RitaB

People who don't understand investments should not be buying them, eh? This is off topic, but one of my clients announced to me today that he is "gonna sell his mutual funds when they peak", and buy apartment buildings to rent out cause he just talked to a guy at the BARBER who recently built a bunch of apartments and they're all rented out. Who knew it was that easy? Maybe my client should be a BROKER since he is somehow going to know when the funds are at their peak. Too bad he didn't get his hair cut in May...

Sorry, my eyes are crossing looking at this form. Even though the interest was from a TN source, it's going to line 14c on Form MA 1-NR/PY. For real? TN source interest income for a MA non-resident is included in MA income? I am still looking, but hope somebody knows what I'm doing wrong. Thanks!

No kiddin? I thought that's why we're supposed to enter deceased and the date at the top of the page. Who knew? Now if only they knew people's basis in stock sales... These Wal-Mart sales are gettin to me!!

I think you'd be ok to do the 2008 as if 2007 were correct, but - My completely unresearched opinion (since 2007 was done incorrectly, I doubt this scenario is covered anywhere) is yes, put spouse name, SSN, and DOD across top of 1040 (nowhere else) wouldn't hurt (would it?). Sorry, I'm no help here, I know. Maybe someone has experience with this.

LOL. Yeah, or no husband. I do understand not wanting this job, though. It just seems like Lucho has some sunk costs (time), and preparing the return is the only way to come out ahead. Or not as far behind. Seems like you can never make any money on situations like this. I have a client that has just gone through a break-up after a three month marriage. Neither has any tax problems, but she has absolutely driven me crazy trying to find a way to file as HOH. She itemizes, and doesn't even realize that HOH doesn't help her. Plus, she takes so much time telling me EVERYTHING. I finally sorta fired her, cause I did NOT want to get into explaining to her that if she itemizes he has to itemize as well. I know her, she'd say, "Whaaa? What do you mean itemize?" He'd have zero deductions. I told her they can either file MFJ or MFS but one accountant needs to handle it, and I will step aside and let his accountant take the job. Conflict of interest can take a hike.

Lucho, I think the concensus was to use MFS, and indicate that spouse refused to give his SSN. Only thing that might be tough is deciding whether to itemize or take standard deduction. (Both spouses have to do the same thing.) I don't understand why you don't want to do the return, unless she is still taking up a tremendous amount of time. I know, some clients require a lot of hand holding, but it seems like you've already invested a lot of time, so hopefully you can just get it done now. --- Rita

Great news! We'll keep praying!

Yeah, I spit a little coffee on the keyboard when she said that. I actually had a guy wondering why he didn't get "that there unearned income credit." He did have a loss, but c'mon.

No, if she files MFS, she will not be responsible for what he owes IRS. Separated or not separated is irrelevant. They may even be living together in bliss. Except for all his debt, that is. Edit: Sorry, I type slow.

Haha. Yeah, and I have a couple who don't even bother with the "income" part! They're like, "uh, oh yeah, that..."

Client brought in info, and I was delighted to see that she had details about vehicles listed BY VEHICLE. I mean the works: mileage, gasoline, repairs, insurance, tags, everything. I almost cried. Then, I look at the next page, and there it is: the other expenses for the business are $16,000 "business expenses." I call her to ask what's in there. "You know, supplies, parts, equipment fuel, maintenance, cell phone, and some malicious expenses." Oh, well.

Yeah, I agree, MFJ with injured spouse will probably be best outcome if he has the right debt (can't believe I said that), but hubby will have to sign it, and cough up SSN, too, and he may not. I would not hesitate to do MFS leaving his # off, if she wants to do that. Agree with MAS, don't work your butt off on this, BUT I would NOT use Single as filing status. That is not correct, unless there is an annulment, and what if EIC is an issue? BTW, I would not even say the word "annulment" to your client, cause then she wants legal advice, too.

John is right, absolutely do the return. Should not be a great deal of work since you did the return last year. If you really think they have no money (you might be surprised when you go out to eat Friday night and run into them or see what they're driving), just don't charge.

Yes, Catherine, me too!

Client just came in, asked me if I knew anybody who needed a lift chair. Seems they are selling the one he just bought last year for his wife. She got a big SS disability settlement in 2008. Hmmm... I remember one client a few years ago who had a big disability settlement. When I called to tell him his return was ready, the phone rang several times, and he was out of breath when he answered. "Are you OK?" I asked. "Oh, yeah, I just had to run in to get the phone. I was burning a brush pile."

Yes, and you still have to check with client. Don't trust the 1098-T for anything except "more that 1/2 time" or whatever that is down there. I have seen MANY with tax-free assistance that is not on the 1098-T at all. I'll betcha education credits is one of the areas most screwed up on tax returns. I'll bet I screwed up a bunch of them when the 1098-T first came out, cause I assumed you could actually use the figures on them.

I was wondering what you decided, cause the worksheet definitely gives RRC to my client when they file separately. Problem with amending my clients' return is that retirement savers credit gets adjusted to wipe out most of the RRC! There was some other goofy thing going on, and I got frustrated and put it aside. I'm not even sure amending will be helpful in their case. I will look at it again when I'm "fresh." I think your return will go through just fine. Thanks for keeping us posted. --- Rita

If you are amending a return, in the open return, over on the left, I think, there's a pull down menu with a choice "Amend Return". Click that, and the 1040-X and a duplicate of the return open up. I'm not at work, so I know these directions are not the best. Now, if you're just wanting to print a blank 1040-X or something, I don't know if I've ever added a 1040-X, now that I think about it, so I'm no help there for sure.

DIYer just left. His taxable income was zero. He did not know how to figure the tax on that. Had the instructions to 1040, and wanted me to help him on that one little thing. "I got all the other stuff, no problem." Where's that 40 pound reference book?

Yeah, and my client's broker (that first story I was telling up there) told her she would owe $1300 MORE after I corrected return to show the IRA as DEDUCTIBLE! I would not have believed that if the client told me. But the broker actually called ME to tell me he had explained everything to my client, and she is cool with everything, and knows that she'll owe $1300 more. Bet he spent all afternoon recharacterizing that ROTH as a Traditional. Or chewing out his assistant. Just leave the tax stuff to me, please...

Thanks for reminding me of GOOD things. I get so grouchy at times, usually because of ONE bad apple. This morning a client called saying she would not be able to bring in her payroll info. I had already heard that one of their children had committed suicide. We had a good talk and a good cry. I told her not to worry, make a deposit for same thing as last month, we'll figure it out later. There are so many things besides taxes. I tend to forget that. Wow. I love my kids. I cannot imagine their grief... I hope you all will be praying for this family.

Isn't that great? I'm sure she gets such a blessing getting to do something for you! I have a client who brings fried fruit pies that his mom makes when he picks up his return. She's gotta be in her eighties. Apple, peach, blueberry. They are incredible! I know it just tickles her to death to get to do something like that. Thanks for reminding me of that.

Haha, I'll admit that crossed my mind. So far, so good. No requests for cash. Truck is still in one piece. He's in there watching Animal Planet with his little brother. Seems perfect. OK, now I'm worried.

Priceless. I actually did tell one woman who wanted me to remind her what business expenses were deductible: "all of them"

6-12, top left. God bless em, huh?