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We rejected again. We redid all of the calculations and came up with a slightly different number of $55; so tried that. If this fails, I have no idea what to do. I do not have an option to change the 8962 to her name without changing all of the main information entry. It will not allow me to override. This has been the horror story of 2024. I hope I never have another one of these.

My other thought is to make sure that the 8962 entry area indicates "S" that it is only for the spouse and that whatever entries are there are all for the spouse (if it requires entries for her name, SSN, dates of coverage, etc) so that nothing indicated relates to the taxpayer. That would be something easy to overlook if you've deleted the input and reentered multiple times. Sorry that I can't see your input to help directly with whatever ATX thinks it needs to make this work.

That is the exact same rejection error that Jason, the OP of this topic, had started with. Make sure that ATX produces these results: 8962, line 1 is a "2" box 9 is "yes" box 10 is "no" page 2, part V - should be blank for the taxpayer and filled in only for the spouse. In other words, make sure that ATX isn't calculating any alternative calculations for the taxpayer, it should be creating those only for the spouse. It sounds like somewhere along the way you have made an entry for the taxpayer to be included in the alternative calcs for ATX to be producing that error. How much of the alternative worksheets does ATX require you to manually enter, or is it producing my results based on very limited input from you?

The rejection this morning said "Form 8962, Line 36b 'Monthly Contribution Amount' for the Spouse must be equal to the amount comuted using the Form 8962 instructions." As far as I can tell, they are equal at $49. I totally don't know where to go with this. Thank you for trying to help.

I think these partnerships that investment advisors purchase, especially within IRA’s, must pay really generous commissions. After all, SOMEBODY needs to benefit from all this mess created by the k-1’s.

I did get your results and changed everything; one step at a time. I get a different rejection notice every time. I change what they want changed and the next time it is something else. I just refiled it again. Sometimes it comes back with several of the numbers changed. I am furious. This time it was just one number that had to be changed. I will let you know in the morning. I am tempted to just let it go; but in my heart I know that she doesn't owe all that money. Once they didn't like the $49 and changed everything to $79. I changed everything back. They found something else they didn't like. One more time, I will delete the 8962 and start all over. There has to be a solution.

That makes a twisted kind of sense, @Gail in Virginia. Got another one a little while ago, about documents for tax consulting (yeah, right) and when I hovered my mouse over the sender name the originating email was from -- just guess now -- an onlyfans account!

I don't see how any of us could verify someone else's identity, client or not. I have never found the third party check box to be of any use

I read somewhere that the errors in these phishing emails are intentional. They are not looking for sophisticated educated people to respond because they are less likely to fall for what they are selling. Instead, they want people who read carelessly or are not very educated. The errors in the emails help them to weed out the people unlikely to fall for their scam.

Got my first ID verification letter for a client. Why can't I call and verify for the client since I have the 3rd party check box marked, have my PTIN and CAF and copies of all the old returns to walk through it all? I know people on here had difficulty with the id.me system, why would think assume taxpayers want to sign up for that? The entire system just seems intrusive

Got this "request for help" this morning. It's not even good enough to be AI-generated.

Did you get my result? What does the reject error say is wrong?

After four tries, I cannot get it to accept.

It's not his K1, it's his IRA's K1. Check the ID# as Lion suggested. It will be the IRA's EIN, not his SSN.

Farmers do have a special way to report livestock sales if more than usual sales in a year due to drought, etc. (Don't have any farms with livestock now, so haven't looked up how to report, just remember that there's something about reporting it over 2? years.)

Is the tax ID # his SSN? Or, an EIN XX-XXXXXXX ? If it's an EIN (not your client's SSN) then have client check if Charles Schwab is filing any required Form 990-T. I think B#TAX is right about the $1,000 threshold, but that includes UBTI from ALL income sources within that IRA.

I think your handling is correct. His K-1 activity is inside his IRA. Nothing to report on the 1040 except the 1099R. Her partnership investment is in a taxable investment but not on the broker's consolidated 1099, so you would enter the K-1 activity on the 1040.

Both his K-1's (1065) show Box I1 Type of Entity as IRA/SEP/Keogh. He had no separate Charles Schwab Form 1099 Year End Summary, just the 1099R, and the account numbers did not match to his K1's. I did NOT enter his K1's. Her K-1's (1065) show Box i1 Type of Entity as Individual. She had a separate Charles Schwab Form 1099 Year End Summary with statement page showing her K1s as NOT being reported to IRS with matching numbers tying them all together, so I entered her K1s. So, did I do this right, or should I enter his K1's as well?

On rereading my post I can affirm what others have said. Cattle are bringing more money. A local farmer's wife brought me their 2024 figures which had doubled and even tripled their sales figures from prior years. On calling to advise their returns were complete she asked if I was getting them back a lot of money! I have prepared that return for about ten years with perhaps one in profit. On being told they owed money I was abruptly informed I would not be paid !! I had her review her figures only to find she had failed to bring a $50,000 plus feed bill. This cut the bill but they will still owe some tax. I would not be surprised if I don't see them next year.

What type of entity is shown on the K-1 as the owner of the account? Should be box "I" (Cap letter i) partway down the left side. Does it say "individual" or "retirement" or "IRA", or just what is in that box?

Account number is different; so sounds like I need to enter the K1? Thank you for reminding me about the account number because it doesn't show up on the K1 itself, just on the supplemental page.

Generally when I see these with the same account number the 1099R will be reported on the tax return and the K-1 is there to report the unrelated business taxable income which would not be reported on the return but reported on a 990-T. If memory service me correctly, they can have up 1000.00 of UBTI before you have to report. Many brokerages often handle the reporting and paying the UBTI for the client by filing the 990-T so you may need to check with the client.

A K1 inside a retirement account is not entered. And you have to be careful with K1 investments inside retirement accounts because they can result in taxable income, although it's rare.

Does it show the same account number.

TP gets a 1099 R showing: Charles Schwab & Co Inc Cust SEP-IRA with gross & taxable distribution, code 7 and IRA box marked. He also gets a K1 in his name that shows Charles Schwab & Co Inc Cust SEP-IRA with Box 1,2,5,6a income, do I also add that K1 to tax return or is it all taxed thru that 1099R? I always find these confusing.