Can I get blood from a turnup?

[AZ-Tax]

Single lady with 12 yr old dependent son has NO income. No W-2, No 1099-misc, No 1099-R nothing yet some tax preparer told her she should be able to get a tax credit for her 12 yr old. Man I am racking my brain and unless I missed something, my ProSeries software tells me $0 for Fed but $50 for AZ. My client is on workmen comp and receives disability.

Does that sound correct?

[Roberts]

Jmo

Tell her to go to the tax preparer that told her about these magical credits.

[RitaB]

Sounds like

Well, she has no "taxable" income. Sounds like she got bad news (as in the truth) from "some tax preparer" and is now hoping you will have better news.

And, yes, you are correct, she's not entitled to any free money in the form of refundable credits. (Not yet, anyway.)

And, no, you and I can't get blood out of a turnip, but a bunch of my clients do.

[taxxcpa]

Blood from a turnip

I took a load of turnips to the blood bank since they pay for blood donations. For some reason they kicked me out.

[JohnH]

That other tax preparer obviously knows more than you do.
She should take her stuff to him right away.
That's what I tell anyone who knows someone who knows more than I know (as I'm handing their stuff back to them).

[Jiggers]

There is a way to get EIC without anything.

A taxpayer can say that she is a household employee, making less than $1,700 at each house she works at.

She doesn't need a W-2 because the homeowner doesn't have to issue one when she earns less than $1,700. And she doesn't owe SS/Med taxes.

See instructions for line 7 on the 1040.

Just write HSH on that line with any amount.

That enables her to get EIC, maybe Child Tax Credit, etc.

Just don't get caught.

I think there were some preparers that did this and got caught.

[veritas]

Dire Straits?

Now look at them yo-yo's that's the way you do it You play the game on the EITC That ain't workin' that's the way you do it Money for nothin' and your checks for free.

[FEDUKE404]

A side thought

I've often wondered if it would be kosher if I could apply a multiplier to my tax prep fees for any and all tax returns involving EITC interviews and calculations.

"Go ahead - I'm sure you can find at least a couple of usable Soc Sec cards in there....."

FE

[ChEAr$]

Turnip blood

Speaking of which, I'm reminded of the story of the IRS auditor who had on his/her? desk a Mason jar with a dark liquid in it and prominently marked "Blood from a turnip".

[Gary2]

Single lady with 12 yr old dependent son has NO income. No W-2, No 1099-misc, No 1099-R nothing yet some tax preparer told her she should be able to get a tax credit for her 12 yr old. Man I am racking my brain and unless I missed something, my ProSeries software tells me $0 for Fed but $50 for AZ. My client is on workmen comp and receives disability.

What type of disability? Some disability income (e.g. Civil Service) are considered wages up to the minimum retirement age, and do indeed qualify for the EIC. Check out page 10 of Pub. 596. They also qualify for the Making Work Pay Credit, enabling the full $400 instead of the $250 GRC in 2009.

[Zee]

What type of disability? Some disability income (e.g. Civil Service) are considered wages up to the minimum retirement age, and do indeed qualify for the EIC. Check out page 10 of Pub. 596. They also qualify for the Making Work Pay Credit, enabling the full $400 instead of the $250 GRC in 2009.

Great answer! This is why I read this board, and continue learning....and learning....and learning. Too bad I can't remember what I've read very long.

[Bonnie]

Indeed it does depend on how the workers comp is being paid. I had a client this past year who has been receiving it and gets issues a W-2 with the comp reported as wages. No children involved but came out she did qualify for EITC as a single person because the income was so low. I even called IRS about it cause I didn't want it coming back to bite me. Was told yes she does qualify because of the way it was reported on W-2.

[Burke]

Speaking of which, I'm reminded of the story of the IRS auditor who had on his/her? desk a Mason jar with a dark liquid in it and prominently marked "Blood from a turnip".

LOL. Am going to do that this tax season. What a hoot!