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If you prepare this return, prepare it correctly with the data you are given and have knowledge of, not however you can best finagle it to hide what really happened with his overstaying his visa. That is your job. You should also explain in writing that he caused this problem by overstaying, and also compute the potential tax impact of that inaction on his part so that you've made him aware and put the responsibility back on him. That gets you off the hook for any blame that he may try to place later and tries to hold you responsible for the interest and penalties that will be assessed. Once you show him the impact on those back taxes, suggest that he amend to get ahead of this, but the choice of amending or waiting to see if this is caught should be his. You can't force someone to amend a return.

I know you are struggling to come to a decision because of the "temporary absence" aspect included in the requirements to be considered "unmarried". In other pubs such as 504 for divorced or separated individuals, it also has a section for HOH and unmarried and temporary absences. For temporary absences it says this (bold is mine for emphasis): Temporary absences. You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. It must be reasonable to assume that the absent person will return to the home after the temporary absence. You must continue to keep up the home during the absence. With the above in mind, isn't it reasonable to assume that this couple will live together at the end of his duty? Maybe not, but you've already said that at the end of his duty in 2 years, this couple plans to live together. (your post #13 on page 1 of this topic). They are married at the end of the year, and I would file this return as either MFJ or MFS. I think HOH no longer applies, no matter how much you or the client wants it to. Just my 2 cents.

Rita, if this is a single person with no one else whose MAGI is included in his household income and the $6000 is the only income on his return and then he has the 1/2 of the s.e. tax to factor in to arrive at MAGI, then this person does meet the exemption from the penalty for his MAGI being under the filing threshold. It's covered in the instructions for 8965, part 2, lines 7a & 7b.

The mustache throws people off every time.

Christian, you should leave line 61 blank because not all members of the household had coverage. On form 8965, show only those that had an exemption. You do not need to show the one child that had CHIP coverage. From the instructions for 8965, it says - If you are unable to check the box on your Form 1040 series return indicating that every member of your tax household had minimum essential coverage in every month of 2014 (and therefore you are filing Form 8965 to report or claim a coverage exemption or are making a shared responsibility payment), you do not need to take any action to indicate that some members of your tax household had minimum essential coverage for some or all months in 2014.

Christian, if the son is claimed as a dependent on the parent's return for 2014, Jack is correct that the son's return should be completely 'silent' as to the ACA. On the son's return, do not answer any questions or include any forms related to the ACA. It is up to the parents to report the coverage, or lack of coverage. The parents should leave the box on line 61 blank and should include form 8965 that will show their own exemption and also the exemption received by the son.

Interest and dividends have their own lines for reporting. It sounds like it's coming from something else held in the portfolio of investments, possibly an annuity, or some other nonbusiness holding. Whatever it is on that line, it's supposed to not be subject to the passive activity rules.

Tom, the Affordability Worksheet shown on pg 10 of the instructions for form 8965 uses the lowest cost plan available in the marketplace for the area and that would be the lowest cost bronze level premium. However, the way I read the instructions, I think you should be using the worksheet on pg 11 of the instructions called Marketplace Coverage Affordability Worksheet to calculate the figures that will be used for comparison. That worksheet on pg 11 is to be used for person(s) who were not eligible for their employer's insurance plan, and it uses both the lowest cost bronze and second lowest silver premiums in the calculations. The worksheet on page 11 calculates the amount to enter on the worksheet on page 10. Disclaimer - I haven't done one of these yet and hesitated all day to answer, but I keep coming back to the same answer each time I've looked at it.

In the case of the missing 1099R for the rollover that the original post was about, I'd probably advise to wait for the letter from the IRS because there's no effect on any item of income, deduction, tax or any credit. I'd give the client a choice of amending for a stated fee or waiting for a letter and leave the final decision to him or her. Is there any effect at the state or local level for this not being reported?

Haha, while you are at it discussing this, find out if he'll need audited financials for 2014. Depending on the timing of when you issued the 2013 statements and invoiced for it, you will not be independent if the unpaid fees go beyond one year. The state isn't going to accept compiled statements, no matter what the reason your client is involved with the state.

She does not check the box on 61 and does not file form 8965 for the penalty. Only one 8965 is filed per tax household, and in this case the parents will file that. Under "Who Must File" in the instructions to 8965: Only one Form 8965 should be filed for each tax household. If you can be claimed as a dependent by another taxpayer, you do not need to file Form 8965 and do not owe a shared responsibility payment.

Glad the giant dog is back home and your story had a happy ending. None of us need that kind of stress.

Uh, no. You missed my point entirely. I am under no illusion at all that ATX cares. My opinion is exactly the opposite, and that is why I said they could have used this as a lesson, because their barest of acknowledging that there was any problem was hardly a blip on the radar at all, and the company did absolutely nothing for their customers. That certainly is not having any kind of fantasy about their caring.

OK, I'm not a fan of Intuit either, but my first reaction to this was that ATX could have taken a lesson from this. This is more than any of the ATX customers received about the disaster of a program that ATX put out for 2012.

I hate these forms. That. is. all. Hate them! I still have one client left to work through and hope that the client doesn't have to send any W9s at this late date. I am having a devil of a time with these and W2s this year. Client picked up W2s yesterday and told me the employer address was wrong and has been wrong on all the partnership returns and payroll filings for about 4 years now. Uh, I'm not a mind reader and do not have a crystal ball. About 4 yrs ago, she switched from a p.o. box to using a street address. I always include a bill with the package and have never mailed her anything. It's nice that she waited 4 yrs to tell me! Same client told me last year to change address of an employee on the W2 and that employee had been using a relative's address to qualify for in-state tuition cost in PA, when she really lives about 1/2 hr away from here in the other direction in DE. Me yesterday ---> For another client, today I drop off 1099s, w2s, payroll returns when I'm out running an errand because I think this will be quick. Ooooohhhhh nooooooooo! One half hour later, I'm still trying to explain how the W9 request for TIN works because their company needs to request 2 or 3, and yet they received a request for one and that totally confused everyone there!!!! Why are we sending them if the same people are requesting them from us?! Me again today ---> and I really wanted to .

Disclaimer: I don't have any clients on Medicaid, but I think your client, the parents, might have a problem. Here are my thoughts on this. According to the instructions for form 8962, the person or couple taking the dependent exemption for someone in their "tax family" are the ones that must reconcile any amounts received as advanced premium tax credit, but because the daughter & granddaughter are not required to file a return, the daughter's and granddaughter's MAGI isn't included in the calcs for reconciling the APTC. Because your question is an interesting one, I did some poking around on the internet and found a site for WA state medicaid expansion. One of the points states that the new methodology for determining Medicaid eligibility is based on MAGI and also that household composition mirrors federal tax filing rules in most situations. This is the site that I was looking at; see item #3 on this page: http://www.hca.wa.gov/hcr/me/Pages/faq.aspx Please don't take this as any kind of final answer to rely on because I really don't know if this is correct, or if the site I was looking at is even the program in your state that the daughter and granddaughter supposedly qualified under, but reading some of that, I'm beginning to wonder if they truly were Medicaid eligible. I hope we have some others from WA that will weigh in, or that you'll post how you end up handling this because I'd like to hear what the final answer is.

KC, thanks for letting us know. I'm adding him to the prayer list too.

It was my own w-2 from my corporation, so I'm not concerned with someone coming back saying it has errors to correct.

It's a normal delay. I couldn't find information yet about this year's processing, but using last year's processing as an example, W-2s submitted after 12/20/13 weren't put into processing until 2/11/14. I submitted one file already and will wait several more weeks to check on the status.

If you were thinking of going for the First Time Abatement, that is only applicable when only 3 years are outstanding, and the abatement will be applied to the earliest of the three. If you were to try for this for 2011, that means that you would have to file 2010 to get that into the system and then file the others and request the FTA. I don't know if that would be possible or reasonable to expect since the IRS person that will weigh in on this request would see that 2010 was also late and may disallow the request anyway. Asking for abatement for reasonable cause would be a different matter entirely, and I agree with Ron that 3 of the returns aren't worth bothering with for requesting abatement. 2011 is the one that you need to deal with. I'm wondering if even reasonable cause might be off the table depending on when the son was granted POA because that also makes him a responsible party for handling the financial matters, so the health of the parents becomes less of an explanation for the late filing. As for the mailing address and estimated payments, I would use the son's service center since his address is going to be on the returns, and I would include the schedule of the estimated payments made. Chances are the IRS system will show those payments and this will be a nonissue, but if not and the payments are questioned, that is easily explained about which service center the payments were mailed to, and at that point you would also be providing additional documentation to support those payments anyway.

I am posting this in general chat because this is about general handling and processing of returns and not really a question specific to the ACA. This season will be tough enough without the added delay in collecting fees or having to explain to clients why they haven't received their refunds. Be sure to double check this before finalizing the returns for filing: If returns are filed with line 61 blank and no form 8965 or 8962 is included (totally "silent" for the ACA), the IRS will pull the return for error resolution and any refund will be delayed. If this is an ERC or Fee Collect return, the preparer's fees will not be collected if the IRS chooses to mail the refund as a paper check later, rather than as a direct deposit. This was posted to the ATX blog earlier in January.

I moved one called "line 61 ACA question" and don't see any other topic by you in general chat about the ACA. If you PM one of us or post the title, it can also be moved. ETA - was it the other topic that was a warning to us about the return being able to be filed even though line 61 is blank? That topic is now 3 pages back for me at this time. The forum doesn't automatically send a PM when posts are moved. I can't answer for Eric or KC, but I would prefer that questions pertaining to the ACA be posted in that section from the start. If everyone posted all the topics in general chat and then expected the moderators to move them, we really don't know when you have the answer you seek, but not everyone visits this forum with the same frequency, and that would add extra work for us. Eric doesn't read many of the tax posts and wouldn't know if the topic had been answered to a particular person's satisfaction, and my time will be more limited on here very soon.

Pinning this topic. If anyone has additional references that they've found to be very helpful in this area, please add the links.

You must not have noticed my sarcasm when I said husband was disappointed. He really did purchase it for me because I asked for it. I don't mind working the snow as long as it's not in the single digits or heavy, wet feet of snow. I'd love to try plowing!

Ron, we did the same thing this year, husband purchased one as a Christmas gift to me because of my shoulder issue. It sounds very similar to yours, gas powered with electric start but does not have it's own battery and needs to be plugged in to an outlet for starting. If you are familiar with starting an electric start gasoline generator or lawn mower with a choke, it is the same sort of process.