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Unknown. Ask again on Oct 15th.
Ah, the "extender". Lazy. :lamo
Unknown. Ask again on Oct 15th.
Those figures tie back exactly to what I calculated but I don't understand the 20% withholding on the "other income". Generally speaking mandatory backup withholding is 28%, not 20% and if it isn't mandatory then you damned sure don't need it to be withheld.
Figuring out you were married is easy. It's the only way your EIC could be that much. It's also how I know you must have 2 kids under the age of 17 but I just guessed at that before you posted the details of your tax calculation.
Ah, the "extender". Lazy. :lamo
No. It's saving him money. He doesn't have to pay his taxes yet because he is special and deserves an extension because his situation is just oh so unique. :roll:
(Let's not tell him about the penalties.)
He's a CPA. He knows all about it.
In most cases it is more beneficial to be married. There is an exception. It seems like you are somewhat familiar with tax returns. Maybe you will understand what I am talking about.
Two people live together for 10 years but never get married but have two kids. They make about $20,000 each. They are both eligible for EIC and Child Tax Credit. One claims one kid. The other claims the other kid.
If they were married they would make $40,000 and be ineligible for EIC.
There are a few unmarried people that would lose out if they were married. It's just a fluke or a "sweet spot". It's not really something to plan your life around because you could have a larger or smaller income in subsequent years and screw yourself.
Does this make any sense?
I've actually seen that several times but doing that is likely to get you in trouble.
Under the scenario you cite only one person would be eligible for Head of Household filing status. .
That's reasonable. He was too busy doing taxes for others to have time to do his own.:doh
I'd say that in my industry 80% or more of us file extensions.
You are right. Are single filers eligible for EIC? If not, then you are right. You would have to commit fraud to execute it properly.
To be legal about it, the higher income person would probably file head of household thus both kids. The lower income person would probably file single and no kids.
Unknown. Ask again on Oct 15th.
You really think so? Why would your tax return being any more complicated than your clients? This is something I never considered. Is the 2nd and 3rd week of March slow enough to do your own tax return?
LOL!!
My tax season starts in November with getting my corporate clients squared away. Beginning in January I've got 4th Quarter payroll reports that have to go out, 1099's that need to get filed and finalization of corporate financial statements. Corporate returns are due March 15th and get mixed in with individuals who need to file early so they can get the information they need for their kids FAFSA applications. That basically leaves me 4 weeks to get the bulk of the individual returns done. Interspersed with all of that is answering correspondence from the IRS and state tax agencies as well as at least one person who comes in with an audit issue. You also have to keep in mind that whatever Congress changed in Nov and Dec means that both the IRS and the software companies have to get those changes into the system so filing ANY return before the middle of February is pretty much a shot in the dark....if it's even possible.
As far as the complexity of my return...well, I've got two corporate returns that need to be done before I can do my personal which isn't really complicated but it sure is time consuming.
As far as the complexity of my return...well, I've got two corporate returns that need to be done before I can do my personal which isn't really complicated but it sure is time consuming.
You don't outsource your indy returns to some 8 dollar an hour street-scrubs? I haven't met a CPA yet who doesn't think that individual returns are beneath him, unless they were incredibly difficult.
Oh. I get it. Those corporate returns have a tax year that ends in a different month. If your corporate tax year ends on June 30, 2014, does that effect your 2013 individual tax return?
Luckily we only have to file one return - the one for Uncle Sam. God bless New Hampshire, the Live Free or Die state. No income taxes here.
if I farm it out I'll be prone to lose that insight too.
I have one other preparer in the office and there is no way I'm going to farm out returns to some "flunky". I know a lot of CPA's who use an interviewer and a data entry person but I'll be damned if I'm going to sign something I didn't thoroughly review. It's just too damned easy to make a mistake.
Every year I have stuff come across my desk that was prepared by other firms and on better than half of those returns I've found issues (which is usually why they came to my desk in the first place:lol. On top of that, after working with a client for a few years I can tell whether something is missing or just doesn't make sense. No data entry clerk is going to notice those differences and if I farm it out I'll be prone to lose that insight too.
Got back enough for a new heavy-duty diesel truck tranny. Realllllly needed it.