1040A / Stimulus payment

[Sandy]

Is anyone out there preparing 1040A's for clients with SS? I have a client who doesn't need to file, just has 2 1099R's and SS. No tax liability.... Do I need to enter 1099R info also????

Sandy :huh:

[lbbwest]

Is anyone out there preparing 1040A's for clients with SS? I have a client who doesn't need to file, just has 2 1099R's and SS. No tax liability.... Do I need to enter 1099R info also????

Sandy

I'm confused (frequent occurence); why on earth wouldn't you?????

[JohnH]

There has actually been quite a bit of discussion about this on another forum. On the one hand, there is the thought that when you sign the jurat, you are saying that all income has been reported. On the other hand, there are questions about whether this is even a "real" tax return, since the instructions on the IRS web site call it a "Stimulus Return" and also instruct that it be filled out in an odd manner - i.e. they don't even require that a filing status be selected.

There's also the question of electronic filing which has been discussed on this forum. IRS has said they're going to try and make it available for stimulus returns, but they haven't done so yet. So I'd say there is more than a little confusion about exactly what info needs to be on the form. Hopefully IRS will be clearing some of this up in the next few weeks.

Has anybody seen an increase in quesitons about the rebate? I've noticed more client questions in the past 3-4 days as the word has begun to circulate in the media and (most importantly) at the hair salons & garages. I'm thinking that once the cosmetics & kitchenware party plan promoters begin to publicize that their consultants can use the rebate to buy more product, the inquiries will skyrocket.

[lbbwest]

There has actually been quite a bit of discussion about this on another forum. On the one hand, there is the thought that when you sign the jurat, you are saying that all income has been reported. On the other hand, there are questions about whether this is even a "real" tax return, since the instructions on the IRS web site call it a "Stimulus Return" and also instruct that it be filled out in an odd manner - i.e. they don't even require that a filing status be selected.

There's also the question of electronic filing which has been discussed on this forum. IRS has said they're going to try and make it available for stimulus returns, but they haven't done so yet. So I'd say there is more than a little confusion about exactly what info needs to be on the form. Hopefully IRS will be clearing some of this up in the next few weeks.

I filed a return that had nothing withheld, $92 worth of interest and nontaxable social security, it was accepted fine. (No tax, no refund) I still don't see what the issue is.

[Jack from Ohio]

I filed a return that had nothing withheld, $92 worth of interest and nontaxable social security, it was accepted fine. (No tax, no refund) I still don't see what the issue is.

The IRS is saying that that type of return will not be processed in their system, thereby not accomplishing the reason for submitting them. The info said that if we put $1 in interest to make the form e-file, it will not process. So, in that vein of thought, neither would $92 of interest cause it to be processed in the system.

I suppose we must assume that just because it is acknowledged, does NOT mean it will be processed.

The sad truth is, there is no one at the IRS that know the true answer to the question.

[jainen]

>>whether this is even a "real" tax return<<

Do a complete return with filing status and everything; at least that starts the statute. I'm paranoid about the guv'mint and I think they want to identify non-filers for reasons other than tax administration.

[lydia33]

As I have previously posted, I would put in the retirement so you can efile. Just easier. If they were a client that had just quit filing because they have no tax liability I do not charge them. That is the least I owe my past clients for their loyalty over the past 33 years. Know on the other hand if they owed taxes and were not aware of that until they brought you the information (like have capital gains) that is a little different story for the fee.

[JohnH]

I just noticed today that the paper ATX 1040A now shows the words "Stimulus Return" preprinted at the top of the page.

Maybe it's already been mentioned, but I just ran across it today while preparing one.

[taxperson]

The only amounts allowed are Line 7 wages (enter self-employment if less than $400), interest, nontaxable social security and notaxable combat pay. IRS will only allow the 1040A, W-2, 8901 for efile. If there's other amounts, paper-file it.

Interest has to be an override. If there's more than $1500, it needs the Schedule 1 and can't be efiled. paper file that.

At the top of the Filer Info sheet there's a checkbox. It'll check itself depending on the entries on pages 1 and 2.

If the only income is nontaxable social security andd/or combat pay, enter $1 in line 8a. That's the IRS instruction. Unless you're paper-filing. To efile, some amount of AGI has to be present.

Since ATX supports 1040A returns, unlike some other software companies, they aren't doing the 1040 for stimulus payments. Apparently the IRS has been saying you can use a 1040 but forgot to mention that it's really only supporting the 1040A for efile. If you have to use a 1040, mail it.

If there's a balance due or a refund, it isn't a Stimulus Return. Uncheck the Stimulus yes checkbox.

ATX has plenty of error checks.

Bank information for direct deposit can be entered and efiled even though there isn't a refund.

Somewhere out on MyATX there's a fairly thorough knowledge base document found by searching for stimulus.

I'd look for it but it's suppertime. Happy Easter!

[Cathy]

Very specific instructions:

http://www.irs.gov/pub/irs-pdf/k1040a3.pdf

[Tax Prep by Deb]

My ATX site stated that they would be ready to e-file these types of returns, (1040A) on the 6 p.m. drain on March 18. They did make some changes to allow the e-file including including 1 dollar on I believe line 8a. Then you can go to the e-file worksheet, and as was already stated the box should be checked for stimulas payment return, this will then allow you to put the banking info in for direct deposit.

As to the question whether IRS will process these types of returns, they did state they will not challenge the $1.00 entry. So apperantly we are set to go.

Deb!

[JohnH]

Good point about the direct deposit.

I've been entering checking account info on my "Balance Due" tax returns so their rebate will be direct deposited.

So far I've found it necessary to do it via an override on the form itself - has ATX said anything about changing that with an extra check box on the input form?

Another interesting tidbit over on the TaxBook forum - there's a special zip code for the paper stimulus payment returns. xxxxx-0099

http://www.irs.ustreas.gov/newsroom/articl...=180018,00.html

[tom777]

The IRS is saying that that type of return will not be processed in their system, thereby not accomplishing the reason for submitting them. The info said that if we put $1 in interest to make the form e-file, it will not process. So, in that vein of thought, neither would $92 of interest cause it to be processed in the system.

I suppose we must assume that just because it is acknowledged, does NOT mean it will be processed.

The sad truth is, there is no one at the IRS that know the true answer to the question.

I think IRS did not care for people(retarding) who got income from Social Security, Railroad, Vetaran because these people is no longer pay tax for IRS and they are not important to IRS. That is why IRS will not allow for them to Efile their return.

[Tax Prep by Deb]

Good point about the direct deposit.

I've been entering checking account info on my "Balance Due" tax returns so their rebate will be direct deposited.

So far I've found it necessary to do it via an override on the form itself - has ATX said anything about changing that with an extra check box on the input form?

Another interesting tidbit over on the TaxBook forum - there's a special zip code for the paper stimulus payment returns. xxxxx-0009

http://www.irs.ustreas.gov/newsroom/articl...=180018,00.html

I was just on MYATX Site and there was a notice on the e-file tab that if the return has a balance due the person will get a paper check. Apperantly all balance due returns will be handled this way even if paid electronically.

Deb!

[JohnH]

Apparently there is a disconnect between what MYATX believes will happen and what IRS says will happen.

See the quote below taken from the IRS Q&A on the subject.

(Of course, this my only apply to paper filed returns, but IRS is very clear on this point)

>>> Q. If I'm not expecting a refund, should I still fill out the direct deposit line on my return so I can get my stimulus payment direct deposited?

A. Yes. Even if you aren't due a refund on your tax return, filling out the bank routing information will allow for your stimulus payment to be direct deposited. <<<

http://www.irs.ustreas.gov/newsroom/articl...=179181,00.html

[JohnH]

Tom777:

The main purpose of the stimulus payments has little to do with who pays tax or who doesn't. And the payments are only indirectly related to the economy. The main purpose of the stmulus payments is to buy votes. If this weren't an election year, I doubt there would be any mention of rebates / simulus payments / etc by either political party, no matter what the perceived shape of the economy.

[Marie]

I've been trying to efile stimulus returns with interest amounts. I fill out so it will flow to my Mo PTC and stays in my forms. But, the last two have rejected with the interest amounts. If it will efile with $1, why not $300. Then the return will be correct. Anybody else having this problem?

[ajuroff]

The IRS is saying that that type of return will not be processed in their system, thereby not accomplishing the reason for submitting them. The info said that if we put $1 in interest to make the form e-file, it will not process. So, in that vein of thought, neither would $92 of interest cause it to be processed in the system.

I suppose we must assume that just because it is acknowledged, does NOT mean it will be processed.

The sad truth is, there is no one at the IRS that know the true answer to the question.

So, are you saying that all the 1040's that I've efiled thru showing SS and INT only, which are accepted, are really not accepted?

What the heck do I do now?

[taxperson]

Apparently there is a disconnect between what MYATX believes will happen and what IRS says will happen.

See the quote below taken from the IRS Q&A on the subject.

(Of course, this my only apply to paper filed returns, but IRS is very clear on this point)

>>> Q. If I'm not expecting a refund, should I still fill out the direct deposit line on my return so I can get my stimulus payment direct deposited?

A. Yes. Even if you aren't due a refund on your tax return, filling out the bank routing information will allow for your stimulus payment to be direct deposited. <<<

http://www.irs.ustreas.gov/newsroom/articl...=179181,00.html

That's completely true. But only if you mail the return. Having direct deposit information in a balance due return does bad things to the efile system.

[taxperson]

So, are you saying that all the 1040's that I've efiled thru showing SS and INT only, which are accepted, are really not accepted?

What the heck do I do now?

Those are okay, ajuroff. In the immortal words of Douglas Adams "Don't Panic".

But JenMO has a problem. The IRS won't allow piggyback state returns in the Stimulus Payment efiled returns. The only forms allowed are the 1040A, W-2, 8901 and the EF Info PIN info.

[ajuroff]

Those are okay, ajuroff. In the immortal words of Douglas Adams "Don't Panic".

But JenMO has a problem. The IRS won't allow piggyback state returns in the Stimulus Payment efiled returns. The only forms allowed are the 1040A, W-2, 8901 and the EF Info PIN info.

Ahhhh..I think I got it. So my 1040's I've sent through (with a piggyback state) are all ok.

Thanks taxperson!

[joanmcq]

Why would you need to file a state return with a 'stimulus return'? The stimulus return is one that only has to be filed to claim the stimulus. If there is no state filing requirement, don't file a state return. If there is a state filing requirement, there is probably a federal one too.

[elfling]

If there is a state filing requirement, there is probably a federal one too.

Not true for many in PA. Anyone -- senior, child, deceased -- with $34 or more of any taxable income (which includes interest, dividends, cap gains, jury duty, gambling winnings, etc.) in PA must file a state return. $100 in dividends, for example, won't require a federal return. We have dozens of clients in that situation. And there were many with state only returns already efiled prior to the stimulus hubbub. We spent a morning calling those people asking if they would appreciate our lining up the 1040 for the stimulus payment, free of charge as most are long-time clients. They are popping in one-by-one whenever convenient to sign an 8879. So far all have been ack'd as accepted.

[JohnH]

So this all brings me to my Stimuls Return question.

Husband & wife, age about 50, are both disabled. Only income is SocSec disability - $15K for him and $9K for her. We file a stimulus return for them so they can get their $600.

Now I learn their granddaughter, age 12, lives with them and she receives $8K in SocSec dependent benefits. The check is made out to grandma but the SSA-1099 bears the granddaughter's SocSec#. There is no other source of support for the granddaughter. They're asking if she can file a stimulus return as well.

I'll look it up when I have time, but jsut curious if anyone can give me a quick answer.

[Lion EA]

Is she a dependent of her grandparents? If so, grandparents get an extra $300, right?