MsTabbyKats

And to add..... I told him to pay me first....and to expect a letter from the IRS asking for the tax plus interest. The NY return included the $21K gain... This is on of my electrical engineer super brain IT people.

Just had to post an e-mail I got! Hi, I filed with TurboTax, but TurboTax apparently have some bugs (I learned my lesson, and I'm never using them again), and my NY efile was rejected (I was with TurboTax support for 1.5 hours and they couldn't figure out what's going on), so I asked if I could cancel the efile that was sent to federal&NJ and they said it's too late. So I told them that I'll submit the NY via an accountant. I want to wait one more day to see that NJ is accepted (currently it's pending, and federal was accepted). Assuming NJ is accepted, could you submit just the NY one that you already prepared? I know it's far from ideal, and I understand that I'm at risk of being audited because the numbers between NY won't match the federal, but I don't see another option. Sorry for the mess (trust me that I suffered enough from that stupid decision to go with TurboTax, and I definitely learned my lesson).

This is how I operate also. I used to let people sit with me in my home....but now that's just reserved for a couple of very old technically challenged ones.

So...a new client.. An options issue...which is why I had some posts about options...and I also called Schwab to make sure I was doing it correctly. According to me he owes $21K. According to his Turbo Tax calculation it's just $16K. Of course it's $5K less if you leave off the $20K short term Box A gain from the Schwab 1099-B. Says he'll pay me anyway........

Fidelity had something on my son's 1099-B. They said to enter it on Part 2...with code A. I know it's long term..so I put D. I called to complain....and they said the IRS had changed the form...or some nonsense...and that revised statements wouldn't be issued. So I put it where I knew it belonged. But the did say Part 2,,,,just with the wrong letter. Just check....and make sure it's 4 days....not a year and 4 days. And put it where it should go, Did they say put it on Part 2...or part 1?

I never understood the"hourly fee". If someone works slow....I should pay more? But if someone "knows what to do...and does it efficiently".....I pay less? I give a price....and then add that this doesn't include unexpected surprises.

Just my opinion....but the loss that they paid him for should be taxed as ordinary income on the W-2....and his actual moving expenses can be up to $21K.

How old is client?

FWIW-H & R etc...have been in business a long time and are making $$$. They probably do mainly simple returns.....and afaik the fee is based on input. I don't think there's much flexibility. From a business perspective...I'd be laughing at me if I were them (meaning a corp exec...not a preparer).

Oh wait....I forgot one. Last year....a giant PITA. There was an issue about his residency...and he got very hostile towards me and accused me of being biased. He fired me....then sent me an apologetic e-mail. Here's last weeks conversation: Him-I'm not sure if I'm giving you my return this year because there's a complication. I got a settlement from my job ( I knew he had been terminated...but no details). Me-What? Him-I got a W-2 with $33,000 and a 1099-misc (box 7) with $77,000. Legal settlements are supposed to be tax free. You can do the return, and then fight it. Me-I prepare tax returns. I don't do any fighting. You have to go back and talk to the person who issued those papers. Him-Can you do the return without the $77,000? Me-Yes...but it would be meaningless as the IRS has you on record for that income. Is this money by any chance back pay? Him-No. How much would the tax be? Me-(not going to tell him about 50 per cent). I don't know. You really need to speak to your settlement lawyer. I don't want to get in the middle of this.

This is retiring by attrition. I took 2 "personal days" this week..and didn't come home to chaos.

I'm going to start off by saying this is a good thing for me...maybe the cosmos heard me complain. I often complained about not liking to do 1040-NRs...at my ridiculously low fee. So I raised it...still low..but not ridiculous. I got 4 inquiries...referrals (who probably heard about my ridiculously low fees)....and no jobs! I also complained about a certain group of clients who flooded me last year because of my comparative low fees....although they could afford to pay a bit more. The flood subsided...I just heard from a couple of them this year (they were early birds last year...I don't think thy are all waiting until the end). My theory is the former preparer offered them a better price this year. Stupid EITC requests....paying mtges with $20,000 interest ....with 3 kids....on incomes of $10,000. From what I understand the business accountant is doing their personal returns. So...although less income for me, no stress.....and more time to concentrate on the people who use me because they like my service....not just my price!

He was overcharged...BUT....some people think that their return is so unique and complex it takes s brain surgeon to do it...and they don't mind the cost. That is....until they realize it's not so complex. I work out of my home too....no overhead....and my fees are low also. The problem is....it becomes hard to raise them to "market", even with new customers who were referrals!

Love it....and think of your increased fee as their penalty

Did you try it this year?

Thanks..... I got my figures directly from the W-2 and 1099-B.

I had one like that...but was an EITC thing. IRS wanted proof about where the kids lived that dad claimed. Since the official address was with mom (school records etc) dad ended up losing the exemptions.

I'm waiting for Tax Act to approve Form 8960 also......and they all owe a lot of money.

Just making sure client isn't double taxed.....and I'm rounding numbers W-2 Box1.... $350,000 Box 12....V....$157,000 1099-B Bought...10/10/12 Sold..02/11/13 Proceeds.....$185,000 Basis......$165,000 Instructed to use short term...check box B So...that's what I did...Scheduled D...short term....$20,000 gain I ask....because I usually have a $0 gain on the B....but I think that's due to selling them on the date exercised. In this case...the price went up during the holding period. Did I did this correctly?

You should also check that you entered the name correctly. Foreign name issues happen.

Have the client call SS....to see exactly how they have her last name. They may have what she thinks is her last name as her middle name.

I don't like to mix business with pleasure. I'm uncomfortable knowing financial details about friends. My usual fee is $XXX....but I'll do it for you for $xxx. It really depends on your relationship with the friend.....and how complex the return is.

Here's what I want to know.... They take their fee from your refund, right. But suppose someone goes there....and surprise, surprise....they owe. I wonder how many pay the fee....and how many walk, never to be seen again?

I've sent a few complainers over to HRB.....they always come back.

Paper returns take too long to assemble!