kicks and giggles until someone giggles and gets kicked. I think I'll have 40 - 50 extensions.

Thanks. The doc said it's an infection in the eyelid. Wonderful. I see a specialist Thursday. In the meantime, I'll try not to look at the children directly.

I'm on the slide to retirement and have filed zero extensions as I'm traveling all summer and into the fall. So far, so good and it will nice to leave without any "baggage"!

We are going to have more extensions than ever, but we will be trying to finish those extension by July 1 this year. The Virginia general assembly set that as the deadline to file your return and share in the rebate they are giving taxpayers since they did not get around to revising Virginia's tax laws to coordinate with the federal changes until late in February. So we just swap one deadline for another. Like always.

The last I heard was... I just overnighted my tax package to you..... me~ I'll file your extension.... WHAT? WHY? It's only the 3rd! The deadline isn't until the 15th! me~ Tell that to the 60 ahead of you! (Oh no you didn't just tell me when the deadline is....) (ok, I might have overstated that number) (your fee just went up)

No offense taken. Yes, our police officers deserve more than they currently receive. I have a lot of friends who are police officers and quite frankly, at least three in my client base. One is on bicycle patrol and checks on my office frequently. That is irreplaceable. On another note, and as with any profession, folks who are not in the trenches normally can't appreciate what all is involved in doing a particular job. Just like us, some folks don't have any idea what it takes to be a professional tax preparer. The last nonsense I heard was that only took you half an hour to prepare and you charge what????

Same here - I like extensions. Have always like them because they extended my filing season and therefore income-earning ability. I'm continuing to scale back this year, trying to move down that retirement glide path, so less returns overall and less extensions this year than ever before. But still they're useful. After my cutoff date, everything gets an extension if it cannot be completed on a simple "first pass". Some of those already on extension will likely be finished by or before April 15 if I decide to circle back to them, but it really doesn't matter. With extensions in place, Apr 15 is just another day on the calendar with no special significance. Today I'm working on some payroll tax reports, thanks to the extensions on the personal returns.

I efiled a ton of extensions today. More extensions than completed returns!. I still have a week to prepare returns for some of those, plus some returns in limbo awaiting signatures that will probably be efiled by next Monday. But, I took on some new clients, referrals, and I always put new clients on extension to have time to review prior year returns and ask lots of questions. That plus the government shutdown, new laws, a week lost to back spasms, and probably some things I don't even remember, mean I have efiled more extensions to date than returns. I'll be taking some time off through July with new babies arriving in two states in June, baby showers in two states, our 25th anniversary, family things. Then back to work through 15 October. I can earn more money all year than I can in three months, so I like extensions.

Just for kicks and giggles how many you think you will put on extension? I think my May and June months could be as busy as this month has been. 5 calls today.

Oops, you understood I meant ..if they'd filed MFS... Yes, breathe. And, think about it again when you're well rested. I'm sure we all missed something that could've meant less tax for a client. But, if we were correct and legal, then it's not a big deal. Think of all the ways to depreciate. Or, take state sales tax to not pay tax on the refund next year. I have partnerships that have crazy % that the partners do not know why except some lawyer told them when they set it up that it had to be 37%/63% or whatever for a HW partnership to save taxes! I'm not going to second guess what my clients did decades ago. Don't second-guess yourself right now. Study the situation in the off-season to see if you can learn from it and to see IF, and that's a big IF, you want to do anything with your client because of it.

I was not suggesting you pay anyone anything. I was just pointing out that the difference is less than $2K because they'd have paid for a second tax return if they'd filed MFJ. Did they ask about 2017? If not, please don't do anything until after the 15th and you've had a good sleep. Then, you can think more clearly about what you did or did not do in a prior year. We're all human and sleep-deprived and working against a deadline. Stay calm and carry on.

And, have a nice life!

There are presently 172 4868s in our efile manager, and that number will grow.

Yes, I would amend for free if it was possible but it is not possible to amend a joint return to separate after the due date which was April 15 2018. It's possible to go the other way and I think it unfair to not allow both options but it isn't. Thanks for the 'nice person' which I mostly am and I feel terrible about this but not enough to pay them $2000 when the return was actually correct - for that filing status, just not the most tax favorable for them. Ugh!

Hey, Possi: Lots of those liquid tears drops things all day long. Refresh Plus lubricating eye drops. And DO give the evil eye to any complaining clients now. Hey, David: For those I know will owe, I use the 100/110% of last year's liability formula. For long-time clients, I can pretty much eyeball it. For those that do ES payments also, I make the extension payment a huge one that will cover April and June ES also, all to be reconciled when the return is prepared. If I've been the slow one, I do a more thorough computation. Did one last night for a complaining guy, just went through with round numbers against his 2017 summary with his 2018 documents and told him to pay $25,000 and $8,000. It's down from the year before (which is why I took the time and didn't do the 110%) so he'll pay it. I often look at how much paid with 2017 extensions and how 2017 turned out to calculate how much to pay with 2018, for those that don't vary much from year to year or I can see at a glance they're up or down. But, most e-filed extensions were done via "batch" and are zeros. Many of my clients followed me from Block more than a decade ago, so were not used to extensions. I have a lot of push-back. But, they know, and I remind them when they drop off or don't have all their documents. I want to work all year and earn more money. I don't want to turn down their referrals, but do need time to review with new clients. Extensions.

Thanks, John. That puts things in perspective for sure.

We are putting everything left on extension, and I am working on my partner to just file 'em and ignore if money is owed. Not OUR fault/problem/crisis if folks gave us their docs yesterday instead of before our March 15 cutoff! But he hasn't learned that yet and is letting himself get all stressed out. Like @JohnH we'll finish some that are extended. And a few people who should have sent in extension payments will get hit with penalties later; NOT my problem. We have one return, first info came in on Feb 6th. They're not done. They may not get done until late May - because every week they are sending new material that contradicts earlier documents. I'm waiting until they say "that's it" and they've been told I'm not touching their returns again until I have *everything* in-hand. We have another; guy is *always* late, so we recommended sending in big-ish payments based on prior year info, of $20K to the feds and a smaller amount to the state. He emailed back saying it had been a good, but complicated year, and his thoughts were that he should send in $250K and $50K feds/state! That will be a fun one - for the summer! And @Possi I hope your infection AND your eye get better quickly!

I sent 13 this morning. All the others are paper, and put back on the client to mail with payments. I'll probably have 20 or so. Trying to scale back, too. I would love to walk away after the deadline and not work the rest of the year. An infection I've been fighting blew up in my right eye overnight. It looks like somebody hit me in the face. great...just great...

John H and the other have already said it; I'll just reiterate. YOU have to control YOUR business and your clients. They WILL resist at first; be firm but polite with them - and let them go if they insist. Not one of your clients is worth a heart attack or a stroke on your part. Not one. Tell them the extension is their good friend; that your return goes on extension (if true). Blame the new tax law; blame the IRS that lets banks and brokerages send materials out 6 weeks later than the deadline used to be. Tell them when you rush to meet a deadline you worry you might miss something. Whatever. I work hard for my clients, and I put in long hours. But I will not and do not (any longer) half-kill myself for them. I have found, over and over again through the years (because I'm a slow learner, it seems) that the clients for whom I do the most, at THEIR insistence, are the ones who then leave in a huff (probably bad-mouthing me) when I make a mistake due to rushing for them and at their insistence. To heck with that! Our letter says we must have ALL materials in-house BY March 15th. It also says that any returns not completed AND FILED by 4/1 WILL be placed on extension. We put returns on extension that are done! If something comes up and the client does not get us the signature forms (forgets, kid gets sick, their arches fall - who cares), WE are covered by the extension and don't need to worry about them one little bit. Take charge. The clients worth keeping will respect you; the others you don't need. Their leaving will make way for more good clients!

No download fee?

Remember this client? She sent me an email saying that Turbox comes up with them owing less tax. Exactly the amount if the 1099M info is entered on line 21 and not subject to SE tax. She wants to file the Turbox version naturally although she did offer to pay for my services anyway. I responded that the difference was due to self employment tax, she didn't owe me anything, and have a great day.

In the situation I referred to above the estate had more income to off set in the current tax year so 3115 worked better than an amended return.

Thanks everyone for your great input.

1. Put this client on extension 2. At the very least read the 10 page IRS "Safe Harbor" rental guidance. 3. Set down with your client and go over the safe harbor guidance and see whether they can document their involvement. Until at a minimum, you have done steps 2 & 3, you shouldn't be attempting to prepare this return.

Against the 1099 income on the Sch C. A portion can be taken there.

A while ago, if we liked something posted, we would reply and write "I like it". This would cause posts with dozens of entries and few answers. Now we don't have to type but just to click. Have you donated lately, if not PLEASE donate while supplies last. Eric deserves a token of appreciation. On this post, please don't use the new features, but rather reply with a "I will donate now" or "I don't have much work so I won't be able to donate"

Thank you, Illmas.

I use dues or subscriptions - this forum is worth FAR more to me than a bunch of journals I get and never have time to read.

Pacun, thanks for confirming. I defer to those of you that do these EIC returns regularly and I was really doubting myself. I think I'm on the right track with this family now!

Should be zero federal tax after the 600 exemption. State may have tax.

@grandmabee I had this situation a couple years ago, and Judy and I had a pretty extensive conversation in the ACA forum on this board (please forgive my language in the post, I was frustrated). You can go look it up (search for the word "shit" and you will find it) and read through it for the mechanics of how to do this in ATX. It is a real hassle, and in my client's case, the only way to keep it from moving above and below the 400% threshold was to have my client make an IRA contribution. Once we got the income to come in just below 400%, then you can move through the iterations until you get within $1 of change. I still don't know what to do if you keep bouncing over and under 400%. You have to change something in the return to make the income stay above or below the amount you need. That means you are limited to things like and IRA contribution, a SEP contribution, elections on 179 and bonus depreciation, etc. Good Luck. This is not fun. Tom Modesto, CA

If there were zero distributions then the income stays in the estate. If income was partially distributed, part will pass out and part will stay in. It's just like a trust.

This goes with my research materials, such as AnswerConnect. I think. Or, continuing education. Or, with dues & memberships. Or, something VERY usual & necessary for my biz. (I haven't done my own taxes yet, so don't remember. Not enough room in my head. This is overflow storage.) I read everything here and learn from everything here. Thank you, Eric. And, thank you, everyone.

Great site. Although I haven't posted any questions or issues this season, I have posted a response or two and have enjoyed reading some of the posts. I just donated! I actually never noticed the "Donate" tab until the subject was brought up in one of the posts. Thanks to those who make it possible! Scott

New law eliminated like-kind transactions on anything other than real estate. For cars and other tangible property traded in, you would report this as a sale using the trade-in allowance as the sale proceeds. Record the new asset as a purchase separate from the trade-in.

And thanks for having a site that puts spaces between the groupings of the credit card number. I love sites that do that! Now, what expense account to put this very necessary expense to. Software and fees sounds about right.

A great reminder. I am a donor, but when someone steps out to help me, I like to donate a little in their honor, too. Quietly of course. It just helps my spirit. Shhhhh... don't tell anybody.