MsTabbyKats

Clients can get colored pencils and add check marks ......so I'm gonna start putting my initials on documents.

But, to inflate the exclusion means you would have to raise the foreign income...which would be a wash. And there is a limit to the exclusion.

In addition the foreign tax credit is based on a percentage .....and very unfair to the tax payer.

My real point is that I can't see 26 returns generating over a million dollars in losses.

I'm kind of confused.

I don't see how inflating a foreign earned income exclusion could generate a refund.

Also...26 returns was over a million dollar loss?

Something doesn't sound right.

If the 1099 is issued to her....he cannot take a deduction. It's not his income.

Line 21....other income

DH got a tiny tiny increase. Also...might get him a cup of coffee.

But...his current wages are probably more than his prior to retirement wages.

OP

Sounds like you run an H&R....or JH.....where the customers come in for simple returns and big refunds. You don't build relationships...you focus on turnover.

This isn't what most of us are about. I do everything myself. Some of my more complex returns are quicker than some of the simple ones, where I have to do explaining and/or hand holding. That's because I focus on the person and what that person needs. I don't want the "one shot" deals.

Associate

I have Norton anti-virus.

I had them delete "something" 3 times. It would be deleted .....than come back a few weeks later.

Finally....one of the advanced techs at Norton found that it was something set to reinstall monthly.

So far...so good.....about 6 months now.

Joan, that sounds like you've picked up some adware or malware.

Yeah....I was getting them when I had a "recurring" adware. It wasn't as significant on other sites .

So true.....

Late filing penalties are based on the tax due, so if there's no tax due then there is no penalty.

If her income is clearly below the filing threshold then she has nothing to worry about.

However, if there are any ambiguities and there is any chance that she might owe tax in any significant, then the SOL has never started and it never will until she files.

Any chance she needed to file a FBAR?

No chance of FBAR....she has $50 in the bank. I'm sure she doesn't owe income tax. Her income was wages of $35,000. I'm just concerned that there's some kind of late fee for people living abroad. I can't find any references...but maybe someone knows something I'm unaware of.

Client is a dual US-British citizen, and has lived over there since 2008. That year and 2009 were filed timely. Her income is well below "the exclusion".. So, no tax due.

Now she just woke up and wants to file 2010. But...is there any late filing fee for this?

Note...she only contacted me because her friend got an $800 refund and she wants hers also. When I told her she wouldn't be getting any money, she said she didn't want to file....and I told her that she was supposed to, and there could be consequences in the future.

If there is any chance of some late fee...I'd rather pass on this one.

It is amazing how little we know on some areas and yet we use strong words such as illegal aliens when we refer to our clients, but that's another subject. An ITIN is for a person who crossed the border, got a towel, got himself dried and started working without the proper documentation and wants to file his/her taxes.

Going back to the question at hand, this is what you need to do. First, limit yourself to prepare their taxes geting them the biggest refund legally possible or reducing their tax liablity as much as it is legally possible. If they want immigration advice, they will consult their immingration attorney.

We know that not paying child support will not prevent you from claiming the child's exemption in 2013 as long as the child lived with him in the same household more than 183 nights. So you need to file as single for 2013 and if he qualifies, he can claim the child and if he further qualifies he can file as HoH.

In 2014, they are both your clients and you can talk to them about the fact that if they are getting a refund, it will be redirected to cover his child support if he is not current. The wife and him have only two choices to file: MFS or MFJ. You will file 1040 all along.

If you they decide to file jointly, you list her first on the return and list the husband second with his ITIN. Since he has been here in the US, you do't have to do anything special. 99% of these people file jointly because that helps to prove that their marriage is a bone fide marriage but that something that is beyond our scope.

If they decide to file MFS, then you will prepare 2 1040 and that's it.

Sorry....but IRS is very strict about giving out ITIN numbers. There is no way a truly illegal could get one. You need a valid visa. There's more to this saga than we know.

I think that you are on the right track, Michael. 1040NR is for non-resident aliens, and while he was not here legally he was resident. I think that they could file MFJ for 2014, but if it doesn't make very much difference I would probably protect her by doing MFS.

They need to file joint if he is trying to become a citizen.

Maybe I'm slow today.

The wife is American...so she filed a return for 2013.

He is not American..is here illegally but has an ITIN number.

If he was here illegally...he did not qualify for an ITIN number. What I am thinking is that he was married previously to another American and they filed jointly...and he got an ITIN based on that.

In any case...I'd do a 1040 for 2013...when he was single. Simple as that..........

However...I think a lot of this story is missing. You don't go from illegal status to citizen status immediately because you married a citizen. I think there is a 5 year (or something like that) process.

You definitely need to know residency and visa status as of 31/12/2013.

At least you know filing status :-) .... I doubt he'll be able to claim dependent.

There is no such "illegal alien" when talking about collecting taxes by the Federal agencies ..... Treated as a citizen of the country on a general basis and that's it

I would assume baby momma claims the child as a dependent.

Just do it the simple way....a 1040....no questions asked.

If he comes back to you for 2014....do a MFS for him..with NRA written in the SS box for her. Since she doesn't have a valid visa...there is no way she qualifies for an ITIN with the current situation.

Or...tell him to pay his child support....and become a citizen.

he has an itin. To answer Ms. Tabby. My client married an illegal alien in 2014. Turns out he didn't file any return for 2013 when he was single. Now he wants to file while he is applying for citizenship. He has no visa to be here that I know of. Just to make things more interesting, he has a child from a prior marriage that is a US citizen and owes back child support that seems to be the major road block to his citizenship.

For 2013 I'd do a regular 1040. I guess he can't take the child as a dependent.

For 2014 he can't apply for an ITIN for his illegal wife because he doesn't have a social security number himself. However...you don't need to be a citizen to get the SS number. Maybe he somehow could qualify for one.

Maybe he should divorce the illegal....and marry his baby momma. It would make his tax return & quest for citizenship so much easier.

It's NOT an NR...

It's a regular 1040, (unless he was here on a J1 or F1...which I doubt).

Wait...who is the client? Someone legal who married an illegal? And who is applying for citizenship?

My answer was based on someone who was here legally... and wants to file for 2013.

If it's the illegal person who wants to file...I don't think he can...without a social security number

I charge based on what has to be done. In this case ....did you recommend the amendment? Did you do the originals for both? If so...they may wonder why you didn't recommend this before...so I wouldn't go overboard.

I called TRX to ask. So, the rep told me I could install from the CD...but I couldn't get the updates because Red Gesr is no longer in existence.

It'll be easier to just buy TaxAct if necessary.

I should have asked that rep how his tax season went....lol.

I used TRX for 2011 returns. As I recall, I have a CD...and updates were automatically downloaded.

If I install the program using the CD...Will it automatically update?

Do you think tech support would be of assistance?

I have all the returns saved as PDF ....so it might be easier to just buy the 2011 TaxAct...and re-do if I need to amend.

Any thoughts.....

I just read the 2014 complaints.

I'm scratching my head about people who used them this year...after the 2013 disaster.

I am SO glad I went back tonTaxAct.

Thanks for the ideas.

My husband might want to do pick-ups/deliveries....and other errands .....just to get out of the apt.

We really don't need the $$$ (another reason for my low rate)...and my business was just supposed to be a hobby. But, it became a very successful hobby. I'd like to maintain it as an income generating hobby.

Or...we just may go to a warm climate....and I'll do everything remotely.

So my Sch.C guy told me one of the reasons he files at the last minute is he believes it lowers his chances of an Audit.

What do you think?

Make him feel smart by agreeing with him....but point out random audits.

Personally....I think that's an old wives tale....carried over from the days of paper returns.