Jump to content
ATX Community

Amend to correct SE assignment


Margaret CPA in OH

Recommended Posts

When preparing the recent return, I noticed somehow that for 2016 I had filed the return with SE for husband (who had less than $00 in SE income) rather than wife, a minister required to file SE for housing, etc. What is the best way to amend?  Just send in the 1040X with incorrect SE stamped DO NOT FILE and corrected SE showing spouse instead of filer, maybe highlighted? Other suggestions happily received!

Link to comment
Share on other sites

Do not amend.  You will be filing a zero change in tax and the IRs  has a good chance of screwing it up  as it is not a tax issue, but a SS earnings isuue.

Wait a year until your clients earnings are posted to the SS files.  

Then, there is a procedure on the SS website for correcting them.

PDF]  Request For Correction of Earnings Record - Social Security

https://www.ssa.gov/forms/ssa-7008.pdf

SOCIAL SECURITY ADMINISTRATION ... If you disagree with wages reported to your earnings record, complete Item 7. ... If you do not have self-employment income that is incorrect go on to item 10 for any remarks, and then complete Item 11

 

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

3 hours ago, Margaret CPA in OH said:

Max, thanks so much for this!  I would never have thought of it.  Since this was for tax year 2016, wouldn't it be already posted so the client can do this now?  Also, would both husband and wife follow this procedure as both are incorrect (I haven't read it yet but will)?

Oh! I was thinking 2018.   If it was for 2016, they can do it now.   You could fill out the forms for them and have them sign it.

  • Like 1
Link to comment
Share on other sites

21 hours ago, Margaret CPA in OH said:

When preparing the recent return, I noticed somehow that for 2016 I had filed the return with SE for husband (who had less than $00 in SE income) rather than wife, a minister required to file SE for housing, etc. What is the best way to amend?  Just send in the 1040X with incorrect SE stamped DO NOT FILE and corrected SE showing spouse instead of filer, maybe highlighted? Other suggestions happily received!

Maybe I am missing something, but if husband had negative SE income (less than $00) but wife did not, wouldn't the amount of tax change if the income was moved from him to her?  She would be paying SE tax on all of it, as opposed to him paying on the amount above his negative SE earnings. 

  • Like 2
Link to comment
Share on other sites

Gail, et al, the wife minister's W-2 was entered as spouse and Special type, clergy.  The 1040 Clergy worksheets were completed.  Husband, filer, had $325 non-employee compensation. Somehow, the SE created was short form for filer and should have been long for for spouse.  The amount of SE tax was actually almost correctly calculated, off by just $15.  I can't easily find out why but it was in their favor.  The remaining issue is that the SE tax was reported for filer, husband, and not spouse, minister wife.

So I will still pursue the path Max recommended as the tax difference is less than $50 and we just need to be sure she gets the proper credit.

Thanks again, all, for great guidance! What a group of fine professionals on this board...

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...