We delivered Phase I of a new field that will allow the preparer to enter the amount of treaty exemption that should be deducted from the wage line.
Where is the new field located?
Basic Information >> 1040NR Schedule OI>>Schedule OI General Information
What does Phase I mean?
This means that we have delivered the entry form. Phase II will be to add the mapping and calculations behind it to subtract the amount entered from the wage line
When will Phase II be delivered?
The mapping and calculation changes are scheduled to be delivered on Wednesday, March 22nd.
How will I know when Phase II has been delivered?
We will update the blog when Phase II is delivered. You will also see a difference on the Summary/print page where the AGI reflects the subtraction from the wages line.
Can I electronically file the return if I enter an amount that reduces the wages?
No. The IRS system for accepting the 1040NR is new for this tax season. It currently does not allow returns that have wages reduced to be electronically filed. This is something that will be considered for TY2017.
How does this impact my state return?
Using this field, will allow full amount entered in the W-2 box 1 to flow to the state for calculation purposes.
Can I edit my state return?
No, you cannot edit the state return to make any additions or subtractions from the state. We are looking to add this functionality for TY 2017.
Blog Posted 03/21/2017 8:45 AM EST