Janitor Bob

I'm charging this elderly client $90 total for her 1040 and OH return. All she has is this 1099-B, one 1099-R, 1 W-2, and SSA-1099.

$25 per return. I've already had to purchase several additional states

client brings me a 1099-B...It is 236 pages of transactions. In the end, she only has a gain of $5,700. I plan on making just 4 entries on the 8949 (as opposed to the thousands detailed on the 1099-B. However, I do not have the time or ability to scan 236 pages. Can I just scan the summary page that shows the total gain for the 4 different categories (ST A, ST B, LT A, LT B ) and attach it to the electronically filed return and send a copy of the 1099-B later if requested?

No kids

Thanks...It seems pretty clear, but just checking...this client is very opinionated and knows just enough about taxes to be a pain in my butt. She already informed me via e-mail that she intends on filing as single since she did not live with that "bastard" since last February. He always files as MFS and itemizes deductions...meaning she has to do the same...only she has no deductions (1099-MISC income) so always owes while he gets big refund. According to her, he then he gives her an "allowance" periodically from that refund when she is compliant. I am glad to see she finally moved out, but I do not look forward to telling her she is screwed until she gets that divorce or "decree of separate maintenance"....whatever the heck that is.

client is married at end of 2014 (no children), but moved out and lived apart from husband the last 10 months of the year. no official divorce or separation papers filed. I am assuming only filing options are MFJ or MFS? Seems obvious, but client is going to argue and I want to make sure I am not missing something. Is it any different if official separation agreement (but not divorce decree) had been filed with court?

I also worked through college and paid back student loans for nearly 15 years after graduating. Not paying them was never an option. I borrowed the money and paying it back was the legally and socially/morally the right thing to do. I'm proud to say that I have instilled that same sense of honor and moral character in my daughter who has started repaying her student loans. Don't get me wrong...I'm not saying that this kid/client had a choice...from what he is telling me, the bank was not willing to work with him at all..but it bothers me that he thinks he should be able to walk away from the debt without suffering at all. This sense of entitlement that is common in the younger generation is worrisome.

I have not filed any Sch Es this year, but come to think of it, I have never filed an election with any of my Sch Es...should I have been doing this?

I'm guessing that subsidized loans through the Federal government are probably never forgiven...but they also have much more flexible payment plans. I can only surmise that student loans through private banks (not subsidized by Feds) can be forgiven at the discretion of the bank...much like they would credit card debt. I imagine that Chase looked at this kids income and decided that is was financially more advantageous to write it off. I think they would have gotten much more out of him had they been willing to re-structure or negotiate a lower payment and extend the life of the loan. the kid was willing to pay...had a decent job...but with income of $28,000 annual, I can see why he could not afford their $400/month payment. He told me he offered to pay $200.00/month, but the bank said no...either you pay $400.00/month or you default.

I do not do any business returns...a few small sole props Sch C and a few Sch E Rentals. I am seeing all of the fuss regarding the 3115 and repair regs that I'm kinda scared. Should I be? None of my Sch Cs have any inventory or large expenses or capital assets....Just COGS and misc supply expenses. My Sch Es are just routine taxes, maintenance & utility expenses. I have not done any yet, but they are in the que.

I was wondering the same thing! I do not feel sorry for him....My daughter just graduated college with $39,000 in debt....She will be struggling for many years to pay that off. It was a private student loan through JP Morgan Chase bank. He told me that he informed the bank that he could not make their requested monthly payment. Apparently, the bank refused to lower the monthly payment, so he just stopped paying and told the bank where to stick their loan. Not a bad deal (aside from the effect on his credit)....owe IRS approx. $5,400, but walk away with no debt.

Long-time client arrived much earlier than usual this year...excited to get his part of the billions back. Graduated college 2-years ago. Pretty decent job right out of college...nice young kid with a smile on his face...just sure that he has a decent refund coming his way. Just from his W-2s, I would agree. claiming zero exemptions and having extra Fed tax withheld from each pay is a good start if you're wanting a refund.....but then I come across the 1099-C for cancelled student loan debt....$54,000. Ouch...goodbye refund, hello installment agreement.

Thanks for the reminder Jack. I have informed that client of the situation...waiting to hear from her if hers was one of them.

Agreed...It is the preparer who is to blame...they should be asking more questions....like "hmmm...you are a college student with income of $1,700...Can someone claim you as a dependent?"...But then again, asking questions is not H & R Schmuck's thing.

She was not covered Jan & Feb. I checked the boxes for exemption for those two months (Code G for beginning of year gap in coverage) on the 8965. She was covered through the Marketplace March-August, then no coverage (no exemption) Sept -Dec. She did get a $32 penalty. I completed the information for each month on the 8962 (leaving the annual totals line 11 blank and answering "No" for line 10). This kept generating a refundable premium tax credit I guess its right....monthly premium for SLCSP is $375. Client's monthly contribution amount is $67. The difference each month would be her premium tax credit allowed of $308 (x 6 months coverage = $1848). Her monthly Advance Payment was $138 (x6 =$828)...so I guess the difference of $1,020 is her Net Premium tax credit. She must have over-estimated her income when she applied through the marketplace.

This does not seem right: Client qualified for a Premium tax credit of $1,848. She obtained insurance through the marketplace for 6 months of 2014....using $138 of the advance premium tax credit each month for a total of $828. Even though client chose to not keep the coverage all year, she still gets the unused portion of the tax credit ($1,020) added to her refund? seems like a money-making scheme to me...am I doing something wrong?

It can be tricky, though...you must have the pointer/cursor in just the right spot

Thanks. After posting, I found the spot on the 8606 to enter the inherited basis....That is what I was missing. I have the client contacting the bank today to verify the holding period and detailing what (if any) contributions were made....her subsequent messages to me are leaving me skeptical that the holding period meets the 5-year requirement. This client also took a complete cash distribution from non-spouse inherited IRA of $87,000. Client used the distributions to buy a new car and put a down-payment on a new house. That additional AGI made her ineligible for EIC and AOC for her daughter's education expenses...which she would have been eligible for had she not taken these distributions. She was shocked and upset when I told her she owed appox. $10,000 in taxes (and another $3,000 to Ohio) instead of getting the $3400 refund she got last year. I reminded her that she is lucky she lives in an "earned Income Only" school district or she would have owed them too. I'm so sick of clients doing things with no regard for the tax consequences...not asking me, then getting upset when I deliver bad news. I need scotch....lots of scotch

Client inherited a Roth IRA from her father who passed away in October 2013. Received total distribution in 2014 (1099-R Dist. Code T)...why does ATX think this is taxable? What am I missing? Account was older than 5 years at date of father's death

Thanks...sounds like I'm not doing too bad....as I also refuse to run a quantity-driven tax mill. I was just interested in seeing how others were doing.

I would just include it as other income with an explanation/statement attached.

Any clients dropping off there stuff today will wait two weeks...Is that normal? People/clients seem appalled/shocked when I tell them that. I try to prepare as quickly as I can, but with only a few hours each night after my full-time job, I can only get so many done each night. Hoping to make progress this weekend...stack of at least 30 return on my floor to be done.

I have pointed this out to her...who supposedly informed him....I give up. MFS for her and let chips fall where they may for him.

I have a client that returns every year....he smells like Fritos. Not entirely unpleasant...just very odd

Client gets married in 2014. She has one child in college. In 2013, client was single and had income of $22,000. So this time last year she reaped the benefits of filing HOH, EIC and AOC from her daughter's education expenses. This year, she can only file MFS or MFJ....BUT her husband does not files taxes. In his words "never have...never will". I have no idea what type of income the husband has...my client did tell me that he had several 1099s. Client tried and failed to convince husband to file. He refused...said he would rather go to jail. Client said husband made approx. $15,000 doing odd jobs in 2014 and client only made $10,000 in 2014. So if they did file joint they would get nice EIC and a few thousand for AOC (although injured spouse form might come into play to avoid having it all held for what I assume husband likely owes in back taxes)...but as stated, husband refuses to file. So...Client's only option is to file MFS...and so will not qualify for EIC or any education credits....All she can do is get back what she paid in (approx $300.00). Client can not even apply for financial aid for the daughter because now that they are married, the FAFSA wants to also pull the husband's income tax information...which does not exist. Daughter lived away from home all of 2014 (as a college student)...worked and totally supported herself. Is there any way the daughter can claim herself instead of being claimed on my client/mom's return? between her income and student loans, the daughter totally supported herself.