MsTabbyKats

Wow.....it didn't take Mr Pencil long to learn how chill out and relax. I hope the tax police aren't monitoring this board!

Does this mean the official start date for 1040s is 1/31?

With all due respect (and this is said tongue-in-cheek.....not to be taken at face value) apparently you haven't met many tax preparers. I get several requests for this each year for this kind of stuff. Unless I'm going to send a private investigator to tail the client.....how would I know I how much the person actually makes? The EITC puts too much responsibility on the honest preparers....which is why I won't take any new client self employed people with potential earned income credits. There's too much chance for questions which means more work for me. And the old clients that I do get read the riot act every year.

The researchers aren't EITC people......for the most part. Usually both spouses work....so the combined income is over the limit. Anyway....they aren't Americans.....and have a very different attitude about accepting "charity." I've found that non-Americans are more conservative because taxes are taken more seriously in their home countries . I've also never had a problem with payments because "non-pament" of bills is a crime punishable by going off to jail!

You cannot e-file without the 8867. But....having it really means nothing other than someone filed it in correctly. It's not really proof of anything.....and if someone's goal is to get the client the highest refund possible....this preparer will just check the right boxes. That's all I mean. It's very easy to do a Schedule C for someone claiming to make $17500 as a cleaning lady with 3 kids.....and you don't need to submit any bona fide proof. It's not rocket science.

Tax Act has the 8867, But, what does it actually "prove"? Nothing.....just that you can check off boxes. EITC was supposed to encourage people to work....by giving them "a bonus". It's turned into a farce....encouraged by companies such as H&R....with those stupid "Come & get your free money" kind of ads.

Chill out and smell the flowers.....life is too damn short for worrying about every little thing.

It was at the request of "the agency that determines" if he can get the apt. And they just want my signature to verify that I am a real person....not a bum sitting on a park bench.

I use CCH 1040- Express Answers. I also use the paper version of Pub 17....just in case I'm "not sure".

Oh well....I was a frequent caller to the "complex issues" dept.....with all kinds of "international issues" Phasing out....phasing out.....more things I'll be phasing out.

So....yesterday I had a client call me 4 times (and my husband once)....because he needs me to fill out something (for him to get an apt) and have it notarized and faxed to the party that needs it on Monday. No..."Please, I know this is last minute...and you may be busy...but would it be possible....." Instead..."Blank is faxing you something. You need to get it notarized and fax it back on Monday. It's very important for me." No offer to "charge me for it." He's getting a surcharge on his return this year....$50! But....I appreciate all the input. My plan is to give a quote before I start any work....get a confirmation that the fee is OK.....and I'll give "the song and dance" if they complain. In the past I've told a few of the "your fee is too high" people to take their papers back and go elsewhere and price it. And you know....they all came back to me.

LOL Mr Pencil You know nothing about me or my clients....or their backgrounds. I've been doing this 20 years and had very few "issues". But each one was resolved in the client's favor. I don't accept any clients with potential problems. They get referred to "others." I started doing this as a hobby......I just got much more popular than I anticipated. My goal is to not complicate life......make a little money......and help out people who want good work but are short on their means. This is why I'm raising all my $250,000 IT engineers a lot......and not caring if they leave so I can focus on my $30,000 researchers with 2 kids, who have trouble with day to day expenses. Maybe they get a $10 increase. There is very little potential for audits where the client owes an additional $10,000 in my target category. But I do appreciate your comments.

I would have put it on the 1040 Line 16 (with spouse's pension)....and then on the IT 201 on Line 10(with spouse's pension)...and exclude $3400 out on Line 29. (I do realize that you cannot e-file...no EIN for the pension). However....at this point....I'd amend the state return to have it show up on Line 10....and exclude on Line 29. I think they are giving you a problem because "a pension exclusion" has to be excluded from pension income....not "other income". Unless you're a magicking...you can't produce a 1099-R...but, that may be beyond the grasp of the phone reps. ETA...I'd add on the 201X-for the reason....Reclassification of income

"Protecting myself" because I work out of my home? Please explain why?

I understand what you are saying....but....most of my clientele came to me because "of price". While you may feel it's nothing to brag about....they think it is. (They are aware that I work out of my apt and have no overhead.) With new clients....I'm just going to give them "the going rate" price....and if they complain (but Joe said you only charge $XXX) my response is very simple "My rates went up.") If they switch based on price....that's fine with me.

Just as no two people are exactly alike, including identical twins, no two tax returns are the same. My fee is based on a combination of the information I get from you, forms that will be generated and time needed to prepare your tax return. Please be advised that the income has no relevance in my fee. The volume of transactions and time spent determine the cost. Despite the increase, my fees are still below “the competition”. I invite you to compare my fee with any other tax preparation service. OK....please comment! Thanks for the input............

You're right....almost 0 face to face...so I don't get to see "the cringe". My plan is to tell them the price before I start work (after they send me their stuff)....and if they complain....send them my blurb. For the ones that "call to complain"....I'll but the blurb in an e-mail. For the few technically challenged ones that I have.....I'll tell them by phone....before they come over. I'm revising....taking all the comments into consideration....and will post whatever I come up with. Personally....I really don't care if some drop me. Those are usually PITAs anyway ("Why was my refund $8 less this year than last year?" types. You all know what I mean.)

New version: Just as no two people are exactly alike, including identical twins, no two tax returns are the same. My fee is based on a combination of the information that you provide, forms that will be generated and time needed to prepare your tax return. This year the IRS has imposed many changes, and in order to avoid “potential issues” I will be spending more time doing research and “due diligence” on every return. Please be advised that the income has no relevance in my fee. The volume of transactions and time spent determine the cost.

I 'm not asking about "if" I should increase...but if this "blurb" is ok. I want to be direct and to the point....if someone complains. I have many clients who can afford more....but got referred to me because of my cheap price.

As we all want to be compensated for our work....I am going to have "across the board" price increases this year. If anyone objects...this is the blurb I'll e-mail (or read if it's an "in person" situation). Please comment....if you think it's harsh, too soft...or OK....and please comment on the grammar. My goal is to have less work....and make the same money. I don't care if the people who make $250,000/year rebel and drop me because I want to raise them to $200. Just as no two people are exactly alike, including identical twins, no two tax returns are the same. My fee is based on a combination of data to input that I am given by you, forms that will be generated and time needed to prepare your tax return. This year the IRS has imposed new regulations, and in order to avoid “potential issues” I will be spending more time doing “due diligence” on every return.

Does the Canadian have an American social security number? If not, how can he file a 1042? IMHO.....your client doesn't need to do anything for the Canadian. It's the Canadian's responsibility to do whatever. If an American gets paid by a foreigner, the foreigner doesn't report that payment to his own government. But the American is supposed to include it on his tax return.

And keep in mind....these are all paper returns....so I had to mail them out to the taxpayer for "signing & submission". The hardest part is that each state treats Non-Residents differently....and different visas may get different state treatment. NY is easy...it's just like the fed. But, for other states...I always call that state tax dept. to advise. The only new ones I accept is if the income is entirely treaty excluded. If not...they have to itemize....and they NEVER have expenses. And then they start arguing that "my wife is my dependent"...and other such stuff....and I have to explain that this is not "Whatever Country" and 99% of the time the wife/kids don't count. Very few people do non-resident aliens...because to do them correctly can be very time consuming and emotionally draining. So....do you see why I has happy to be put in a position where I could "justify to myself" to discontinue this service!

I have no idea...but a lot more than my $125. I raised it to $175 (Tax Act doesn't have the software...I had to use fill-in forms.) and they ran........ My non-resident aliens live all over the country....not NYC. They really don't make much...which is why I did it for so little. But...then I got tons of "their friends"....and it became just too much. Once one kept trying to bargain....and I got so fed up I told him..."I'm not a bazaar!"

Last year I lost a few non-resident aliens because I increased my "idiotically low fee" to one that was only "ridiculously low"......and it felt great!

My fees are way too low. That's gonna change. I've always been kind of "Same as last year unless there's a significant change." This time I'm going to quote an increased fee....and get a confirmation that it's OK....before I enter the first number. I know I get a lot of referrals based on my low rates. I really don't care when the people are "just getting by"....but, I do care when people make "a lot" and are cheap. I always had $85 for a quickie (W-2, Standard Deduction...). My new "quickie" is $100.