Janitor Bob

I also added a business rider to my policy.

This is less of a tax preparation question and more tax planning...but over my head regardless. Client's company is down-sizing and offering some employees a lump sum severance pay equal to 33 months salary to quit. My client has asked me if their is any way to avoid paying Federal taxes on that entire lump sum if he accepts...as it will put him in the highest possible tax bracket for 2015 compared to a lower bracket if that pay were spread over years as it normally would be. Client has already put maximum amount into his retirement account for 2015. Any ideas?

I really try not to judge...I can't know all of the sad/gory details of clients' lives and don't want to. However, when a client quits her two part-time jobs at the same time in 2014 because she has hit what she terms "the EIC sweet spot"...sits on her butt the remainder of the year being lazy (her words), chooses not to get insurance (even though subsidy would pay for almost all of it). gets sick and wants sympathy for not having health coverage and instead having big medical bills....then complains to me because her EIC and refund are not higher and how "that damn hospital" won't cut her a break on the bills. Her rent is subsidized through a county agency. She gets WIC (food stamp/card) and child support. Is mentally and physically able to work, but just chooses not to. Bitches to me for 10 minutes about how the government does nothing for her her refund is almost 25 times what she paid in. I need scotch

Jack, I'm on the list (AFSP) and likely within 250 miles of you....hmmm funny thing, though...If I search my zip code with 5,10, or 100 miles, I show up as 0 miles away (as I should)....but if I expand search distance to within 250 miles, I do not show up at all.

The only time I have had problems with the program is a few times I have tried to copy and paste. On occasion, doing so causes the program to experience an "unexpected error" and close.

Client gave me a separate stack of receipts for business meals where she took clients out to lunch...I will give her 50% of these...just not the meals for herself since she did not stay overnight.

What Lynn said...I have never had a problem e-filing any...and unfortuantely, have had quite a few.

Thanks MAMalady...That is what I was thinking.

Same feeling a barely staying afloat here...I just tell clients to be patient. Fortunately, I do not (yet) have any 3115...but the ACA (1065-As, 8962s, and 8965s) is increasing the time I spend on a lot of returns.

Am I correct in that non DOT workers can deduct 50% of the cost of meals when away from home on business...but ONLY if the trip is over-night? I have a client who travels from her tax home every day to clean offices, libraries, gyms, etc. She has given me a stack of meal receipts...but she is never gone over-night. She cleans at night, so technically she leaves on day (before midnight) and comes home the next day (after midnight), but she is only gone 8-10 hours each trip (to clean) and then returns home. Meals not deductible?

Everybody here is so smart! I even hesitate to contribute at times because I fear looking ignorant among the other posts.

Mother originally owned the home and lived in it. many years ago mother moved to assisted care facility and daughter/client and her husband moved into her house...lived there and assumed payments on the mortgage and all upkeep of the home. two years ago, mother passed away....daughter/client is was only living relative and everything went to daughter/client....but house, for some reason, is still in deceased mother's name. Attorney said "No need to change it" daughter/client and her husband still live in the home and make payments on the mortgage.

Line 11...so no matching issues

Interesting...This makes me want to allow the interest deduction. I'd love to hear other opinions on this taking into consideration above cited case.

Client lives in a home and pays the mortgage and all of the interest, but the mortgage is ONLY in the client's mother's name. I am assuming that this means ONLY the client's mother (not the client) can claim the mortgage interest paid on Sch A? It will not help the mother, but would help my client.

That's what I did...thanks for affirming.

Unmarried clients live together all of 2014 with their child. He made $49,000. She made $21,000. EIC will not help him, but will get her a large refund. Can they decide who gets to claim the child for HOH/EITC/CTC or does it need to be him since (based on incomes) he likely provided more than half the support for the household?

The Retirement Income Credit is not calculating properly on the worksheet for OH IT-1040 Line 39b. On the worksheet, the cell for "Combined Years" is not auto-calculating....I had to override and enter the total years of service in order to get the credit to calculate. I also posted this on the ATX community board in hopes that Kristin at ATX will see and address

I've heard a few Federal Refunds that took 7 days

I would say last 6 months of 2014 and a document that shows the filing date...because that document would prove that bankruptcy was filed in last 6 months of the year.

That is what I got from following the steps in detail...Just for some reason, I was thinking that this amount ($172 in this case) was the penalty EACH MONTH.

57 year old client had insurance all year, but did not have any coverage during the year for her 41-year old dependent son. Household income is $30,227. Does a total penalty of $172 seem right? why was I thinking it would be this much EACH MONTH?

Yup.....26.2 miles....Why? I don't really know...But The Columbus Marathon will be my next life challenge....assuming I get past this tax season!

My client (Age 60) has self-only coverage all year through her employer. She claims her 41-year old son as a dependent because he lives with her, but has zero income. The son does not have health coverage at all in 2014. I assume client will pay penalty unless an exemption applies? Also...in determining if coverage was un-affordable (Exemption A), would I just use the marketplace price of the bronze plan for the 41-year old son?

I feel I have put up a valiant effort for my client...I always want to make them happy...but more importantly I want to prepare their taxes correctly. After reviewing all the publications and regulations in depth and getting opinions here and elsewhere, I am back to my original opinion...MFS with no EIC. I just don't think I will sleep well preparing a return that I do not believe would stand up to IRS audit/scrutiny....and the penalties for me and client are too great when it comes to EIC. I got the client to understand that the absence is due to military service and thus nullifies the exception....she just has a problem with the term "temporary"...because in her words "it's not temporary, its for almost 1-1/2 years because he will be stationed there until 10/15/16". But it is not forever...this temporary. Thanks again to all on here for helping me through this....Your combined wisdom and knowledge is both valuable and humbling.