Janitor Bob

unmarried parents of one child live together all year with that child. Both agree to put child as dependent on whichever return produces the most benefit. Father's income is $29,000 Mother's income is $13,000 Although the dependency helps either, it helps her more. her taxable income is down to zero....so her results are the same if she files Single or HOH. HOH status would help father, but it looks like whichever one claims the child as a dependent, also gets the HOH....the other cannot claim any of the benefits associated with this child...including HOH.....agree?

Returning client (single mom...or at least was) drops off all of her stuff....tells me "nothing different from last year". I do her return and the return for her college student daughter. Nice refund thanks to EIC and AOC. I print everything and call the client with what I think is good news. "I forgot to tell you...I have not yet changed my name with Social Security, so it should be same as last year" Huh?! "Oh yes...I forgot to tell you I got married this past September" "I did not think it mattered because he does not file taxes" We need to talk I'm getting too old for this crap.

No 2012s yet...hope to get that done soon for same client

Just a note to confirm what I experienced in the past. Filed client's 2011 return requesting refund be direct deposited. As I suspected, client received a notice that the refund check would be mailed as they cannot direct deposit prior year refunds. She received her check in the mail a few days later.

Client's main points of contention is that others she spoke to or heard about are claiming all of their mileage and deducting their cell phone bills...I presume to generate large losses that increase their refunds. The crux of the problem is that from what I have read, I do not think I can allow mileage (to her home to clients' homes) unless she can somehow get her home to qualify as a principal place of business...otherwise, mileage would be commuting. I could "possibly" get her OIH with a tiny storage area. That would provide an almost negligible amount of expenses to be deducted. However,it appears that doing so would still not qualify her home as her principle place of business...and, thus, no mileage. To her other point, I do not see any way that any of her cell phone could be deducted since she does not have another main phone line into her home...just the cell. Even if she did have a separate land line, I thinking I coud still only deduct a percentage of the cell phone bill based on its % of business use. This client has bought into the direct marketing pitch that I hear so often: "Be a distributor for our product and you can take all of these deduction on your taxes"....and some peple do claim everything...and they don;t get caught (at least not right away), so they are held as examples by people like my client...who now thinks less of my service because I somehow lack the skills to allow those deductions.

I see...So while her one foot of storage space may get her OIH deductions....albiet a very tiny amount, it would still not qualify her for mileage from her home to clients as her home would still not qualify as principle place of business This is what I got originally from reviewing Pubs 463 and 587.....but I started questioning when so many others started commenting. I reeally would like to get this client (possibly former client) what she deserves, but I just don't see it in this case.

No inventory....she just gets commission from sales and bonues for having parties. However, I'm sure she does have some "samples"...and these need to be stored somewhere....wondering if that alone could get her OIH

If OIH, travel from home to place of business/client is deductible. However, If no OIH then any travel from home to your first point of business/client is commuting (since that first point would be considered your place of busimess)...and any travel from your last place of business/client to your home is commuting...only travel to and from business places/clients would be deductible. and this client is only talking abouy mileage from her home to clients..as well as home to other point os business....No OIH, no deduction...that's my conservative opinion. and she admitted to me that she has no OIH...she just did this "business" on her kitchen table between meals.

But what about the the requirement for OIH that states the area of the home must be used solely and exclusively for that activity? Is that not one of the cornerstones of the office in home deduction? Without that OIH, how do you claim mileage and telephone. I was also always taught that IRS would never allow busines use of a telephone when it was also your main home phone unless it was part of OIH deduction?

How can she deduct mileage without and OIH? How can she deduct phone when she has no other phone going into her home?

Client decides to jump on board the direct marketing bandwagon and start a "business" selling hand bags/purses (through Thirty-One). I sit down with her and explain the whole idea of business vs. hobby and explain to her what expenses might be deductible if we do approach it as a business...to assist in reducing the affect of her $1,000 1099-MISC income. She admits that there is no area of her home used exclusively for this activity, so no OIH...thus I inform her that she cannot deduct mileage...even if it was business-related...which was in itself questionable. I also inform her that her cell phone is not deductible since (among other reasons) she does not have another home phone...just her cell. She seems to understand and leaves me with her papers with a positive attitude...understandably since her product cost and other legitimate expenses would reduce her "profit" to only approx. $300.00....not having much affect if any on her usual refund. However, this evening, she e-mails me that she has been talking to other people she knows that do such "businesses" and they have been deducting such expenses for years...and that if I cannot deduct those things, she wants her papers back...below is my response...first time in my 16 years that this has happened. She is a nice young lady, but so be it...I do not have time for that crap. I understand completely. I pride myself on preparing returns according to IRS regulations in a manner that would hold up under IRS audit. A person can claim anything on their tax returns and not suffer any negative consequences…until they are audited….and there are no shortage of preparers willing to claim those deductions in order to attract or retain clients. While the chances of you being the unlucky one is really small, I will not lower my standards or risk my professional reputation by putting my name on a return that I consider questionable. I will be home tomorrow evening after 7:00pm, and other evenings this week after 6:00pm. I will have your papers ready.

This client will receive, as you suggest, only a few dollars actual tax benefit. However, she is one of those clients that thinks she knows tax law and combs through her return looking for every little deduction that she "suggested" on her 8 page list. She plays the system....starts a new "business" every year and spends countless hours coming up with utilities and other "business" deductions. So every year I need to explain to her why her "suggestions" are not deductible or if deductible have little or no benefit....and why her newest venture is likely a hobby and not a business. However, this annual explanation is easier than listening to her accuse me of missing something....So if her 750 miles is decuctible, I want her to be able to see that it is included in the return. I hate this client, but I can't fire her....because she's my sister.

Client volunteered to drive/chaperone, help run a 3-day out-of-state trip for her daughter's girl scout troop. Mileage to and from camp: 752 Meals for client only (not her daughter): $130.00 Mileage at .14/ mile....but what about her cost for meals...deductible? If so...where exactly in ATX would it be reported?

Oh good...you brought me all of your goodwill donation receipts that proves you donated a "truckload of clothes, 31 books, and a box of VHS tapes". Splendid! I now dislike you more than I did before.

People....If you're going to come into my home....first bathe.

I love it....and brilliant ideas on changing the appearance of prior year programs...As soon as I get home, I'm gonna change the input box colors and increase the zoom on 2012.

With the new computer this year, I can have ATX 2011,2012, and 2013 running with multiple returns open in each....with no noticeable reduction in speed. Nice. HOWEVER....I need to pay attention to what program I am in. Just spent 30 minutes doing the data entry on a return for a new client....before I realized it was in the 2012 program. Oh well...I just saved and then rolled it over in the 2013. Perhaps I should call it a night.

It happens to the best of us.....You're in Ohio like me...so I assume the couple is together and are just filing separate to take advantage of Ohio's crazy tax law. If so, it should not be an issue like it would be if they were estranged. Just let them know what happened and amend.

Yet one more reason why I LOVE this forum and all of you.....I'm a one-man tax show....but I do not feel alone when I can access the collective wisdom of this board.

That web site worked great....Thanks!

Thanks! I'll check that link first....If that won't work, I get with you for some of the forms. I really do not want to pay ATX for a complete package to do just a few 1099s

So I need to pay for the Payroll package to do one 1099?!

OK...my client has rental property. She paid a guy $8,800 to do repairs on that property. She has a W-9 from him (he is an LLC). So I need to ASAP send him (and IRS) a 1099-MISC so that my client can claim the $8,800 rental expense.....How do I do that? What form/worksheet do I use in ATX? I only have the individual ATX...no business forms...I am confused....help anyone?

Done...and this forum is worth way more than my donation, that's for sure.

The test itself was almost ridiculously easy...but maybe would not have been if I had not brushed up on everything and studied. I do think that it would force those passing to have a least a basic understanding of taxes. In the end, however, the entire program has less to do with preparer standards and more to do with preparer tracking...so that IRS can more easily weed out and nab the fraudulent ones....and I'm all for it. One day, I would like to study for and take the EA exam...but I only have experience with individuals and small businesses....my Corp and non-profit knowledge is limited....So I'm not sure I'd be up to the EA exam...and my full-time job as cost accountant/payroll/import export/shipping does not afford me the time to do Corps and non-profits to gain that experience...or to study much....or to eat or sleep.