Making Work Pay Credit / I don't think this is what they had in mind

[taxea]

Response to JCooper

I train my clients from the first year. As soon as I tell them that their fee will increase quite a bit if I have to sort through and add up all their receipts, etc...they are happy to do the worksheets I provide. taxea

[JohnH]

I should have said "I've been told" that the sticky note works.
Wouldn't want to imply that I might ACTUALLY be doing that myself...

[RitaB]

I am doing that right now

A yellow sticky note taped to the upper-right corner your monitor that says "REMEMBER TO CHECK STIMULUS PAYMENT" is very helpful.

Also highlighting with orange marker... Thanks!

[Larmil]

A yellow sticky note taped to the upper-right corner your monitor that says "REMEMBER TO CHECK STIMULUS PAYMENT" is very helpful.

TaxWorks reminds you if you haven't entered anything in that field.

[JohnH]

A yellow sticky note taped to the upper-right corner your monitor that says "REMEMBER TO CHECK STIMULUS PAYMENT" is very helpful.

[RitaB]

Didn't mean to imply

As for those who protest "but we dont' have to pay tax on that!" (stimulus payment), I calmly explain that of course we don't but we must account for it, so THAT .... IF they didn't get the full amount last year, they might be eligible for a tad more this go round. And they see my point that I'm looking out for them.

that I did not explain to my clients why I needed the amount. Of course, I provided a calm explanation. We all do. I do like to be a little sarcastic with you guys (not my clients) cause it's about all I have during tax season to let off steam. Pssshhhh.

I just realized that it would save me a lot of time if I just quit asking clients about the Stimulus Payment and looked it up myself.

Now if I can just remember to do it! I have a tab up there and everything...

[mblatour]

The Notice to Employees:

Here's the notice. I have to say that I think this is just going to cause more questions and phone calls from clients.




Notice to Employees

Changes in Income Tax Withholding

New withholding tables may reduce the amount of income
tax withheld from your wages.

The new tables, prescribed by the Department of the
Treasury, reflect the Making Work Pay credit and other
changes resulting from the American Recovery and
Reinvestment Act of 2009.

You do not have to submit a Form W-4, Employee’s
Withholding Allowance Certificate, to get the automatic
withholding change. If you do not want to have your
withholding reduced (because, for example, you have more
than one job or you are married and your combined income
places you in a higher tax bracket), you may want to file a
new Form W-4 with your employer. You may claim fewer
withholding allowances on line 5 or request additional
amounts to be withheld on line 6. For additional help, get IRS
Publication 919, How Do I Adjust My Tax Withholding? or
visit the IRS website at www.irs.gov and use the “Withholding
Calculator.”

[Larmil]

Thanks for the info. on the supplement notice. Do you feel that it explains the possible scenarios in enough detail that you clients would NOT call you and ask you to "run the numbers" for them.

I'm just concerned that too many people would overlook the information; but if they received a letter from me as well, then perhaps they'd take a minute to look at their situation and adjust accordingly. It could be a "don't say I didn't warn you" type of deal.

I'd be really interest to see what the supplement actually says. If anyone can get ahold of a copy and paste it on here that'd be great!

Thanks,
Becky

I think 'supplement' is referring to the new Pub 15-T dated 3/17/09 available at irs.gov. The notice to employees is on page 73.

[BP.]

- a full page notice - that is to be sent to employees.

And clients are already bringing them in asking, "What's this?"

[mblatour]

Jg Ea,

Thanks for the info. on the supplement notice. Do you feel that it explains the possible scenarios in enough detail that you clients would NOT call you and ask you to "run the numbers" for them.

I'm just concerned that too many people would overlook the information; but if they received a letter from me as well, then perhaps they'd take a minute to look at their situation and adjust accordingly. It could be a "don't say I didn't warn you" type of deal.

I'd be really interest to see what the supplement actually says. If anyone can get ahold of a copy and paste it on here that'd be great!

Thanks,
Becky

[JG EA]

I think the new tax table deal could be a real nightmare come next year. The withholding tables I mean. I plan on drafting up a letter to all of my clients in the next couple of weeks explaining the possible scenarios where people might receive TOO MUCH back over the next 9 months; and therefore OWE next year. I want them to be informed so that they can make a change to their withholdings; if the need be; so that next tax season I'm not dealing with a bunch of P.O'd clients who owe.

I for one can think of several scenarios where this could be a bad result for clients. A lot of my clients depend upon my advice for their withholdings so that they can get a refund back or break even; depending on what they are going for. People are broke right now and this could really upset a lot of situations next year, when its likely after another cruddy economic year they will be more broke.

No one's paying me to do this, but I think it'll be time well spent so that I'm not stuck dealing with the stress of it next tax season.

Becky

There is a page in the new suppliment - a full page notice - that is to be sent to employees. On the payroll side we are sending these. I also was going to draft a letter to tax clients, but this notice actually does warn/notify the taxpayer so I now don't feel the need to specially notify them anymore.

[ChEAr$]

Two thoughts

If I made every client get every thing they/I need, I might wait for a long time. therefore I
have a desk cut on my screen for easy access to confirm amount of stimulus payment
they received. Likewise I have shortcut icons on desktop to local county tax offices so
in a jiffy I can look up their property taxes in case they forget to bring in that information.

Over time, if we work with our clients to help improve their information it will pay off, and
eventually we all get the type of clients we deserve.

As for those who protest "but we dont' have to pay tax on that!" (stimulus payment), I
calmly explain that of course we don't but we must account for it, so THAT .... IF they
didn't get the full amount last year, they might be eligible for a tad more this go round.
And they see my point that I'm looking out for them.

God bless out clients. EVERY one.

[RitaB]

Oh. Well. If that's all it takes...

This is exactly why I provide a checklist of documents needed to my clients and ask them not to bring anything to me until they have everything together. taxea

You're kidding, right? Your clients actually get everything together? I think you have a different type of client than I do! Haha!

I quit asking about what they got on the Stimulus Payment after about three people jumped down my throat: "I don't have to pay taxes on that!"

I thought I was looking everybody's up, but obviously not.

[taxea]

This is exactly why I provide a checklist of documents needed to my clients and ask them not to bring anything to me until they have everything together. taxea

[RitaB]

Yeah, I missed those two

[QUOTE=Jiggers;77627]

You don't check or verify the amount with the IRS website for each client? Takes less than a minute, which is less than having to explain the letter.

I know. I try to check on everybody. Those two got by me. Practically NOBODY brought their letter in. They were early folks, and I just didn't remember to check. After the first couple of weeks, I even made that IRS page one of my home pages.