I hate it when I screw up - with the most anal client I have

[BulldogTom]

Client is a high income couple, he is self-employed.   Has been able to max out his SEP contribution every year.   Asked me what the limit was earlier in the year.   I gave him the amounts right off the IRS website which say:   

25% of your net self-employment income or $58K, whichever is less.

I forgot to add the part about the special rule for self-employed.   He did not earn enough this year to max out under the special rule at 20%, but did if you take the general rule of 25%.   When I was preparing the return, I let him know he had to withdraw the excess contribution and now he is pissed at me.

It is my fault, I should have been more specific about the rate.   Sometimes it sucks to do this job.

Thanks for letting me whine about my mistake.

Tom
Longview, TX

[jklcpa]

I'm sorry, Tom. Don't be too hard on yourself because we all make mistakes from time to time.  Like you, mine are usually with the most demanding of clients and are usually not answers to the most complicated of questions they ask.

[Lion EA]

Ditto. We all understand, but we know your client doesn't always understand. Apologize for being rushed, but don't apologize for giving a too-simplified answer while rushed. Because, human...

[Abby Normal]

We've all done this, which is why I prefer to run it through the software to be certain of my answer, in some cases.

[Hahn1040]

If the contribution was made in 2022, then he can just apply the rest to the 2022 contribution. 

[Alex]

We've all made mistakes. And I'm sure the sucky parts are few and far between. 

[Catherine]

The most persnickety of clients have karma attached to them, attracting mistakes on our part. Seen it time and time again over the years!

[schirallicpa]

 The mistakes always happen on the persnickety ones - I agree - bad karma.  I just did a PA return for someone and forgot that federal wages and PA wages are not the same when there is retirement deduction on the federal.  They marched in this afternoon all up in arms.  Ugh.  I don't know why the program can't catch that one.  I feel like it used to.  PA returns became more complicated in ATX over the last couple years, and PA is not complicated.

 

[Sara EA]

I did the same thing with a PA return and still feel guilty.  If ATX has a two-year comparison, that might help you notice the discrepancy before it's too late.  I view the two-year in UT for every return I do.  NJ, MA, and others also tax some items federal does not.  I guess all of us should learn to look at all the state entries when we enter the W2, especially when working with a "foreign" state, because the auto-populated ones can be wrong.  And I disagree that PA is not complicated!  With the local tax and school tax and all those reciprocal agreements, PA is hardly straight forward.