Unbelievable!

[JJStephens]

Client tells me she had an HSA from which she took several distributions to pay for med expenses. I told her I need Form 1099SA. Her plan provider tells her they don't issue 1099SAs--that all the info she needs is on her W2 (at 77 she's still working)! I told her we had to have a 1099SA. So she downloaded a blank from the IRS web site and sent that to me. She said she thought all I needed was a copy of one to fill out!

This is one of my clients who calls me at least 10-12 times every tax season and then wants me to stay on the phone while she runs a few totals on her adding machine or she reads to me every word of a letter she received from a retirement plan provider (including the address header!)--just to make sure I understand what they're dong with her account. Arrgghhh!!!!!!

I know I should fire her but she's a little old lady with no one else to help. I just can't quite bring myself to do it.

[SFA]

You're a good man. Sometimes we just have to stop and breathe.

[jklcpa]

You are not alone. I have at least 3 of these little old ladies. One is a new client and a recent widow, her husband died in Jan 2013 and she'd never had to deal with any of the financies. What a struggle it was to get all of the information. She has no children and no relatives that live close by. When she finally came for the appointment, she brought a 5 inch stack of bank statements from a variety of banks all mixed together with the 1099s. The 1099s from SSA were missing. She found them later in an end table drawer after she requested duplicates from SSA. Then she didn't want to spend the cost of the first class stamp to mail me the 2 forms! The topper was when she said she'd like her original documents returned to her in their envelopes. Arrrrrgh!

She's a nice lady and I think she will ultimately be a good client, but she surely did test my patience.

[Lion EA]

I've put my retired husband to work schmoozing some of my elderly clients that take time but not really my expertise. He taught middle school for 37 years so can handle anyone! My little old ladies love him. Big time saver. And, I pay a gal not much money to visit two elderly men who need help organizing. Again, her patience is better than mine during tax season. Worth every penny.

[MsTabbyKats]

My policy....I don't take on "little old ladies".

I had one "tentative new one" (retired college professor) who had done her return on Turbo Tax...but had "an issue" so she wanted a professional.

She printed out the Turbo Tax return on the back of paper she had already used to print "other things"...and had her chicken scratch on all thirty pages.

I told her that I need originals of things such as 1099-Rs...and she said that was impossible (for whatever reason) and that I could trust her figures.

So...I said..."Thank you but no thank you."

[Cathy]

jj,

An employee can't participate in an HSA after turning 65. The balance, if any, becomes like a retirement account. Please verify, of course, as all of my HSA clients are still under 65.

Sounds like a 4868 is in order.

[jklcpa]

jj,

An employee can't participate in an HSA after turning 65. The balance, if any, becomes like a retirement account. Please verify, of course, as all of my HSA clients are still under 65.

Sounds like a 4868 is in order.

If a person has a HDHP and is not enrolled in Medicare, then it is possible for that person to continue to contribute to an HSA. Starting with the month that the person is enrolled in Medicare is when the person becomes ineligible.

[JJStephens]

If a person has a HDHP and is not enrolled in Medicare, then it is possible for that person to continue to contribute to an HSA. Starting with the month that the person is enrolled in Medicare is when the person becomes ineligible.

Right. It's not an age limitation but an 'other insurance coverage' (which is what Medicare is) that is the limiting factor. As I posted elsewhere, a taxpayer who does not sign up for MC at age 65 can continue participating in an HSA but needs to stop making HSA contributions at least 6 months before later signing up for MC because MC coverage is made retroactive for 6 months (or to age 65, whichever is later).

I guess I must be a 'little old lady' magnet--seems like I have several of these (and a couple of them aren't ladies and a couple aren't old). I have about 6-8 clients who call me as many times each tax season as everyone else put together.

[Christian]

I had a widow come in whose husband had handled all their finance matters. When she came in I noted she was carrying a small SUITCASE. As she set down I inquired what was in it and in attempting to open it all the contents utility bills, phone bills , bank statements , and whatever spilled out all over my office floor. I spent more time picking these up than in preparing her return !

Another elderly widow spent six months arguing with the Department of Taxation over a penalty assessment of $8.00

for underpayment of state income tax !

[Crackerjack]

I hate it when they sit on the other side of the desk clutching all their 1099s and talking so you can't do anything but sit there. I clocked one client this year: 30 minutes before they would let me look at the first 1099. I could have had their tax return done by then.

[kcjenkins]

SO BILL THAT TIME ! MAYBE AT THE PITA RATE?