Pacun

If the parents don't claim the exception, then the family member (same household) with the highest income can get not only the exception but also EIC, provided that the relationship with the in-laws was excellent and the relative lived in both houses.

UNLESS the other spouse went and said "I lived apart from my spouse since June and I upkept a home my for son/daughter ever since". What would you do as a preparer? I would follow the rules and file and HH.

Yes, there is an obscurity on the fact that if your spouse left you for the last 7 months but only came back to visit you for thanksgiving and slept in the same bed for three days, tax payers forget that little detail and they don't mention Thanksgiving to their tax preparer.

"loophole" noun 1. a small or narrow opening, as in a wall, for looking through, for admitting light and air, or, particularly in a fortification, for the discharge of missiles against an enemy outside. 2. an opening or aperture. 3. a means of escape or evasion; a means or opportunity of evading a rule, law, etc.: "

I agree we should be tested. Currently, what do you need for a lemonade stand: 1. A container with something to stir 2. Sugar 3. Water 4. Glasses 5 Stand 6. Change Currently, what do you need to prepare taxes: 1.- Computer with software 2.- Printer 3.- paper 4.- folder or envelopes 5.- Desk 6.- PTIN (I have seen many returns prepared by paid preparers without signature or ITIN). There two differences between the two people attending: One is older and the other one is much younger. One is stressed and sometimes rude and the other is relaxed and happy with the few bucks he/she will make.

I think the biggest loophole I see exploited are: Married people who file single or HH in order to get EIC. If I were the IRS, I would not have "you are considered unmarried if you didn't live with your spouse in the last 6 months of the year". I would said: If you are married on Dec 31, you have ONLY two choices: MFJ or MFS period. Share other loop holes.

I think all states were taken advantage of in the past and now they are checking a bit more. Keep in mind that starting next tax season the IRS will have two types of returns: Simple ones and refunds will be issues with no delays AND the ones that include EIC and education credits, which will be automatically delayed.

I would listed them on Line 21 with "Taxable Scholarship", no SE.

ONLY your own children (son and daughters) can make more than $4K for 2015, correct? (if they are under 19 or under 24 and full time student).

I was trying to find a post with a prediction that I made a few years back and I couldn't find it. I wonder how far we can search. I was looking for "I predict", "Maryland will go" "Maryland will file" and I couldn't find my post. If any one find my comments from a while ago, please link it or let me know. In any event, I few years ago, I said that Maryland was very relaxed with EIC and with other credits on their returns. They were accepting efile returns without checking if a federal return was filed. People were claiming dependents without or fake social security numbers (just to mention a few). I said something like "if Maryland doesn't change, that state will file for Bankruptcy in the near future". Today I was so happy to see the Comptroller on my local channel (I live in DC), he was talking about how Maryland is blocking certain preparers, especially Liberty Tax. We have discussed the Liberty Tax blockage here on this forum and I am happy that Maryland is moving in the right direction. I have also noticed that DC and VA are also questioning some returns and they are asking for last pay check stub and copies of W-2 to match withholdings when efiled.

If father files with the baby, father will win and your client will qualified only for HH (if she otherwise qualifies) but will not be able to claim the exception. Father can go to SS office to get the social security number of his son because he misplaced it. (He misplaced it by leaving it near some people).

1. Client and granddaughter have lived together in the grandmother's home for all of 2015. 1.- My client and granddaughter lived together in 2015. 2. Granddaughter gives birth to a daughter in July of 2015 who obviously also lives with grandmother. 2.- Granddaughter gives birth to a daughter in July of 2015 who obviously also lives with my client. 3. Granddaughter gets married in July of 2015. 4. Husband and granddaughter and great granddaughter live with grandmother for the remainder of 2015. 4. Husband and granddaughter and great granddaughter live with my client for the remainder of 2015. 5. In January 2016, husband and baby's father splits. 5. In January 2016, newly weded couple splits. If the bold statements above are correct, I think this is the situation: Without knowing the income of the husband, I am not sure if your client can claim granddaughter as a dependent. She should be able to claim the just born baby as a dependent and qualify for EIC. I would have to consider support to make her HH.

Ignore 1095-c and husband completely. Deal ONLY with 1095-A by entering the numbers and you should be OK. (DO NOT check the box on 1040 even though they had insurance all year)

You should read the case about the lawyer who rolled over a few IRAs and a few times. Each time the IRS charged him penalty for the distribution. Lawyer took the case to tax court and the IRS won.

You are entering the W-2 as it is, correct? On the 1040 please use the name and number as it appears on the ITIN letter from the IRS. Keep in mind that depending on how the IRS interpreted the name, you could have this variation. It is common for us to have two last names. So with that in mind. Joseph Diaz Balart consists of one first name and two last names. BUT if the person issuing the ITIN used Joseph Diaz as first names, you will get an error if you efile 1040 with the correct last names Diaz Balart. When the IRS makes that mistake, you have to file as Joseph D Balart. Please note that D becomes the middle initial for middle nameless person. You can also file as Joseph Balart without middle initial and you should be OK.

Yes we are still bleeding from 2012.

I know of the case of a lawyer that was penalized by the IRS because he rolled over too many IRAS within 12 months. I have a client who had about 4 IRAS, in October 2015, he open a new IRA, deposited 5,500 on the new IRA and rolled over the other 4 IRAs (same bank) to the new one. Questions: He should get 1099-R with code G from the bank, correct? Is he going to be penalized as the lawyer for rolling over more than 1 IRA within 12 months? Thank you.

I installed. No problems so far.

That's correct. Ironically, that person has stronger chances that Rita's return be audited than 2012, 2013, 2014. This is the main problem, decent preparer's return have the same chances of being audited than crook preparers'. How many times have you gotten a new client that walks away when you tell him/her that this year he/she is not getting a refund and that they should amend the previous year and return that money? In my case it is about 99.99%.

Do this year correctly since s/he hired you for that. Let the client know that you can amend but s/he will have to return money to the IRS. Do you really think the client will pay you $1000 so you can help him/her to return money to the IRS? According to the user, 2014 and 2013 are a done deal and maybe he/she is right. I have had clients going for 12 years to those preparers and they have never being audited. I just let them know the consequences of their actions and I prepare the current year correctly. 99% of my clients don't want me to amend and return money.

If the taxpayer qualifies for the unaffordable exception, they don't any effort on their part. The unaffordability is calculated at the end of the year when they have all income together. During the year, they only have a crystal ball.

Can someone share part of that post on this board?

If they don't have children, only two choices: MFJ or MFS

EVA, thank you. The rules were changed about a month ago by Congress. NO AMENDMENTS to claim EIC.

Don't forget to add form 8879??? to each return. I think JohnH gave you the best advice.