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Items addressed in this release of ProSeries Basic Edition/1040
Items addressed in previous releases of ProSeries Basic Edition/1040
Transfer of preferences and settings
What's new in ProSeries Basic Edition/1040
New ProSeries Basic Edition/1040 forms and worksheets
All forms in this release of ProSeries Basic Edition/1040 can be filed with the IRS.
Mailing address changed due to the closing of the Atlanta Submission Processing Center for certain returns mailed after June 30, 2011
Modified adjusted gross income (used for example on the Social Security Benefits Worksheet) was incorrect when a pension is converted to a Roth IRA, taxed over two years and a subsequent distribution is taken in 2010 from the Roth IRA.
Increased range of valid ITINs for taxpayer, spouse and dependants.
Form 5329 was not transmitting second page with electronically filed return if there is an amount on Line 42 and no amounts on Lines 47 and 49.
Schedule SE Adjustments Worksheet was incorrectly requiring that an explanation statement was required for Line 5c.
The IRS recently released guidance on when a self-employed health insurance deduction should be deducted from Schedule SE line 3. Only a self-employed health insurance deduction related to self-employment income included on lines 1 or 2 should be used to reduce line 3 of Schedule SE. This could occur if the self-employed health insurance deduction is related to wages from an S corporation, a Schedule C filed for a statutory employee or a Schedule C filed for a member of the clergy with an approved Form 4361 application. In addition, the individual would need to have self-employment income from another activity that is reported on Schedule SE.
Form 4562: Depreciation Options have been updated to reflect current North Carolina conformity
Maryland W-2's are allowing bogus Maryland entry causing electronic filing reject
Form 5695 incorrectly allowed more than $1500 for each home when two main homes owned.
Schedule D capital gains transaction worksheet is not computing eligible QSB exclusion on line 33.
Form 1099-R with Distribution Code G only applies taxable amount to basis for one of two Form 1099-Rs
Foreign tax credit computation worksheet line 4(A)(3) is calculating incorrectly for tax exempt interest
Form 8941 is not pulling from the correct field for spouse from passive activities.
Form 8941, Worksheet 7, Line 3 is not rounding correctly.
Form 1116, Line 17 is incorrectly calculating when the Qualified Dividends and Capital Gains worksheet used
Form 2555, Page 3, Line 29 has incorrect amount for Russia-Moscow.
Student Loan Interest Deduction Worksheet, Line 1 shows 0 after transferring from 2009.
Form 8815, Line 2 pulls scholarship amount instead of expenses.
The community property worksheet for e-filing of married filing separate returns in community property states has been expanded in ProSeries to support registered domestic partnership filers in California, Nevada and Washington (and individuals in California who are married to a person of the same sex).
Form 5695 page 2 outputting blank causing reject from IRS.
Form 5405 First Time Homebuyer Credit tepayment was triggering code in Client Letter stating to attach settlement statement which is only required for receiving the credit.
When a taxpayer is under age 24 and does not have education expenses, 3 answers on the Form 8863 were being marked as errors.
Form 8822 shows Not Final when it is Final. Prevents E-File of 1040 Returns.
When taxpayer's decided to split their refund between Savings Bond and Paper Check instead of different bank account. Returns were being rejected with ERC 0233.
ProSeries Incorrectly allows a 1040-EZ when form 4136 is in use.
Form 1099-Q now handles situations where box 6 is checked.
Small Employer Health Insurance Premiums Credits do not transfer from Schedule K-1 to Form 8941.
Form 8941 T Worksheet 7 Line 3 does not compute correctly if line 1 is less than 2080 hours.
Form 3903 is not part of converted output when military exception applies causing the return to be rejected with ERC 0080.
Two new worksheets have been added to support Form 8839, Qualified Adoption Expenses:
Qualified Adoptive Child Worksheet
Exclusion of Prior Year Adoption Benefits Worksheets
Schedule K-1 S Corporation Box 13 Code P, Additional "Other" Column not totaling the Credits for 8941
Form 4562 is not part of the return when the only assets in the return were placed in service after 9/9/2010 and 100% Special Depreciation Allowance is taken.
Failed conversion for Form 4562 when mileage rate only is used on Car and Truck worksheet has been resolved.
The exemption phaseout diagnostic has been removed because it is no longer applicable.
Where applicable forms have been updated to conform to the new law. For details of the legislation refer to the "What's New This Year?" section in the help center.
The first time this year's ProSeries Basic Edition program starts, it transfers preferences and settings that you used with last year's ProSeries program if that information is on your system. If that occurs, you see the Prior Year Settings Transferred dialog box. If you click the OK button in that dialog box, the Options Setup Wizard begins so you can review (and edit) the current settings for various options.
For information on what's new in ProSeries Basic Edition/1040, open a 1040 return, go to the Help menu, choose Help Center, then select What's New This Year?
We've added the following forms and worksheets to ProSeries Basic Edition/1040 for the 2010 tax year:
Tip: For information about changes to existing forms, start or open a Form 1040 return, go to the Help menu, select Help Center, then select What's New This Year?
Small Business Jobs Act of 2010
Homebuyer Assistance Improvement Act of 2010
Hiring Incentives to Restore Employment Act of 2010
Highlights of the Small Business Jobs Act of 2010 (the Recovery Act) include:.
The first-time homebuyer credit has been extended for three months beyond the original dates.
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 overhaul the U.S. health care system and impact many taxpayers, employers and the health care industry. Highlights of these laws include:
Highlights of the Hiring Incentives to Restore Employment Act of 2010 include:
Other 2010 tax law changes include:
For more information, go to http://www.proseries.com/support or http://www.irs.gov.
For more information about what's new in ProSeries Basic Edition/1040:
As of April 23, 2007, Intuit offers ProSeries customers a guarantee of on-time submission of tax returns. If an e-filed return is late, Intuit will reimburse you for any applicable e-file fees that you paid and will reimburse the taxpayer for any assessed late-filing fees that the taxpayer paid. Note that specific conditions apply. Here's the exact wording of the guarantee:
"If any ProSeries customer is unable to submit to Intuit any federal or state tax return before the applicable filing deadline or Intuit fails to file ProSeries customer-submitted returns with the appropriate tax agency before the applicable deadline and the lack of submission or filing is due to a failure of Intuit's electronic filing system, Intuit will refund any applicable electronic filing fees, and reimburse the taxpayer for any resulting penalties and interest levied and paid to the tax agency, upon submission of documentation reasonably acceptable to Intuit. Intuit is not responsible for any failure by ProSeries customers to submit, or Intuit's failure to file, any federal or state return due to reasons beyond its commercially reasonable control, including but not limited to internet outages or any deficiencies in the actual federal or state returns that prevent filing."
The IRS requires that you use Practitioner PINs and taxpayer PINs when you e-file Form 1040 returns. When you use a Practitioner PIN and taxpayer PINs, you don't need to file Form 8453 with the IRS (unless the client is required to submit to the IRS one or more of the specified forms or supporting documents listed on Form 8453) but you do need to retain a copy of Form 8879.
If a client is applying for a Refund Anticipation Loan (RAL) or a Refund Transfer (RT), don't change the application from one type of Bank Product to another type after you file the return electronically. If you change the type of Bank Product after you e-file a return, you might not receive a check authorization from Santa Barbara Bank and Trust. If you don't receive a check authorization, you can't print a bank product check for the customer.
If you are offering bank products through Santa Barbara Bank and Trust (SBBT), it is very important that you transmit the check status information back to SBBT after you print a bank product check.
The IRS clarified the following issues concerning electronic filing, Form 2106, and Form 2106-EZ.
ProSeries Basic Edition/1040: If a federal return is being filed electronically, the ProSeries Basic Edition/1040 software allows one copy of Form 2106 or one copy of Form 2106-EZ for the taxpayer. If the filing status for the return is Married Filing Joint, the software also allows one copy of Form 2106 or one copy of Form 2106-EZ for the spouse. However, the ProSeries Basic Edition/1040 software does not support two copies of page 2 of Form 2106 with just one copy of page 1 of Form 2106. With ProSeries Basic Edition/1040 software:
California Civil Code section 1798.85 addresses the disclosure of Social Security Numbers in certain mailed materials. If you think California Civil Code section 1798.85 (or a similar regulation) might apply to materials that you send to your clients, we suggest you check with your attorney or other advisor.
To suppress the printing of a Social Security Number on a particular form or worksheet, (1) select the Social Security Number field, (2) go to the Edit menu and choose Override, then (3) press the Delete key to remove the Social Security Number from the field.
ProSeries Basic Edition doesn't enter Social Security Numbers on the following reports:
To use the Quicken Import feature to import data into ProSeries Basic Edition, you must use Quicken 2009, 2010, or 2011. To upgrade your version of Quicken, call 1-800-446-8848 or go to http://www.quicken.intuit.com
Be sure to open Quicken before using Quicken Import to import Quicken information into a client's return.
Electronic filing functionality is available in this release of ProSeries Basic Edition/1040.
For electronic filing procedures and information, you can click the EF clients tab (if HomeBase is on the screen) or the EF Clients button on the toolbar (if a return is on the screen) to go to the EF Clients view. The Steps to E-File section on the right side of the EF Clients view summarizes the steps that you take when you file a client's return(s) electronically.
To perform electronic filing functions, select the File Electronically Step button to e-file the return(s) for the client whose return is currently open on the screen. If you prefer, go to the EF Center and highlight the return(s) that you want to e-file for a specific client. Next, go to the E-File menu, select Electronic Filing, then select the appropriate command from the Electronic Filing menu.
The commands on the Electronic Filing menu are:
The Patient Protection and Affordable Care Act (PL 111-148) made changes to the adoption credit, effective for tax years beginning after December 31, 2009. To properly claim the credit, required adoption related documents need to be attached to the return, therefore, returns containing Form 8839 cannot be electronically filed.
Returns containing page 1 of Form 5405, Homebuyer Credit cannot be electronically filed. Form 5405 page 2, used to report a partial or total repayment of the credit, can be electronically filed.
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