1. I think I'm both. I went to bed at 2am and got up at 5am. Tonight ain't looking any better.
2. When am I supposed to have any “free time”? Here's the low down from my chair:
January = W2's & 1099's;
February through April 15 = Federal Income Tax Returns
April 15 through May 15 = State Tax Returns
May 15 through June 30 = Audits for 12/31 YE
July 1 through October 15 = Financial statements for S-Corp and Sch C filers
October 15 through December = Audits for 06/30 YE
Jan 1 through Dec 31 = Constantly answer the question “Are you almost done with my stuff?” NO BECAUSE YOU KEEP CALLING ME!
3. I would not advise my clients to declare a zombie as a dependent, for several reasons. First, you have to determine the zombie's filing status. The whole un-dead thing could get touchy here. If the zombie was married prior to becoming a zombie, then did their death effectively terminate the marriage contract? Mine says “til death do us part” so is he/she still married or are they currently on the zombie market, so to speak. Then you have to consider whether or not the zombie can be claimed as a dependent on someone else's return. While it is true that you can claim a “dead person” on your tax return, there are specific rules. They have to be your biological or legally adopted child. I don't know how it's done now, but when my son died, he never got a SS#, even though we applied for it in the hospital. I had to send a copy of his birth certificate and death certificate with my return. This has probably changed since 1994. Then, did the zombie have any earnings? They probably didn't have any earned income, but I can totally see them having some unearned income in the form of dividends and interest. Then there could be life insurance policies that were purchased with pre-tax dollars to consider in the computation of the zombie's income. If he/she was married prior to becoming a zombie, and their death did NOT terminate the marriage contract, and they are in a community property state, then 1/2 of the life insurance proceeds would be taxable to the zombie. Now if the zombie was smart prior to becoming a zombie, and that's doubtful since they are now a freaking zombie, they would have purchased life insurance with after tax dollars and the proceeds would be tax free.
4. So who is going to claim me this year?
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