kcjenkins

You are right, that sort of client is often more trouble than they are worth, often they do not follow your advice, or only the parts they like, then blame you when that causes them problems. If you do take on such a client, you want to always start with a high quote on your fees, you can always come down later if they turn out not to be the problem they appeared to be, but it's harder to raise them if they are.

Depends on the situation. If he is totally out of the business, and has converted any remaining assets to personal, I would enter that into the Asset Entry pages so that it removes them. If this happened last year, and you did that, then there should be no assets still in the active status, and you can simply delete the forms this year. If he just made the decision in Jan to shut down, I'd do it this year, and I would leave the asset entry and 4562 in the return for this year. As for the C, I usually decide that based on my knowledge of the client. Some I will go ahead and delete the C, but if I suspect that the client is likely to re-start the business, [you know the type] then I leave the form in the return, just don't print it. If, next year, he's still not back in, then I delete it then. And, of course, the 4562 and Asset Entry can go once I know I don't need them any more. But if there are assets he kept, that were not fully depreciated, I generally keep those forms in the return for a while, because they often sell them in the second year, in my experience, and it is then easy to do the 4797 from those. If they were fully depreciated, of course, it is not needed for basis, but it's still easier.

Isn't that credit one of the 'extenders' that can't yet be efiled?

If you did not suggest she get an EIN, so that she does not need to give out her SSN, you should call her back and do that. Anyone who operates a daycare should have an EIN, especially if they operate out of their home.

At a bare minimum, consider either firing or raising the prices sharply on you bottom [in terms of how you like them as clients] 10% each year. If you lose half of them, and get the higher fees on half, you have the same revenue, but half the aggravation. Do this each year for 5 years, and you should be down to an only slightly smaller client list, but with higher revenue, and most important, a greatly decreased level of stress and aggravation, as it's only about 5% on average, that cause 90% of the stress. You will work happier, and more productively, without that stress, and your bank balance will improve as well. Don't count on it reducing your client list too much, tho, often you will just find time to add some new, better-paying clients in their place. Especially if you ask your 'best' clients for referrals.

Sure, you can use that link to find out the status of ANY form, so it's a good one to bookmark.

Self-select pin was an option the IRS thought might be wanted by clients to 'protect' the t/p from anyone else knowing his pin. But, of course, only the truly paranoid client would care whether you select it or not. You already know everything in his return, and in fact, have a copy of it. As long as you select something easy for him to remember, he's free to change preparers without having to worry about what the last yr's PIN was. And the IRS does not care what the number is. I know some preparers use the clients ZIP code. Some use the first 5 numbers of SS number, some the last 5 of that number. One guy I knows uses 12345 for everyone. And the IRS does not care!

In many states, mine included, you have 30 days or more to pay the sales tax on a new car, so it's not that unusual for someone to buy a car in Dec and pay the sales tax in Jan.

That form does ask you what you have done to attempt to get a correct W-2, so I always at least make one attempt, but often it's a waste of time. Too many people today seem to not be willing to take the time needed to correct errors, it's easier [for them] to just brush it off with "The form is correct." But when the amount is significant to the client, it's worth the effort. But since it will delay the return being processed, you always have to consider whether the difference is worth the effort.

You are correct that in order for it to be excludable as a working condition fringe, it must be on the employer's site. I would guess that this is the case here, as normally if the employer provides housing free it is because they need him to be on-site at odd hours, to deal with problems as they occur. Naturally, that question should be asked, but when maintainace people are provided housing it is almost always on-site.

"Export return' is not the last step when I create an efile. In fact, exporting a return is a method of backing up returns. What sort of return is it you are trying to efile?

Try duplicating the return, then delete the original one, and try again to create the efile. The duplicate should have the latest updated forms, I think.

Alternatively, depending mostly on how much time you have available, you might tell her you would be happy to look it over, but that if you find any errors, you will have to charge her your normal fees. You'd be surprised how often you can find an error that either would cause them problems or that would cost them money. If so, you get a happy client who is reminded that you are worth your fee, and don't really cost them that much, if at all. If not, you still have a happy ex-client, who will come back if things get complicated, and will be more likely to recommend you to her friends.

No, and in today's market, probably no one will complain, because they would rather have a job than lose it over this issue.

Sorry, I was responding to MAS's post about the income. His primary residence would still be his home, in most cases, although it is a matter of intent and details. If he still owns the home, votes there, registers his car there, etc, it would be reasonable that it is still his primary home. The kids going to school where he works does throw a bit of dirt into the picture, however. Did he have to sign them up at that school as living in that town? Do they, in fact, live with him there? Clearly, if this job is temporary, and he plans to continue to live at his 'home' in the other state, then that is still his primary residence.

Then yes, you may use that EIN on the Sch C.

Well, of course, you don't mention how many children, but the max per child is $3000. Next limit is the earned income of the lowest earning spouse. Both have to work, or go to school, to qualify at all. Then there is the tax liability limit. And for the form to work, you have to have entered the qualified expense on the tab for line 1 AND line 2. If you did that, the form will work correctly.

Yes, you are correct, she gets the EIC, if any, but he would get the CTC.

Given the facts you stated, this would not be taxable income to him. Its considered a working conditions fringe benefit, and excluded from W-2 wages. I suggest you read up on this in Pub 15-B.

Yes, it is in accordance with the Code. Lots of things in the code do not make sense, but if it's legal, that is all that counts. She can claim HOH while letting him claim the dependency, and she will still get the EIC, and the CTC, if she qualifies for it.

https://support.atxinc.com/download/formdevelopmentstatus.aspx It says the final version is still pending from the IRS.

And remember, if that PITA client waits until late March to come in, the PITA fee should AT LEAST DOUBLE, maybe triple. And, yes, often when you raise your fees they do appreciate you more.

Yes, you can use the 5329 to correct any mis-coded 1099R.

No, the Sch L is still in existence, but it now covers only certain disaster losses and new motor vehicle taxes,

When it comes to HOH, custody does not mean 'legal custody' which may well be shared 50/50, it means 'physical custody' which the IRS counts as 'nights spent with each'. So one of them always will have more than the other, unless it's a leap year, for sure. And realistically, once the child is in school, one will almost always have a clear lead, since during the school year, that kid is not going to alternate nights, they will be in one house at least 4 and usually 5 nights, even if they spend all the weekends with the other parent. So your question is, where does the child spend the most time? That is the parent who can claim HOH. The other one will still be MFS until they divorce or get a 'legal seperation' through the court system.