ILLMAS Posted November 16, 2022 Report Share Posted November 16, 2022 Has anyone had a client request an exception for PTC (MFS)? If yes, what type of documentation did you request as part of your due diligence? Thanks Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted November 21, 2022 Report Share Posted November 21, 2022 Premium Tax Credit? Exception to not claim it? 1 Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted November 21, 2022 Report Share Posted November 21, 2022 Are you using the living apart and qualifying as HOH exception? Or, the domestic abuse exception? 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted November 21, 2022 Author Report Share Posted November 21, 2022 It happens to be both, the grounds of divorce is not set in stone yet, but the TP is working on obtaining a doctors letter to support the claim. I spoke to a CPA friend and he mentioned for stuff like this to make sure you have supporting documents to cover yourself. Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted November 21, 2022 Report Share Posted November 21, 2022 If one of the spouses qualifies as HOH you don't need to worry about the domestic abuse exception. I would just use the normal due diligence for HOH. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted November 21, 2022 Author Report Share Posted November 21, 2022 2 minutes ago, kathyc2 said: If one of the spouses qualifies as HOH you don't need to worry about the domestic abuse exception. I would just use the normal due diligence for HOH. Sorry it's MFS, not HOH. Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted November 21, 2022 Report Share Posted November 21, 2022 I've not had that but it stinks that we need to act as social workers to prepare a tax return. Is the spouse that is claiming abuse the only one that had ACA? Had you prepared prior returns for them? 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted November 21, 2022 Author Report Share Posted November 21, 2022 Exactly, I prepared the prior year but the TP did not have Health insurance via the exchange. Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted November 22, 2022 Report Share Posted November 22, 2022 It's kind of a touchy situation. If someone is truly abused, I wouldn't want to give the impression that I don't believe them. On the other hand, they may just be claiming it to save money. Use your gut instinct, but I think I would have the TP write out and sign a description to keep in file and explaining to them that you need this for both of your protection. 2 Quote Link to comment Share on other sites More sharing options...
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