Hope everyone is looking forward to being back at their desk. Phone calls are indicating people are desperate for their refunds. The 2% holiday on SS tax is gone, meaning slightly smaller paychecks, but the cost of a gallon of gas has gone down which helps. Saw $2.95 a gallon yesterday at one station. YEA!
H&R Block is wanting it's tax pros to become experts on Health Care Reform and the affect on taxes. Starting this tax season, we're supposed to discuss how the taxpayers 2012 return will affect the possible subsidies for purchasing health care and we're also supposed to tell clients about the possible penalty tax associated with not having health insurance. Should make for some interesting and lively conversations at the tax desk!
patricka5 !! Be ready to explain how the health care penality tax will affect their refund with EIEC and CTC? I hereby authorize you to use President Obama most often spoken phrase, "its not my fault".
During all the media coverage of possible impacts of the cliff, I did see some estimates that those impacted by AMT or having SCH A on their 1040 might not be able to electronically file until March. From my days at and inner-city HRB office, generally in Jan/Feb I only saw a big run of RAL/RAC 1040/1040A returns with EIC, so I haven't seen anything that would imact that group. I remember seeing a few SCH A returns in Jan and many more in Feb, so that group of clients may be unhappy campers this year if the IRS pushes them off 4-6 weeks.
Since leaving HRB in 2010, most of my current clients come in during late February to early April (my clients are out in a wealthier part of the suburbs now), so hopefully most of the IRS e-filing issues will be resolved by the time my small rush of clients hit.
The only wild card for me is this season I'm more aggressively advertising in my area with a much lower pricing (all 1040s at $79, all business returns at $99 - only charging extra if client hands me a box of receipts to add up) since I'm only working from a laptop (no home office) at my clients home/business locations and most of my overhead expenses are pretty much gone now (I'll still be e-filing from my home location for all returns to meet Cir 230 requirements). It will be interesting to see if I pick up a decent sized group of new clients from my new ads - and hopefully not too many nasty phone calls from my competitors who are might be force by clients to match (or beat?) my new pricing structure.