MsTabbyKats

I would put it in on Line 21...and take it out on Line 21.

I lump....and everything is 12/31.

Except I have one client who has records of dates/amounts....and she wants it all broken down. If I write the wrong date...I have to fix it. It''s generally about 10 donations.

It's a personality thing....not an age thing.

I d put it in.....then take it out as "NIH Grant-Non-Taxable"just to cover all bases.

Anything in writing, IMHO, should be accounted for.....just in case.

Ever since the IRS made the brokers give cost basis...and summarize everything in a few short lines...life is so nice.

Since only the interest is deductible....only a portion of his $2500 will go towards the deduction.

Not good advice.....for multiple reasons.

We just had a client who was told by her large-financial-institution that her 401k distribution was covered under the "financial hardship" wavier for taxes. And yet, the 1099-R arrives and it (1) has federal taxes withheld, and (2) is code "1". So the client insists that we can "do something" about that.  

Did you ask the client what the hardship was?

I don't think the large financial institutions code for a hardship.  That's our job.

http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Hardship-Distributions#2

Yeah, overkill is underrated. I'd send both.

Speaking of last names, I have a couple who've been married 50 years. We discovered thru e-file that IRS still had her maiden name, and SSA had her married name. I could not believe it. Husband got it straightened out spring of 2014. Well, we think. Gonna find out when I submit the 2014 e-file. I told them I didn't think they were even married, and all this time they have been faking on all of us. They got a kick outta that.

LOL....I have a couple...actually parents of a client.  The clients is in her thirties...so the parents have been married a long time.

They have a very long Polish last name.

The first time I e-filed...and it was rejected because of the wife's name. At that time you could call e-file services and "discuss".  I was assuming there was a spelling issue.  The rep said the name wasn't even close.

So...I called the client...and explained the issue.  Since she was married 30+ years....and was very traditional....I figured maybe, at most there was a hyphen there somewhere.  So, I asked her the maiden name.  It was Chinese (she didn't look Asian at all).  It seems she never changed her name with social security.  She gets W-2s under the married name...but e-files under the maiden name.  I have told her...year after year...to go to social security and clear it up...because of tentative issues.

I'm all up to date but:

1. I only do personal returns

2. I am not accepting new clients with "issues" (mostly international things..I tell them I'm phasing out of that area)

3. Absolutely dropping all pitas (and boy, does that feel good)

4. Outsourcing decent clients but who have become complex due to "high income, lots of real estate, AMT etc....in general, returns that would take up too much time and energy.  I tell them that their needs would be better served with someone who had more resources, since I work alone.

Dear Client-

Last year, as you walked out of my apt....you said you were not coming back to me "this year" because I raised your fee for an itemized return/estimated vouchers to $125.  Your income was about $100,000...and you are 85 and single.  You live in an SRO.  You have no expenses. This is NYC you know....nobody but an idiot would let you sit here for an hour...and charge you so little.

So...I decided to drop you.

Anyway...you just called me.  Before you could say another word...I told you "I retired.  I'm not doing tax returns". Then you told me about a company (it's H&R) that will do your return for half the price of last year. Were you going to ask me to do your return for half of $125?  I'm glad I don't have to find out.

Client works for Microsoft and exercised some options.

This is on his 1099-B

The rep at Fidelity told him NOT to use the figures on the 1099-B...but to use the supplemental information...or it would be duplicating income.

Logically....it makes sense.

However....I thought the 1099-B was supposed to reflect everything and not be tampered with.

I don't want the client to get "a letter"....yet I don't want him to overpay.

Anyone else ever "not use the 1099-B"?

Dear Client-

Do you remember 2013, when you asked me to do your return.  And I did it...but you didn't like the results (you owed NY about $200)...so I didn't hear from you again.  That is, until this morning...when you sent me 2 W-2s with a total income of about $70,000....and there was $2000 in federal withholding and about the same for NY.  And to add....your wife did MFS...with a standard deduction.  Why did you get annoyed when I told you that you would have to pay in advance before I would even touch your return?

I have exactly the same thing.  I'm e-filing the extension as "single"...but using the joint amounts.

MFS wouldn't work because you still need a valid number for the spouse.

I always do a non-resident return for the state where there is rental property.  

If this is a Schedule C deduction...as opposed to an A.....you can train for your business.

It's not "a job".  It's your investment.

With TaxAct...after I "submit" I get the "Return Accepted by IRS" notification within 30 seconds.

Stupid question....but how long do they have to live in the house to "not have to pay back the credit"?

Wasn't that in 2007?

But, wouldn't you get tired from standing all day.  It's making my feet ache.

I'm working off 2 computers this year....one in the bedroom and one in the dining room....so I keep running from one to the other.

That's my exercise!

I'm gonna bet he did a 1035 exchange at some point and split the proceeds into 2 annuities.  One was with fully funded with the "untaxed gain" on the original annuity and the other with a combination of previously taxed money/untaxed gain.

But...does it matter?  The 1099-R gives you the taxable amount.

A few years back, at an IRS conference, the speaker said to drop the 20 per cent "bottom feeders" so you can concentrate on the other 80 per cent.

I had to drop someone yesterday...basically I gave her options for getting the paperwork to me. But, nothing other than sitting with me in my apt, was acceptable to her....and that's entirely unacceptable to me..

I probably came across as rude....and I felt a little guilty....but then I remembered the 20 per cent bottom feeder rule.

Moral of the story....cut them loose.

They must call the number.  No other option.  This indicates something afoot with their identity at the IRS.

I just gave her the number on your link.

The one they sent her said to call back tomorrow.

Thanks

Similar type of situation:

Couple got married in 2014.  I did their returns while they were single.  Filing went thru....no problems.

They got a letter from IRS about "verifying identity"...with a phone number to call.  Of course, nobody is there to answer the phone.  She also tried to do it on-line....and it came back "Cannot verify identity".

No..she did not change her name!

Any thoughts?

Taxpayer has always claimed his nieces and parents as dependents.

Nieces lived with him; parents didn't.

Taxpayer is working in China since 2/14...so that income is excluded.

I think the nieces are still here....so they aren't his dependents.

I know parents don't have to live with you....but would they still be considered his dependents?  I can't find the answer in any pub...but I'm also not finding anything that says "Taxpayer must be in US to claim dependent parents who live somewhere else".

He is paying tax on American income.

A lot of forms haven't been sent yet.  I have a huge pile...all waiting for "one more thing...........".

Lion

I have simple thoughts. If you feel uncomfortable ....or think it will complicate your life....walk away.

This one sounds like too many variables....too many potential issues.