Rant- "I had another baby with my boyfriend, who should claim this one?"

[NECPA in NEBRASKA]

I just spent 20 minutes on the phone with a client asking me if they should split the kids or what. They both have houses and pretty much stay at his place. He has a child with his ex, but can't claim it this year. I asked it either child had spent more nights with her than him and she didn't think so, but wasn't sure. So I went down the tax tool flowchart for her asking questions and telling her how much I expected she would get. Now she wants to bring him to her appointment tomorrow so that I can tell him what I just told her so he doesn't think she's trying to screw him over. He is not and will not be my client. Fortunately, she makes too much for EITC to come into play. Her parent's are great clients, or I wouldn't spend so much time on a short form return. Thanks for listening. Rant over.

[kcjenkins]

My sympathy to you. Would not look forward to that appointment!

[MsTabbyKats]

I had one like that...but was an EITC thing. IRS wanted proof about where the kids lived that dad claimed. Since the official address was with mom (school records etc) dad ended up losing the exemptions.

[Pacun]

As long as they are not married, the child didn't provide more than 50% of his own support, and the child slept in the same house more than 183 days in 2013 with each parent, you should feel comfortable doing the comparison. For HOH, remember that the child should be supported more than 50% by that parent, etc.

[NECPA in NEBRASKA]

Each parent paid for their own house. Apparently the kids have been staying at the father's house with their mother. I would not mind the comparison so much, but I see no need to prepare a return for someone that is not going to have me file their return. He has his own preparer. I also seem to have a conflict of interest here.

[Jack from Ohio]

Each parent paid for their own house. Apparently the kids have been staying at the father's house with their mother. I would not mind the comparison so much, but I see no need to prepare a return for someone that is not going to have me file their return. He has his own preparer. I also seem to have a conflict of interest here.

Send them to someone else. You DO have a conflict of interest, and a distrustful person to boot. You are better off without them.

[Pacun]

Each parent paid for their own house. Apparently the kids have been staying at the father's house with their mother. I would not mind the comparison so much, but I see no need to prepare a return for someone that is not going to have me file their return. He has his own preparer. I also seem to have a conflict of interest here.

Why don't you show them the door then from the very beginning if you feel you have a conflict of interest? The other preparer will maximize your clients return, even if it means that the other parent claims the child and your client has to pay instead of getting a refund. Conflict of interest? I don't see any conflict of interest because they are not married and you can do both returns.

Do we agree that your client will decide what maximizes her return in these scenarios:

Parents not married

Child slept in the same house for more than 183 days with each parent

refund for the mother if claiming the child 2K, if she doesn't claim the child she will pay $500 to the IRS

Refund for the father if claiming the child 3K, if he doesn't claim the child he would get a refund of $300.

All I do is to demand last years return from both parents then I can see why the other person doesn't change preparers. If the other preparer is honest, I will be able to compete with him. If the other preparer is not honest, I tell them that I won't be able with him and I point out the possible inflation of expenses or credits. For EIC, all you have to do is determine if both could qualify for the credit. Then I use my clients profile and then I enter the income of the other person and then see the refund and the close the return and not save it. Then I go with my clients info and then I prepare that return. It doesn't take a long time. Tie breakers are designed to be used only with both parents claim the child.

[RitaB]

That was beautiful.

[NECPA in NEBRASKA]

I am only worried about conflict, because she said mentioned that she didn't want him to think that he was cheating her. If she thinks that is how he will feel, then I really don't want to get in the middle. I only took her on last year because her parents are long-time clients. I'm not looking to take him on as a client. They have separate finances and don't pay their bills together, so they aren't looking at their taxes in the same way. She wants the biggest refund and so does he. They don't plan on sharing the money according to her.

[RitaB]

Conflict of interest? I don't see any conflict of interest because they are not married and you can do both returns.

Agree.

She wants the biggest refund and so does he. They don't plan on sharing the money according to her.

They sound like a cute couple. My opinion is that somebody is going to be mad. Period. Unless one preparer sits down with both and does four returns to really spell it out. I hate these situations. I hate EIC.

[Jack from Ohio]

I am only worried about conflict, because she said mentioned that she didn't want him to think that he was cheating her. If she thinks that is how he will feel, then I really don't want to get in the middle. I only took her on last year because her parents are long-time clients. I'm not looking to take him on as a client. They have separate finances and don't pay their bills together, so they aren't looking at their taxes in the same way. She wants the biggest refund and so does he. They don't plan on sharing the money according to her.

All the more reason to send her to someone else. I do not need "cute playing house family drama" in my tax practice.