Discussion:Dumb and Dumber do a tax return

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Discussion Forum Index --> Tax Questions --> Dumb and Dumber do a tax return


Death&Taxes (talk|edits) said:

17 February 2007
I have parents and college student daughter returns. There is tuition credits but parents income is too high and they are in AMT. So I drop daughter from their return, give her the tuition credits and save $145 in taxes. I demonstrate this to the parents like this.

Tax without daughter 80688 AMT w/o Daughter 3675 Total Tax 84363 Tax with daughter 80282 AMT 4081 Total tax 843363

Quod demonstratum

"but why do we owe 12,860 without Kathryn and 12,850 with her?"

Scratch my head, redo the numbers again, adding her and subtracting her and can't figure it out. Then I note withholding in the Proseries summary has changed.....why? The G-D Telephone Tax Refund! Dumb and dumber do a tax return.

Kevinh5 (talk|edits) said:

17 February 2007
You're not dumb, you were just the first one here to see the impact of it. I can't tell you how many returns I've had to re-print because I forgot to check the box for the phone credit - at least 6 or 7 - well, I just told you, so I guess I can. At least I catch it when I'm signing the return.

Deback (talk|edits) said:

February 17, 2007
Kevin - Why not check the box to have the program automatically include the refund for all of your clients? Also, it doesn't calculate the credit when the person is not claiming their own exemption.

Death&Taxes (talk|edits) said:

17 February 2007
By eliminating the dependent, I eliminated her share of the credit....the one thing AMT does not disallow. My default is to give them the full credit allowable. If I didn't I'd be wasting lots of trees in printing. Yesterday I wrote about not realizing that everyone gets an exemption amount this year, regardless of income [though it can be taketh away by AMT]....by April 16th I oughta have this thing figured out.

Deback (talk|edits) said:

February 17, 2007
The check box is under Tools/Options/Miscellaneous.

Kevinh5 (talk|edits) said:

17 February 2007
I am using Drake - can't find it there. Thanks for the idea though.

Deback (talk|edits) said:

February 17, 2007
Ah..sorry. I assumed you were using an Intuit product.

Victor1530 (talk|edits) said:

17 February 2007
Thanks Kevin .....I too am using Drake. Kept trying to remember where I saw the frigging little box to ck. Used ATX for years...didnt do any returns for the last couple of years. Now the learning curve on new software. How long have you been on Drake ........might ask some questions about some of the specific settings as I get more into it. Was just telling my wife I know this return isnt right....but i have to find the box, worksheet, etc, to fill or ck that makes a BIG difference. With out experience a new preparer might think a return is finished. Good example is the nontaxable distributions on a Broker Stmt but look at the line on the program ..."says see pub".

Kevinh5 (talk|edits) said:

17 February 2007
this is the 4th tax season with Drake - I used to use Lacerte when I had a much larger practice, but I sold the practice.

MIG999 (talk|edits) said:

18 February 2007
Interesting thing about the telephone refund. I had a case in which a married separate return was better than married filing joint simply because two married separates get two $30 refunds whereas a joint return only gets $40. Obviously, this was early in tax season when I had time to play around. Of course, this does not factor in my fee for two married separate returns versus one joint return.

Deback (talk|edits) said:

February 18, 2007
MIG - Just because you included the $30 refund on both returns doesn't mean it was okay to do so. Did they each pay for separate phone lines during the 41-month period?

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