Standard Deduction / Real Estate Taxes

[miatax]

I don't do many returns and I just found out about this:

Do I have to amend the 1040's that took a standard deduction and taxpayers paid real estate taxes? Since these taxpayers normally would never itemize I never asked.

ATX should have a checklist if it updates all the time with the most common items that would affect many simple 1040s!

I would figure that just like Turbo Tax or Tax Cut, ATX can do the same or better when running the 'check return'for the price we pay!

[miatax]

I have one client that if added in, they would get an additional $140 back. How would I amend electronically?

By the way, I do see that there is return checklist, but certain things would just be better if they came up under 'check return' - especially if they are new changes.

Correct me if I am wrong, but I don't recall this add'l deduction in 2007.

[grandmabee]

this is the first year of this deduction. you cannot efile an ameded return. Paper

[miatax]

I never did an amended return and I want to be sure I am doing it right. I did the following:

1) Open the return

2) Choose Amend

3) On the 1040X, I increased the standard deduction by the appropriate amount (maxxed at $500) through the link for item 39c.

4) Do I only need to print 2 pages for the 1040x, have the client sign, and mail?

[grandmabee]

yes only page 1 and page 2 be sure to put explanation on page two.

[miatax]

Thank you Bcolleen.. I really wonder how many taxpayers who take the standard every year missed out on this... That's not good...

[David1980]

This is why it's good to get a reference book like quickfinder/thetaxbook, though simply reading the "what's new for 2008" from pub 17 would give you information about adding property tax to the standard deduction.

I like to try to catch up on all this including the last minute changes in January before the real rush comes.

Personally, I would not want the software directly prompting me for every return. If they created a document with tax updates for the tax year or something that is cool, but since I'm not preparing just 1 or 2 returns like the average turbotax user I do not want to be slowed down by the same interview questions asked over and over when they only relate to a percentage of returns.

[RitaB]

I never did an amended return and I want to be sure I am doing it right. I did the following:

1) Open the return

2) Choose Amend

3) On the 1040X, I increased the standard deduction by the appropriate amount (maxxed at $500) through the link for item 39c.

4) Do I only need to print 2 pages for the 1040x, have the client sign, and mail?

When you amend a return, attach every form that changes. That means you'll print and mail Form 1040X AND Form 1040.

[michaelmars]

i have absolutely never attached a 1040 to the 1040x, only the c or d if that caused the change. never even attached an A if the only change was due to allowed medical or misc and ihave never had the return questioned or have ibeen asked for the other forms.

we actually have on employee that almost soley does amended returns april-august due to the vast number of k-1's our clients receive that get changed during the year. our practice amends 150-200 returns a year.

[RitaB]

i have absolutely never attached a 1040 to the 1040x, only the c or d if that caused the change. never even attached an A if the only change was due to allowed medical or misc and ihave never had the return questioned or have ibeen asked for the other forms.

we actually have on employee that almost soley does amended returns april-august due to the vast number of k-1's our clients receive that get changed during the year. our practice amends 150-200 returns a year.

Well, good. I've never been questioned either, and I've always attached Form 1040. Guess I thought since 1040 changed it was a "form related to the change." (Instructions for Form 1040-X) I guess I was too literal there. Thanks for the constructive criticism.

I guess I'm getting away with my errors cause IRS seems to agree with me:

http://www.irs.gov/taxtopics/tc308.html

[joelgilb]

as long as we are discussing this deduction, does anyone know how to get ATX to calculate it without overriding or manually entering the re tax on the subschedule. I can not seem to get it to carry from Sched A to 1040 page 2.

[kcjenkins]

If you have already entered it in the A, then when you go to the worksheet, all you have to do is check the "Yes" box and it pulls it into line 40 and checks the box at 39c.