I heard a lot of married taxpayers are filing “Married filing separate “ to get additional child credit and EP 3 , is this legal?
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In my opinion it is unethical and improper. If any of my clients try to pull that crap, which I doubt, then they may become ex-clients.. I do what is right, and I do not need anyone's business, so if they do not want to conduct themselves like civilized honorable people, then they can go elsewhere...
In my opinion it is unethical and improper. If any of my clients try to pull that crap, which I doubt, then they may become ex-clients.. I do what is right, and I do not need anyone's business, so if they do not want to conduct themselves like civilized honorable people, then they can go elsewhere...
many preparers are considering this to be tax planning, file MFS to maximize the double dipping of the credits.
@Just-Lisa-Now- Lisa, I thought the IRS was directed, or was supposed to, issue rules to prevent double-dipping of EIP3 and the child tax credit...
lets say youre MFJ with 3 kids and you got the full EIP amounts (7000).
Filing MFS and one of them taking all 3 kids, their RRC would be 5600, but if you split that 7000 in half, thats only 3500, so that MFS person is still entitled to another 2100.
The other MFS half of the relationship, shows they got the 3500 (should have only been entitled to 1400 on the 2021 return), but there is no payback.
As a couple you just came out 2100 ahead.
"Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes." --Judge Learned Hand
@PATAX wrote:
@Just-Lisa-Now- Lisa, I thought the IRS was directed, or was supposed to, issue rules to prevent double-dipping of EIP3 and the child tax credit...
I know I heard something about that, but it was never implemented.
@fredr @sjrcpa @Just-Lisa-Now- @rbynaker @garman22 @rcooley25 I think we can all agree to respect the diverse opinions of each other on this one. It will be up to the individual tax preparer to make his or her own decision
Oh, I cant agree more. On this one it is a person by person choice what we do. I do NOT like the idea of (what I believe) to be gaming the system. Its the taxpayers who end up paying for this nonsense.
But I wont bang on the next preparer who feels otherwise.
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