2012 ProSeries/1040 ReadMe

Release 2012.15f / February 26, 2014

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All 1040 Forms can be filed

Items addressed in this release of ProSeries

Items addressed in previous releases of ProSeries

What's new in ProSeries/1040

New ProSeries/1040 forms and worksheets

Obsolete ProSeries/1040 forms and worksheets

Tax legislation issues

Electronic filing

All 1040 Forms can be filed

All forms in this release of ProSeries/1040 can be filed with the IRS.

Items addressed in this release of ProSeries/1040

The following issues have been fixed in this release:

• Users can now efile returns when the "date PIN entered" is in year 2014.

Items addressed in previous releases of ProSeries/1040

The following issues were fixed in prior releases

• Release 2012.15c / June 7, 2013 - A correction has been made to prevent occurrences of reject R0000-058 which could be experienced by returns on extension if PDF attachments were added to the client's file while in Extension Mode. If you previously attached PDF files to your client prior to their extension being accepted, review the client's Form 8453 to determine if the PDF attachments are present for the return. Any PDF attachments not identified on Form 8453 should be re-attached to the client prior to electronically filing the individual income tax return.
• Release 2012.15c / June 7, 2013 - Form 2210-F - The penalty caculation is now correct on returns filed after 4/15/2013. A special waiver was previously assumed if no filing date was entered.
• Release 2012.15b / April 26, 2013 - New paragraphs have been added to the Standard Letter to indicate that a state refund will be issued on a debit card. To add these paragraphs to the standard client leter on your system:
• Follow the steps for Approach 1 (below) if you have not edited the standard client letter, or
• Follow the steps for Approach 2 (below) if you have edited the standard client letter.

Approach 1 - Restore the standard client letter for individual state returns:

1. Open a 1040 return.
2. Go to the Tools menu, select Letters, then select Restore Initial Standard Letter.

The program will replace the previous version of the standard client letter for individual state returns with the current version of the standard client letter for individual state returns. Any edits you have made will be replaced.

Approach 2 - Edit your standard client letter for individual state returns:

1. Open a 1040 return.
2. Go to the Tools menu, select Letters, then select Edit Letter.
3. In the Edit Letter dialog box, select Edit to open the standard client letter.
4. Scroll down the letter to the paragraph [@XXXDDepNo] Your <@XXXStName> refund of $<@XXXRefund> will be mailed to you automatically by the <@XXXMainPay>.
5. Copy and paste this new paragraph directly below the paragraph identified in the step above [@XXXDebitCard] Your <@XXXStName> refund of $<@XXXRefund> will be issued on a debit card that will be mailed to you automatically by the <@XXXMainPay>.
6. Scroll down the letter to the paragraph [@XXXEFDDNo] Your <@XXXStName> refund of $<@XXXEFRef> will be mailed to you automatically by the <@XXXMainPay>.
7. Copy and paste this new paragraph directly below the paragraph identified in the step above [@XXXEFDbCard] Your <@XXXStName> refund of $<@XXXEFRef> will be issued on a debit card that will be mailed to you automatically by the <@XXXMainPay>.
8. Go to the File menu and select Save Standard Client Letter.

The updated version of the standard client letter for any applicable individual state returns will now indicate that a state refund will be issued on a debit card.

• Release 2012.15b / April 26, 2013 - Form 2848 - The fax numbers in the Where To File Chart have been updated to the most recent fax numbers posted by the IRS on IRS.gov.
• Release 2012.15a / Louisiana was added to the list of states in Part VII of the Federal Information Worksheet that are able to electronically file an extension.
• Release 2012.150 / April 5, 2013 - 2210 Underpayment Penalty Worksheet - The penalty percentage was corrected to be 3% from April 15 to September 30, 2012.
• Release 2012.140 / March 27, 2013 - Rent from personal property reported on Box 1 of Form 1099-MISC is now included on the EIC Worksheet as investment income.
• Release 2012.130 / March 22, 2013 - The Planner Tax Worksheet and the What-If Worksheet no longer default Net Investment Income for the 2013 3.8% Medicare surcharge to allow capital losses in excess of capital gains.
• Release 2012.130 / March 22, 2013 - K-1 Import from ProSeries Business Program Form 1065 - Beginning with version 2012.060 of ProSeries Form 1065 (available on 3/1/13), importing K-1's from ProSeries Partnership 1065 into ProSeries Individual 1040 may have incorrectly displayed an error when ProSeries 1065 contained rental properties on Form(s) 8825. The error indicated that multiple types of rental properties (some subject to recharacterization and others not subject to recharacterization) were in the partnership return and needed to have separate K-1's created manually in the 1040 program. This error has been fixed in version 2012.080 of ProSeries 1065 (available 3/15/13). Prior to importing from ProSeries Partnership 1065 into ProSeries Individual 1040, open and save each Partnership 1065 client that is being imported.
• Release 2012.120 / March 15, 2013 - Form 4562 - The 2007 tables for the calculation of the leased vehicle inclusion amount, which had previously been omitted from the program, have been added.
• Release 2012.110 / March 8, 2013 - Form 2441 - A deceased spouse who was not employed or a student while alive will no longer disqualify the taxpayer from claiming the Child/Dependent Care Credit.
• Release 2012.110 / March 8, 2013 - Taxpayers with foreign addresses are no longer prevented from e-filing.
• Release 2012.10a / March 4, 2013 - The IRS is now accepting all paper and electronically filed returns
• Release 2012.10a / March 4, 2013 - E-file was updated to make it easier for foreign firms/eros to electronically file returns.
• Release 2012.100 / March 1, 2013 - Form 1040 - An error message has been removed that prevented efile of a return containing a dependent child with a relationship of "stepchild".
• Release 2012.100 / March 1, 2013 - Form 2210-F - Has been corrected to not calculate a penalty if the box on Schedule F is checked indicating 2/3 of gross income was from farming and tax will be paid by March 1, 2013.
• Release 2012.100 / March 1, 2013 - Form 8582-AMT - Modified adjusted gross income used in calculating passive activity income for purposes of AMT has been corrected to include capital gain income.
• Release 2012.100 / March 1, 2013 - Form 1116 Supplementary Statement has been corrected to include Schedule E income in gross income for purposes of calculating the foreign tax credit limit.
• Release 2012.100 / March 1, 2013 - Form 8958 - This form has been modified to better support those wishing to make a single line item adjustment for allocated community property amounts. All fields, except for the Total column, are now enterable and modifiable. The initial calculation on the form still pulls the amounts reported on the tax return and displays them in column 2 for the Taxpayer. However, you can now modify the amounts in both the Taxpayer and Spouse columns when allocating.
• Release 2012.090 / February 22, 2013 - Form 8582: Due to late guidance from the IRS, some returns that previously included a Form 8582 as part of the return may now be eligible to be filed without Form 8582. Since Form 8582 is on the IRS "late filing" list of forms, these returns will no longer be prevented from efiling due to containing Form 8582.
• Release 2012.090 / February 22, 2013 - Form 2210AI line 27 amounts and calculations have been changed to reflect correct prorated social security tax limits.
• Release 2012.080 / February 15, 2013 - Books and other course related expenses not paid to an educational institution or required as a condition of enrollment will no longer be included as qualified expenses for purposes of the Lifetime Learning Credit.
• Release 2012.080 / February 15, 2013 - Schedule C: The year to year converter has been updated to no longer convert the 1099 checkbox questions on Schedule C, lines I & J. This fix will not correct previously transferred returns but will correct if return is retransfered. You may wish to retransfer any unstarted returns.

What's new in ProSeries/1040

For information on what's new in ProSeries, open a 1040 return, go to the Help menu, choose Help Center, then select What's New This Year?

Depreciation Report and Vehicles

Fully depreciated vehicles do not appear on the Depreciation Report until you enter a current year expense related to the vehicle.

If you need to print the Depreciation Report before you complete this year's income tax return (e.g. to submit with a personal property tax return), you must enter at least one expense amount for the vehicle. Mark the expense as "estimated" and ProSeries will remind you to review the amount before filing.

K-1 Import of Rental Activities from ProSeries Business Program (Form 1065, Form 1120S)

If the Schedule K-1 in the ProSeries Business Program has an amount on Line 2 (Net rental real estate income (loss) ) and that amount includes some rental activities that are subject to the passive activity recharacterization rules (land or self-rental) and some rental activities that are not subject to the recharacterization rules, amounts from that Schedule K-1 will NOT import into the Individual 1040 K-1. These different types of rental activities must be reported on separate K-1's.

Using the information provided in the ProSeries Business Schedule K-1, manually enter in the 1040 program separate K-1's for the rental activities subject to recharacterization on one K-1 worksheet and the rental activities not subject to recharacterization on a separate K-1 worksheet. Also manually enter any other amounts from the business Schedule K-1 onto the appropriate K-1 manually created in the 1040 program. For the rentals subject to the recharacterization rules, check the "subject to recharacterization rules" box on the K-1 worksheet below line 2. For the rentals NOT subject to the recharacterization rules, do not check the "subject to recharacterization rules" box on the K-1 worksheet below line 2.

New ProSeries/1040 forms and worksheets

We've added the following forms and worksheets to ProSeries/1040 for the 2012 tax year:

• Deductible Home Mortgage Interest Worksheet
• Form 1116 Explanation Statements. Nine new explanation statements have been added to Form 1116, line 8, to explain foreign currency conversion rates used.
• Form 4684 Explanation Statements. Four new explanation statements have been added to Form 4684 page 2, line 27, to explain deductible losses from a home office.
• Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States

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?

Obsolete ProSeries/1040 forms and worksheets

We've removed the following obsolete forms and worksheets from ProSeries/1040 for the 2012 tax year:

• Form 8633, Application to Participate in the IRS e-file Program
• Worksheet F, Recapture of COBRA Premium Assistance for Higher Income Taxpayers
• Additional Dependents Statement
• Alimony Paid Statement
• Form 5884-B, New Hire Retention Credit and related worksheet
• Refund Card, Your Prepaid Visa Card: Direct Deposit Enrollment Form
• Refund Card, Your Prepaid Visa Card: What's Next

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?

Tax legislation issues

For information on tax legislation issues, open a 1040 return, go to the Help menu, choose Help Center, then select What's New This Year?

Late Processing of Certain Forms - Update

The IRS is now accepting all paper and electronically filed returns.

A listing of the late processing forms is available at the following website. List of IRS forms.

Electronic filing

Electronic filing functionality is available in this release of ProSeries/1040.

For electronic filing procedures and information, click the EF button on the toolbar to go to the EF Center (also known as the HomeBase Electronic Filing view). The Steps to E-File section on the right side of the EF Center summarizes the steps that you take when you file a client's return(s) electronically. In the Steps to E-File section:

• Click a step to see detailed information in the ProSeries User's Guide.
• Click a button to see more information about electronic filing.

To perform electronic filing functions, select the E-File Now button on the toolbar to e-file the currently open return or go to the EF Center and highlight all of the returns you want to e-file. Next, go to the E-File menu, select Electronic Filing, then select the appropriate command from the Electronic Filing menu.

Form 8839 cannot be electronically filed

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.

New in Tax Year 2012

PDF attachments will be supported for electronic filing with Federal 1040 returns

As you create returns for electronic filing, ProSeries will automatically track attachments required to be submitted with the Form 8453 Transmittal for an IRS e-file Return (or you can check applicable boxes to identify attachments). If you would like to attach some or all of these attachments as PDF files you can now access that option for the Federal 1040 return under the e-file menu (either from within the return or on the HomeBase when the return is highlighted). The Form 8453 will automatically keep track of required attachments that have been attached as PDF.

• Important Note: If you attach all required attachments as PDF the Form 8453 Transmittal for an IRS e-file Return is no longer required to be filed on paper. However if you choose to only attach some of the required attachments as PDF you must still paper file the Form 8453 with the remaining required attachments.

IRS has discontinued the Refund Cycle Chart

For Tax Year 2012 the IRS is no longer publishing a refund cycle chart, therefore ProSeries will no longer include information about anticipated refund dates on the Form 9325 or on the EF Center HomeBase. The IRS has stated that taxpayers can generally expect their refund within 10-21 days. You should direct your taxpayers to the IRS.gov website 'Where's My Refund' page to view information about when to expect their refund.

Electronic Return Originator Information

The IRS requires all software transmitters to validate electronic return originator information for Authorized IRS e-file Providers. New screens have been added to the Options Setup Wizard and in Options to collect the ERO name and address that are registered with the IRS for each EFIN used in ProSeries for electronic filing. Intuit ProSeries will use the information provided to verify the EFIN(s) against the IRS ERO Lookup service.

• Important Note: Ensure the information in the IRS e-services for your EFIN matches what you enter into ProSeries. If unable to validate your EFIN, Intuit reserves the right at any time to require users of the Electronic Filing Service to provide additional information verifying that they are Authorized IRS e-file Providers using a valid IRS issued EFIN.

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End of ProSeries/1040 ReadMe file