The mini-guide and video for the Customer Portal is now Available on the blog. These are not available in the Practice Lab at this time.
Click Here for the video.
Click Here for the training guide.
Temporary Suspension of Limits on Charitable Contritbutions
Temporary Suspension of Limits on Charitable Contributions
In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. Contributions that exceed that amount can carry over to the next tax year. To qualify, the contribution must be:
- a cash contribution;
- made to a qualifying organization;
- made during the calendar year 2020
Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.
How to claim this in TaxSlayer Pro Online?
It is a two-step process.
- Report your taxpayers cash gifts to charity just as you normally would within the “Cash Gifts to Charity” page within the Itemized Deductions menu.
- If their donations qualify to take advantage of this temporary suspension of limitations, after completing Step 1 above, go to the “Limitation on Charitable Contributions Deduction page (shown below) and enter the qualified contributions.
Form 7202: How to Elect to use 2019 Net SE Earnings
Question: In the current iteration of the Form 7202 page inside TaxSlayer, how do I elect to use the 2019 net earnings from self-employment?
Answer: To use 2019 net earnings from self-employment when calculating any applicable credit using Form 7202, the 2019 Net SE earnings MUST BE greater than the 2020 Net SE Earnings. If this is the case for your client, enter as a positive number, the difference between 2019 and 2020 Net SE Earnings into the “Adjust your net earnings from self-employment” field (shown below). The manually entered value will add to the already calculated 2020 Net SE Earnings and carry to Line 7 of Form 7202.
- To locate 2019 net self-employment earnings, in most instances, refer to Line 6 of the 2019 Schedule SE. You can also refer to Form 7202 instructions for additional guidance by clicking HERE.
For example: If the 2020 Net SE Earnings is $10,000, but in 2019 it was $17,000, the difference is $7,000. Inside the TaxSlayer application, $7,000 would be entered in the adjustment field. This would add to the $10,000 already calculated in the return and carry a total of $17,000 to Line 7 of Form 7202.
Note: We realize this is not intuitive and are working to improve the experience when electing to utilize 2019 Net SE Earnings for this credit.
Recovery Rebate Credit and $0 AGI Returns
Question: Are we able to electronically file a $0 AGI (Adjusted Gross Income) return through TaxSlayer if the return is receiving the Recovery Rebate Credit?
Answer: Yes, if the tax return has $0 in AGI (due to no income or only Social Security Income), but is receiving the Recovery Rebate Credit (non-zero value on Line 30 of F1040), this return CAN BE electronically filed to the IRS using TaxSlayer (Pro Online, Pro Desktop, and FSA).
- Note: There is NO need nor requirement to enter $1 as Interest Income or Other Income and is NOT recommended.
Additional information from IRS.gov HERE.
Form 8915-E – Phase I
Form 8915-E for Qualified 2020 Disaster Retirement Plan Distributions and Repayments, is now available within the 2020 Pro Online application. For Phase I implementation, to trigger this form, the Code in Box 7 must be 1, J, or S. When a 1099-R is present with the before mentioned codes, preparers will be presented to option to utilize Form 8915-E if their clients would like. Phase II implementation will prompt the election to use Form 8915-E regardless of the code in Box 7.
FSA Kiosk URL Information
How does a taxpayer enter 2019 Earned Income for EITC and CTC calculation purposes?
- The taxpayer will navigate to Basic Information > Personal Information > Additional Personal Information. Check the box for “[Taxpayer Name] was affected by a natural disaster during the current tax year“. Enter “COVID-19” as the disaster event, then provide the prior year earned income amount.
How/Where do I report my prior year state and local refund for a 1040NR return?
- The taxpayer will navigate to Other Income > Other Income Not Reported Elsewhere Income and enter the value there. The income will be carried to Form 1040-NR, Line 8. This entry does require a description, which could be “Prior Year State and Local Refund” or “Itemized Deduction Recoveries”.
Can I electronically file an amended Federal return using the FSA application?
- No, e-filing Federal and state amended returns is not supported in the FSA application at this time. Taxpayers can still prepare an amended Federal and State return using the FSA application for free, but will need to paper file.
NOTE: This is for FSA Kiosk only, not Pro Online
Special Lookback for Earned Income Tax Credit and Child Tax Credit
The special lookback rule, included in the most recent Coronavirus Relief Package, allows lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020. This provision is now included in TaxSlayer Pro Online within the Personal Information page, shown below.
TaxSlayer VITA/TCE Support Hours Reminder
This is just a reminder that tax season support hours (below) do not begin until “Start New Return” is turned on in 2020. January 18th is tentatively scheduled to be that date, however, the opening date is subject to change.
- Monday – Friday: 8am-12am ET
- Saturday – Sunday: 8am-8pm ET
Until “Start New Return” is turned on in 2020 support hours are Monday-Friday, 8am-5pm ET.