Pacun

I have a client who was 59 on March 12, 2014 and quit his job after working full time for 30 years. On 12-23-2013 he quit his job and he had a (one) 401k loan with a balance of 40K. Fidelity sent him a letter on January 15th, 2014 stating that his loan was not paid and that the employer said that he was no longer employed with them. As a result, payroll deductions to pay for the loan was not an option and that full payment should be made within 30 days or the balance was going to be considered a distribution on Feb 14th, 2014. My client didn't pay the balance and therefore a he got a distribution on Feb 14th, 2014 for 40K. On June 17th 2014, he withdrew 10K from his 401k. On October 31st, 2014 he got another distribution for 20K from his 401k. At which time he was 59 and a half. He used all the money to have fun in Orlando, Las Vegas and Atlantic City. How much penalty IF ANY will he pay on his 2014 taxes? Thank you.

Now that you mention it... why do some of you guys have IE set up to automatically update? I was with IE 9 for a while and I now use IE 10. I am not updating until IE 11 matures a bit more. I use IE as my default browser and I am always a bit behind and I use FireFox, the latest and greatest. This is my rule of thumb... I wait 12-18 months to upgrade my OS, and 4-12 months to update IE.

By the way, HRB will become more robust in the years to come because competition is less. Fewer new people start preparing taxes because it is not like before. Before, all you needed was a computer and internet access (not even that if you started in the 80s as I did). In the 80s, you only needed a calculator, a pencil with eraser and a pen. Then you would go to the IRS office and pick up a bunch of pink and blue forms and start preparing a taxes. Oops, sorry... you needed two chairs and a table. These days, you need more than that and new people will have a hard time to venture on their own. So, new comers will have to go and stay a bit longer with HRB before they can open their business. With the extra ACA, new comers are a bit more nervous (even we are), so if you think HRB is becoming weaker, think again. Lets see how much money the president of HRB makes in 2015 for his own and for the company.

Yes, but if you noticed they do it year after year and because of perception and running a tax prep as a business AND a lot of advertisement, HRB gets repeated and new clients every year. People like to be in the "bucket" in repeated occasions and new ones also want to be there. Have you noticed that some people are just good business people? HRB presidents have been good business people for a lot of years. If I recall correctly, the guy that organized HRB later sold his idea to someone and later he also built Hewitt Jackson or so. What a business concept that will stay for a long time... even after we are gone and our families have nothing to do with Tax Prep.

I am glad that I only import data from W-2s and 1099s manually.

You are right. HRB advertise aggressively and the difference is that they run their shop as a real business. I on the other hand, have to beg my partner to spend 10% of our income in advertisement and she only agrees to 2%. America runs on perception and believe me... they think the rookie preparing their taxes at HRB knows more than I do. It is amazing how much the president of HRB makes without touching a 1040 form (we are talking million(s)). BUT again, they run a business and I am a love doctor or family counselor with a lot of sympathy when I listen to my client's stories. I agree, that's not a way to run a business.

Are you using IE 11 on both? Clear your cookies and make sure that "active X filtering" is not checked. For testing, lower the security level for Internet on IE. Don't forget to put back after your testing. Your firewall could be at fault. I normally have a Verizon MiFi with me for laptops to test using a different connection.

Your title is technically correct. If I charge those fees, I will be without clients next year.

Ironically, they don't ask to claim Carmelo but they get red when I mention him.

Someone asked me to give you a translation for Carmelo. By the way Carmelo is a popular word in Spanish and everybody knows the meaning. I will do my best: Carmelo is the lover of the wife while she is married. After the husband finds out the affair, they get separated. The husband pays child support and Carmelo is the one that spends the child support money on his needs.

31. I am paying child support, can I claim my children if they live with the mother? Do I get any credit for all that money I am paying? I usually say "no, because that money is not for your children, it is for Carmelo" I am going to start using another phrase "No because you are not biological father of those children". It really pisses me off because even the hair stylist tells them that child support is not deductible and yet they still ask you that question.

I love these situations because they make this forum hot.

Dependency is correct but no EIC or CTC.

It is the best recommended practice on years prior to 2012 if you just need to get to your clients' returns. What could go wrong if you still have the original computer intact. As a matter of fact transferring the database folder to another computer is the best course of action just in case that computer dies completely. Please install on a second computer and move on. All you need is access to your data and printing. You don't need to manipulate or efile returns for 2011.

Install on another computer and copy the dabase directory from your broken computer to the new install.

What error?

I like this. It sounds like computers are busy and that's why they cannot connect. It happens to me when I open ATX and the computer has not fully boot up. I like your suggestion but Jack thinks it is a Programming issue on ATX.

Happy 2015 for everyone.

More soup to you and no more tequila.

Using or requesting ITINs. Correct.

Was I the only one that clicked on "on time"?

Thank you for the info. I am not registering because that's the main core of the business they will give you (reviewing returns). You do need to recreate the return and even if you had turbo tax, you still need to know where the numbers came from.

Not such an animal yet, but as we get versed on the new subject, believe me it will be here on this forum. As soon as the IRS starts auditing tax returns and starts checking on ACA entries, we will be ready to post a questionnaire.

On average, I only get one tricky research question each year, so I use NATP research group. Every year I get a free question with my membership. I belonged to another association and I posted a question and the answer I got was not accurate. I wrote them back and they corrected. The following year, I didn't renew my membership and I stayed only with NATP. So far the answers I have gotten have been accurate. www.natptax.com

Naveen, I thought Turbo Tax dictated what it is charged to the client. I started enrolling in the program and I was under the impression that they will charge the client and the preparer will get a percentage. Since I charge a low price, I figured the percentage I was going to get from Turbo was going to be higher than what I charge. I am hesitant to continue my enrollment but I will see.