AnnieR Posted April 11, 2008 Report Share Posted April 11, 2008 A client referred his ex-wife to me and warned me that she was not the brightest star in the sky...oh, I think he was right! Her 8 year old son has a savings account that he didn't have last year...her mother gave it to him...well, the son had $1200 in interest this year...nice, grandma! So I did a return for the son, and he (she) had to pay tax on the amount. I explained to her about the $850 deduction and she asked me if she divided the money into two accounts, he'd only get $600 from each and he wouldn't have to pay any tax. I was very kind and told her she'd have to add the two amounts together, she didn't realize that! AnnieR Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 11, 2008 Report Share Posted April 11, 2008 A client referred his ex-wife to me and warned me that she was not the brightest star in the sky...oh, I think he was right! Her 8 year old son has a savings account that he didn't have last year...her mother gave it to him...well, the son had $1200 in interest this year...nice, grandma! So I did a return for the son, and he (she) had to pay tax on the amount. I explained to her about the $850 deduction and she asked me if she divided the money into two accounts, he'd only get $600 from each and he wouldn't have to pay any tax. I was very kind and told her she'd have to add the two amounts together, she didn't realize that! AnnieR I am certain I do returns for at least 2 of her siblings, and 5 of her first cousins. Quote Link to comment Share on other sites More sharing options...
diligentbiz Posted April 11, 2008 Report Share Posted April 11, 2008 Of course, she'll go to someone else next year, thinking someone else will do different. Oh, but before that, she'll call you many times with questions. Been there, had that. Next year she may go to an aged, inexperienced, VITA or AARP volunteer and talk them into it. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 11, 2008 Report Share Posted April 11, 2008 >>if she divided the money into two accounts, he'd only get $600 from each<< I routinely recommend this excellent solution. Of course, she has to get a second Social Security Number for him, but I don't charge much for those. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.