The Issue: As most everyone is aware by now, Renter Rebate claims are not working because the Allocable Rent from LC-142 line 9 is not transferring to PR-141 line 3, thus yielding a rebate of $0. This is TaxSlayer Issue #1055; it's posted on their blog. I think (and have advised TaxSlayer) that this problem is also affecting the HS-122 when there is Lot Rent; the Allocable Rent does not transfer to HS-122 line B10 (see Caveat below).
Status: There is light at the end of the tunnel. In an e-mail this morning (Feb 8), TaxSlayer reported that "the fix has been made and is currently working its way through our internal testing. Assuming it passes each level of testing, the fix should be live early next week." Recommendations: (1) HOLD all returns that require an LC-142 until TaxSlayer has resolved the issue, though you can still prepare them now, using Peter's Procedure below (the preferred method) or the Workaround. (2) Carefully review, with Lisa Pinkus, any returns containing an LC-142 that were e-filed on/after Tuesday, Feb 6. History: I believe that the problem started Tuesday morning, Feb 6. Renter Rebate returns prepared and e-filed on/before Monday, Feb 5, are not affected. Any Renter Rebate or HS/Lot-Rent returns transmitted on/after Tuesday, Feb 6, are probably incorrect (no rent rebate or lot rent) and should be reviewed with Lisa Pinkus. "My 'good' return now shows no rebate": Don't panic. When you generate a PDF of a return, you are using the current version of the software--not the software that prepared the return. Tuesday (Feb 6), I generated a PDF for a return that I know went in with a rent rebate and the new (Feb 6) PDF had an Allocable Rent of zero on line 3 of the PR-141, thus a rent rebate of zero; further, no LC-142 was in the PDF. Caveat re Lot Rent: Lot Rent must be entered via the TaxSlayer LC-142 pages (so that a copy of the LC-142 is included in the E-file) and be allowed to transfer to HS-122 line B10 . The Allocable Rent (lot rent) will not appear on line 10 of the TaxSlayer HS-122 page but will appear in the PDF. If you enter an amount for the Lot Rent directly onto line 10 of TaxSlayer's HS-122 page, it will be ignored and may wipe out the value from the LC-142 as well. Peter's Procedure: This procedure (which is preferred over the workaround below), courtesy of Peter Cottrell, will allow you to keep preparing LC-affected returns while the issue persists. Adapt to suit your needs. Inform the taxpayer that there may be about a week's delay in submitting the Vermont return. Prepare full Federal and Vermont returns. Record the amount of Allocable Rent from each paper LC in a Note attached to the return. Hand calculate the expected Renter Rebate amount and inform taxpayer. File the Federal return only. When TaxSlayer has resolved the issue, return to the Vermont return in TaxSlayer. If the Renter Rebate amount agrees with the expected amount, file the Vermont return; otherwise, advise the taxpayer and decide how to proceed. If the taxpayer wants a printed copy of the Renter Rebate portion of their return, advise them that they can now come back to get it. Workaround: Prepare the Renter Rebate claim on myVTax. It will take extra time, but the taxpayer will not have to return. (Warning: You will need an e-mail address to submit the claim and it doesn't tell you that until you are ready to click the Submit button. Check with the taxpayer before you start to see that they have one.) Prepare full Fed and VT returns (you'll need the HI-144 info for myVTax). Review but do not approve; print the HI-144. Open myVTax.gov and prepare the Renter Rebate claim. Review, print, and submit the claim in myVTax. Return to TaxSlayer, delete the PR-141, review again, and mark Approved. E-file the federal and Vermont income tax returns. Comments welcome.
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