Discussion:Tax Season Tips -- Minimizing Screw Ups

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Discussion Forum Index --> Tax Tips --> Tax Season Tips -- Minimizing Screw Ups


Umk395 (talk|edits) said:

11 January 2014
In the interest of keeping errors to a minimum this year, thought I'd throw out a few tips:

1. We print a query of all clients whose AGI exceeds $200,000. Then we make a note in each of the tax software files (for those clients whose income exceeds $200,000) to make sure the Medicare tax entered on the W-2 worksheet is correct. Our software allows us to "auto" calculate the SS and Medicare tax when the salary is entered. I want to make sure for those clients whose income exceeds $200,000 that the Medicare default isn't just 1.45%. Watch out for this during tax season or the Form 8959 will be incorrect.

2. We run a query of all 2012 tax returns for clients who had SS benefits in 2012 and then "tag" their software file so that we expect an SSA-1099 for 2013. Sometimes us older folks can forget to give us their SSA-1099. This is just a simple reminder to us to not forget to ask them.

Any others?

Nilodop (talk|edits) said:

11 January 2014
Regarding your number 2 above, why just Soc Sec? Do you not make a comparison of pref. year's return to current year's and try to understand important differences? Just one example - big dividend in year 1, no dividend in year 2, no sale of the stock, and it still pays dividends. Gift? Sale? Inadvertent omission?

Umk395 (talk|edits) said:

12 January 2014
Yep - we always analyze significant differences b/t years when the return is ready to be reviewed. That's standard operating procedure. Gotta know what changed from 2012 to 2013. I was just throwing a couple of tips...not everyone of them. We have about 30+ QC items we check/confirm on our checklist.

Our firm motto is "We must get an 'A' on every tax return -- no B's allowed". :)

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