Donny Posted February 5, 2008 Report Posted February 5, 2008 client is disabled, receives disabilty income from previous employment, we have not claimed the credit before because it never helped , this year it will help some. but client does a small business out of home. would IRS question the disabity since client makes small income from home business. we do claim the business income. Client can prove the disability from doctor records, Your opinion please, Should I claim the disabity credit this year even though we have never claimed it before? Quote
lbbwest Posted February 5, 2008 Report Posted February 5, 2008 client is disabled, receives disabilty income from previous employment, we have not claimed the credit before because it never helped , this year it will help some. but client does a small business out of home. would IRS question the disabity since client makes small income from home business. we do claim the business income. Client can prove the disability from doctor records, Your opinion please, Should I claim the disabity credit this year even though we have never claimed it before? The IRS would not be the entity "to question" the disability; it would be the Social Security Administration. Since the taxpayer doesn't have the "option" of deciding whether or not to claim his earned income; you as the preparer of course are obligated to legally minimize his liability; which would include any applicable credits. lbb Quote
Donny Posted February 5, 2008 Author Report Posted February 5, 2008 The IRS would not be the entity "to question" the disability; it would be the Social Security Administration. Since the taxpayer doesn't have the "option" of deciding whether or not to claim his earned income; you as the preparer of course are obligated to legally minimize his liability; which would include any applicable credits. lbb Since client receives ss disabity,( client has double disabity from previous employer and ss , for two different reasons, both can be proved) this covers the question with ss already, I just wanted to make sure there would be no red flags we need to prepare for. thanks. Quote
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.