Friday, February 15, 2008

BEWARE!

I just had to break from my tax season hiatus again to comment on the requirement that individuals with no income other than Social Security, Railroad Retirement or Veterans benefits will have to file a “0” Form 1040A in order to receive their $300 (or $600 for a couple) rebate check.

As the Acting IRS Commissioner made the announcement I could hear the corks popping and imaging the Champagne flowing at the headquarters of Henry and Richard and other “fast food” tax preparation chains of their ilk.

This new requirement will give Block and friends another way to continue their policy of soaking lower income individuals with excessive preparation fees, usurious Rebate Anticipation Loans, and other scams and schemes like their fee-loaded debit cards. The greedy bastards!

To anyone out there reading this who will have to file not because you have taxable income but solely to report your Social Security or other benefits in order to get a rebate check – whatever you do, do not go to Henry and Richard to have your return prepared. Look for a free service like VITA or the program run by AARP.

Now, back to work!

TTFN

Thursday, February 14, 2008

BREAKING NEWS!

We interrupt this tax season hiatus for the following breaking news:

IMPORTANT NOTICE REGARDING THE FEDERAL REBATE

IRS Fact Sheet FS-2008-16 provides the following instructions:

Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment. The return must show at least $3,000 in qualifying income.
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In other words, low-income workers who had at least $3,000 in earned income in 2007 but do not otherwise earn enough to be required to file a federal tax return need to file a return in order to get the stimulus payment. Likewise, Social Security recipients, veterans and retired railroad workers who might not otherwise need to file a tax return must do so to receive the economic stimulus payment.
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For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 20a of Form 1040 or Line 14a of the Form 1040A.
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· Social Security benefits reported on the 2007 Form 1099-SSA, which people would have received in January 2008. People who do not have a Form 1099 may estimate their annual Social Security benefit by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
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· Railroad Retirement benefits reported on the 2007 Form 1099-RRB, which recipients would have received in January 2008.
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· The sum of veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. People are allowed to estimate their annual benefit by taking their monthly annual veterans’ benefit, multiplying it by the number of months during the year they received benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A.
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People should note that Line 20a of Form 1040 and Line 14a of the Form 1040A are designated for Social Security. To qualify for the economic stimulus payments, these lines should also be used to include any qualifying Railroad Retirement or veterans’ benefits.

Friday, February 1, 2008

SO LONG, FAREWELL, AUF WIEDERSEHEN, GOOD NIGHT!

As is my custom, due to the demands of the tax filing season I will not be posting to THE WANDERING TAX PRO, or my other blogs, until the end of April. Between now and April 15th I barely have time to relieve myself let alone blog!

I realize that I am abandoning you at a time when you may need me the most – but I need to make a living, and my blogs certainly don’t pay any bills!
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My clients should visit the
TAX SEASON UPDATE Page on my tax practice website to keep up-to-date on my progress during the season and to learn of any changes or additions to my tax season policies and procedures.

FYI, when the Economic Stimulus plan is finally signed into law by George W I will post a detailed analysis on the FEDERAL TAX UPDATE Page at
www.robertdflach.net.

“Talk” to you when it is all over!
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TTFTS

IT’S HERE!

Joy to the world - tax season’s here.
I’ll soon be flush with cash!
Let every client be organized,
and give me all I need, and give me all I need,
and give me all I need to prepare their returns!

My 37th tax season has officially begun - the floodgates have been open!

And now for what will be a February 1st tradition here at THE WANDERING TAX PRO - “The Twelve Days of Tax Season” -

On the first day of tax season my client gave to me a Closing Statement for the purchase of a home.
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On the second day of tax season my client gave to me 2 W-2 forms.
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On the third day of tax season my client gave to me 3 mortgage statements.
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On the fourth day of tax season my client gave to me 4 Salvation Army receipts.
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On the fifth day of tax season my client gave to me 5 Form K-1s.
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On the sixth day of tax season my client gave to me 6 1099s for dividends.
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On the seventh day of tax season my client gave to me 7 cancelled checks.
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On the eighth day of tax season my client gave to me 8 useless items.
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On the ninth day of tax season my client gave to me 9 medical bills.
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On the tenth day of tax season my client gave to me 10 stock sale confirms.
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On the eleventh day of tax season my client gave to me 11 employee business expenses.
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On the twelfth day of tax season my client got from me a finished tax return, 11 employee business expenses, 10 stock sale confirms, 9 medical bills, 8 useless items, 7 cancelled checks, 6 1099s for dividends, 5 Form K-1s, 4 Salvation Army receipts, 3 mortgage statements, 2 W-2 forms, and a Closing Statement for the purchase of a home.
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And, of course, on the thirteenth day of tax season the client gave to me a corrected Consolidated 1099 from Merrill Lynch!