Lion EA

I had an engineer come in with his return prepared each year. I always found something he missed or misunderstood. Eventually, he stopped preparing his return and trusted me to do it. He organizes his information in great spreadsheets. Over the last three days, he's been arguing with me about a 401(c )(4) he belongs to that donates to charities, and why can't he take the donations on his personal return. (Yes, I came here to get input as he argued; it's the one I posted about.) He now believes me and is writing up a paper for his club. He is also a really sweet guy and very intelligent and sent his daughter to me as a client. I also have a banker and his wife who had her own business. Banker is very mellow and laid back. Wife creates amazing documentation by hand. She does question every difference. (One year I got a lower amount for LTC premiums, because of the limitation base on age; she now understands that that number will differ.) She has gone elsewhere to double-check me or to get advance information, such as the elder care attorney when their parents were ill (she brought me all the information she got from him). She asks lots of questions and apologizes, but I do like her kind of questions, wanting to take responsibility for her own finances and wanting to understand the tax implications of what they do before they do it. They contact me every fall with what their year looks like and what their final estimated tax payments should be. They are also a very nice couple and continue to use me even though they moved farther away. I had a new client late last year who'd always had his returns done by his company's accountants while he was overseas. In 2012 he'd been in the US all year, so his company did not prepare. I showed him owing a ton. There's nothing to argue over: he has a huge W-2 and only 10% withholding. He wanted to discuss with his wife. I've never heard back from him!

MFJ or MFS for federal return.

Thank you all. I knew it didn't make the IRS list of qualified charities. Needed the words to explain to client the difference. I like the short answer; and if he wants the long answer, that link is perfect.

RIta, you can be polite and not tell them and smile and still tack on your hourly rate for "waiting time."

The IRS is federal and pays no attention to state court rulings such as divorces. Yes, the bottom line is where did the child spend the most nights, with the mother or with the father. Paper file with your client in the correct manner. Tell him what type of supporting documentation to start gathering now, and tell him to contact you as soon as he gets an IRS letter. Let him consult with his lawyer about what his ex is supposed to do or not do per their divorce decree.

Wait a minute. When OP said father had rights to the children, did he mean he has rights to have the children live with him and the children actually did live with him? If the mother had the children for more nights during the year, she DOES claim the kids as dependents. If that was the case, then your client files Single with 0 dependents. He certainly can go back to court to try to amend the custody agreement to include the ex signing a 8332, but is it worth the cost? Why don't clients consult with us before they sign a legal document that has tax implications?!

And, it doesn't matter how much support each parent provides. It matters only that the child did not provide over 50% of his support.

Years ago when I was at Block, a family arrived with their kid and fast food. I cleared a spot on my desk for them to eat while I worked (didn't do a lot of returns with client there -- Premium office -- but a few). When they were done the kid actually asked Mom about cleaning up crumbs, but Mom told him to brush every thing on the floor just as she was doing, adding "they have a cleaning crew anyway." Well, those of you who worked for Block probably know we cleaned our own offices. By the way, she cleaned houses for a living! One freebie I do always brings me some Avon Skin-So-Soft products, because she knows I love them.

The IRS looks to the parent who had the kids the most nights during the year. File on paper and tell your client to gather documents that show the children lived with him: report cards, doctor bills, even pages from divorce decree which carries no legal weight with the IRS but may help with their reluctance to believe the father had physical custody, letters from his church and neighbors attesting to the children with the father, magazines or mail in the childrens' names arriving at his address, his 2013 calendar with notes about after-school events/parent-teacher-conferences/doctors' appointments/all the things we schedule for our families, everything you/he can think of for 2013 so he'll be prepared when he gets a letter from the IRS. By the way, a letter from his lawyer to hers might cost only 15 minutes of the paralegal's time and make his ex think twice before filing for 2014, unless she has more money than him to spend on lawyers and enjoys being the defendant in a lawsuit.

Email from a client who belongs to a model train club that's a 501( c)(4). Are his out-of-pocket expenses to volunteer at train shows deductible? (And, yes, I know the part about mileage &/or actual expenses; it's the 501( c)(4) part I need direction on.) His email: Occasionally the club gets a "donation" from the show sponsors. None of the club contributors get anything financial. We are strictly volunteers working at the show. The train club is a registered 501©(4) corporation. Am I able to deduct mileage, gas and hotel expenses for train shows?

Which tax prep softwares have a Mac version?

Yep, I'm in the Just Kill Me range, too!

Filo-Fax for me. Hubby has his calendar on his iPhone, but I want to see it spread out on paper.

I bet it costs less than my plow guy. Think I'll look online.

I think the poster meant the most recent revision/edition/whatever was not that long ago, maybe 2011.

When they want to go through all their documents with me, I put them to work going through all their documents -- but by themselves, sorting them into stacks. I have them separate all the income documents first, and then I grab that stack and tell them to separate all their deductions next, then we can see what's left. If they have a business, they usually have those separate from their personal, even if in a shopping bag or large plastic bin.

I used ATX for several years and changed the colors for each year. We need all the help we can get when we're busy to keep us in the right place. Each year I seem to have more prior year returns, clients who bring in two or more years at once, and even a fiscal year entity or two beginning in the prior year.

That middle section is when the businesses need their returns and K-1s, when brokerage statements come out and then get corrected, when a few K-1s start arriving, and when clients go skiing or to warmer climes on vacation when their school kids have a February or March break. So it's just as stressful for me.

Me too. More clients dropping off earlier. And then sending in more documents! People that were on extension last year not wanting extensions this year. And, I've had a sinus infection that wiped me out for over a week of moving slowly. And more clients calling for me to explain their documents to them, because HR or the broker or whoever doesn't return their calls. I have them queued up via date dropped off (and move them when they send me more info) but also have notes about the fiscal year nonprofit due 15 February and the S-corp who needs his K-1s by 26 February and all those leaving in March on vacation and not returning until after 15 April. And the prior year returns (why more every year?) who I have in my queue but may get put on the bottom of the stack as they're already late anyway. I'm overwhelmed. With businesses due 15 March and most of my clients finally getting their broker statements later this month and then corrected statements in March and clients leaving for spring break trips in March and April, I have no lull.

Call her to tell her you'll deduct her ratio of actual expenses for her car's business use. That should reduce her income and lower her EIC and drive her away for good. Did one yesterday with nearly $10,000 in refunds from IRS and CT. Her mother cares for the three kids frequently for free. Her boyfriend contributes financially, but apparently not more than 50% of housing costs (lives elsewhere). Last year she bought a car with her refund; this year it's vacations. If they were married, that $10,000 would disappear. They will probably never marry. If I divorced my husband...

I would want to see something in writing from the employer that the Form 1099-MISC was issued in error. Or, I'd include the income. By the way, if they do correct the 1099, will they then add it to a corrected W-2? I think you have to wait while your client interacts with her employer. Or, tell her your charge for amendments.

Each year your client will get a new DIFFERENT IP PIN. Enter his latest PIN.

It's piling on today. DIscovered my stepdaughter emailed me her docs at the end of Jan before I was sick, and I never moved them to my clients' folder and forgot about her! Biz client who usually files personal returns after 15 March is going out of town so needs his biz returns and K-1s by 26 Feb. Nice couple in FL each winter usually files near 15 April is going to Europe 11 March and needs returns earlier. A client needs me to go to her house to notarize her father's signature as he's getting too frail to leave the house. I have a doctor's appointment in a few minutes. Another client wants to discuss her new biz venture as she's starting it up NOW.

I've used the "no 1099" excuse to refuse to deduct an expense that I did not feel was really business-related; softer than calling a client a liar to her face. Sometimes it gets action. I had one gal who did get her mileage log together when she realized she had to answer a couple of questions on the return; but she didn't 1099 some workers that I suspected might've been babysitters and not really business assistants (didn't speak English!) so backed off on some expenses to avoid the 1099 questions. (And, yes, we had a discussion about child care, but I think there's no SS#.)

I definitely agree. If this is a continuing cleaner, tell your client to hand them a W-9 and tell them they can pick up their check when they return the filled out form. If your client leaves a check in the office or mails it, leave/mail the W-9 instead with a note. Tell your client he will have to withhold, which might get your client to take this more seriously if he has no employees/payroll and would have to deal with the withholding reports himself or pay you to prepare them.