Tax Slayer entry:
Federal Section > Basic Information
- Not sure what filing status to use? Try the provided wizard or the IRS Interactive Tax Assistant.
- No need to file? Some clients want to have a Form 9452
- As a result of recent court decisions, same-sex marriage is now legal. Such couples must now file MFS or MFJ for both federal and state, and may optionally amend earlier returns if it is to their benefit.
- This provision does not apply to Domestic Partnerships, Civil Unions or similar designations.
- When entering income and deductions, be sure to mark each entry with T(taxpayer) or S(spouse).
- Use the MFJ-MFS worksheet to compare the tax consequences of filing separately.
Federal Section > Miscellaneous Forms > Injured Spouse Form (Form 8379)
- It is usually better to file jointly, and if the client wants to file seperately to get their share of a refund they deserve but will not due to prior taxes owed by the other spouse, consider filing an Injured Spouse form.
- If filing a 1040X for an additional refund, also include the resulting Form 8379 again if the refund applies to the injured spouse.
- If TP/SP birthdate is Jan 1, they are considered their new age as of the end of the previous year.
Valid AITN numbers
- An AdoptionTaxpayer Identification Number (ATIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with 900-999, has 93 in the fourth and fifth digit and 0000-9999 as the final four digits.
Valid ITIN numbers
- An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with 900-999, has a range of 70-88 or 90-92 or 94-99 in the fourth and fifth digit and 0000-9999 as the final four digits.
- Note that ITINs not used on a federal income tax return at least once in the last three consecutive tax years and ITINs issued prior to 2013 with the middle digits 70, 71, 72, 78, 79 or 80 may have expired at the end of 2017. Also, dependents without a date of U.S. entry on their passports from countries other than Mexico or Canada will need to prove residency before an ITIN can be issued. More information.
900 – 999 70 – 72 0000 – 9999 ITIN May have expired in 2017 73 – 77 ITIN 78 – 80 ITIN May have expired in 2017 81 – 88 ITIN 90 – 92 ITIN 93 ATIN 94 -9 9 ITN
- If the person does not have a SSN or an ITIN, enter 000-00-0000 and fill out the application for an ITIN on the Federal Section > Miscellaneous Forms > Application for ITIN (Form W-7) TS page.
Non-resident alien spouse
- If filing MFS or HOH, the NRA spouse may still be taken as a personal exemption if qualifications are met.
- If a taxpayer who has a nonresident alien spouse is filing as HOH, check box (c) under Exemptions on the Main Information form.
- Additionally, check the “No” box on the earned income credit line of 1040 Pg 2 if not already checked.
- Not sure if a resident alien or non-resident alien? Use the Dependent Calculator to find out based on days of residency over the last 3 years.
- Spouse: If a taxpayer died this tax year and the spouse is filing the return, no further action is needed.
- Other person: If there is no spouse, you will be prompted for the name of the person filing the return.
- If there is a refund, fill out Form 1310 using the Federal Section > Miscellaneous Forms > Claim a Refund Due to a Deceased Taxpayer TS page.
- If Form 56 (Notice Concerning Fiduciary Relationship) is required, it is OUT OF SCOPE. (Not even an option in TS).
Total and Permanent Disability
- The TP or SP must submit (or have previously submitted) a signed doctor’s statement testifying to the total and permanent disability.
- If this is the case, indicate it on the Federal Section > Deductions > Credits Menu > Credit for the Elderly or Disabled (Schedule R) TS page.
- Enter dependents youngest first so they carry over properly to the Child Care worksheet.
- For a qualifying relative who is an “in-law,” use the designation without the “-in-law” on the Main Info Page:
- Father-in-law/Mother-in-law: use parent
- Brother-in-law/Sister-in-law: use brother/sister
- Son-in-law/Daughter-in-law: use son/daughter
- Please recall that these in-law relationships are not terminated by divorce or death.
- If the dependent has an ITIN, you can easily calculate the answer to the “substantial presence test” question by using the Non-Res Alien option for the dependent on the Dependent Calculator.
Dependent not living at home:
- Use “0” months residing with taxpayer only for divorce situations or a Form 8332 will be triggered.
- For other reasons, like living in their own home or a nursing home, use “Other reasons”.
- Not sure what benefits the taxpayer qualifies for based on a dependent? Try the Qualifying Child or Relative Flowchart PDF or the NJ Dependent flowchart in Q&A form or the Dependent Calculator.
Children with investment income
- A dependent may have to file a return (lower amount than a non-dependent). See IRS Pub 929 for details.
- Investment income of dependent children may be included in the parent’s tax return as income to the parent but may not be an advantage. This requires Form 8814 which is OUT OF SCOPE.
- If a child earns more than $2,100 from investment income, a Form 8615 is used to figure the Kiddie Tax, but Form 8615 is OUT OF SCOPE prior to 2018 due to complex interactions with parent and other childrens’ income.
Other Filing Issues:
Application for Extension
Federal Section > Miscellaneous Forms > Application for Extension (Form 4868)
- Only required if tax is due
- Late payment and interest fees still apply. The TP should pay an estimated amount to prevent these fees.
Federal Section > Miscellaneous Forms > IRS Identification Pin
- If the Taxpayer has received a CPO1A notice that contains their IP PIN but lost or misplaced it , they may call the IRS for specialized assistance at 1-800-908-4490, Monday – Friday, 7 am – 7 pm local time. The Taxpayer must verify their identity to the IRS assister. The IPPIN will be issued to the taxpayers address of record.
Power of Attorney:
The power of attorney form does not need to be scanned and attached to the return. However, inform the taxpayer that the IRS may request the form at some later date.
A Power of Attorney expires after death. The filer must be appointed as a personal representative.
Refund of previously taxed veterans disability payments:
See the resource web page on this topic.
- See the Colorado 104PN resource page