Preparing client's children tax return

Technical topics regarding tax preparation.
#1
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This year, I have headache everytime a client asks me to prepare the tax return for his children. Everyone wants to file as independent this year even though they made little or next to no income in 2020. This morning, I have just politely turned down another case after a lengthy explanation to my client why I cannot provide the service to his son. Of course, my client now is not a happy camper and the body language is that he will not even hire me to do his own tax return next year. So I have just lost another long-term client because I refused to prepare a questionable tax return for his son.

Does anyone of you face similar pressure this tax season?
 

#2
AlexCPA  
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A Shark On A Cash Reef
20% of your clients will cause 80% of your headaches. I gladly let clients walk before I risk my livelihood, my business, and my reputation to please those who want me to file returns with questionable tax positions. It's not worth the risk.
Even more of my antics may be found on YouTube:
https://www.youtube.com/channel/UCXDitB ... sMwfO19h7A
 

#3
Andrew  
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There are plenty of good clients out there.
 

#4
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I understand.

This year, we have this group of "I will file independently no matter what" college students who are extremely difficult to deal with though.
 

#5
Andrew  
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Is this because they think they can receive a stimulus check if they file that way? That's not the case if someone else can claim them as a dependent.
 

#6
sjrcpa  
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Of course that's the reason. Everyone wants free gov't money.
 

#7
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TaxItRight wrote:I understand.

This year, we have this group of "I will file independently no matter what" college students who are extremely difficult to deal with though.


Sounds like they want a secondary, extended education in making big rocks into small rocks. Free housing and three square a day.
 

#8
taxcpa  
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I have the opposite situation show up today.

Client's kid is a community college student, enough expenses to claim the AOC on the parents return last year, when the kid made a few thousand in a part time job. All good, do those for no up charge.

This year, kid made about $5K working and $13,500 from UI. Add in a Robinwood 1099B. Not a freebie any more, very likely not a dependent at that level of income. Not sure if they are allowed to claim stimulus when it was already paid to the parents or not. Have to look. More time.

Kid is going to hate me. Dad is going to hate me.

Can't file a thing, as we are waiting for answers on UI taxation at the State and possibly Fed level.

21 just gets to be more fun as the days roll on.
 

#9
mariaku  
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This is what happens when government policies are designed poorly.
Why give EIP to dependents up to age 16, and nothing at all to 17 & older?
Why give double-stimulus to children whose unmarried/divorced parents alternate claiming them on their tax returns?
 

#10
Taxaway  
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I've had a few clients "luck-in" (why is the phrase luck-out?) with good timing, a dependent turning 17 in 2020, and their EIP1 and 2 using their 2019 tax info. Now EIP3 will cover qualified children up to age 23.
 


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