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Paid preparer due diligence: AGI/Tie breaker rule - YouTube video text script

 

Preparer: Come in please.

Alice: obÌåÓý are you?

Preparer: I¡¯m great. Good to see you, Mrs. Jackson.

Alice: Thank you.

Preparer: Please, have a seat.

Alice: Oh, thank you.

Preparer: I¡¯ll be with you in just one moment. What can I do for you today?

Alice: I told my son not to marry that woman. Now look at the situation we¡¯re in.

Preparer: Well, Mrs. Jackson. Three grandchildren ages 3, 4 and 5. You have your hands full.

Alice: Aren¡¯t they darling?

Alice: Some days I don¡¯t know if I¡¯m coming or going.

Preparer: And you¡¯ve been living with your son, taking care of his children for¡­

Alice: Since May of last year.

Preparer: And the children¡¯s mother, where is she?

Alice: Soon as that divorce became final last April, puh! She made herself scarce.

Preparer: So, the mother does not see the children?

Alice: Oh, she sees them sometimes. Has them over to her place. But they don¡¯t live there. They don¡¯t even spend the night there. As I said, she doesn¡¯t seem to want much of anything to do with any of us anymore.

Preparer: Now you take care of the household expenses for everybody?

Alice: Well, pretty much. I mean, my son, he helps when he can. A little here and a little there. You know, for the kids¡¯ clothes and a few school expenses, but he doesn¡¯t make much.

Preparer: Let¡¯s talk about income. Your son makes¡­?

Alice: $7,200 last year.

Preparer: And you, Mrs. Jackson?

Alice: Well, I earned $8,000, and then there¡¯s my Social Security, that¡¯s another $12,000. Say, why are you asking all these questions about who earns what and who pays what?

Preparer: Well, we have to know the adjusted gross income of parents who can claim their kids. It¡¯s called the AGI rule.

Preparer: If a parent and a non-parent can claim a child, the non-parent must have the higher AGI.

Alice: Ah, then I suppose you¡¯ll want to know what my son¡¯s ex-wife makes next.

Preparer: Not this time. You see, she doesn¡¯t qualify for the EITC because the kids didn¡¯t live with her more than half the year.

Alice: Oh. I guess it¡¯s down to either me or my son. So?

Preparer: You qualify, Mrs. Jackson because your income is higher than your son¡¯s. And you meet all the other eligibility requirements.

Alice: Ha. Well, you learn something new every day¡­even at my age.

Preparer: obÌåÓý true, Mrs. Jackson. obÌåÓý true.