Pacun

Rita, don't tell him to go somewhere else. Remember the 30% threshold. Don't lose a client over this. The problem is, in my area, a CPA is on the radio saying that most tax preparers and software companies don't know that they don't have to pay the penalty BUT he knows because he studies year around. He never mentions that the fact that the IRS will not hold the refund it doesn't mean that the penalty is gone. It is not a good time to lose a client over something that will be made black and white in the near future. Do you agree that losing a client is losing $1,000 in future profits?

Thank you.

Yes, you have the obligation to tell him. There is no way that the penalty will be forgiven, especially when many young people got insurance just to comply with the law. If he qualified for EIC, wasn't his insurance unaffordable? Check that route.

What years can I efile today using ATX?

ADMINISTRATOR: Please take my comments and post these links the same way you posted "Tips and Tricks". I think you can delete all comments that are not related or the ones without any links so we have only the juice.

To lessen the potential for post-filing-season problems for practitioners, Whitlock recommends they have the taxpayer sign the following disclosure if they decide not to check Box 61 on the return: “In the course of the preparation of my 2016 U.S. Federal Income Tax Return, I have voluntarily chosen not to report whether there are individuals on this return for which the Individual Shared Responsibility Payment (Penalty for Not Having Health Insurance) would apply or that no one on this return had Health Insurance for which the penalty may apply. “I understand that I may receive a communication from the Internal Revenue Service, experience delayed refunds, and face subsequent collection activity to recoup this payment. “Although my return preparer has thoroughly explained the issue to me, I have made the decision not to complete Line 61 on the tax form and have so instructed my return preparer. “I further understand that should I request my preparer’s additional assistance in this matter the fee paid for the preparation of the return does not include representing me in this matter should the need arise. Should I engage my preparer to represent me in the matter, I understand an additional fee will be required and determined at that time.”

Read other post about free efile and then call him. Grab as many clients as you can now. Remember our 30% of the population limitation.

OR if they earn money directly linked to the USA in the future (regardless of US citizenship or Green Card "holdance"). Yes, you can deposit on any bank but you have to disclose it by checking the box.

On the original question you have these possible choices. Mother files as single without any of the children. Mother files as single with one child Mother files as single with two children Father files as single without any of the children Father files as HH with one child (provide he kept up the home with was the main home for at least 6 months for the child). If not HH, then single with one dependent. Father files as HH with two children (provide he kept up the home with was the main home for at least 6 months for the child). If not HH, then single with one dependent. Since the original poster didn't say how much the mother made... this is one more possible filing option provided they lived together all tax year: If mother made less than $4,050 and husband supported her more than 50%, she has all the options above and one more: She can file single without claiming her exemption. Father can claim two children and his girlfriend as "other". If he didn't kept up the home which was the main home of at least ONE of his children, he will file single with 3 dependents. If he kept up the home, he will be HH with three dependents. Have you noticed that support for the children has nothing to do with all of the above... Let me give you an example... You made $30K and you have a house that you keep up all year. Your children and your ex-wife are with el Capo in Mexico enjoying life and the cost of living is a million dollars month just for your children. On June 17th, el capo is arrested and your children are brought to your home on June 29th and they stay with you the rest of the year. Your children stay with you more than 6 months in a house you kept up. You will be HH. HH status will be kept true even if your children have a $100 dinner for each child with el capo relatives each night at a local restaurant for all the days they will live with you. Comments????

I have been asking people for a few years now. They don't question me anymore. When they call to make the appointment, we ask if they have children, if yes, we need school, medical or daycare records. We also ask for Insurance cards. When people asked, I said, the IRS is asking for. This year, I was tempted to say "we have a new administration and they are tough", but I didn't. That explanation would work though.

I said, I will check the box for the people who had insurance all year. That's a no brainer since no matter where ACA goes, that's correct and nothing will change.

A CPA was on the radio today saying that there is no penalty and that the software was not updated but he knew how to make people "NOT" pay the penalty. I guess it is a good business move on his part, he will send the box unchecked and when the letter from the IRS arrive to his clients, he will charge them to answer those letters or to amend. I am with Bulldog Tom, I will check the box and I will ask clients if they had health insurance. Most of my clients have it so I will check the box. When a penalty needs to be paid, I will ask the people if they want to pay the penalty or if they want to receive a letter from the IRS and deal with it later. Why will I create extra burden on the IRS by not checking the box if I know my client and everybody on the return had health insurance? Why will I leave the box unchecked and have my client receive a letter from the IRS when I settle it with a check mark at the time of creating the efile file? I will waste more time reading the yellow alert than checking the box. This is the proof I commonly get when getting EIC or CTC: School records Vaccination records Insurance records or cards So I am getting insurance records or cards already why not send a complete return which will stand no matter where ACA goes?

They don't need to get a local number, your caller ID is fooled and it is provided with any number they want. If you get one of those, keep them in the loop and tell them you are busy and open a police report. I know the police takes it time but if EVERYBODY thought that, the police or FBI would never crack a case.

That standard deduction will reduce our "30% of the population" to 20%. Believe me if the software companies segment their software like quick books does, AND the new standard deduction is approved, I will be on the street with the Liberty costumes make 10 bucks per hour. The only one that can save us is the IRS if they say: ONLY EAs, CPAs and Attorneys can prepare taxes for a fee. (Of course Congress has to approve that IRS requirement)

I love how we say that they need us because when they make mistakes they come to us. Yes, in the near future we are going to deal with "the dumbest 30% of the population" that will stay with us (by default or definition) plus the 2 percent that made a mistake and they humble to us and we will make a point out of them that no one should use the software. Just because we get 10 people who made mistakes, we think everybody made mistakes. I bet you that the percentage that made mistakes and come to us for help is less than 2 percent of the free filers. Why don't we embrace the idea that technology is going to compete with us? The big companies know that and HR for example is free filing in order to get future clients because they know software companies such as turbo tax are making a lot of money. The problem with the software companies is that they are using "one size fits all" but as they learn the market they will make cheaper products with less forms. Can you imagine a software package that cost 9.99 and 20 million people buy it. If that size is not big for you, you move to the 14.99 package? Let me go back to my client, since it is an easy form and he is texting I was able to answer this so that I least he stays with me for 30 minutes.

My local CVS had 4 cashiers at any time. When they were told that machines were going to do their jobs, they laughed. Today, there is only 1 cashier and about 6 machines and there is no more lines waiting for cashiers. At the airport, there are about 50 machines doing someone's job. I agree that we are going to be servicing "the dumbest 30% of the population" and then we are going to runt because they are so stupid.

Good idea. Let's be optimistic until the big software companies take our clients. Of course we are going to keep our complicated returns or business clients but the easy ones will fly away. Clients can print their returns on paper or save them on a jump drive in PDF formats or they can simply pick up the phones and say a few words to a machine and a week later have the tax return on their mailboxes from the IRS. I love to prepare easy returns while the TP is on the smart phone texting and chatting with their friends.

I love when codes use the hexadecimal alphabet.

The future is around the corner. This will be the advertisement in the NEAR future. TURBO TAX IS HAPPY TO ANNOUNCE... BUY ONLY WHAT YOU NEED AND DOWNLOAD IT NOW!!!!!!!! Do you have only W-2 form(s)? if yes, your package will cost you 9.99 with free efile and will include form 1040 with W-2s inputs. Do you have w-2 and 1099? if yes, your package will cost you 14.99 with free efile. Your package will include all of the above and more. Did you collect unemployment last year? if yes, your package will cost you 19.99 with free efile. Your package will include all of the above and more. Do you have 1099 as a contractor? if yes, your package will cost you 19.99 with free efile. Your package will include all of the above and more. Do you have a mortgage on you primary or secondary? Your package will cost 24.99 with free efile. Your package will include all of the above and more. Did you attend a university last year and paid with loans or out of pocket, your package will cost 34.99 with free efile. Your package will include all of the above and more. Do you have your own business or rental properties or investments accounts other than 401Ks or IRAs? if yes, your package will include none of the above and you should contact our experts at 1-800-MYTURBO or email our experts at [email protected]

It will work the same way it works when you can not read the amounts in box 1 or 2. I ask people to upgrade their iPhones or take a better picture.

I meant for the IRS to force that box on ALL W2 just like the social security number or the name. So if the IRS enforces o it on the W-2 creators, then all W-2 will have it. Then they will for the ERO Transmitters to require that code just as they require a SS#. I am glad to hear that all round characters are zeros. 0/O or 00/OO, one is skinner than the other. 0FD32 and OFD32 are different. Believe that code enforcement is coming down the pipe unless not even 1 identity theft occurs this year.

Uber drivers don't receive cash fares from clients. MAYBE an extra tip here and there.

Christian is right. Don't underestimate the power of computing. Soon it will be a program that will ask the same questions I ask my clients. How many W2s do you have? How many 1099s forms do you have? Did you collect unemployment? Do you attend a university? do you have any children? Do you have anything other tax forms? A LOT of people will answer question 1 with a 2 or 3 forms and maybe 1 to the second question. At that point the program will open 1040, w-2 and 1099 input sheets and will not ask more questions. It will complete 1040 and efile it. That's what I call competition. HR is anticipating that and now it offers free filing for a lot of people. The future is only a couple of years away.

We will never forget to enter it once they implement and force software companies to require it when efiling. I think it is a good idea and I am entering them if available. I am also entering Driver's license information. I know this is not required now, but it is coming down the pipe. I think both are good ideas and I like to see them implemented. I have used the same PIN ever since I started my first efile and I have been asking for school records and medical records for dependents for several years.

If you got 1099SA in January 2016, then you should include it on the join return they filed for 2015. (I think)