Janitor Bob

Yes...Catherine...both she and I fully expect innocent spouse rules to apply at some point. She tells me that he brags to her every year about how large his refund is because all of the deductions he takes. I'm not sure if he is really deducting the crazy things he has mentioned to her...but if he is, he's gonna get caught one day.

I say "dominant" because they only arrived together once...many years ago (the first year I did her return). I remember it vividly...he wanted to make sure I was not going to try to review his return. Since MFS, I needed at least his full name, SSN, and to see if he itemized. He was not going to give her a copy of his return, so he came with her to briefly show me his 1040. He would not let her talk, and every time she tried, he would give her this look..it was kinda frightening...and she would cower in the corner. I know the reason she stays with him is that the alternative is to be homeless. She works as I mentioned...and makes enough to survive, but it would be tough if she also had to pay rent....so its a personal choice for her...be comfortable and abused (in my opinion) or scrape by on her own. She did tell me that she is actively looking for a place and will move out when she does.

I get a few of these every year. I explain the situation and requirements as you have done. I then explain to the client that I certainly "can" deduct the items if they insist that they conform to the requirements....but that if ever audited, the IRS, unlike me, will require proof....and if that proof cannot be providedm unpleasant things may happen....and that would be on them...not me....and possibly open the door for IRS to look into other years and/or other parts of the returns....BUT..if they think that risk is worth the small benefit, I will include it on your return....and document the conversation in my notes. In some cases, where the deduction is large, I will copy/paste a section of the regulations onto a statement that client signs indicating that they have read and understand the requirements for the clothing to be deductible and attest that the clothing conforms. Client just last evening came in and the first thing she wanted to do was give me a reciept for her orthotic shoes that she purchased for work...she is an in-home caregiver for elderly. I informed her that that would be a tough deduction to include unless the shoes can only be worn in that work setting and not for everyday wear. "Oh...they can only be worn at work....I can show you"...and she proceeds to point to her feet. "but you're wearing them now and you're not at work..and in fact, just shared that you were late for your appointment because you just came from the grocery". "Oh yes...I guess I can't deduct them"

because she does not know what they are...that type of financial information is his secret....besides...her name is not on the mortgage

yes...for both of them

Thanks! I was not looking for "Other Country"...I looked for "various" and "Multiple" but did not think to look for "other". I knew there had to be a way.

Client has a 20-page 1099-DIV. Well the summary is one page, but the detail is 20 pages of dividend detail. The 1099-DIV includes a small amount ($33) of foreign taxes paid in box 6. The country is listed as various. How do I enter "various" on the 1099-DIV in ATX and how do I enter the date paid when it is dealing with multiple transactions with many different dates? On the ATX 1099-DIV, Box 7 seems to only want to accept a specific country and box 6b only seems to want a date format. In the detail the foreign taxes are spread across multiple countries and dates...hoe do I enter in ATX?

Client actually called IRS last year and talked to a live person. For whatever its worth, they told her the same thing.....If he itemized...regardless of who filed first, her standard deduction would be zero and her only option would be to itemize using whatever few itemized deductions she might have.

Thanks....I read that as well. I have never sent an attachment along with the e-file...Is it difficult?...any more so with larger files? I may just mail it with the 8453.

That's gonna be a huge pdf file.

Agreed Pacun...I mulled this over last year when I considered trying to get her done first. I came to the conclusion that regardless of when she filed, if she filed claiming the normal standard deduction for MFS and got her refund, IRS "could" at some point come back and say "Hey, your spouse itemized, so your deduction should have been zero...give us our refund back...plus some more for interest.

What if the transactions include nondeductible wash sales....Am I still allowed to use a summary method?

repeat client comes to me every year with the same situation...I don't think there is any way to help her, but though I'd explain it here to see if any of you know something I don't: Client and husband are married...have been for many years...although I'm not sure why. He keeps all of his finances separate and secret....He owns the home and pays the property taxes, utilities, etc and gives her an occasional allowance. She works a low-paying part time job and does some Sch C 1099-MISc work on the side. Every year, he files MFS and itemizes deductions. So every year, she has to file the same way...and every years owes in a LOT....In her words, its his way of keeping her down. Is there anything she can do in this case.....It would not be so bad if she did not need to itemize...she would even have a small refund.....but since he itemizes she must as well...and she has only state and local taxes withheld as a deduction. any options for her other than divorce?

RitaB...of course it was....as your posts always are....I'll give you love any day! ....I'm still sleeping in the doghouse tonight aren't I?

surprisingly...all have costs...first time I've seen that as well

This lady does not have that kind of money.....and while a nice fee it would make, I do not have that much time. She also smart enough to know that she could go elsewhere and find someone to do it the cheaper "summary" method I also do not want her to have a heart attack in my office. ...also she always brings me cookies

...and because he meets the 3 exceptions listed in the NJ publication that I mentioned above, he does not need to file a return with NJ....agreed?

OMG...thanks jasdlm and Jack....I've been looking at this a certain way and refusing to look outside my own small view/opinion. They are only living in Kansas because that is where he is stationed.....DUH....they did not just decide on a whim to move there to see Dorothy and Toto. So I guess I would file a Joint KS state return and list his income as not taxable since he is nonresident and get refund of the KS tax that was withheld from spouse's pay I'm assuming there is a non-resident KS form or section of the KS return to state non-resident.

So despite what I found in New Jersey publication...which clearly indicates that he is NOT a NJ resident/domicile for tax purposes, you would list him as a NJ domicile? I assume I would then need to file a NJ state return for him claiming an exemption for wages earned while stationed outside of NJ? This seems like all military personnel could just choose a state with no income tax as their "domicile" and never pay state taxes to anyone regardless of where they live or are stationed. If this is the law,,,fine...but it does not sound right.....and I want to take a position that I can successfully defend if the state of Kansas comes knocking on his door.

Oh...and paid $1,700 in transaction fees.

sorry....client dropped off a 70-page 1099-B..proceeds from sales of stocks Thanks KC...that is exactly what I have done.....just wanted to bounce it off the wise people here. I've never seen this many transaction before...end result is $3,437 Short-Term gain and $1,785 Long-Term gain.

client just dropped off her Sch B...all 70 pages...approx. 1,400 individual transactions. Do I need to enter every single transaction? Can I lump them together by term as Long term gain/loss and short term gain/loss? Page one is just such a summary....could I do that and just enter "various" or "see statement" as the transaction description? 1,400 transactions would take me way more time than what I could possibly recoup from this elderly woman.

Just Reviewed NJ regulations...they are pretty clear on this If you were a resident of NJ prior to joining military (which I'm now told this guy was), he maintains his NJ domicile for tax purposes UNLESS all thee of the below are true: 1) You pay for and maintain a residence in another state............TRUE (KS) 2) You do NOT pay for and maintain a home in NJ....TRUE 3) You did not spend more than 30 days in NJ during the year.....TRUE ....So it looks like I'm back to trying to justify keeping this guy as Ohio for domicile...even though he has absolutely no ties to Ohio...spent no time in Ohio in 2013 and now owns a home in KS anybody help me justify this or is this guy looking at a HUGE KS income tax bill?

Now I find out he's registered to vote in NJ....so maybe NJ really IS his SLR.......Does Kansas have a similar exemption for military pay earned while stationed in Kansas but SLR in another state?

That's just it....It will hurt them to claim Kansas as their SLR.....because if they had remained Ohio residents, he would NOT owe Ohio income tax on military income when stationed outside Ohio.....But it looks like they did, indeed change their SLR to Kansas. Since he is stationed in Kansas and appears to have Kansas as his SLR....I think he s going to owe a BUNCH of taxes to Kansas...as no state taxes were withheld from his pay.