What changed?

[RitaB]

Message from wife of pastor who picked up: “Hi, Rita, I know you’re busy, but we always get a refund, can you call me and go over what changed from last year, so we know how to plan for this year?”

Hi, yes, I AM busy. Can you maybe get out 2013 and note that you did NOT get a refund, and that your overpaid husband made 5,000 more in 2014, and like more income makes a difference when it comes to taxes? I know that's hard to believe, but I find that it's true more often than not. -- Thought bubble.

[MsTabbyKats]

My program...TaxAct...has a comparison to last year worksheet.  Whenever I get this question...or when I anticipate this question...I send it to them...pointing things out.

 

Just this morning I sent one showing an increase of $18,000 in income...with a $50 increase in withholding.

 

You know what they say about a picture and 1000 words.

[Margaret CPA in OH]

ATX also has a comparison form which I always include. It answers lots of questions!

[Jack from Ohio]

You assume that clients will read the comparison forms....

[grandmabee]

Exactly Jack

[RitaB]

I always just set down with both returns in front of us when I get that question. She hadn't even looked at 2013, and in 2014 they had less medical expense, less actual housing expense, less mortgage interest, etc. I explained this to pastor yesterday, plus, hey did you know you made $5k more?

Either he didn't believe me or she didn't believe him. She needs to come at pickup rather than call me with a question like that. It's like directing the landing of a plane by telephone.

Oh, and it has not escaped my notice that I never get a "What changed?" when the tax is less. Only when it's more.

[rfassett]

Finished one yesterday - a Schedule C whose gross was up $40,000 to nearly $200,000 and his net was up $30,000.  We called him to tell him he owed another 5 grand and he had an absolute melt-down.  You would have thought that we had just shot his dog.  And that was AFTER we had explained everything to him - comparing last years numbers etc.  We had reason to call him again about six hours later on a different issue and he was still involved with his meltdown.  Let it go man.  And for the record, I have offered this guy multiple tax planning sessions over the years - but he is either too busy or just does not care.  I am sensing he is starting to care.

[Jack from Ohio]

Finished one yesterday - a Schedule C whose gross was up $40,000 to nearly $200,000 and his net was up $30,000.  We called him to tell him he owed another 5 grand and he had an absolute melt-down.  You would have thought that we had just shot his dog.  And that was AFTER we had explained everything to him - comparing last years numbers etc.  We had reason to call him again about six hours later on a different issue and he was still involved with his meltdown.  Let it go man.  And for the record, I have offered this guy multiple tax planning sessions over the years - but he is either too busy or just does not care.  I am sensing he is starting to care.

I tend to ask... "What did you do with all that extra income?"  I get a lot of blank stares...

[jklcpa]

The first question I ask when clients pick up the return is if they'd like to review it in detail.  They all say no, so I go over the highlights meaning that I am using that exact comparison summary page for the review.  I point out all of the major changes that answers all of these type of questions. That comparison is always the first page directly behind the letter.  I am also now using the very abbreviated letter format that everyone likes a lot better, easier to see, very concise.

[joanmcq]

I've started adding the comparison to most of my returns. I think I'll start putting it in all of them.

[Carolbeck]

I've started adding the comparison to most of my returns. I think I'll start putting it in all of them.

I include one (Comparison) in every return (except the child / dependent / college student w-2 income only). I actually use a highlighter and highlight AGI, Itemized Deductions, Taxable Income, Total Taxes, and the Balance Due vs Refund. Also I highlight the Child Tax Credit and if their child turned 17 (or will the following year) to note the difference. I put in to the left side of my 2 pocket tax folder so they see that first. Then the complete signed return in the right side pocket. It has helped save many repeat telephone conversations. Even if it is a new client and you have a copy of the prior year return from the ex Tax Preparer, you can quickly fill in the info for comparison. 

[Terry O]

I have used the Comparison for as long as they have had it, and with EVERY return.  Not only can I see if I am missin something, it showes the EXAC line by line of any increases or decreases.  Amazing how much more the client understands!!!

[Randall]

I've always used the comparison for myself but seldom giving the client a copy.  I've been doing that more this year though whether they read it or not.

[mcb39]

You assume that clients will read the comparison forms....

 

I will personally put it in the hand of my new client who tried to tell me how to do my job.  She is picking up this afternoon.  She was trying to squeeze more money out of the system and I was having no part of it.

[Richcpaman]

Like I remember what is different on your return?

 

The comparison makes it easier to explain it.  Kinda tough to read upside down, however.

 

Rich

[mcb39]

I tend to ask... "What did you do with all that extra income?"  I get a lot of blank stares...

 

I had a client get really irate a few years ago when I asked that question.  She even brought it up in court when I had to testify for her husband at a hearing pertaining to their divorce.  She is no longer my client.   On the other hand; had a client this year who was a suicide in Nov; couldn't figure out what he could have spent all that money on.  Consulted with the family; then the financial manager.  Turns out that two rollover distributions were coded incorrectly as ordinary distributions.  That was a "good catch" on my part and much appreciated by all involved.  It helps to know the habits of your clients.

[mrichman333]

Rita, you sound as tired as I am

[JohnH]

I tend to ask... "What did you do with all that extra income?"  I get a lot of blank stares...

CLIENT:

"I spent way too much of it on that outrageous tax preparation fee.

Oh, and also some went to the new boat & motorcycle."

[RitaB]

Rita, you sound as tired as I am

Yes, I've just about had enough. Hahaha.

[Catherine]

Me too.  Couple whose income was up $30K (incl $7K more SE income); tax went up too and they underwithheld.  Want to know why, what's different, should they file MFS, blah blah blah -- all this when I still don't have brokerage docs and half a dozen other items!!  I was a bit terse in my email reply.  They ask EVERY year if MFS is better; one year I gave them the comparison (duh; WAY more tax MFS) yet *still* they ask and I am DONE with hearing the question.

[Lion EA]

I always use and give the year-to-year comparison and the MFJ vs. MFS comparison.  I'd been putting them after the summary, because the summary makes a nice start after the cover sheet, looks prettier or whatever.  I'm starting to put the year-to-year first.  Maybe I'll have the MFJ/MFS second.

[Margaret CPA in OH]

And then there is 'my' couple who would benefit from MFS but because he is retired and has withholdings and she is self-employed but wants estimates in her name only, still want to file joint. Only been married a couple of years, age differences, etc.

I spent so much time with them, so many emails, arrggghh! EMailed pdf copies but their computer couldn't connect to printer so I had to mail client copies for review, yada, yada, don't let the door hit you on the way out.

[mrichman333]

I just go that question over the phone.  "My daughter want's to know why her refund wasn't the same as last year"

I DON"T KNOW I'VE NEVER SEEN HER LAST YEAR RETURN!!!!!!!!!!!!

 

AND WHAT THE HECK MAKES THEM THINK IT SHOULD BE THE SAME EVERY YEAR
 

[fredazcpa]

Client:  Nothing has changed so it is the same.

 

changes found:

started a side business

broker sold stock to fund the start up

business is profitable (consulting)

and oh by the way, we had twins

 

and nothing has changed

 will the fees be the same as last year?

 

Me first we file an extenson you are bring this to me on the 10th and I have about 20 infront of you

and no the cost will be at a min. 3 times as last year

 

silence on phone

 

I think I will call store front

 

Me Goodbye, (see you next year to Amend this year and file 2015 and lets see about 5 times the cost)

[rfassett]

Sounds to me like we are all getting just a tad testy.  I told my staff earlier today - screw the concealed weapon crap.  For the next five days I am strapping that thing on where EVERY one can see it.  Go ahead, punk, make my day!