NT / Bad Question of the Day

[RitaB]

Lady: That retirement is not taxable this year, right?

Me: Why wouldn't it be?

Lady: They didn't hold any taxes out.



OK, if THAT'S all it takes...

[thomtax]

Why would it be taxable? I worked for this money and paid taxes while I was working so why should I pay taxes again? Are you just trying to make things difficult for me?

[Burke]

Almost as good as, "I shouldn't owe anything because they already took the taxes out on that." Lord, help us in this "aura" of need. Only 12 more days......

[geekgirldany]

I've started getting that alot lately on SS Benefits being taxable. Especially when they have not been taxable for a few years and then Bam! we made a profit on the rentals and the wife/husband made more on W-2 and 85% is taxable.

Not to change the subject but I had to do a mail return for a client that could not (supposedly) get a SSN for a dependent care provider. I was telling her that after this year she needs to get form W-10 filled out or have something on hand to show that she tried to get the SSN. She acted like I was interrogating her. She was like "okaaaay". Her voice took on a totally different tone. I kind of got the feeling she wasn't giving me the whole story.

[JohnH]

My bad question of the day came from a client who has filed an extension for at least the past 10 years. I hadn't heard from her yet so I sent a reminder email.

Yesterday she called and said:
"Can we file without doing an extension this year?"

My reply:
"No, you don't need an extension. Just take your stuff down to HRB before the 17th"

She called back today with her W2 info, and the extension is in.

[erchess]

Dani

I'd have explained to her that the rules are in place to make sure that parents don't write day care expenses off on their returns without putting the day care provider in a position of having to be taxed on the income. I'd have said that no one is going to come after you for paying the day care operator under the table unless you at some point land a very highly paid government job but that people who do this have their savings because they are paying less than they'd have to pay to an operator who was going to pay tax on the income. Then I'd tell her "People come to me for help complying with the tax rules so they avoid trouble down the road. That IS what you want from me, right?"

[JohnH]

No, that isn't what I want at all.

What I want is:
1) to pay as little tax as possible right now, no matter what it takes;
and
2) somebody to try and pin the blame on if I get audited later and things start going south.

[RitaB]

Not to beat a dead horse, but today's winner

Lady cashed a butt load of savings bonds, interest over $20,000. Without that interest, she had no liability.

Lady: What could I have done to avoid this tax?

Me: Uh, not cashed all these bonds at one time. Call me before you do things, ok?

[JohnH]

So if I had called you first, I could still have cashed all those bonds at one time but I wouldn't have had to pay any tax? Cool.

[geekgirldany]

Then I'd tell her "People come to me for help complying with the tax rules so they avoid trouble down the road. That IS what you want from me, right?"

I believe that is why I was getting a cold shoulder from her about this. It seemed the more questions I asked as to why she could not get the SSN the more I felt like I wasn't getting the whole story. You know how a person's voice can change when they are trying to think of exactly what to say to make it everything work to their advantage... that is how she sounded.

It also probably did not help that I said I would not have a person watching my child if they would not provide their SSN Read that in another post here

[geekgirldany]

Do the Shuffle

Bad question of my day:

Client: Can you shuffle some of the income from 2011 into 2012 so I won't have to pay so much in taxes.

Me: No! With what you are making you really should be glad to be paying so little in taxes. You are doing quite well compared to most people. You should be thankful.

Client: But I don't have the money.

Me: What exactly do you do with all your money?

Client: .... sound of crickets ....

[Burke]

Whenever I hear the harangue about "how much taxes I pay" and "I'm supporting the government," I whip that tax return right out of their hands, and head for the adding machine. After I get through dividing their tax liability by their gross income (adding back the non-taxable stuff) and tell them they are paying 8% or less, they shut up.

[Possi]

Especially Self employed

Whenever I hear the harangue about "how much taxes I pay" and "I'm supporting the government," I whip that tax return right out of their hands, and head for the adding machine. After I get through dividing their tax liability by their gross income (adding back the non-taxable stuff) and tell them they are paying 8% or less, they shut up.

I tell the self employed that they are fortunate that they can take direct expenses before getting taxed.
Then I show them how much MORE in taxes they had to pay~ half of FICA on the NET.

Wrap up with "That's a pretty good trade, isn't it?"

OR, I tell them how much I pay in taxes. Then they shut up.

[ChEAr$]

An older lady client last year has sold old gold she had inherited from husband when he died maybe 35 years ago. he had been a jeweler, and their son, also a jeweler with a thriving store in town had told her because of capital gains her tax on it would be zero.

of course their was tax on that collectible you know.

so, add to your list of barbers, beauticians, mechanics who give tax advice the profession of jewelers.

[Possi]

You'll love this one...

An older lady client last year has sold old gold she had inherited from husband when he died maybe 35 years ago. he had been a jeweler, and their son, also a jeweler with a thriving store in town had told her because of capital gains her tax on it would be zero.

of course their was tax on that collectible you know.

so, add to your list of barbers, beauticians, mechanics who give tax advice the profession of jewelers.

I did a return for a man's dad who passed away. Never did this guy's return and never would. Something about him...

So, he picks up Dad's return and we talk about the water ionizers he and his wife sell. He proceeds to tell ME that when you buy one, it's a tax deduction!
REALLY?
"Oh, yes! We get you an EIN number like you are a representative. We sell to people you refer to us, and put in under your EIN number. You write off yours as a demo. You don't ever have to sell anything!"

great~

Add waterman to your list.

What a creep.