Pacun

John, How can you as my tax preparer verify if I am married? If I bring my only W-2 as single, I say I am not married, I tell you I live with my girlfriend and I have a child and I use the standard deduction. Oops, for a moment I forgot that my name was Brad Pitt. Gail, then the IRS will not have a chance to prove you are married even with Obama care. Maybe you have properties together with your husband and a 1098 forms gets to the IRS listing both names and someone at the IRS physically reads it.

The only problem I see here is that (in an effort to control fraud), the IRS programmed their computers to do a strict address match from that of record. So, any discrepancy triggered a letter. Why we don't see this on regular 1040s? Because the computers are programmed to do nothing if they see a change of address. So if I file my taxes with St, Str, Street, it takes my last combination as my current address and it keeps quiet. When I see my credit report it says: Addresses you have used: 123 Main Street 123 Main Street. 123 Main St 123 Main St. 123 Main Str 123 Main Str. and they give me all the addresses I have used. For the computer, each address is different and if that computer (trying to avoid fraud) is programmed to send me a letter stating "You changed your address", I will get a letter each time I move from one combination to the other even if they are already in record. In a prefect world, or for the human eye, all those addresses are the same. My credit report also has my employers as: Chipotle Chipotle corp Chipotle Corporation Chipotle, Inc Chipotle Inc Chipotle company and sipote My point is that we need to start working a little hard and standardize our company, address and names when we fill out any forms.

That's an input error. I live on NNNN Massachusetts Avenue NW Apartment A343C. When I first moved, I was using a combinations of abbreviations and complete address until some mail was not delivered because it didn't fit on one line and my apt number was truncated. Ever since, I use NNNN Mass Ave NW A343C and when vendors ask me if they should spell out Massachusetts, I say "please don't." Unless you expect the IRS to have computers with artificial intelligence, you should not use a different combination. That's why I love repeating clients which I roll over and the address goes exactly as last year or last report.

In old days, being married was more benefitial taxwise. These days women make about the same amount of money or more, so being married is punished at tax time. So when people tell you they are married, 99.9% of the time they are. As everybody said, the concern is people who are married and they say they are single or HH when you interview them. I am taking out my crystal ball and eventually (may 10 years later) the IRS will go after those people who are married and file Single or HH when they see that they are included in the health insurance plan of their spouse. I am eager for that to happen because as other poster have said, people come to us and say they are single when in reality they are married. A simple math will show how easy it is for people to benefit by saying they are not married. You have a married couple and they come to you and they say they are single. They have no children but they have a house. The husband makes 50K and they own a house. He has a 1098 showing he paid 12K in interest and 3K in RE taxes. You go ahead and file both as single and they get in itemized deduction and standard deduction about 20K. The same couple will only get about 15K of itemized deductions if they file jointly. If they have children and EIC credit is involved, the benefits of lying are even bigger. The only way to stop that is to match when they report get the report from the employers if they can see who has spouses on the health insurance plan. The only other way of solving that issue is for the IRS to have live access to every single marriage and every single divorce in every single state and every single country of the planet. Now you know why people lie... there is no way for the IRS to figure it out but Obama care might provide a tool for the IRS.

I would take it in 2013. My reasoning is based on two facts: 1.- IRS has 1099-T for 2013. As Jack said, 1099-T are meaningless but if you don't have one on record with the IRS for the year you take the credit, you might get a letter. 2.- If you get a student loan, you don't take the credit when you actually pay the loan but rather when you take the class. I know he didn't get a student loan, but I am basing my reasoning on that.

Thank you.

Client was forgiven about 30K by credit card companies. The IRS wants to have worksheets showing that client was insolvent on the year her debts were forgiven. Is there anything in ATX or any worksheet that I can send to the IRS? I think I will also include a letter explaining the situation. My clients makes about 15K each year and has only a car as asset. Thanks in advance.

I would try to call the bank and ask if the deposit was accepted. The bank doesn't have to refuse the deposit by law. So, your client needs to ask the bank or at least inform that a wrong deposit went to one his clients. One time my brother gave me his ex-girl friend's account number by mistake. We sent his taxes and about 30 days later he asked me to check the status of his deposit. I told to go to his bank because the money was deposited. He went to his bank and he was told that no deposit was made. He called again and I checked I gave him the account number and he said that's not my account number. I told him "this bank seems to be Wells fargo". He said, I never had that bank. I said that's the account you gave me. Then he realized he gave me his ex's account. He called her and got his money.

For tax year 2014 you have a high deductible plan for you and your daughter. So you opened an HSA and deposit $6,000 before taxes. You and your daughter don't go to the doctor in 2014. In 2014 you claimed your daughter because as a non-custodial parent the court said that you can claim your daughter on even years and the custodial parent (mother) signed form 8332. In 2015 your daughters goes to the doctor and you have $3K expenses in copayments, prescribed medicines and lab fees. You don't go to the doctor in either year. Can you use the money on your HSA to pay those 3K? How about if you (the father) are the custodial parent but you have signed form 8332 for 2015 so the mother can claim your daughter and you incurred the same $3K in medical expenses?

Same here. I won't be able to save because I have the bare minimum requirement and it costs me about 1.2K.

How many clients do you have? How many states? Unlimited efile?

​How old is the person?

No. It is not earned income because s/he is retired and also it comes from a pension.

I would say yes to all yes questions, but it might be good idea if you tell us the cost of the house, improvements, depreciation allowed or allowable and the selling cost.

Wow.. I think I will be fiing my own taxes real soon next year.

No. You ask them to write down how much they make every month and what expenses they have. If they have bank statements that's even better. Then you prepare their taxes with that information.

Happy retirement and please stay connected to this forum.

Let us know if you get a call from the IRS regarding that form.

"Can anyone here say that they've never made a stupid mistake...especially during "the early years"? Perfect line. I bet you no one will stone us because we all make mistake at all levels.

I also got my training from HR block (after VITA) and it was excellent. I always refer my PITA clients to HR block because of two things: 1.- They will charge them more than me 2.- They might make a mistake but they will never prepare a fraudulent return as many preparers do in my area. HR has good and knowledgeable people working for them but if your return preparation doesn't cost more than $300, your return will not be prepared by those experienced people.

Or you are assuming he is older than 25?

Let's go back to being a happy family after tax season. I am taking my vacation next Friday. A whole week without Internet, TV and news will help me recover.

AND we thought that on April 16th we all were going to be relaxed. lol.

Correct, but I really wonder if you make 5K selling drugs you will qualify for EIC.

I will add "as long as it is from a legal activity".