Lion EA

When I lived in Santa Barbara, there was some Hawaiian king's holiday (maybe it was a Spanish settler, I really don't remember any more!) with a parade that closed the main street so no work got done.

If I'm preparing the 1099s for that client, I prepare the 1099 to the recipient with REFUSED and a W-9, and if I think they read English, a copy of the regs or instructions or whatever might get their attention. I tell the client to use Return Receipt Requested. Then we wait. I have client follow up with a phone calI. Come the end of February, or end of March if e-filing, I make sure client understands what his penalty will be when we file with IRS. If I'm not preparing 1099s, then client will answer the 1099 questions for his return with the truth. I'll make sure he knows the potential consequences. That's pretty expensive office cleaning, so I'd ask him again about the amount. (My whole house is only $2,340/year, but I don't have my OIH cleaned so it's only 9-10 rooms.) I haven't had the situation come up, but if I did my due diligence that he had a business-related expense that cost him $7,000 and we are answering the questions correctly, I would put the expense on the return. I can see where a client might have that number included with other repair & maintenance amounts and tell me the answers to the questions, and I might never suspect that something's missing anyway.

Thank you all. I'll do what I can. (Still fighting a sinus infection; priest afraid to drive in snow so I'm leading morning prayer Sunday instead of being just a chalicist so gotta work on readings and a homily; Wednesday biz client wants his info Wednesday for his personal returns; Thursday biz client wants her info Thursday for her personal returns; and hubby wants to go out for a Valentine's dinner.) But might end up having director sign and mail Tuesday. With the POs closed, I'm going to hope the Feds consider Monday a holiday. I'll reduce next year's fee by any penalty they pay. Or not. I already give them a 50% nonprofit discount. Let them wait !! (And, hubby too; I've already postponed Valentine's Day from his suggested Thursday to Sunday and now want to wait until the following weekend. So hard to be romantic during tax season!)

Exactly. When my guy who earns $500,000 (or 1,200,000) spends $100,000 on each family member per the support worksheet and invests the rest, and grandma's trust fund has income of only $50,000 to pay the student's tuition, room & board, and spending money, student is not paying over half his only support -- and his Earned Income is very definitely not more than half his support. So, (none of those high earners have come in yet this season) parents are eligible to claim their child and Kiddie Tax applies. But, you have to run the support worksheets for each case.

Is the PO open Monday? I grew up in IL where we celebrated Lincoln's birthday, even after the combined Lincoln/Washington Presidents' Day started being THE February holiday!

I just wasn't sure Presidents' Day is a LEGAL HOLIDAY giving me until Tuesday. I mean I've always worked that day, no matter who I worked for. I guess the schools are off, but they always schedule long weekends during the winter for any reason, to get the snow cleared, to air out the germs from the classrooms, so kids can get well, so families can go skiing without pulling their kids out of school, so the teachers don't get cabin fever trapped inside during gray, short days....

It may have been a qualified distribution under the plan's rules, so the plan allowed him to withdraw money for that purpose (surprised it didn't require a loan). But not for tax purposes. Do a search on this forum.

WIth kids grown/out of school, hubby retired from teaching, and calendars still on January 'cause I've been sick, I just realized next Monday is Presidents' Day! That's a national holiday, right? I have a fiscal year Form 990 due 15 April, which is a Saturday. Is it due TUESDAY 18 February?

My high earners can usually claim their children as dependents in spite of trusts, scholarships, etc., as they still spend a lot of money on their children: family vacations, spring break trips, apartments while at college, cars, car insurance, McMansion while at home, designer clothes and handbags and shoes, other toys like expensive electronics, pool tables, etc, summer in Europe, Daddy's credit card, and on and on. We run the support calculations. And, yes, kiddie tax gets triggered by all those investments grandma and grandpa gave them when they were born.

If the son meets the requirement to file a return, has taxable income, had any withholding he wants back, has any carryforwards to track, etc.

Congratulations!

That's up to the bank.

Why? It's the law. Not much different than transferring a stock to a child in a lower tax bracket. The child may be selling the animal, but it's probably the parents who own the barn and the grazing land and maybe even pay the vet and the feed and grain bills and drove the animal to the state fair and.... But, it's really the definition that determines what's subject to kiddie tax, and it's almost anything that's not earned income. So, yes the child saves SE tax, but over $1,900 (is that the 2013 #?) will use his parents' tax rate. I think lottery winnings are subject to kiddie tax, too.

Are you hiring?!

Is Dad a graduate student?

A massage.

If you're rebuilding, you probably want just about everyone. So, you want to work with them enough on the phone to book them an appointment to come in for a free consultation/fee estimate. Get them to bring you their documents and last year's tax return. Once they sit down with you and pour out their financial life to you, they really don't want to do it again with someone else; you've hooked them. RIch gave some great tips about phone presentation to get callers to walk through your door. Also, an elevator/one-minute speech about what you do for a living to everyone, along with a couple of your business cards in their hand. And, tell every client/prospective client that comes in that you have time for new clients. Ask for referrals.

I really need a haircut (I've given up dying it) and a manicure badly! (I need a pedicure, too; but I'm the only one who sees my feet during the winter.) I saw my doctor only because I have a sinus infection and needed drugs and I pay extra for concierge service so he fit me in the day I called. I need to find a beautician client, or maybe not after hearing all your stories....

1 - Add some letters after your name, CPA, EA, MBA... 2 - Take so many clients from your competition that they won't need to stay open late or on weekends.

Thank you, Pencil. I had just asked myself if a taxpayer has a tax home for each job or only his primary job, or even if he can have a tax home for one job but be an itinerant worker for a second job. Your answer sounds logical, but the law doesn't have to be logical. Do you have a cite for that? I want to file that info.

Hubby just walked in and said that everyone will be out on Friday for Valentine's Day so could we go out to dinner on Thursday since he won't have choir practice. I have a couple of fiscal year returns due the 15/17th with the weekend. Our usual "date night" (used to be "family dinner" as that's when we could get son and stepdaughter at the same time and not be out too late for their homework/bedtime; they're grown, but we continued with the two of us) is Sunday brunch, so I suggested we make that our Valentine's Day. He wasn't thrilled, and I still have that Monday deadline. I think we compromised on Sunday dinner at a nicer place than our usual brunch. That'll mean more time away from work, but I think that's what we'll do. Probably no wine but lots of tea so I can work late that night. And, don't get me started on Easter!

I'd go with the Farmers' Tax Guide and use line 21. Depending on your software, it may generate a statement when you enter the Forms 1099 and the COGS to get the net income reported. Almost everything except earned income/SE tax income triggers Kiddie Tax. Do you have any contacts in 4H country? IL tax school or something that might go into greater detail than the FTG?

My memory is saying it depends on whether it was the same lender (no) or different (yes), so wait for someone who knows or do further research.

When I worked for Block, my hours were 1-9 p.m. everyday, seldom Sundays. I am a night owl, so loved it. But, by the second year I was in a premium office (higher net worth, entities, that sort of client) with many NYC clients that liked late appointments after getting off the train or Saturdays while running errands but not Friday nights nor Sundays. Now that I'm in a home office in a rural area, few want to drive here at night. And, as my clients age, more want morning appointments. My stated hours are Monday, Tuesday, and Friday 10 a.m. - 8 p.m. and Saturday 12 noon - 6 p.m. (I go to business clients' sites many Wednesday and Thursday afternoons) but the Saturday afternoon appointments are not popular nor is anything after dark. I can still be gracious and schedule a continuing client for a Sunday after church or an occasional Thursday. But, most of my clients drop off or send their materials and come in to the office only for the final review, signature, payment, and pick-up. I only insist upon an office appointment for new clients or continuing clients with a major change that we need to discuss. And, my recently retired husband does some deliveries for me, especially to my elderly clients, that with post-it notes and signature lines flagged have gone well. He has time to schmooze with my clients during tax season when I'm busy! The little old ladies love him.

If you're using a worksheet to calculate an education credit, it's going to be based on what your client PAID and spent during 2013 or the year in question. It really doesn't matter what the college billed, except that you can pay only one semester ahead into the next calendar year. Ask your client for their financial transcript from the bursar's office, often available online to the student, and even printed on the backs of some Forms 1098-T or on a statement in the same mailing. Or, have your client go through their check registers.