Denne Posted February 13, 2008 Report Share Posted February 13, 2008 I have tried to remove items from various lines of the return and recreate that line. This client over withheld by quite a bit and then paid estimated taxes on the Partnership income. The Partnership is only showing a $230 Section 179 deduction, but that seems to be where the problem is. Any solutions to getting his $12,000 refund by efile? Thanks for your help and suggestions! Getting close to this client coming back from a business trip and I wanted the refund on it's way by now and I know he does too! Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 13, 2008 Report Share Posted February 13, 2008 I have tried to remove items from various lines of the return and recreate that line. This client over withheld by quite a bit and then paid estimated taxes on the Partnership income. The Partnership is only showing a $230 Section 179 deduction, but that seems to be where the problem is. Any solutions to getting his $12,000 refund by efile? Thanks for your help and suggestions! Getting close to this client coming back from a business trip and I wanted the refund on it's way by now and I know he does too! Denne, Did you use the "K-1 Input (1065)" worksheet to enter the Sect 179 info or did you override the Schedule E? Quote Link to comment Share on other sites More sharing options...
Denne Posted February 13, 2008 Author Report Share Posted February 13, 2008 I used the K-1 Input (1065) worksheet..... Do you think that has something to do with it? Perhaps the K-1 worksheet is not working properly. Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 13, 2008 Report Share Posted February 13, 2008 I used the K-1 Input (1065) worksheet..... Do you think that has something to do with it? Perhaps the K-1 worksheet is not working properly. I created a test e-file with the K-1 worksheet and sec 179 (entered on line 12 of the worksheet) and didn't get an error about the sec 179. A couple of things you might want to check. Go to these forms and click in the upper right hand corner of each of these and see what versions you are using. Mine (updated today (12-13-08) are as follows: K-1 (Form 1065) input worksheet Form Version = 30 Sch E, Page 2 Form Version = 10 Form 4562 (if you have one in the return, though not abosutely necessary with the K-1 input) but might be the cause of your problem if it's present in the return Form Version = 26 If you don't have the above versions, then update your forms and try again. (Also make sure your program itself is updated). If that doesn't work, you mentioned that your client over withheld on his jobs plus sent in estimated payments. This may have nothing to do with your problem, but if the Federal withholding on a particular w-2 exceeds 50% of that w-2's income, you can't e-file the return and thus you would not be able to create the e-file. If you still can't get it through, try to copy and paste the error your getting when you try to create the e-file on your next reply. Quote Link to comment Share on other sites More sharing options...
Denne Posted February 14, 2008 Author Report Share Posted February 14, 2008 I checked for all the correct Versions for the forms you mentioned, Cathy. All were correct. I tried to "Create the efile" again and this time got a different error. Now is says "SCH SE (1040) Error Adjustment to Line 2 Business Income Excluding this return from electronic filing. Paper file this return." The taxpayer has Gross Income of $108,000.00 and then the Partnership Income of about $6700.00. Of course he has the maximum $97,500.00 already withheld from his pay. The only thing he has to actually pay the SE tax on is the Medicare portion. Is there a way around this error, so he can still efile? Thanks for all your help!!! Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 14, 2008 Report Share Posted February 14, 2008 Denne, O'kay....I was able to fiddle with my program and got the same error as you. Evidently, you are making the sec 179 deduction of $230 on the SE itself. Instead, enter it on Line 14A of the K-1 worksheet (6,700 less 230 = 6470)...in other words, enter the 6,470 on the K-1 worksheet and then create the e-file...you'll get the correct amount of medicare taxes and no error. Cathy Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 14, 2008 Report Share Posted February 14, 2008 P.S. I agree with your first assumption that something is wrong with the K-1 1065 worksheet. The program should have made the adjustment for you. Don't wait on a fix, however......the 2006 program works the same way! You go girl! Quote Link to comment Share on other sites More sharing options...
Denne Posted February 15, 2008 Author Report Share Posted February 15, 2008 Thanks again Cathy! I did the entry as you suggested and got the darn thing sent..... Thanks for taking so much time to do your own test returns and helping me. I am very grateful and my client will be too when he finds out the returns is on the way ;~) I guess that will be a good ending to his cruise. He had a nice week to get away from here. I am in Michigan and we have had lots of....too much of....cold and snow! Thanks so much......Connie Quote Link to comment Share on other sites More sharing options...
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