Which Do You Prefer?

[MsTabbyKats]

The "average Joe"....takes for granted everything you do is OK...

Or ....the very bright and successful client who wants explanations.

This is why I don't take on "high income" folks...but this one has been with me for about a decade

Yale grad...Fed return plus 7 states...owes

Above her wages... $9000 in investment income....including foreign interest

Wants explanation of 5 things, including why her foreign tax credit is less than the tax she paid, why she owes a few dollars to some of the states and of course the AMT.

It was easy....33 per cent bracket means $3000 of fed tax and almost $1000 to NYS for your $9000 investment income.

I told her she would have to take these things up with congress...and then I suggested estimated payments.

[kcjenkins]

I actually like the smart ones, because they are teachable. Plus their returns are more fun.

P S She could just increase her withholding at her wage job.

[JohnH]

I tell them they need to take things up with Congress, AND that they remember their tax returns every time they go to the polls in November.

[Jack from Ohio]

I work hard to convince many of my clients to go vote. It is astounding to me how many people believe their vote won't matter.

[MsTabbyKats]

I actually like the smart ones, because they are teachable. Plus their returns are more fun.

P S She could just increase her withholding at her wage job.

Yes...they are teachable ....but can you explain, in depth why her AMT is higher this year than last year. She wants calculations...not just the standard "because blah blah..... "

I'd rather not change the job withholding....it's calculated to be exact...including the 7 states..which is why she had so many questions.

[SFA]

I like both. Some returns I can coast along and others it's POP Quiz time.

The other day, I had a client looking disinterested in his business return as we were going over it. I stopped and asked if he was OK. He was young and owed money and was unhappy with the results. So, I had him lean in and walked him through his return line by line. I told him I did my best to get him these results and wanted him to see what goes in to preparing his return. He didn't realize he needed to charge sales tax on his services for the past three years, because his other TWO accountants didn't tell him. He hadn't issued 1099's before either. Our cost was much higher too, but I didn't really care. He had no loyalty and has been drifting from accountant to accountant.

After the pep talk, I said that was enough for today and he will need to reschedule to setup time to go over his sales tax issues. Like a good boy, he went out front and made his next appointment. That will be today. I wonder if he will show up.

[Abby Normal]

I prefer my clients know a lot about their taxes so they have at least a feel for whether something is wrong with or missing from their return. It is their return after all.

But too many questions, or being accusatory that I did something wrong gets old quick.

[MsTabbyKats]

I really don't mind questions .....but it's things like explaining formulas that gets to me.

Seven states....and I have to explain why some have a small balance due! Although the combined states was an $18 refund...despite her $9000 interest. I'm going to advise her to get tax free NYS munis...and move the foreign bank accounts here for that purpose too.

"Because"

[JohnH]

Speaking of NY and taxes, I have a question. An acquaintance derives his entire income from SocSec and investment income. Presently he lives in FL part of the year and NC the other part. His permanent residence is in FL, so he pays no state tax on the investment income. He is thinking of continuing the living arrangement, but the non-FL months will be spent in NY. Is NY likely to try to tax his investment income for the months he resides in NY, provided he continues to maintain the FL residence?

[Lion EA]

Read carefully NY's definitions of resident and domicile and everything about PY residents.

[JohnH]

Thanks.

That's what I already told him to do.

[MsTabbyKats]

NY can get very complex with non-residents and part year residents.

However, I find the reps very helpful whenever I have a "situation". (As I did today with a new client whose W-2 was coded as a non resident, when she was actually a part year resident...)

You should give them a call...I got right thru!

[RitaB]

The "average Joe"....takes for granted everything you do is OK...

Or ....the very bright and successful client who wants explanations.

I like both of these ok. It's the "average Joe" who THINKS he's bright that drives me nuts. You can explain till the cows come home, and you will just get to explain it again next year. And the next.

[joanmcq]

Printing out the worksheets helps if you have a client that wants explain actions of the calculations.

I'm currently exchanging emails with a new client whose former accountant apparently never explained ANYTHING. And they're complicated returns, RDP couple that moved to a non-community property state mid year. Now it would be easier to have them sit across from me and go over them, but since they're now in CO, that's a bit tough.

[Jack from Ohio]

Printing out the worksheets helps if you have a client that wants explain actions of the calculations.

I'm currently exchanging emails with a new client whose former accountant apparently never explained ANYTHING. And they're complicated returns, RDP couple that moved to a non-community property state mid year. Now it would be easier to have them sit across from me and go over them, but since they're now in CO, that's a bit tough.

Skype?

[joanmcq]

Doh! I just learned FaceTime and am marveling at being in the age of George Jetson. Just had a video conference last night. Someone slap me upside the head, please!

[MsTabbyKats]

I am still waiting to hear back from this client...complete with a PDF attachment of her Turbo Taxed return.

DH just had a good laugh...when I told him her income (just short of $300K)....and that she wanted me to explain why she owed $7 to Illinois!