I've Said it Before!

[ddoshan]

There are always a lot of questions when it comes to Filing Status, Exemptions, the EITC, Divorced or Never Married couples, etc. I've said it before and I'll say it again. There are so many possible situations and scenarios that can come up and these things can be so intertwined that it can drive someone to drink. I have said before that I or someone could make up a 40 question test relating to various above scenarios, give it to 100 tax pros, and I would be very surprised if anyone got 100% of the answers correct. Yet supposedly we are expected to or should know this stuff by heart.

[WhiteOleander]

HA! Know it by heart! The only thing I know by heart is where it is in the TaxBook.

[S T]

I "echo" the original post! - Fortunately I do not become involved in many as they are current clients or referrals, but not the general "walk-in" so I isolate to remove myself from a lot of the EITC issues.

These rules for unmarried parents, separated parents, days lived with, which benefits CTC, EITC, Child Care, who gets what - is a huge burden on the Professional Tax Preparer that is trying to make sure the Tax Return is filed "accurately" and the T/P receives the best Tax Benefit.

It is mind boggling for sure -- and I wish this would be one area of the Tax Law that would be "more simplified"

If we can't figure it out as Tax Pros, how can IRS!

I love these posts at the beginning of tax season --- Great Reference

Sandy

[taxxcpa]

People often call and ask a question that requires research, but expect you to be able to answer off the top of your head--like "I made X dollars. How much tax will I owe?"

[RitaB]

Your clients are more sophisticated than mine

People often call and ask a question that requires research, but expect you to be able to answer off the top of your head--like "I made X dollars. How much tax will I owe?"

"My kid had a part time job. Will he get anything back?"

[geekgirldany]

It gets so complicated even with some clients I've had for years. Their children have their own children and all still live in my client's home. I understand their reasoning and do not want to judge but it makes situations so complicated.

I cut off the phone questions years ago, I tell them to come by and I will talk to them about it.

[Ricardo]

Yea

VERILY !!

Regards = Ricardo

[Black Bart]

It's not always so complicated; in fact a taxpayer once made it all astonishingly clear to me. It was a few years ago when CTC was not refundable and EITC was only paid on two children.

Prospective client walked in and said:

TP: I want to file for earned income credit on two kids.
BB: Okay, let me get some information. Are these your children?
TP: No.
BB: Alright then; are they related to you?
TP: Yeah, they're my sister's kids.
BB: Oh, alright; then her kids live with you and you're taking care of them.
TP: No.
BB: Well, do you live with your sister?
TP: No.
BB: Well, where do you live and where are the kids?
TP (becoming irritated): Look, I live by myself. The kids and my sister live at her house.
BB: So why isn't she claiming them? Does she not file?
TP: Yeah, but she's got four kids and only needs two of 'em to get earned income credit and all her money back. She said I could have the other two this year if I wanted them.
BB: Umm...well, you can't do that.
TP: I don't see why not; my last year's tax man did. You must not know too much about taxes if you can't do it too.

And...out the door he went.