ACA - Returns with 8962 or SRP- wrong e-file

Bug 1: The TaxSlayer Affordable Care Act (ACA) calculations were not working properly for any return with 8962 or SRP during a 24-hour period starting Thursday, March 9, at 7:00 AM. The problem has been resolved, but TS is still working to provide a list of affected returns. See Blog Item 1 for more info.

Bug 2: The TaxSlayer Affordable Care Act (ACA) calculations were not working properly for a subset of returns starting Friday March 10, at 5:00 AM until approximately Thursday March 16 at 10:30 AM. This problem has also been resolved, but TS is still working to provide a list of affected returns. See Blog Item 2 for more info.

Update 03-17-2017: See also Conary 03-17 EMail to Tax-Aide EROs.

Update 03-23-2017: There is a new Report to help find returnhs affected by the above problems - See three new TSO Blog Items:
1) ACA Calculation Issues — Message from IRS,
2) ACA – Instructions for identifying Potential Returns impacted by Calculation Error,
3) ACA – Instructions for identifying which Scenario your returns falls into
Note: Tax-Aide National may be developing a procedure to help when an amended return is required...

Update 04-06-2017: See also (revised) Guidance For TaxSlayer ACA Calculation Issues - 04/06/2017 (from NTTC).

NJ-1040 Line 15b Calculation Error (Tax-Exempt Interest)

Bug: Amounts entered on the "Tax Exempt Interest Income, Form 1099-INT, Box 8 or Form 1099-DIV, Box 10” Screen > sub-screen "To add/edit state taxable interest items, click here” > “Taxable Interest” should be included on the NJ return on line 15b. This is NOT happening - The full federal tax-exempt amount is included instead.

There is no known workaround

Note 1: NJ line 15a is being calculated correctly.

Note 2: TY2015 does NOT seem to have the same problem.

Note 3: The 2016 PTR Income Worksheet Sources document has been updated with a workaround. The PTR Categories Tool will not be updated for TY2016 until this bug is fixed.

Resolved: 04-03-2017

1099-MISC - Some Lines not working

Bug: The following Lines on the 1099-MISC screen do not allow user input: 6, 8, 9, 11, 13, 14, 15a, and 15b.

Note: Per AARP Foundation Tax-Aide Scope Manual, the following 1099-MISC Lines are Out-of-Scope: 5, 6, 8-15, and FATCA filing requirement

EIC lost on NJ return if Gross Income is zero

Bug: If TP qualifies for EIC federally, but NJ Gross Income is zero, then TSO does not add the corresponding NJ EIC to the NJ return. This can easily happen if TP (under age 65) has disability income (1099-R code 3) which, when included on federal line 7 (Wages), qualifies them for EIC, but is not included on the NJ return because it is not taxable.

Workaround: Add $1 to Other Income on the NJ return via the same box as other NJ-1040 line 25 adjustments (See NJ Checklist). This will cause the NJ EIC to be added back in.

Resolved: 03-27-2017

Note: You should include an explanation with the return documenting why there is EIC even though there is no NJ earned income, or, at least, warn the TP that they may get a letter from the NJ Division of Taxation and offer to help resolve the situation later.

NJ-1040X Amended Return Problems: SSN, Muni Code, Line 6, Line 19b, and Explanation

Bug 1: NJ-1040X SSN - Sometimes seems to be blank (at least in TY2013 / TY2014 / TY2015 amended returns).

Bug 2: NJ-1040X Municipality Code - Sometimes seems to be blank or incomplete.

Bug 3: NJ-1040X Line 6 (As Originally Reported column) - Seems to always be blank. (This also affects the total in line 12a (same column).)

Bug 4: NJ-1040X Line 19b (Both columns) - There is no box on the NJ Amended Return, Gross Income screen to enter the amount that was originally reported on NJ-1040 line 19b. Any changes for line 19b area are also not shown on the NJ-1040X.

Bug 5: NJ-1040X Explanation of changes box - Just copies similar Federal 1040X box text - There needs to be a way to enter NJ-1040X specific explanation.

Good News: NJ-1040X Refund / Amount Owed seem to be calculated correctly.

Workaround: Because NJ-1040X needs to be paper filed anyway, you can manually write in the correct information.

W-2 Box 14, 4th entry ignored

Bug: It appears that any amount entered on W-2 Box 14, 4th entry is ignored (At least for NJ special items).
• Only the first 3 entries are included in the simulated W-2 included in the printed return
• Any amount from the 4th entry that should be included in Sch A, Box 5a is lost (and itemized deduction amount is lower as a result)
• Any amount from the 4th entry that should be included on Form NJ-2450 is lost (and TP does not get the refund of UI/DI/FLI they are entitled to)

Workaround: (NJ Only) There are only 3 NJ-specific special entries for Box 14, so be sure to enter them in the first 3 entries on the W-2 screen Box 14.

Using Form 1310 causes problems

Bug: If you add Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer), then you can print the return but cannot go to the efile section to indicate paper file, cannot change status to complete, and cannot efile State as a State only return.

Update 03-23-2017: Per today's IRS Partner call, TS is looking into this problem...

Workaround: None

Non-Dependent incorrectly included in ACA Household list

Bug: If a person included in the Basic Information \ Dependents section has the "Check if this qualifying child is NOT YOUR DEPENDENT." box checked then TSO incorrectly includes that person in the ACA Household in the Health Insurance section. This can cause problems including incorrectly assessing an SRP (1040 line 61) for this person.

Update 03-14-2017: We will be putting the returns in maintenance mode on Wednesday, March 16th at 5:00 AM for approximately 30 minutes to apply an update that will include a change in the handling of Healthcare Household Members when checking the box for qualifying child is NOT YOUR DEPENDENT.

Update 03-16-2017: Confirmed that update removed Non-Dependents from Household list

Update 03-23-2017: Although Non-Dependent(s) no longer show up in Household list, TSO is still incorrectly including them in calculation of SRP

Update 03-30-2017: Non-Dependent(s) no longer gets included in calculation of SRP

Retirement Savings Credit

When taxpayer or spouse works and contributes to a retirement account and taxpayer or spouse receives either a pension or a distribution from a retirement account, TaxSlayer offsets most Forms 1099-R distributions against the contribution amounts for the credit. If the distribution is a military pension or another exception as shown on pg G-7 in Pub 4012, the distribution should not be offset. You may need to enter a negative amount equal to the exception in the box labeled “any other taxable distributions…” on the Form 8880 entry page to allow the credit. Verify that the exception is not double-counted. Note: distributions from all plans to which the taxpayer could voluntarily contribute offset a current contribution. Defined benefit pension plan distributions are typically an exception. Also, TaxSlayer does not print a Form 8880 unless there is a credit.

In addition to the above, if TP (or SP) is a full-time student and TSO is giving a Retirement Savings Credit, preparer should go back to the Basic Information section and check the box labelled "Check here if TP was over age 18 and under 24 and a full-time student at an eligible educational institution." no matter what their age is. (Retirement Savings Credit is not allowed for full-time students.)

Update: See Blog Item

Wrong NJ Municipality Codes

Bug: The TSO generated Municipality Code is wrong or missing for many municipalities.

Workaround: None.

Update 03-20-2017: 14 Municipality Codes (all in Morris County) have been corrected. At the same time one of the previouslhy correct codes (also for Morris County) was deleted from the list. Current counts: (27 incorrect municipality names/codes + 2 duplicates + 2 invalid + 2 missing)

W-2 - Allocated Tips and Unreported Tips not being carried to the NJ tax return

Bug: W-2 - Allocated Tips and Unreported Tips entered on the TSO W-2 screen are not being carried to the NJ tax return

Resolved: See Blog Item

Non-Dependent incorrectly included in ACA Household list

Bug: If a person included in the Basic Information \ Dependents section has the "Check if this qualifying child is NOT YOUR DEPENDENT." box checked then TSO incorrectly includes that person in the ACA Household in the Health Insurance section. This can cause problems including incorrectly assessing an SRP (1040 line 61) for this person.

Update 03-14-2017: We will be putting the returns in maintenance mode on Wednesday, March 16th at 5:00 AM for approximately 30 minutes to apply an update that will include a change in the handling of Healthcare Household Members when checking the box for qualifying child is NOT YOUR DEPENDENT.

Update 03-16-2017: Confirmed that update removed Non-Dependents from Household list

Update 03-23-2017: Although Non-Dependent(s) no longer show up in Household list, TSO is still including them in calculation of SRP

1099-R Code W

The 1099-Rs with Code W in box 7 (Charges or payments for LTC contracts) that we have seen are provided to document premium payments for LTC insurance which are paid out of the cash value of a life insurance policy or annuity (Hybrid Long Term Care / Life Insurance policies). The 1099-R may not need to be reported on the tax return - Check any letter or instructions that come with the form.

Whether the LTC premium can be deducted on Sch A depends on the exact details of the policy - I would suggest that it not be deducted unless you have documentation for the specific policy that says it can be deducted.

NJ Resident with NY Income

Bug: TSO automatically calculates AGI and Tax values for NJ Schedula A. Because the calculation of what is taxed in both NJ and NY can be complex, there are many situations where the automatically calculated values for NJ Schedula A are wrong.

Workaround: The Special Topic document NJ Resident with NY Income describes procedures which should produce correct results (but only so as long as the scope restrictions are followed).

Schedule NJK-1 (Form NJ-1065)

Issue: If TP has a K-1 (Form 1065 only, not Form 1120S or Form 1041), then, for e-filing the NJ return, TSO seems to require that information also be provided from Schedule NJK-1 (Form NJ-1065). This form is often not provided by the Partnership. TSO will generate an error message when e-File is clicked in the main left menu.

Workaround 1: You can click Continue on the screen with the error and e-file the federal return and paper file the NJ return.

Workaround 2: You can click Make Corrections on the screen with the error, then delete the federal K-1 and enter each amount from the K-1 in the appropriate section (e.g. Interest, Dividends, Schedule E, etc.). This will allow you to e-file both the federal and NJ returns.

Note: TurboTax behaves the same way (Cannot e-file NJ without NJK-1) - maybe this is a NJ e-file restriction rather than a deficiency in TSO?

1099-C Cancellation of Debt

Cancellation of Debt (1099-C) reported on the Federal return is no longer carrying to the NJ return

See Blog Item

NJ Special Handling and NJ Checklist changed to reflect this new behavior

Beware: Any returns prepared prior to 03-03-2017 which have an adjustment to NJ-1040 line 25 relating to a 1099-C may no longer calculate line 25 correctly!

Medicaid waiver payment on W-2

Original Issue: Handling excluded wages required a workaround described on NTTC-modified P 4012 page D-45 (Scenario A).

Fix: TaxSlayer has created a new field on the W-2 input screen. Enter the amount of wages (included in box 1 on Form W-2) that should be excluded as Medicaid Waiver Payments (MWP). That amount should be no more than the amount earned while the care provider and care recipient lived together. That may be less than the full year. TaxSlayer will make the entry on Line 21 Other Income to remove the wages from AGI and it will reduce earned income for the three affected credits (EIC, ACTC and CDC).

Note for MFJ returns: The earned income reduction is currently applied to the taxpayer’s wage income for the three credits, even if the spouse has the MWP income. This could result in denial of CDC if the taxpayer’s earned income is less than the MWP. A workaround would be to list the MWP-earning spouse as the taxpayer. Alternatively, manually enter the Line 21 negative income and use the old prisoner income approach for the credits.

See also Blog Article for more information.

Important: See NJ Special Handling and the NJ Checklist for extra procedures required to handle this properly on NJ returns

Schedule A sales tax deductions

The Schedule A Taxes You Paid entry page now includes a field to add an amount to the MAGI for sales tax deduction calculation. Alternatively, you can use the General Sales Tax Deduction Income Worksheet in the NTTC-revised Pub 4012 or the Sales Tax Worksheet at http://cotaxaide.org/tools/ to compute total income for the sales tax tables. If using the TaxSlayer calculator, use 366 days (not 365) for 2016.

Earned income credit

Bug: When taxpayer1 can be claimed as the qualifying relative of another taxpayer, taxpayer1 can still claim EIC if they have a qualifying child. An example is a young mother, Betty, supported by her parents but not living with them. Betty can be claimed as her parents’ qualifying relative (but not as their qualifying child because they do not live together). Betty can claim EIC with her qualifying child. TaxSlayer cannot yet handle this situation. It computes the EIC, but will not allow the return to e-file.

Workaround: A paper return may be needed.

Rollover with Withholding

If a taxpayer received a qualified retirement distribution with federal tax withheld and then decides to roll it over into another account, TaxSlayer does not allow the rollover of the entire amount because of the income tax withheld. Complete the Form 1099-R entry page with $0 taxable, no withholding, code G and the rollover of the full amount and enter the tax withheld as Other Federal Withholding under Payments & Estimates.

Form 8283 Non-Cash Donations

Although the IRS does not require the when, how acquired or cost information for a non-cash donation of $500 or less, TaxSlayer requires that information. Enter a best guess after discussing with the taxpayer.

Direct debit

Counselors need to highlight scheduled direct debits for the taxpayer on the document envelope or otherwise. The print sets do not include an ACH form or reminder page at his time. One option is to take and print a screen shot of the direct debit section on the E-File page using the Windows Snipping Tool or Print Screen.

Taxpayer can choose any date for direct debit (including after April 18 which would likely cause interest and penalties to be assessed). The state date will be same as the federal date. Can elect partial direct debit of federal balance due (but not of state balance), but there is no federal voucher printed for remainder. Note, a state voucher prints even if there is a direct debit.

Holding State Return

If you have more than one state return attached to one federal return and want to hold one or more of the state returns while waiting for the first state to be accepted, mark the state returns you don't want to file as paper and mark those you want filed immediately after the federal is accepted for an electronic submission. When you are ready to send those other states, leave the federal as NON paper, change the accepted state(s) to paper and change the ones you want to file to electronic and mark the box Send State Only.

Carry Forward Data

When preparing prior year returns, 2013 and 2014 return data do not carry forward.

If you prepare a 2015 return it will carry forward to 2016; however, you need to either:
a) Transmit the return using the transmit button on the Submission Page. (The 2015 return does not need to be acknowledged.), or
b) Mark the 2015 return as complete and log completely out of TaxSlayer and log back in.

If you do not do (a) or (b) above, you will receive a message that the SSN already exists when you try to start the 2016 return.

Waiver for Failure to Take RMD

TaxSlayer does not permit a request to waive the 50% additional tax for failure to take a required minimum distribution (RMD). E-file the return without Form 5329 or the 50% additional tax. You can complete a fillable Form 5329 from irs.gov and use Notepad for the required statement that explains why the RMD was missed, that it has now been taken and the steps taken to ensure that future RMDs will be taken as required. The taxpayer will need to mail the paper Form 5329 with the statement to the same address as their normal Form 1040 IRS address.

Form 5405 First Time Home Buyers Credit

Be sure to check the Check here if you purchased your home in 2008 box and then complete the three amount boxes on the Form 5405 entry page if the home is still the taxpayer’s main home. Credits received in 2009, 2010 or 2011 are no longer subject to repayment or were due to be repaid in a prior year.

Note – two forms are required if filing MFJ – ensure both forms are identical. A decendent’s share of the 2008 “loan” is forgiven – the surviving spouse is not responsible torepay it.

Form 1040X

A voucher prints with the Form 1040X, but do not use it for anything. The Form 1040X is the voucher if a balance is due. The taxpayer should simply enclose a check with it.

NJ-1040 Line 18 Capital Gains adjustment

Currently, the Federal line 13 amount is carried to NJ-1040 line 18 as-is. There needs to be a way to adjust the NJ taxability of capital gains/losses (either on capital gains entry screen or on NJ Other Income screen)

There is no known workaround for this

A new box on the NJ State Section \ Subtractions from Income screen has been added to allow adjustments to NJ-1040 Line 18 (NET GAINS FROM DISPOSITION OF PROPERTY). The adjustment amount shows up on NJ Sch B (NET GAINS OR INCOME FROM DISPOSITION OF PROPERTY), but there is no way to explain why there is an adjustment.

This required changes to NJ Special Handling and the NJ Checklist

Uber / Lyft Drivers

A typical Uber / Lyft driver will report their income and expenses using Schedule C (Use Code 485300 - Taxi & Limousine Service).

Drivers usually receive a 1099-K (for credit card receipts) and a 1099-MISC for other self-employment income. The 1099-K amount should be included with any cash income (e.g. tips) and entered on Sch C \ Income \ Gross Receipts or Sales. 1099-MISC income should be reported on the 1099-MISC screen and associated with the Schedule C

Expenses should also be reported on the Schedule C. Some, but not all, mileage and other expenses should be available from the Driver Dashboard in their app. Documentation is important! See here for a helpful guide to driver expenses.

Remember: Schedule C scope rules still apply - see Pub. 4012 for more information

Medicare Part B reimbursement for retirees

Some 1099-R recipients (especially some NJ State/Local retirees - including teachers) get their Medicare Part B premiums reimbursed (tax-free) as part of their retirement package. In such cases they cannot include the reimbursed premiums on Sch A. (Note: This only seems to be for Part B.)

These reimbursements may not be shown on the 1099-R - the only way to discover this is to ask the retiree.

NJ-1040 Line 15b Calculation Error (Savings Bonds)

Amounts entered on the "Interest Income, Form 1099-INT" Screen, question "Amount of Interest on U.S. Savings Bonds and Treasury Obligations that you want subtracted from your state return” should be included on the NJ return on line 15b. This is NOT happening.

There is no known workaround

Note 1: NJ line 15a is being calculated correctly.

Note 2: TY2015 does NOT seem to have the same problem.

Note 3: The 2016 PTR Income Worksheet Sources document has been updated with a workaround. The PTR Categories Tool will not be updated for TY2016 until this bug is fixed.

IRS VTA-2017-01 - 1098-T and Education Benefits

Beginning with tax year 2016, most students must receive a Form 1098-T to claim an education benefit. This requirement applies to the tuition and fees deduction, the American opportunity credit, and the lifetime learning credit.

This Volunteer Tax Alert describes when a taxpayer filing a tax return for tax year 2016 may claim education benefits without a Form 1098-T.

See IRS VTA-2017-01

Field Valiation and Correction Issues on NJ Screens

Invalid Field entries (e.g. letters in a dollar amount field or entering block.suffix in the block field instead of entering block and suffix in separate fields on the Property Tax Credit screen) are not flagged until one returns to the main NJ Menu screen and clicks Continue. Once flagged, the flags remain even after correcting the error until one returns to the main NJ Menu screen and clicks Continue.

NJ Special Pension Exclusion

The pension Exclusion entry button now works in the NJ Subtractions From Income section. It asks the appropriate questions to compute the correct amount on line 27b.

Thanks To - Gene/Mike

Multiple codes on Form 8949

Workaround: When more than one code is used (such as M and W), TaxSlayer may not process them in alphabetical order as required by the IRS. This can result in a reject. Until fixed, we suggest either using a single code (such as just the W) or reporting transactions with an additional code as separate lines (code W with $$ wash sale adjustment for example).

On the 02-16 TSO Conference Call, Kim said this has been fixed.

According to the TSO Blog, this should be fixed by 02-23

2017 Missing from Deceased Date list

Blog Article: Basic Information: Change is Deceased Dates

Summary: 2017 has been added back to the drop down list of dates when selecting Deceased. Caution: When selecting 2017, the return will get rejected if the Social Security Administration does not have the date of Death on file and included in the IRS Master List.

ACA - Required to repay all EXCESS APTC?

TSO now asks if TP is required to repay all excess APTC. All APTC must be repaid without a cap if income is greater than 400% of FPL and for the two rare situations described below.

TaxSlayer handles the 400%-or-more FPL situations well and you don’t need to answer this question “yes.”

CAUTION: TaxSlayer may default the answer to “yes” – make sure to change it to “no” unless either of the following applies.

The very rare situation when this box should be checked “yes,” is when the system would otherwise apply the cap to the repayment and the taxpayer must really repay all the APTC (not just the excess). There are just two very rare situations where this might arise: (See TaxSlayer 2016 Tips v3a for more detail)

Also, see Tips to Avoid Unnecessary APTC Repayment for more information

ACA - Affordability exemption

TaxSlayer continues to work on its affordability exemption worksheet. However, it does not ask for the amount of any premium that is paid through a salary reduction arrangement (pre-tax medical) which affects the affordability threshold. Also, there could be an employer offer or circumstances might change during the year. Therefore, the result is not reliable. Simply “continue” past this page.

Continue to use the Bogart Affordability Calculator at http://cotaxaide.org/tools/ and select the affordability exemption in TaxSlayer for the person(s) to whom it applies.

ACA - Gross income filing threshold exemption

Workaround: TaxSlayer cannot properly compute gross income on the return when there are consolidated capital gains and losses that have been netted out. If the gross income filing threshold exemption (8965 Line 7) might apply, do not consolidate the capital transactions. This way, TaxSlayer will be able to properly compute gross income on the return. Note: TaxSlayer properly adjusts gross income for expenses on Schedule C.

NJ PTR if filing MFS

Only one PTR is allowed per property. Include all income from both spouses if property is principal residence for both.

Adding PDF attachments to a return

PDF attachments can be added to a return using the Federal Section \ Capitsl Gain and Losses Schedul D \ PDF Attachments screen

You may upload up to 5 PDF files (max 5 MB each).

Attchments are not associated with any schedule or form and can be anything (e.g. Brokerage Statement info, Power of Attorney, Explanations of unusual situations, etc.).

Note: It may be possible for the TP to get things like End-of-Year Tax Statements online instead of having to scan paper documents

E-file Section Tips

Some tips for the E-file Section:

  • Proceed to the next page using the "Next" button

  • You must click "Save" on the last page or nothing in the e-file section will be saved

  • You may need to scroll down on the last page to get to the "Save" button

  • If you click "Back" instead of "Save", then all your e-file section entries will be lost

Miscellaneous Statement screen in the e-file section

The Miscellaneous Statement screen in the e-file section can be used to write notes which WILL NOT be transmitted with the e-file.

Error "SSN in use" when entering multiple years

If you want to enter both a TY2015 and a TY2016 return, the proper sequence is:

  • Create and complete the TY2015 return

  • Log out of TSO; then Log back in to TSO

  • Create the TY2016 return and pull data forward

Social Security - Repayments more than Gross Benefits

From Pub 17: "In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Don’t use a worksheet in this case."

The way I read this, there is no need to enter anything on the tax return in this case...

Sale of main home

Workaround: The TaxSlayer sale of main home worksheet may not include the transaction on Form 8949 if it is a nondeductible loss (even though Form 1099-S has been received and we must report it). And, it does not show the “E” code for selling expenses. Until fixed, counselors should not use the worksheet. Instead, enter the transaction as you would other capital gain or loss transactions and use the appropriate codes. If using more than one code, net the adjustment amounts. See also Multiple Codes on Form 8949.

Tax credits for unclaimed dependent (education and retirement savings)

Bug: An unclaimed dependent (someone who COULD be claimed on someone else's return as a dependent, but is not ACTUALLY claimed) cannot claim their own exemption deduction, but they are allowed credits for education (AOC or LLC) and retirement savings. TaxSlayer will not allow either credit and there is no way to manually fix this. Advise the taxpayer to go to a paid preparer (or to come back later in the season to see if TaxSlayer has fixed it).

Dependent not living with taxpayer

Workaround: For example a sibling or parent, use “other reasons” in the drop down menu for months lived in home.

ACA - Executive order Jan 20, 2017

Taxpayers have been required to indicate on their Form 1040 whether they had health insurance, an exemption from coverage or made a shared responsibility payment as their compliance with provisions of the Affordable Care Act. In recent years, the IRS still processed tax returns that did not include all ACA related information and then followed-up with letters to those taxpayers.

This year, the IRS planned to reject tax returns during processing in instances where the taxpayer's return did not provide the required ACA information. However, consistent with the recent executive order that directed federal agencies to reduce potential burden (as reported in the news), the IRS has decided to continue to allow electronic and paper returns to be accepted for processing even if a taxpayer doesn't indicate their ACA coverage status.

This is not a change in law. Legislative provisions of the ACA law are still in force until changed by the Congress, and taxpayers remain required to follow the law and pay what they may owe (edit: deleted extraneous punctuation). Also, at this point, TaxSlayer will not permit a return to be e-filed until this information is entered. If a taxpayer refuses to provide the necessary information, then that return becomes out of scope for Tax-Aide and the taxpayer must be advised we cannot prepare the return.

All Counselors should understand this and be prepared to answer taxpayer questions that may be generated by the recent news reports.

ACA - Looking up 2016 LCBP and/or SLCSP quotes

States (e.g. NJ) using the federal marketplace (HealthCare.gov) can use the HealthCare.gov Health Coverage Tax Tool

Form 1040-A or Form 1040-EZ

Although you can select Form 1040 in the print package so that it is the form printed, it merely prints the long form. It does not change the form that is transmitted (-A or -EZ will be transmitted).

To force a long Form 1040 for both printing and e-file purposes, add $1 to Other Income captioned “To force Form 1040” and then add a negative $1 to Other Income captioned “To force Form 1040 offset.”

Form 8888

Unless your site has a great need for this form, we suggest to not activate it as it removes the dual input requirement for routing and account numbers. With the Form 8888, it asks for the numbers once only; without Form 8888, you’ll see the dual input screen. Each site should determine whether to use Form 8888 or the dual input screen.

Print sets

Please be sure the taxpayer’s printed copy of the return is complete. You may wish to compare the “preview return” forms with the printed copy of the return. Forms 8949, 8962, 8965 and others were recently made available. They need to be added to your custom print sets.

You may need to print additional forms or pages that are not in any print set, especially for state forms. If so and not already done, please submit these issues through your state’s point of contact or to TaxSlayer directly at support@vita.taxslayer.com. Note that worksheets are not transmitted and may be selectively printed for the taxpayer’s records.

Very important: do not print or include the due federal diligence forms for the taxpayer’s copy. Although we have to answer the questions to process the return, the forms are NOT transmitted and are not a part of the Tax-Aide-prepared return. The status of state due diligence forms, if any, should be determined at the state level.

Direct debit

Counselors need to highlight scheduled direct debits for the taxpayer on the document envelope or otherwise. The print sets do not include an ACH form or reminder page at his time.

No Refund/Balance Due Return

Select “Mail Payment” as the Federal Return Type to e-file a return that has no refund or no payment due.

Zero AGI returns

To deter identity theft and e-file the return, Tax-Aide recommends that a return be e-filed, even though not required. Add $1 to other income and describe as “TO ENABLE E-FILE.”

Preview Return

To preview the state return, use the Preview Return button found on the Summary/Print screen. The Preview buttons on the detail return screens preview the federal return only.

Resolved: Preview button has been disabled. See VITA-Blog Article

Calculations not rendering

Blog Article: Information on what to do if Calculations are not rendering:

If you are on the Summary/Print page when opening the return, select the menu icon in the upper left corner and select Basic Information. See Blog Article for more information.

Imperefect Return Indicator

Blog Article: Imperfect Return Indicator — What is it?

Answer: See Blog Article

Direct Debit - No way to specify debit date

Workaround: TaxSlayer is working to add a requested debit date; until then, it defaults to April 15, 2017. Advise the taxpayer accordingly.

Resolved: See VITA-Blog Article

Form 1040 line 10 taxable state and local refunds

Recommendation: Use the TaxPrep4Free State Tax Refund Worksheet or the Bogart Taxable Refund and Recovery Calculator

Form 1099-R Simplified Method

Recommendation: Use the Bogart Annuity/Pension Exclusion Calculator

Form 1099-R with Code Q - TaxSlayer carries this nontaxable ROTH distribution to line 16a instead of 15a on Form 1040.

Workaround: Check the IRA/SEP/Simple box to carry this figure to line 15a. Also make sure the taxable amount in Box 2a on the entry form is blank.

Capital Gains Transactions with code(s) for column (f) on Form 8949 (wash sale for example)

Ensure it/they are checked if that entry page is opened for Quality Review

Form 1099-MISC

TaxSlayer asks the Counselor to create a Form 1099-MISC and it then directs income in a specific box to a default schedule or 1040 line. The TaxSlayer defaults are not always correct. The Counselor must determine where on the tax return the income should be reported and enter it into the field on the 1099-MISC entry page that directs it there. More information is in NTTC Modified Pub 4012. (page D-30)

Child and Dependent Care Credit

The amount of the employment-related expenses that may be taken into account is limited to $3,000 if there is one qualifying individual and $6,000 if there are two or more qualifying individuals. The limits are for the number of qualifying individuals, not the amounts spent for each. However, if there are expenses for only one individual, TaxSlayer reduces the allowable amount to $3,000. In this case, enter $1 for the individual with no expenses and the balance for the other individual.

ACA - Nondependent (listed on return for EIC)

Mark as having full coverage all year so no SRP computes for them.

Direct Debit — The required “Debit Telephone #”

The required "Debit Telephone #" should be the taxpayer’s telephone number

Estimated Taxes

Use the Estimated Tax Worksheet at http://cotaxaide.org/tools/

Form 8453

Tax-Aide volunteers should NOT send Form 8453 with taxpayer documents to Austin. See NTTC Modified Pub 4012 (page K-22) for more information.

TaxSlayer Blog

You can sign up for daily emails of TaxSlayer developments or visit the blog regularly from the TaxSlayer springboard at vita.taxslayerpro.com.

Return marked “Complete”

Once a return is marked Complete, the check mark cannot be removed. If changes are then necessary, mark the return Ready for Review on the Submission page in e-file. This will change the status to Review Pending and the return will not be available in Transmission. Once the return is updated and ready for e-file, mark the return approved on the Submission page. The status will change back to Complete and it will be available for transmission.

Ways to Save and Exit a Return

See VITA-Blog Article

Federal Return Type Definitions

See VITA-Blog Article

Entering The W-2 Verification Code

Enter without hyphens - See VITA-Blog Article

The top Navigation Bar displays Practice Lab in TY2015 Production

Bug: The top Navigation Bar displays Practice Lab in TY2015 Production

Workaround: Just ignore it

See Blog Item

Unknown SSN, but SSN Required (Alimony, 2441, MFS, etc.)

If a SSN is required, but unknown, enter 111-00-1111 as the SSN. Return should be paper filed.

Blog Article: E-file Entry Checks on Alimony Paid, 2441, MFS with unknown SSN

NJ-1040 Line 37 vs Credit/Deduction

The Property Taxes Paid value (from the NJ Property Tax Credit/Deduction screen) seems to be used for two purposes: a) NJ-1040 line 37a; and b) calculation of either NJ-1040 line 38 or NJ-1040 line 49 (based on Worksheet F).

There is no known workaround for this - Use PTR Base amount if applicable

NJ-1040 Municipality Code

The Municipality Code entered on the NJ Basic Information Screen seems to be used only for NJ page 1. If TP is a homeowner, then NJ-1040 line 37c also requires a Municipality Code, but there is no way to enter a separate code for line 37c and TaxSlayer seems to leave NJ-1040, line 37c blank.

There is no known workaround for this

W-2 Box 14 Private Plan #

There needs to be a way to signify that the employer is using a Private Plan for UI/HC/WD, SDI, and FLI (instead of the default state plans); and, in this case, to enter the associated Private Plan Number (PP#) from the paper W-2.

See NJ Special Handling for a workaround for this