HV Ken Posted February 21, 2015 Report Posted February 21, 2015 New client came in the other day. Prepared her return with the AOC for her 18yo college daughter. efile is rejected. Ask her (again) about her daughter. Oh yea - she went to HRB. One W2 for about $1,700 (one thousand, seven hundred) with $170 withholding and of course HRB took her exemption, as well as filed for the college credit. These "well educated" kids run to HRB with their piddly W2s to get their $170 piece of their billions back, while impacting their parents who are shelling out (or borrowing) thousands to put them through college. SMH 5 Quote
mcb39 Posted February 21, 2015 Report Posted February 21, 2015 Have the same issue; with parents who will now have to paper file. 3 Quote
HV Ken Posted February 21, 2015 Author Report Posted February 21, 2015 We discovered this last year: file an amended return immediately for the college student. Wait about 6 weeks for it to percolate through the system. Parent(s) return can then be efiled and will be approved! 5 Quote
Catherine Posted February 21, 2015 Report Posted February 21, 2015 I have a similar case. We are amending the son's federal return, submitting an original state return (he forgot that one) and I will have the parents file on paper because they will get their refund before the 6-week (or longer) time frame to have the son's amendment be processed. 1 Quote
MsTabbyKats Posted February 21, 2015 Report Posted February 21, 2015 Not the kids...not the parent's fault. "The people" don't know about exemptions. They come to us for those things. A 30-something "software architect' who made about $250,000 last year just asked me "what are exemptions?" this morning. It's the fault of the preparer. He/she should have known to ask an 18 year old college student if her parents were claiming her. 5 Quote
Janitor Bob Posted February 21, 2015 Report Posted February 21, 2015 Agreed...It is the preparer who is to blame...they should be asking more questions....like "hmmm...you are a college student with income of $1,700...Can someone claim you as a dependent?"...But then again, asking questions is not H & R Schmuck's thing. 3 Quote
MsTabbyKats Posted February 21, 2015 Report Posted February 21, 2015 The problem with H&R is that they're, for the most part, inexperienced and they don't deal with repeat clientele. In the above situation...the original preparer should be amending for free. Maybe if someone feels it in the pocket...they might learn something. 2 Quote
Cathy Posted February 21, 2015 Report Posted February 21, 2015 So THAT is what the guy on the commercial is talking about....."We'll get you the biggest refund back, guaranteed!" The taxpayers with sense won't go to them, however, their child who is college student will! I' always concerned about losing tax dollars needlessly...the parents would more than likely receive 100% benefit of the credit.....the student more than likely 40%..... Yep, The guy is right! The student got the largest refund at their place, (even though he probably wasn't entitled to it)! 3 Quote
Catherine Posted February 21, 2015 Report Posted February 21, 2015 My clients warn their kids -- and it must go in one ear and out the other, because the kids go online and file their own returns - incorrectly - anyway. It's not like they lose their puny $127 refund for not claiming themselves, so I don't know why they insist on mucking everything up. 6 Quote
Cathy Posted February 21, 2015 Report Posted February 21, 2015 That's why I used to do student children of my clients at no charge.......that got old, so now it's usually $50 to $75, depending how bad the parents return would be affected by the student/HRB filing it... 2 Quote
joanmcq Posted February 21, 2015 Report Posted February 21, 2015 And this year, with the ACA, I warned my clients not to let their dependent kids file without bringing me their info. 1 Quote
mcb39 Posted February 21, 2015 Report Posted February 21, 2015 That's why I used to do student children of my clients at no charge.......that got old, so now it's usually $50 to $75, depending how bad the parents return would be affected by the student/HRB filing it... I still do student children of my clients at no charge....but they STILL go online and do it themselves and blow the exemption. I guess at 18, some of them are smarter than me. 4 Quote
kcjenkins Posted February 22, 2015 Report Posted February 22, 2015 It's because they are in a hurry to get their piddling little refund RIGHT NOW. And if they go online and see that they are not getting every penny back, but then if they change the exemption to claiming themselves they do, that's what they file. And sometimes it's actually the parent's fault, IMHO, because the parent is telling them, "if you don't get it all back, I'll pay you the difference", which feeds the sense of entitlement the parents already instilled in them. Heaven forbid they should have to sacrifice ANYTHING for the good of the parents who are providing so much already, right? 6 Quote
mcb39 Posted February 22, 2015 Report Posted February 22, 2015 In many, many cases, they don't get any more back by claiming the exemption. 2 Quote
Catherine Posted February 22, 2015 Report Posted February 22, 2015 I still do student children of my clients at no charge....but they STILL go online and do it themselves and blow the exemption. I guess at 18, some of them are smarter than me. That is *exactly* it. They're either in a tearing rush for their hundred bucks -- or they chafe at having their taxes go to "mommy and daddy's accountant" and want to prove (to themselves) that they are all grown up and can handle their own returns. And then muck everything up. 6 Quote
Cathy Posted February 23, 2015 Report Posted February 23, 2015 So THAT is what the guy on the commercial is talking about....."We'll get you the biggest refund back, guaranteed!" The taxpayers with sense won't go to them, however, their child who is college student will! I' always concerned about losing tax dollars needlessly...the parents would more than likely receive 100% benefit of the credit.....the student more than likely 40%..... Yep, The guy is right! The student got the largest refund at their place, (even though he probably wasn't entitled to it)! CLARIFICATION OF MY ORIGINAL POST: My fingers were faster than my brain.....forgot about the following instructions for Form 8863 (page 6), regarding Part 1, Refundable American Opportunity Credit. "Line 7 If you were under age 24 at the end of 2014 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Instead, you can claim your allowed credit, figured in Part II, only as a nonrefundable credit to reduce your tax. You do not qualify for a refundable American opportunity credit if 1 (a, b, or c), 2, and 3 below apply to you. 1. You were: a. Under age 18 at the end of 2014, or b. Age 18 at the end of 2014 and your earned income (defined later) was less than one-half of your support (defined later), or c. Over age 18 and under age 24 at the end of 2014 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later). 2. At least one of your parents was alive at the end of 2014. 3. You are not filing a joint return for 2014. I'm "assuming", and we all know what that means, that HRB claiming the refundable portion of the AOC for the student was inappropriate. (Ken's original post stated that HRB took the exemption on the students return as well as the "college" credit. I had a similar situation last year and discovered the stipulation above in the instructions, and I was able to prove to the student why he shouldn't file on his on....His refund would have been the same, whether he claimed the AOC or not! His income was in line with Ken's student's situation. My student got 100% of his withholding refunded without claiming himself....and his exemption and the AOC were used on the parents' return. If the above applies to Ken's student and HRB claimed the refundable AOC for the student in error, then HRB needs to amend the student's return at no charge. Cathy 1 Quote
HV Ken Posted February 23, 2015 Author Report Posted February 23, 2015 If the above applies to Ken's student and HRB claimed the refundable AOC for the student in error, then HRB needs to amend the student's return at no charge. You may be correct on what HRB should do, but the parent has taken over and wants nothing to do with the inexperienced "preparers" at HRB. We are charging her a nominal fee to amend her daughter's return, and we have most likely obtained a new lifetime client. The p.s. to this - she came to us this year because Liberty messed her return up last year! 5 Quote
TAXMAN Posted February 24, 2015 Report Posted February 24, 2015 Gotta wonder how they got pass 1b or 1c? Quote
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