Tax season brings the same “high-risk” questions every year: filing status when spouses separate, how to handle Form 1095-A when people aren’t legally married, credits when immigration/work authorization changes, when a 1099-NEC belongs on Schedule C vs. Other Income, and what to do when a taxpayer’s identity is being used fraudulently.

Below is an SEO-friendly Q&A format based on the transcript, written for tax professionals who want quick, practical guidance and strong documentation habits.

Q1) My client separated from her spouse and can’t access the spouse’s Social Security number. Can she file “Married Filing Separately” without the spouse’s SSN?

Answer: Sometimes yes—but it often depends on your software’s e-file limitations. If the software will not allow filing without the spouse’s SSN, a practical approach discussed in the transcript was to paper-file (mail the return) instead of e-filing.

Pro tip for practitioners: If you paper-file, use mailing methods that provide proof of delivery and keep a clean file copy. The theme repeated in the transcript is: document, document, document.

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Q2) My clients live together but are NOT legally married. They received Form 1095-A with both names. They didn’t file jointly. What do we do?

Answer: When Form 1095-A is in both names but the individuals are filing separately, the guidance in the transcript was to use the allocation section and allocate the policy amounts—commonly 50/50, if appropriate to the facts.

You generally do not “split the form” manually—you enter it as issued and then use the software’s allocation function to assign the share that belongs to the other person.

Why it matters: If the allocation is not handled correctly, the return may be rejected or the taxpayer may receive a notice/letter later.

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Q3) One person already filed their return using 100% of the 1095-A amounts. Now the other person needs to file. What happens?

Answer: Per the transcript, if one person already filed and did not allocate the other party’s portion, the other person’s e-file may be rejected (or processed and later corrected via letter). The suggested fix: the first filer may need to amend to reflect the correct allocation so the overall Premium Tax Credit (PTC) math aligns.

Practice note: This is a common situation when non-married couples share Marketplace coverage. Set expectations early and confirm who filed first.

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Q4) A client’s work permit expired. Can they still file taxes and claim the Other Dependent Credit?

Answer: The transcript’s guidance was blunt: they can file taxes, but they should not claim credits they are not eligible for. If they are not eligible for a credit, prepare the return without the credit.

Professional reminder: Your due diligence file should reflect why the credit was or wasn’t claimed, especially when eligibility hinges on documentation or status.

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Q5) A police officer “moonlights” as security and received a 1099-NEC. Do we report this like any other 1099 income?

Answer: Yes. The transcript confirms there’s no special preference for police officers, firefighters, or teachers. If it’s 1099-NEC, it’s generally treated as self-employment (Schedule C), subject to self-employment tax.

Key limitation: The transcript emphasized the taxpayer cannot deduct expenses that belong to their W-2 job as a police officer (for example, expenses required for the police department role) against the moonlighting income—because those costs are not ordinary and necessary to the security job.

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Q6) Should we ever put 1099-type income in “Other Income” instead of treating it as self-employment?

Answer: The transcript explains that “Other Income” used to be a messy bucket mixing income that was and wasn’t subject to self-employment tax. Form 1099-NEC exists in part to reduce that confusion by clearly labeling nonemployee compensation.

Practical takeaway: If it’s paid as nonemployee compensation, default to treating it as self-employment unless facts clearly support otherwise.

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Q7) Client received Form 1099-C / 1099 for cancellation of debt, but the amounts look wrong. What should we do?

Answer: The transcript suggests two paths:

1. Contact the issuer and request a correction if the form is wrong; or
2. If reporting differs from the form, consider disclosing with a position statement approach and keep records—because mismatches can trigger notices (the transcript references the risk of a CP2000 if the IRS sees an underreport).

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Q8) A baby was born alive and passed away the same year. Can the parents claim the Child Tax Credit and EITC?

Answer: Per the transcript, yes—if the child was born alive, the child can be treated as a dependent for that year’s credits, and the parents should document thoroughly.

What documents should the preparer request?

• Birth certificate (proof the child was born alive)
• Death certificate
• Social Security number documentation (as applicable)

Also noted: Time in the hospital can be treated as a temporary absence for residency tests in many dependency scenarios—so keep that in mind when evaluating eligibility and gathering records.

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Q9) Does a new “rule” apply retroactively to prior-year returns (example mentioned: “VBB”)?

Answer: The transcript indicates the rule discussed was effective starting January 1, 2025, and applies going forward through a stated end date (as referenced). For 2024 returns, you generally apply the 2024 rules—not the new rule—though prior-year eligibility may still exist under the rules in effect for that year.

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Q10) How can I find out what payroll tax returns a new business client filed (or paid) in past quarters?

Answer: The transcript recommends using an authorization form (they reference “1801” in the audio) and calling the IRS business support line (PPS for businesses) to request transcripts covering payroll tax filings and payments for a specific date range.

Big warning from the transcript: Handle transcript requests carefully—poorly executed calls can “wake up” a dormant issue and lead to collections activity or assignment to a revenue officer/agent. In other words: know what you’re asking for and why.

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Q11) Uber/Lyft driver tips show in an annual summary but not clearly in a specific tax form box. Can we still account for tips correctly?

Answer: The transcript suggests that if tips are documented in the platform’s annual summary, you can report them in a way that reflects the income properly and avoids double taxation—as long as you keep copies and can support what was done.

Best practice: Save the full annual summary and note your treatment in the file. Platform reporting formats change, so contemporaneous documentation helps.

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Q12) Head of Household: Can an unmarried couple live together and still have one person file as Head of Household?

Answer: According to the transcript, yes, when they are not legally married, one person may qualify for Head of Household if they meet the rules and can document that they paid more than half the cost of keeping up the home and the child(ren) otherwise qualify.

Important detail: The transcript also states a practical “fallback” concept: when you truly cannot determine a filing status, single becomes the fallback. (In real practice, you’d still verify facts carefully and document your conclusion.)

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Q13) A return was rejected for Marketplace issues, so we mailed it instead. Will the IRS respect the mailing date for credit eligibility?

Answer: The transcript’s guidance: document everything, keep the IRS rejection notice showing the electronic filing failed due to Marketplace-related issues, and retain proof that the client was eligible at the time of attempted filing. Mailing was treated as an incidental method to meet the timing requirements after the e-file rejection.

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Q14) A taxpayer’s family member is using their identity (SSN) for taxes, cars, loans, etc. What should the tax preparer do?

Answer: The transcript’s guidance is clear: do not insert yourself into the complaint. The taxpayer should contact law enforcement—specifically, the speaker mentions the FBI—because the identity theft involves broader fraud (auto loans and related activity).

Professional risk control: Avoid putting your name on any complaint or paperwork beyond standard tax prep documentation. Direct the taxpayer to the proper authorities and document your referral in your file.

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Documentation Checklist (Because It Came Up Repeatedly)

To protect your client and your practice, build a standard “proof pack” when any of these issues appear:

• Proof of filing attempts (rejection codes, timestamps)
• Proof of mailing (certified mail/return receipt or equivalent)
• 1095-A allocation worksheets and notes
• Copies of platform summaries (Uber/Lyft) and how you treated them
• Dependency proof: birth/death certificates, school/medical letters if relevant
• Written client statements + your preparer notes (who paid what, who lived where, dates)