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  1. Ok I already explained to this client the situation and he was upset. He wants to amend his 1040NR to a 1040. I told him I would not be able to help him do that. I am just wondering, does he have a higher chance of getting audited by doing this? His friend's tax preparer told him that it was more advantageous to file a 1040 and not a 1040NR and that's why his friend filed a 1040 even though he should've filed a 1040NR. It's more advantageous money wise but it's obviously not the right thing to do given that he is not a resident.
  2. I have this client who says he runs a "Aaron's Furniture Rentals type of business", he works with people who don't have credit to buy things, he will buy it for them and then his customers has to pay him usually monthly until the item and his interest and fee are paid off. 2012 was his first year in business and it seems like he did very well on it. Should he do a Schedule C and just report the actual profit he makes? Or does he now have an inventory business?
  3. Can someone please help me. This was the first 1040 NR return I did and I followed Pub. 519 instructions. Client and family (wife and 2 children) came to the U.S. from Spain. Client and wife and 1 daughter have SSN and the other daughter obtained a ITIN number. He just received his refund for significantly less due to them taking away the dependents exemptions and the letter of explanation that he received says that "he only gets to claim one personal exemption for himself". Client says he has a friend with a similar situation as his (got here from Spain at the same time, has a wife and 2 kids) and he was able to receive child tax credits for his children. Can someone shed some light please? Below is the exemption sentence from Pub. 519. Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U.S. citizens. However, nonresident aliens generally can claim only a personal exemption for themselves on their U.S. tax return.
  4. I will make sure to get the cops involved once my client allows it, he didn't want to just yet... I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever. Ugh scamartist!
  5. We called IDOR and they suggested we call the bank and the police (LOL). We then called the bank and filed a dispute. They were very helpful, they are going to give back his money within 10 days. He didn't want to call the police... at least not yet. Thank you to all!!
  6. Last week a client came in saying the State of IL had debited over $1,000 from his account and he didn't owe any money to them. I was just wondering how to go about it first, can we call the State to file a dispute or should we dispute it with the bank? I know for a fact that it's not his debt that the State was trying to get, we believe that his roommate purposely gave out his account number and now the roommate is saying "it's not my issue, my account is paid off and taken care of - I didn't do anything" and doesn't want to pay my client the money. Any suggestions???
  7. I just learned that she is listed in their health insurance - does that matter? Fall semester starts in August but she didn't finish school, she dropped out in November again b/c of health issues...
  8. From what I've been finding, 12 credit hours a semester qualifies you as a FT student? Ugh really, so than in this case, she does not qualify then.... right?
  9. A new client has a daughter who is 19 years old, in Spring of 2012 she enrolled for college (had paid all), but b/c of health issues (anxiety attacks) was hospitalized, she didn't drop out since she was hoping to get out of the hospital and go back to college. As it turns out, the college dropped her by the deadline (2 months later) because she didn't go in (and didn't receive any kind of refund), she went back to college in fall of 2012. Does she still qualify as a full time student? She lived with parents all year, parents provided more than half of the support and if we can include the 2 months that she was enrolled in school, that would equal the 5 month rule in order to be considered full time student. Need help here.. THank you for your help!
  10. Thank you Meribeth, you explained it very well... I will start and see how far I go.
  11. Can someone please guide me as to how to claim a business tax loss from previous years? I have looked into it, but just got more confused with the carrying losses forward/backward... Client had a business in 2009 & 2010, between the 2 years had losses of $55,000, needless to say, he closed down the restaurant, in 2011 and 2012 he had a W2 job and owes money, can we bring some of his losses forward? Also a realtor that has major losses in 2010, he can use those losses in 2012 since his income grew three fold. Thank you everyone for your help, this is my 2nd year in business, I learn so much just in this board!!
  12. Thank you everyone!! I thought so, but just wanted to double check here with you guys!
  13. Is it possible for you as the tax preparer to get the refund direct deposited into your account that you give the refund to the tax payer? I have heard of a local place around me that does that, but I wasn't sure if it was "legal". I had someone come in who didn't have an address, he said he was pretty much homeless, didn't have a bank account or any other form of getting direct deposit, and of coarse didn't have money to pay my fees so in order for him to do his taxes, we needed to apply for the fee collect and fee collect requires a direct deposit, so I'm wondering if I can help him or not?
  14. I have a client who opened up a salon last year and she paid herself a small salary, she already filed her corporate return and now came to me to file her personal. On her personal return do I just include her W7? Or does the ordinary loss from her corporation get transferred to her personal income taxes? She was hoping for a refund since she has dependents but if I need to include the ordinary business loss, than she will be at a loss with no earned income. I appreciate your help!
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