Wednesday, February 25, 2015
For my clients, and those who are interested -
The, or I guess my, 2015 tax filing season (February 1 – April 14) is 1/3 over!
I have completed and mailed out 63 returns – which is not bad for the first third of the season. I don’t remember if I saved my last year’s daily log – and if I did I don’t know where to put my hands on it easily – but I think I am, if not at the same point, a bit ahead of last season at this time.
I have either done, received in the mail, or made arrangements with 49% of the names on my mailing list – which I am sure is ahead of last year.
The “to be done” box is not “chock-a-block” yet. And there are only a few “red files” (need more information), and they are completed as soon as the missing information arrives.
I have yet to do a return where I did not check the “full-year coverage” box, although there may be one in the red files. And I have not done any returns, other than my own, that involved a Form 1095-A. I received one, and was about to start it, when the client emailed to tell me his 1095-A was one of the 800,000 FUs.
We were told this was going to be one of, if not the, worst tax filing seasons ever – but it is actually been one of my better ones so far (as far as smoothness of operations).
I do not accept any new 1040 clients. But if I did I would most definitely not accept any new clients who would be applying for the Earned Income Credit or who did not have “full-year coverage”.
Let us hope I continue to be productive, and things continue to run smoothly, so that I can give a similar positive “where the fakawi” at the half-way mark.
Monday, February 23, 2015
Saturday, February 21, 2015
This just in -
Oi vey! Michael Cohn reports “800,000 Taxpayers Received Wrong Tax Info from Health Insurance Marketplace” at ACCOUNTING TODAY!
The government tells us –
“About 20 percent of the tax filers who had Federally-facilitated Marketplace coverage in 2014 and used tax credits to lower their premium cost —about 800,000 (< 1% of total tax filers) —will soon receive an updated Form 1095-A because the original version they were issued listed an incorrect benchmark plan premium amount.”
“We are advising them to wait until the first week of March when they receive their new form or go online for correct information before filing. For those who have filed their taxes—approximately 50,000 (< 0.05% of total tax filers) —the Treasury Department will provide additional information soon.”
It seems this FU “only affects people who signed up through one of the 37 states using HealthCare.gov” and “taxpayers whose forms were affected will receive a phone call about the problem from the Marketplace by early March, in addition to letters and emails with additional information about the status of their forms.”
To find out if you received a FU-ed Form 1095-A you can check your account at www.HealthCare.gov.
So far I have only had one client with a Form 1095-A - and he was told his Form 1095-A was FU-ed, so we have to wait to file his return. I had been hoping to complete his 1040 this week-end. When I first reviewed his 1095-A something seemed amiss - because even though his actually income was more than that estimated when applying it looked like he was due an additional credit.
FYI - I have only had one client so far who did not have "full-year coverage" for all members of his household (currently "red-filed" - need more info).
And BTW - a “Where the Fakawi” for my clients is coming soon.
Monday, February 2, 2015
Now it is time for what you have been waiting a year for - the annual first business day of February tradition here at THE WANDERING TAX PRO of posting “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.
On the second day of tax season my client gave to me 2 W-2 forms.
On the third day of tax season my client gave to me 3 mortgage statements.
On the fourth day of tax season my client gave to me 4 Salvation Army receipts.
On the fifth day of tax season my client gave to me 5 Form K-1s.
On the sixth day of tax season my client gave to me 6 1099s for dividends.
On the seventh day of tax season my client gave to me 7 cancelled checks.
On the eighth day of tax season my client gave to me 8 useless items.
On the ninth day of tax season my client gave to me 9 medical bills.
On the tenth day of tax season my client gave to me 10 stock sale confirms.
On the eleventh day of tax season my client gave to me 11 employee business expenses.
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.
And, of course, on the thirteenth day of tax season the client gave to me a corrected Consolidated 1099 from Wells Fargo Advisors!