Pacun

Someone brought a good point about stopping identification theft. I used to select that the client entered its own pin and I used to enter the previous MAGI. When people amended returns, I used to get a few rejections from the IRS and I would make the adjustment and that didn't bother me. I always didn't follow ATX's suggestion to use ERO entered but this year I got about 3 rejections in a row and all of them because I was using that the taxpayer was entering its own PIN, so I stopped doing that and now I (ERO) enter the PIN and I don't get any rejections. Why does the IRS doesn't take out that ERO choice and force people to enter their own PIN and enter their prior MAGI? This practice, as someone pointed out on another post, will eliminate at least 80% of returns filed by someone else. ON another subject, before the IRS required to efile all returns, I was doing it. I also have used ONLY one ERO's pin for ALL the returns I have prepared in the past 10 years. If I am not mistaken, that's a requirement now or in the future. I anticipate that the IRS will require prior year's MAGI in the near future to stop identity theft and this time I will not be ready because I just changed my modus operandi this year after 3 rejections in one shipment.

Terry is correct and I believe it will be worth it for her to claim them depending on her income. For sure, she will benefit to claim her child because that will make her HOH. That's a given and a no brainer if she made more than $12K and she doesn't itemize deductions. So she will befit by claiming him as soon as she has 1K or more in taxable income. For the other person, if she provided more than 50% of his support and lived with her the whole 2014 (which you already said yes to both), you have to do the math. There must be an equilibrium based on her salary. I am tired right now but let's see if I can come up with a number. Let's say that she is HOH on the 25% bracket. So claiming him will save her about 1K. If on the other hand she is in a higher bracket, she could save about $1,500. So not claiming him will be a good idea only if she made more than $163K or if she only has 1K in taxable income which will mean she made little money. I am really tired today so help a dead horse, don't beat him if he made a math mistake from the top of his head.

Imagine a perfect world... you have the most organized client and you got his 12 months bank statements and you entered all the information on QuickBooks yourself and there are no "ask my accountant" entries. You are now ready to prepare his schedule C, besides a trial balance and profit or loss, what reports do you print for a client without depreciation items?

I think you are right and I think another idiot made that request a few years ago. That other idiot being me!!! I think I need a break.

I like your answer and I will add: Since your client invited you to the seminar, I would tell your client that you are not interested to go to the seminars but you would love to be his accountant if he starts making a lot of money as promised. I bet you that if you ask him, "when people start making good money?", he will say, "max 3 three years". Then tell him that he will NOT be able to deduct his losses this year but if he starts making real money within three years, you will amend his return from hobby to a real business venture and all his loses will be accounted for.

I have not looked around to see if I am doing something wrong but when I search for LLC, I get a message that I need at least 4 characters. It would be nice to be able to search for DC and get all postings referring to DC as the "state" not Dc or dc.

When I donate, I do it directly to people because I want that each penny is used by the person that needs the money not to help pay the big salaries for the executives of United Way and other organizations. Some of these executives already have air planes and more. It is nice to see how happy children and adult feel when you give them $20 in poor countries. That smile is worth it more than any tax deduction I can get. In any event, you donate because you want to feel good not because it will be tax deductible.

Ask them to stop donating and they will save 6K. Those 6K can go to max his 401K or pay their tax bill. I wonder what a financial advisor will suggest to these people. I wish to have those issues of not being able to claim child tax credit.

They are referring to a social security number or ITIN, not to the pin entered to identify the efiling signature. Follow Jack's instructions at once.

sort by SS number to make sure that it is not there. Also check for hidden returns by your mistake or by display space.

Yes, their only sin this year was to work toooooo hard. Especially the one that made almost 5K.

If it is nominal amounts, why don't you do what the other preparer did? Materiality still exists.

Correct. They don't meet the income test. Corrections are useful.

They made too much money. They have to claim themselves.

We are saying exactly the same thing.

Buy a new computer. It seems your computer is infected with malware or is old.

I think whoever has the right to claim the exemption is hit with the insurance penalty whether or not they claim the child. This is funny... an example they put on the test is that the mother who signs the release form has to pay the penalty if the other parent decides not to claim the child. How can you calculate the penalty on a child that is not on your return? I couldn't select exemption C on form 1095 for a client who was requesting an ITIN because they computer couldn't select it because it didn't have a social or ITI number. This person was a dependent on the return and I couldn't.. .how about a child that is not mentioned on the return?

Have had anyone that can use his medical expenses after the 10% floor? It was hard to surpass the 7.5% floor and now with the new floor, that deductions is almost gone.

I rather have your client than the ones that makes 17K and brings a bunch of receipts from CVS and Rite Aid. This reminded me about a new posting.

I always thought and think that the main home of the child has to be in the US for at least 6 months. No Mexico, Canada or any other country.

I get emails (my Hotmail account sends them to spam) from 1040promos and I wonder if some of you have used their services. I would be interested in getting my EA diploma enlarged in a frame. Have you used their services and do you think it is worth it?

7% is not bad. Keep in mind that a couple of dollars here and there as expenses on that 1099, will help reduce that 7% or 7.65%.

Make sure you are selecting Roth IRA, not regular IRA.

Do you really need to amend. I thought this was a yearly event so you can wait to make the election next year.

Be careful because while she can claim her child as a dependent based on the nights slept at her home, claiming HOH is a completely different ball game. Remember that education and health insurance (which is paid by ex) is considered when calculating HOH for her. Since the child is in college, they both could count that time as temporary absence. Sometimes not rocking the boat is the best you can do for your client.