Dan

Program error on the 2021 Form 8995. There error is seen in line 11 of that form. Line 11 does not calculate correctly. The instructions to line 11 say, "Enter your taxable income figured before any QBI deduction, computed as follows. Form 1040, ...line 11, minus Form 1040, line 12c." Example: Form 1040, line 11 is 96,795 - line 12c is 28,400 = 68,395 The ATX program puts 68,995 which is not according to the instructions. It should be 68,395. What are we do about this problem? I can override the number but it leaves a red box if I do.

What about this idea? Put the total amount of the 1099-G (agricultural program payment) on both the Schedule F (line 4a) and Form 4835 (line 3a). Then put the taxable amount that should be taxed on Schedule F (line 4b) and the taxable amount that should be taxed on Form 4835 (line 3b). There is only one Form 1099-G which has both Schedule F and Form 4835 income. I don't know if it is wise to add a second 1099-G to the ATX program since there is only one received.

Thank Lion EA for your response but I need someone who has both Schedule F and Form 4835 to deal with. By your answer above you probably don't add Form 1099-G to your return. When I add Form 1099-G to the return it has in box 7 of the 2020 return called agriculture payments where I put the total of payments there and then a link to Schedule F. That links the amount to the proper line on Schedule F. The same could be said for Form 4835 as mentioned above after using Form 1099-G and linking it to Form 4835. The IRS would be able to see you had the correct amount reported on 3a and 3b from your 1099-G even though you did not use that form in the program. But how would the IRS deal with you taking part of payments to put on Form 4835, line 3a and 3b and part of the payments on Schedule F, line 4a and 4b?

QUESTION: Are you required in the ATX program and also in tax law to use form 1099-G that the government sends you to enter all information from that form in the tax program and link that to Schedule F or Form 4835? Can you instead of using 1099-G, go to Schedule F, line 4a and do a jump to link field and enter your CRP payments under 3 (Other Agricultural Program Payments)? The reason for this to happen is because some info needs to be on Schedule F and some info needs to be on form 4835. Does the IRS allow this to happen? If they don't allow this to happen you could enter a minus amount to back some items on the 1099-G out of schedule F but I am not sure of that either.

I am wondering if a retired farmer needs to fill out Form 4835 for a few years after he retires and has turned the land over to a tenant to farm? The 2021 instructions for Schedule F state: "If you are a retired farmer, you are treated as materially participating in a farming business if you materially participated 5 or more of 8 years preceding your retirement." Example: the farmer retires January 1, 2021. He materially participated in the farming business for the preceding 8 years. If the farmer receives a crop share from the tenant, could he report that crop share on Schedule F or would he have to report that crop share on Form 4835? The farmer did not materially participate in the production of the crop. Schedule F requires materially participation Form 4835 only requires actively participation

I know you can subtract CRP payments from Schedule SE if you also receive Social Security Payments. You can subtract CRP payments on line 1(b) as you mentioned. My question in this blog is concerning PLC (price loss coverage) payments that should go on form 4835. These payments came as a result of farmer turning over land to a tenant. The farmer still materially participates in the CRP but does not materially participate in regard to PLC. One blog I read says: "Many times farmers will receive a Form 1099-G that reports information that the IRS computers expect to see on a certain line on Schedule F. Many tax preparers assume that they are required to report the income on those lines and that is the end of the process. The correct procedure is to report this income on those appropriate lines so the IRS computer will match it up properly and then usually adjust out the correct amount as a negative item on the other income line on Schedule F." Blog by Paul Neiffer, CPA Is there anywhere in IRS publications that say this? Thanks for your responses.

I have a lot of questions about this. Do you have to put CRP payments on Schedule F? Publication 225, page 11 says, "Under CRP, if you own or operate highly erodible or specified cropland, you may enter into a long-term contract with the USDA. You must include the annual rental payments and any one-time incentive payment you receive under the program on the appropriate lines of Schedule F." And yet a tax return I saw had CRP payments on the 4835 Form. I also have questions about what I said in my previous entry.

Would this be the correct way to do it? (Number 3 Above) 1. On Schedule F, the PLC payment is put on Line 8 (other income) as a minus number. 2. On Form 4835, the PLC payment is put on line 6 (other income) as a positive number.

Question: If you have a 1099-G (U.S. Department of Agriculture form) and in the past have put all information from that 1099-G on the line which says Agriculture Program Payments which is 4a and 4b on the 2020 Schedule F Form, how do you enter in 2021 some of that info on form 4835? Example of what is on the 1099-G: 1. Coronavirus Food Assistance 2. CRP payment 3. PLC payment At first, I would put the total 1099-G payment on Schedule F. The farmer materially participates with 1 and 2 above but not with number 3. The question is: how and where to enter number 3 on form 4835? The PLC payment received is the landlord's share of the 2021 payment.

Question: How large can PDF files be in order to e-file them? When I created the PDF file is said, "The file is large and my slow or prevent success e-file transmission." I see from ATX info that ATX allows attachments up to 256 K. My PDF for one State has 504 KB and the other State has 1370 KB. I have tried to find what K stands for. If K means Kilobit, than I am way over the amount allowed because 256 Kilobit would only be 32 KB. Thus would not be able to e-file the two State returns because of the question above. Question: What does K stand for if I haven't mentioned the right one above?

So are you saying we are to enter the Social Security Administration number? On the chart that I see on this site it has above the column EIN (Filer); EIN (Spouse). When I did a check return it also gave me a error which said (IRS e-file limitation: Each withholding amount must have an associated EIN. Enter 00-0000000 (9 zeroes) if an EIN is not available).

Effective for tax years beginning after 2019, the age 70 1/2 no longer applies as long as all other IRA contribution rules are met. One stipulation is that you must have earned income to make an IRA contribution and the amount of earned income must exceed the amount of your IRA contribution. Question for those doing Kansas Returns: If you have earned farm income, do you included your contribution amount in line B13 as an amount from Kansas Sources? It shows up on B13 as a total from the Federal Return but not as an amount from Kansas Sources unless you enter it there. Line B13 is on Schedule S, part B-Part-Year Resident/nonresident allocation form for Kansas Thanks for your early reply!!

Oklahoma statute authorizing the addition--when I called the Oklahoma Tax Policy department today they mentioned that the Oklahoma statute was 68 Oklahoma Statute 2358. That statute deals with Revenue and Taxation. In the ATX 2019 it did not have the word other in Oklahoma to make a pdf file but in 2020 it does.

Question: In the Oklahoma instructions under Schedule 511-B and B8 Miscellaneous: Other additions: it says when Entering the number 5 if the following applies these words: "Provide a statement of explanation specifying the type of addition and Oklahoma Statute authorizing the addition, and verifying documents." There are two adjustments: (1) adjustment SE deductible part of self-employment and (2) adjustment self-employment health insurance. These two adjustments must be added to the Oklahoma return and so the questions in ATX are: 1. How do you make a statement for Schedule 511-B, line 8 2. What is the statue authorizing these additions 3. The verifying documents should be I believe Schedule SE or (schedule 1, part II, line 14) and schedule 1, part II, line 16 which shows the self-employed health insurance deduction. These deductions are added back to Oklahoma return because they were subtracted on the Kansas return.

I now have gotten rid of the red box but I can't enter $300. Why? Answer: I clicked the arrow on 10b and entered 300 in the blue box on 5. I now have 300 in Form 1040; line 10b

Question: Why does the box show read on Form 1040; line 10b? I now have gotten rid of the red box but I can't enter $300. Why?

Question: Why does the box show read on Form 1040; line 10b?

Charitable Contribution - I see that effective for 2020 there is a new deduction up to $300 for a qualified charitable contribution as above-the-line deduction in calculating AGI without the taxpayer having to itemize deductions (1040-10b). On Form 1040 is there anything that says a taxpayer is required to enter their total charitable deductions or just the $300 amount on 10b?

I see that a lot have viewed this post but no answers. Please respond if you have ever did the above and the e-file went through correctly.

I have a federal, Kansas and an Oklahoma return to e-file. The client lives in Oklahoma. Kansas requires the federal return to be filed with the Kansas return. If you add the federal return as a pdf attachment which after adding it is than included in E-File forms (KS E-File Info) will you be able to e-file the Kansas return in total? Oklahoma requires Kansas Return along with the federal return to be e-filed. If you ad the Kansas return as a pdf attachment which after adding it shows up as otherstatereturn included in E-File Forms (OK E-File Info) will you be able to e-file the Oklahoma return in total? When I mention total above, that means without using some program to shrink the size of the document. I have never done this before but simply had the client mail in the two State forms with their necessary documents? Looking for your early reply!

Question: How does one get the relief money when the 2018 Tax Return was filed with the husband's account information? The husband has died and his account was closed after his death. The wife is wondering how she can get this money.

Thanks jklcpa and grandmabee

The client's 2018 return does not show this repayment of advance payment of the premium tax credit on the original return. On Form 1040X and amended return for 2018 it has an APTC repayment or amount owed of $3503. I want to thank you again for your responses.

Thanks for your comments: I forgot to mentioned that the client is self-employed and takes a self-employed health insurance deduction on line 16, part II of schedule 1 of form 1040 for health insurance paid in 2019. I was wondering if that same client could enter the repayment of excess advance payment of the premium tax credit from Part III of the 2018 Form 8962 that the client had to pay back in 2019? I know that there can not be more deductions than income that is on Schedule C. There are worksheets W and X in publication 974 and also in the ATX program. 2018 Form 8962 has repayment of excess advance payment of the premium tax credit of $3857. In 2019 an amended return was filed and the client owed $3503. The payment was made in 2019. Another thought about this repayment is that the client was above the federal poverty line.

QUESTION: Can a person take a deduction on the 2019 tax return for a repayment of the excess advance payment of the premium tax credit on the 2018 form 8962? The repayment was done in 2019.