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No one scared me into dumping them and I won't be replacing them with anyone new. I've already refused about 10 prospective clients this year and I've fired four others since February 1. It's highly likely this will be my last tax season because I'm just done. There's no joy in solving the puzzles anymore. The reason I read this board every day is because there is always something to learn. There's always a warning to heed. And thank God, there's always another preparer on the verge of losing their mind and so I've felt less alone. I'm glad my asking about this fiasco returned the favor

I am declining preparation of both returns. Perhaps they'll end up in one of your offices........ Thank you all for your comments/advice.

@Patti in Upstate NY I hope I did not scare you into dumping your clients. That was not my intent. I think how I would handle this is just have a conversation with each, explain that you have a conflict between the two, ask each what it is that they want to do, document in your engagement letter, and do the returns per their wishes if they agree. If they cannot agree, decline the engagement. I want to thank you for bringing this up. It was a very good discussion and it made me think about how I would go about it. Tom Longview, TX

Who would authorize you to prepare the return? Unless the son will help you, there's nothing you can do.

Actually in this case there is no conflict. Mother is the custodial parent, she can either claim the dependent or release it to Dad's estate. His estate has no choice in the matter and can only claim the dependent via form 8332.

First of all, it'd have to be a true no-strings-attached donation with nothing in return, and with that appropriate IRS language on his receipt. Second, he can look up IRS-approved charities: https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations

There should be a date in the top right corner for the second, correct form.

You actually use the 2022 poverty levels for 2023 returns which is 73,240 for a family of 2. The 78,880 is 2023 levels which will be used for 2024 returns. The credit is based on FPL when they signed up which would have been late 2022.

I think we have beaten this topic o death. Let's put it to sleep.

Sara is correct. There is no doubt that ex is custodial parent and you are aware of that fact. But you need to confirm that with her. I suggest you meet with her first and explain that she has the option to release dependent by filing 8332. Off the top on my head, I don't see any ethical issues in this scenario.