- 3.11.3.14 Form 1040
-
Edit RPC "T" when ALL of the following apply (See Figure 3.11.3–75):
-
There is a positive amount of $1 or more on line 13.
-
Schedule D is not attached.
-
The line 13 box is marked.
Figure 3.11.3-75
This image is too large to be displayed in the current screen. Please click the link to view the image. -
-
When the line 13 box is marked and a negative entry is present on line 13 and no Schedule D is attached, follow the instructions for 3.11.3.14.2.7(3) below (i.e., treat a negative amount on line 13 as if the line 13 checkbox is not marked).
-
When an amount is present on line 13, Schedule D is not attached, and the line 13 checkbox is not marked:
If And Then A document from which a Schedule D can be dummied is attached, Column (h) can be determined, Dummy a Schedule D. (See Figure 3.11.3–76). There are NO documents from which a Schedule D can be dummied, The amount on line 13 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D. (See Figure 3.11.3–77.) The amount on line 13 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D. The amount on line 13 is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for missing Schedule D. Exception:
Do NOT dummy Schedule D if corresponding for other missing return items. Instead, include the request for Schedule D in the correspondence to the taxpayer.
-
If income reported from Insurance Companies Demutualization is present (reported by the taxpayer on Form 1099-B), but entered on a line other than 13, edit that amount to line 13 and dummy a Schedule D.
Figure 3.11.3-76
This image is too large to be displayed in the current screen. Please click the link to view the image.Figure 3.11.3-77
This image is too large to be displayed in the current screen. Please click the link to view the image.
-
Correspond for Form 4797 when:
-
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
Form 4797, Form 4684, or a statement is not attached.
Note:
Do not"X" line 14 when the taxpayer has notated "Form 4684" .
-
-
Delete line 15a when lines 15a and 15b are the same or there is a difference of less than $1. (See Figure 3.11.3–78.)
-
Do not enter the amount from line 15a on line 15b when line 15b is blank.
Figure 3.11.3-78
This image is too large to be displayed in the current screen. Please click the link to view the image.
-
Delete line 16a when lines 16a and 16b are the same or there is a difference of less than $1.
-
Do not enter the amount from 16a on line 16b when line 16b is blank.
-
Do not move pension income from line 16b to line 7.
-
Move the gross and taxable amounts of Railroad Retirement Benefits (RRB) to lines 16a and 16b when claimed elsewhere on the return.
-
If an amount is present, Schedule E is not attached, but Form 4835 is attached, "dummy" a Schedule E as follows:
If on Form 4835, Then Line 32 is a positive amount, Edit that amount to line 40 on Schedule E. Line 34c is a negative amount, Edit that amount to line 40 on Schedule E. * Line 34c is blank, Enter the loss from line 32 on Form 4835 to line 40 on Schedule E.* A positive amount is present on line 7, Edit that amount to line 42 on Schedule E. * If a taxpayer notates "PAL" , do not move the negative amount to line 40. -
If an amount is present but neither Schedule E nor Form 4835 is attached, dummy a Schedule E (if possible) following the instructions in the table below:
If there is a clear indication that the income is from: Edit a positive amount to: OR Edit a negative amount to: Rents or royalties, Line 24, Schedule E. Line 25, Schedule E. A partnership or S–Corporation, Line 30, Schedule E. Line 31, Schedule E. An Estate or Trust, Line 35, Schedule E. Line 36, Schedule E. Note:
Supporting statements include Schedule K-1, Form 1065, Form 4835, Form 1099-MISC or source of income indicated on line 17.
-
Correspond when an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present and Schedule E is not attached, and a dummy Schedule E cannot be prepared from attachments.
-
Dummy a required Schedule E by editing a positive amount to line 24 or a negative amount on line 25 when ALL the following conditions apply:
-
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
Schedule E is not present.
-
There are no supporting documents from which to dummy the required Schedule E.
Exception:
Do not dummy a Schedule E if corresponding for other missing return items. Instead, include the request for Schedule E in the correspondence to the taxpayer.
-
-
If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present and Schedule F is not attached:
If the amount on line 18 is Then Supported by an attachment, Dummy a Schedule F. See IRM 3.11.3.20.1. Not supported by an attachment, Correspond for the missing Schedule F.
Note: Also correspond for Schedule SE if the amount on line 18 is $434 or more. -
Dummy a required Schedule F by entering a positive or negative dollar amount onto line 9 when ALL the following conditions apply:
-
The amount on line 18 is less than ≡ ≡ ≡ .
-
Schedule F is not present.
-
There are no supporting documents from which to dummy the required Schedule F.
Exception:
Do not dummy Schedule F if corresponding for other missing return items. Instead, include a request for Schedule F in the correspondence to the taxpayer.
-
-
Edit the gross amount of Unemployment Compensation (UEC) from Form 1099–G if line 19 is blank.
Note:
Edit an amount for UEC when a Form 1099–G is found when editing for withholding.
-
Delete any amount identified as supplemental benefits received from a company-financed supplemental unemployment benefits (SUB) fund. Include the amount of SUB pay on line 7.
-
Take no action when a statement is present indicating an adjustment to unemployment compensation was made such as "repaid" , "pay back" or "repayment."
-
If an amount is present on line 20b and the amount on line 20a is the same or line 20a is blank:
-
Edit the gross amount of Social Security payments to line 20a from Form SSA–1099, box 3 if attached.
-
Take no action when the gross amount of Social Security payments cannot be determined.
-
-
"X" an amount on line 20a or 20b when it is negative.
-
Take no action when the taxpayer has:
-
Entered a letter "D" on line 20a or 20b
-
Written "Lump-Sum Exclusion" or "LSE" to the left of line 20a
-
-
The taxpayer may include a variety of income types on line 21. Instructions for the following types of income are included in this subsection of the manual:
-
Self-Employment Income (See Figure 3.11.3-79).
-
Gambling
-
Nontaxable Income
-
Scholarships, Grants, Stipends and Fellowships
Figure 3.11.3-79
This image is too large to be displayed in the current screen. Please click the link to view the image.≡ ≡
≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ -
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "" ≡ ≡ ≡ ≡ -
-
If self-employment is present on line 21, take the following actions:
-
If the amount is $434 or more and Schedule SE is not attached and cannot be dummied, edit RPC "N" ..
-
If Form 1099-MISC is present with or without a notation on line 21 and an amount is present in box 7, Form 1099-MISC, edit RPC "N" UNLESS the amount is less than $434 or Schedule SE is present.
Note:
Do not edit RPC "N" if any of the following conditions exist:
- Wages from parent or spouse
- Wages from newspaper route
- Self-Employment and non self-employment cannot be broken down. (See Figure 3.11.3-80).
- Taxpayer reported self-employment income on line 21 and included the amount on a Form 8919.
-
-
Edit an amount from Form 1099–MISC only when there is a clear indication that the amount was not included on the return. Do not include the Form 1099–MISC amount on line 21 when any of the following are attached by the taxpayer:
-
Schedule C
-
Schedule E (Part II)
-
Schedule F
-
Form 2106
Note:
Edit this amount when a Form 1099–MISC is found when editing withholding or excess Social Security tax.
Figure 3.11.3-80This image is too large to be displayed in the current screen. Please click the link to view the image. -
-
The taxpayer may include gambling amounts on line 21.
≡ ≡
≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Figure 3.11.3-81
This image is too large to be displayed in the current screen. Please click the link to view the image. -
Adjust line 21 to exclude nontaxable income. Nontaxable income includes:
-
Accident and health insurance proceeds
-
"Black lung" benefits
-
Casualty insurance and other reimbursements
-
Child support
-
Damages awarded for physical injury or sickness
-
Federal Employees' Compensation Act (FECA) payments
-
Interest on state or local government obligations
-
Public aid
-
Supplemental Security Income (SSI)/ SSI Disability
-
Tax-Sheltered Annuities
-
Temporary Assistance for Needy Families (TANF)
-
VA Benefits/Payments
-
Worker's compensation
-
-
Use the following chart to determine the correct action when "scholarship" , "SCH" , "fellowship " , "grant" , or "stipend" is written on the dotted portion of line 21.
≡ ≡ ≡
≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ "" ≡ ≡ ≡Figure 3.11.3-82
This image is too large to be displayed in the current screen. Please click the link to view the image. -
Refer to the international return instructions in IRM 3.11.3.7.2.10 if "Form 2555" , "Form 2555EZ" , "foreign income" , or indications of "treaty" or "treaty article" is present on the dotted portion of line 21.
-
Use the chart below to determine editing instructions when there is an amount on line 22, and lines 7 through 21 are blank; but there are no Schedules C, D, E, or F attached.
If the amount on line 22 is Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Correspond for the source of the income. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Edit the amount to line 21. -
Compute and enter line 22 when it is blank, dash or zero. Do not include amounts from the following:
-
Line 8b
-
Line 9b
-
Line 15a
-
Line 16a
-
Line 20a
-
-
Enter amounts on lines 23 through 37 in dollars only.
-
Form 2106/2106EZ must be attached if the amount claimed is ≡ ≡ ≡ ≡ ≡ or more. Correspond if missing.
-
Form 8889 must be attached if an amount is being claimed on line 25. Correspond if missing.
-
Form 3903 (or a similar statement) must be attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Correspond if missing.
-
"X" the amount on line 28 if none of the following are attached to the return:
-
Schedule C
-
Schedule E (Part II present)
-
Schedule F
-
-
Edit a misplaced amount from line 29 to line 27 when both of the following conditions are present:
-
Line 27 is blank.
-
Schedule SE is attached to the return.
-
-
Take the following actions:
If And the amount claimed on line 31a is Then A TIN is present, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " (See Figure 3.11.3–83). A TIN is present, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ TIN is missing and the taxpayer indicates "unable to obtain" , "NRA" , "SSA-205(c)" , "Unknown " , "applied for" or "NONE," ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "" ≡ ≡ . A TIN is missing, illegible, fewer than 9 digits, the same as the P-TIN/S-TIN or multiple TINs are present, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " . Multiple TINs are present, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Illegible or invalid TIN (e.g., fewer than 9 digits, or all the same digits, such as 111-11-1111 or 888-88-8888). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the invalid TIN. Note:
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ "" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Figure 3.11.3-83
){kind=link}
-
"X" the line 32 amount when the taxpayer writes "rollover" to the left of line 32. Delete the rollover amount if included as income on lines 15b or 16b.
-
"X" the amount on line 32 when it is other than $5,000 or $6,000 ($10,000, $11,000 or $12,000 for FS 2), and one of the following indicators - and an equal deferred compensation amount - appear on Form W-2. (See Figure 3.11.3-84).
-
"D" or Section 401(k)
-
"E" or Section 403(b)
-
"F" or Section 408(k)(6)
-
"G" or Section 457(b)
-
"Q" or "Housing/Subsistence" or "Combat Pay"
-
"S" or "SIMPLE" plan
-
"T" or employer-paid "qualified adoption expenses"
-
Section 125, Cafeteria Plan (CAF)
-
Section 414(h), Mandatory Salary Deferral ("PERS" Public Employees Retirement System)
-
Thrift Savings Plan or "TSP"
-
-
"X" Line 32 when line 32 has a significant entry and both of the following conditions apply:
-
There are no entries present on lines 23 through 31a or lines 33 through the dotted portion of line 36, and
-
Line 36 is blank, dash, or zero.
Figure 3.11.3-84
This image is too large to be displayed in the current screen. Please click the link to view the image. -
-
Form 8917 must be attached if there is an entry present on line 34. Correspond if missing.
Note:
If Form 8917 is present, look to see if Form 8863 is also present for the same SSN. If so, "X" the amount present on line 34.
-
Form 8903 must be attached if there is an entry present on line 35, and significant dollar amounts are present on lines 12, 17 and/or 18. Correspond if missing.
-
"X" the line 35 amount when the taxpayer has used line 35 as a subtotal line for lines 23 through 34.
-
Delete the following adjustments from lines 23 through 35 and edit the amount to the dotted portion of line 36.
Note:
Include these amounts in the line 36 total.
-
"403(b) - Contributions by certain chaplains to section 403(b) plans"
-
"501(c)(18)"
-
"UDC"
-
"WBF"
-
Jury Duty Pay
-
Deduction for Clean Fuel Vehicles
-
"PPR" – Personal Property Rental
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"Reforestation," "RFST" – Forestation/reforestation amortization
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"Sub-Pay TRA" – Repayment of Supplemental Unemployment Benefit (SUB) payments received in a prior year under the Trade Act of 1974 (TRA).
Exception:
"X" the SUB pay amount where found and subtract the amount from line 7 when there is no indication that the adjustment is for benefits received in a prior year.
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Delete these adjustments where found and edit the amount to the dotted portion of line 36 when any of the adjustments in (1) are claimed elsewhere on the return.
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"X" the amount if a taxpayer claims an adjustment to income on the dotted portion of line 36 for anything other than the items listed in (1) above.
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"X" the amount when there is no explanation present for an adjustment amount.
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Edit Unallowable Code "99" when there is an indication of "Clean Air Fuel" and the taxpayer is claiming ≡ ≡ ≡ ≡ or more.
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Edit any amount claimed on lines 23 through 36 and identified as "MSA" or "Archer MSA Deduction" to the blank area between lines 22 and 36. This amount must be deleted from lines 23 through the dotted portion of line 36 and edited in dollars only with the label "MSA" to the left of the amount. (See Figure 3.11.3-85) .
Figure 3.11.3-85
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Compute and enter line 36 when it is blank and there are entries leading to a total unless the only entry present from line 23 to the dotted portion of line 36 is on line 32.
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When an amount is present on line 36 and lines 23 through the dotted portion of line 36 are blank, perfect line 36 in the following priority:
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If line 36 is one-half of the line 56 amount on page 2 of Form 1040, edit the line 36 amount on line 27 as an SE tax deduction.
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Perfect lines 23 through 31a and lines 34 and 35 from attachments if necessary.
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If lines 23 through 31a and lines 34 and 35 are still blank after steps a and b above, follow the instructions for perfecting the dotted portion of line 36 in IRM 3.11.3.14.3.12. (See Figure 3.11.3–86) .
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Correspond for an explanation of the line 36 amount if unable to perfect lines 23 through the dotted portion of line 36, using the steps above, and no explanation is present.
Note:
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Figure 3.11.3-86
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Perfect line 37 in the following priority when it is blank or illegible:
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Edit the amount from line 22 when there are no amounts on lines 23 through 36.
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Compute by subtracting line 36 from line 22.
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Edit the amount from line 38 on page 2 of Form 1040.
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Enter amounts on lines 43 and 44 in dollars only.
Note:
The only T–lines on lines 38–42 are the Age/Blind Indicator boxes on line 39.
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Schedule A with entries present must be attached if any of the following conditions exist. Correspond, if missing.
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"IE" is noted to the left of line 40, and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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The significant amount on line 40 is not ANY of the standard deduction amounts listed below. AND a DSI "1" condition is not present. (See Figure 3.11.3–87.)
Note:
Do not factor in filing status or ABI when making determinations on standard deduction.
STANDARD DEDUCTION CHART Filing Status Line 39a Boxes marked Appropriate Amount 1–Single 0 $5,800 1 $7,250 2 $8,700 2–Married Filing Jointly
or
5–Widow(er) with Dependent0 $11,600 1 $12,750 2 $13,900 3 $15,050 4 $16,200 3 or 6–Married Filing Separately 0 $5,800 1 $6,950 2 $8,100 3 $9,250 4 $10,400 4 or 7–Head of Household 0 $8,500 1 $9,950 2 $11,400 Note:
Do not correspond for Schedule A if the taxpayer has computed line 37 to be zero or a negative dollar amount.
Figure 3.11.3-87
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Compute and enter line 43 only when it is blank or illegible, and there are entries leading to a positive total.
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"X" line 43 when the entry is a negative amount.
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If the box on line 44a or 44b is marked, the indicated form (i.e., Forms 8814 or 4972) must be attached. Correspond, if missing.
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Enter amounts on lines 47 through 54 in dollars only.
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DO NOT correspond for missing schedules or forms to support entries on lines 47 through 53 when line 43 of Form 1040 is (or can be determined to be) zero or a negative amount. Instead, "X" the unsupported credit amount and adjust the total on line 54.
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If an amount of more than $600 is claimed, Form 1116 or similar statement must be attached. Correspond if missing.
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If line 47 is blank, enter the amount from line 30, Form 1116. If line 30 is blank, dash or zero, enter a significant amount from line 22, Form 1116.
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If an amount is claimed, Form 2441 or a statement must be attached.
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Prepare a dummy Form 2441 when it is missing and a statement is present.
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Correspond when Form 2441 cannot be dummied.
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If an amount is claimed on line 49, Form 8863 must be attached. Correspond if missing.
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Correspond if an amount is claimed on line 50 and Form 8880 is not present.
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"X" an entry on line 50 if the entry is $1,000 or $2,000 and the return has been hand-written/hand-prepared.
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Edit SPC "C" line 52 is more than ≡ ≡ ≡ and:
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Multiple Forms 5695 are attached, or
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An amount appears on line 27 of an attached Form 5695.
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If an amount is claimed on line 53, see Figures 3.11.3-88, 3.11.3-89 and 3.11.3-90 and take the following actions:
If Then Form 3800 is attached, Edit "53A" and the dollar amount from Form 3800, line 38, in the blank area above line 54. Form 8801 is attached, Edit "53B" and the dollar amount from Form 8801, line 25, in the blank area above line 54. Schedule R is attached, Edit "53C" and the dollar amount from Schedule R, line 22, in the blank area above line 54. No supporting documentation is attached and line 53 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,, -
If only box a is marked, edit "53A" and the dollar amount from line 53 in the blank area above line 54.
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If only box b is marked, edit "53B" and the dollar amount from line 53 in the blank area above line 54.
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If box c is marked and Schedule R is indicated, correspond for Schedule R. (See IRM 3.11.3.14.5.7(7)).
Note:
Take no action if no boxes are marked on line 53 and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
No supporting documentation is attached and line 53 is ≡ ≡ ≡ ≡ ≡ ≡ Correspond. Note:
Do not split out dollar amounts on line 53 if corresponding for support for line 53.
Figure 3.11.3-88
This image is too large to be displayed in the current screen. Please click the link to view the image.Figure 3.11.3-89
This image is too large to be displayed in the current screen. Please click the link to view the image.Figure 3.11.3-90
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If an amount of ≡ ≡ or more is claimed on line 53 and the Form 3800 box is marked, the taxpayer must attach the Form 3800. Refer to the table in IRM 3.11.3.14.5.7(6) for a list of further required supporting documentation. Correspond if the required documentation is not present.
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If an amount of ≡ ≡ ≡ ≡ or more is claimed and the Form 8801 box is marked, Form 8801 must be attached. Correspond if missing.
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Perfect line 53 when one of the forms listed in the table below is present and line 53 is blank.
EDITING LINE 53 WHEN BLANK AND FORM 3800 IS NOT ATTACHED Form Attached Enter Line 53 From Form 8834 (Seq. 111) The sum of lines 23 and 30 Form 8910 (Seq. 152) Line 22 Form 8911 (Seq. 151) Line 19 Form 8936 (Seq. 125) Line 15 -
Correspond if an amount of ≡ ≡ ≡ ≡ ≡ or more is present without supporting documentation.
Note:
Correspond ONLY for the following forms to support an entry on line 53:
• Form 3800
• Form 8801
• Form 8834
• Form 8910
• Form 8936
• Schedule RException:
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If the taxpayer claims an amount on line 53 for DC Homebuyer Credit (Form 8859) and also claims an amount on line 67, Form 1040, " X" line 53 if Form 5405, Part 1, Line B, shows a date after the received date or if it shows a date prior to May 1, 2010, unless Box D, Part I, Form 5405 is checked.
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The instructions below address when credits from Forms 8834, 8910 or 8936 are claimed on line 53.
a. Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on Forms 8834, 8910 and 8936.
b. Edit Unallowable Code "78" when 5 or more vehicles are claimed among Forms 8834, 8910 and 8936.
c. If line 1 of Forms 8834, 8910 or 8936 show a claim for a bicycle, Moped or motorcycle, circle the entry on Forms 8834, 8910 and/or 8936.
d. If line 2 of Forms 8834, 8910 or 8936 show a placed into service date that does not fall within the tax year of the return, "X" the entry on Forms 8834, 8910 and/or 8936.
d. If Form 8834 is claimed on line 53:If And Then Form 8834 is not attached, Correspond if the amount claimed is ≡ ≡ ≡ ≡ or more. Form 8834 is attached, Amounts are present on lines 4 through 22, and no date is present on lines 2a/b/c, Correspond if the amount claimed is ≡ ≡ ≡ ≡ or more. The date on line 2a/b/c is before 2/17/2009, or after the received date on the return (or today's date if no received date is present,) Edit CCC "Y" . Note:
Always edit CCC "Y" if the placed into service date on line 2a/b/c shows a future date.
e. If Form 8910 is claimed on line 53:If And Then Form 8910 is not attached, Correspond if the amount claimed is ≡ ≡ or more. Form 8910 is attached, The year of the vehicle shown on line 1a/b/c is earlier than 2009 or later than 2011, Edit CCC "Y" . Amounts are present on lines 11 through 21 and no date is present on lines 2a/b/c, Correspond if the amount claimed is ≡ ≡ ≡ ≡ ≡ or more. The date on line 2a/b/c is before 2/17/2009, or after the received date on the return (or today's date if no received date is present,) Edit CCC "Y" . Note:
Always edit CCC "Y" if the placed into service date on line 2a/b/c shows a future date.
f. If Form 8936 is claimed on line 53:If And Then Form 8936 is not attached, Correspond if the amount claimed is ≡ ≡ ≡ or more. Form 8936 is attached, Amounts are present on lines 4 through 14 and no date is present on line 2a/b/c, Correspond if the amount claimed is ≡ ≡ ≡ ≡ ≡ or more. The date on line 2a/b/c is before 12/31/2008 or after the received date on the return (or today's date if no received date is present) Edit CCC "Y" . Note:
Always edit CCC "Y" if the placed into service date on line 2a/b/c shows a future date.
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"X" the line 53 amount when the taxpayer has used line 53 as a subtotal line for lines 47 through 52.
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Take no additional action when the taxpayer has written DFAS-705 in the line 53 area.
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Take no action when the taxpayer indicates "FNS" (credit for fuel from a non-conventional source, including "tight sands " ) or "Section 29" .
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ lines 47 through 53 are blank, unless the taxpayer has indicated "FNS" .
Exception:
Do not correspond and delete the entry on line 54 when line 43 of Form 1040 is (or can be determined to be) zero or a negative amount, or when it can be determined that the taxpayer carried the line 43 or 44 amount forward in error.
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Compute and enter line 54 when it is blank, dash, zero, or illegible, and there are entries leading to a total.
Note:
Delete the entry on line 54 if it can be determined that the taxpayer carried the line 44 or line 46 amount down in error.
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Enter amounts on lines 56 through 60 in dollars only. Line 61 must be edited in dollars and cents when adjusting or computing and entering amounts.
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A Schedule SE is required if there is an amount on line 56. Dummy Schedule SE from Schedules C/EZ, E (Part II present), or F, or attachments, if possible. Otherwise, correspond.
Exception:
Do not dummy Schedule SE if corresponding for other missing attachments. Instead, include the request for Schedule SE in the correspondence to the taxpayer.
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Edit RPC "S" and RPC "B" when there is no significant entry present or edited on line 56 and there is an indication of any of the following:
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The taxpayer is not liable for SE tax.
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Form 4361 or Form 4029 was filed.
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"Exempt-Notary," "Amish," or "Mennonite" is noted in the line 56 area.
Exception:
Do not edit RPC "S" if FS 2 and the spouse has self-employment income of $434 or more and is liable for SE tax.
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Form 4137 or Form 8919 must be attached if an amount is present on line 57. Dummy Form 4137 or Form 8919 from attachments, if present.
If Form 4137 / Form 8919 is missing, correspond unless Then "RRTA" is noted, Take no action. "Uncollected SST/Medicare" is noted, 1. "X" the line 57 amount.
2. Edit the amount to line 60.
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Correspond if an amount is present on line 58 and Form 5329 is not attached unless either of the following conditions apply:
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The taxpayer has noted "No" to the left of line 58.
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Line 58 has an entry that is 10% of any combination of the following:
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Line 15b, Form 1040
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Line 16b, Form 1040
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Form 1099R
Example:
Do not correspond if line 15b and/or line 16b has an amount of $9,805 and the line 58 amount is $980 or $981.
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Edit RPC "3" if Form 5329 is not present and either of the conditions above apply.
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Enter the totals of Parts I through VIII of Form(s) 5329 when line 58 is blank and Form 5329 is attached with entries present.
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If an amount is present on line 59a, and Schedule H is not attached, correspond.
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If an amount is present on line 59b, and page 2 of Form 5405 is not attached, correspond.
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The taxpayer is instructed to enter the following taxes here:
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"Uncollected Tax on Tips" , "UTOT" or "UT"
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"EPP"
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"Section 453A(c) interest"
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"Section 72(m)(5)"
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"Health Savings Account Distributions" or "HSA" , Form 8889
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"Archer MSA Distributions" or "MSA" , Form 8853
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"Medicare Advantage MSA Distributions" or "Med MSA" , Form 8853
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Line 60 is also used to report taxes from Form 4970 and for "recapture taxes" .
If the taxpayer indicates And the amount is Then "FMSR" (Form 8828), "LIHCR" (Form 8611), "ADT" (Form 4970), or "NMCR" (Form 8874), "HSA" (Form 8889), ≡ ≡ ≡ ≡ ≡ ≡ ≡ The form must be attached. Correspond, if missing. "FMSR" (Form 8828), "LIHCR" (Form 8611), "ADT" (Form 4970), or "NMCR" (Form 8874) "HSA" (Form 8889),
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Take no action. "ICR" /Form 4255, "QEVCR" (Qualified Electrical Vehicle Credit Recapture), "IECR" (Indian Employment Credit Recapture), "Form 8693" , or "Form 8697," , Any amount, Take no action. "MSA" / "Med MSA" (Form 8853), Any amount, Correspond if missing. -
If the taxpayer has written "Section 1291 Interest" or "Section 1294 Interest" in the:
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Line 60 area, and has included the amount in the total on line 60, take no action.
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Lower-right corner of page 1, Form 1040, then include the amount on lines 60 and 61 and adjust lines 74a, 75 and 76 accordingly.
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Edit line 61 for dollars and cents when adjusting or computing and entering amounts.
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Compute and enter line 61 when it is blank, dash, zero (0), or illegible and there are entries leading to a total. If line 46 has a significant entry and there are no entries on lines 47 through 60, edit the line 46 amount on line 61. (See Figure 3.11.3–91.)
Note:
If line 55 is blank, subtract the line 54 amount from line 46 (or 44), then add any amounts on lines 56 through 60. (See Figure 3.11.3–92.)
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Use the table below for editing CCC "B "
If And Then Line 43 is negative, zero (0), dash or "None" is noted, or it can be computed to be negative or zero (0), Lines 44 through 77 (excluding 74b, c, and d) are blank, dash, zero (0), "None" or "N/A " . Edit CCC "B" .
(See Figure 3.11.3-93).Line 44 is less than or equal to line 54, Lines 55 through 77 (excluding lines 74b, c, and d) are blank, dash, zero (0), "None" or "N/A" , Edit CCC "B" .
(See Figure 3.11.3-94).Exception:
Do NOT edit CCC "B" if RPC "L" can be edited.
.
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Delete any amount included in line 61 when there is an indication that it is from Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans). Detach Form 5330 and route it to Receipt and Control.
Figure 3.11.3-91Figure 3.11.3-92This image is too large to be displayed in the current screen. Please click the link to view the image.Figure 3.11.3-93This image is too large to be displayed in the current screen. Please click the link to view the image.Figure 3.11.3-94This image is too large to be displayed in the current screen. Please click the link to view the image.This image is too large to be displayed in the current screen. Please click the link to view the image.
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Edit lines 62 through 72 in dollars and cents when adjusting or computing and entering amounts.
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Line 72 is a T–COMPUTE line.
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Take one of the following actions for line 62:
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
"≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note:
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Note:
An acceptable alternative source for withholding support may be a worksheet or attachment if it contains similar information as provided on a Form 4852. Minimum requirements include the name of the employer, wages and withholding. "Form 1099" , "1099" , "W-2" , "Form W-2" or similar statement written in the line 62 area or on an attached worksheet is not an acceptable source for withholding support.
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Edit CCC "8" on a refund return when withholding is significant and there is only a single supporting document attached that is one of the following:
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A substitute statement (e.g., substitute Form W-2 or employer-provided earnings statement with year-to-date totals) or attachment or worksheet as explained at 3.11.3.14.7.1(1) Note.
Note:
Edit CCC "8" when there is one Form 4852 present to support withholding and no other withholding documentation is present. See Paragraph (3) below.
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Handwritten (See Figure 3.11.3–95.)
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Other than a computer-printed Form W–2
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Altered name, SSN, wages, or federal income tax withheld.
Exception:
Do not edit CCC "8" when Form 1099R, Form W–2G, or IRS income document is attached, or if the return is identified as a military or combat zone return. See the special military return instructions in IRM 3.11.3.7.1.1.
Note:
To be considered a "single supporting document" , the document must show support from only one employer.
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Remove from the batch and route to AMTAP any returns meeting all the following criteria:
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paper filed return
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refund claimed on return
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Form(s) 4852 attached with no other withholding documentation present
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Remove from the batch any refund return of ≡ ≡ ≡ ≡ ≡ or more for AMTAP refund scheme review when there are similarities between returns on Forms W–2 such as the following:
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Typing or printing
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Wage amounts
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Withholding amounts
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Employer
Note:
Refer to the information on refund schemes in IRM 3.11.3.7.1.8.
Figure 3.11.3-95This image is too large to be displayed in the current screen. Please click the link to view the image. -
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Delete and edit to the correct line any amounts determined to be other than:
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ES tax payments
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An overpayment applied from the 2010 return
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Edit Action Code "430" to send the return to Rejects in the following circumstances:
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A statement is present on or near line 63 indicating the taxpayer wants the credit applied to their spouse's account.
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The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.
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The taxpayer will claim EIC by any of the following:
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Entering an amount on line 64a.
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Writing "EIC" in the line 64a area.
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Attaching Schedule EIC with entries.
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Take one of the following actions when no money amount is present on line 64a, Schedule EIC is not attached, and the FS is other than 3 or 6.
If the taxpayer writes "EIC" in the line 64a area and Then The amount on line 37 is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for FS 2), Edit "888" on line 64a. Note:
If editing "888" , a source of income must be present.
The amount on line 37 is more than or equal to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Correspond for Schedule EIC using the following verbiage: "In order for us to compute your Earned Income Credit, please complete Schedule EIC." Note:
DO NOT edit CCC "B" if "888" has been edited or "EIC" is noted.
Note:
Do not correspond if the Primary TIN (or Secondary TIN for FS2) is invalid or if either spouse has an ATIN, ITIN or IRSN.
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If an amount is present on line 64a and Schedule EIC is not attached, correspond if any of the following conditions are present:
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Line 64a is greater than $464.
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Line 37 is greater than or equal to $13,660 ($18,740 for FS 2) and
less than $43,998 ($49,078 for FS 2). -
DSI "1" has been edited.
Exception:
Do not correspond when FS 3 or FS 6. Do not correspond for Schedule EIC when all income is non-earned income, or if line 37 is $43,998 ($49,078 for FS 2) or more.
Note:
Do not correspond if the Primary TIN (or Secondary TIN for FS2) is invalid or if either spouse has an ATIN, ITIN or IRSN.
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Correspond when EIC is being claimed on line 64a and the source of earned income is not indicated or attached and the source cannot be determined through research*. (See Figure 3.11.3–96.) See the table below for examples of what is (and is not) earned income.
Figure 3.11.3-96
This image is too large to be displayed in the current screen. Please click the link to view the image.Exception:
Do not correspond on Secured Returns OR when FS 3 or FS 6, or if line 37 of Form 1040 is $43,998 ($49,078 for FS 2) or more or if the entire amount can be determined to be non-earned income. Do not correspond if the Primary TIN (or Secondary TIN for FS 2) is invalid or if either spouse has an ATIN, ITIN or IRSN. IRP Data is generally not updated until June.
Earned Income NOT Earned Income -
Form W-2 or similar statement
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Form 1099-MISC
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Form 1099R with Distribution Code 3 and/or Disability
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Form 4137
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Form 8919
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Schedule C
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Schedule E, Part II
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Schedule F
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Schedule SE
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Notation of "HSH"
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Notation to the left of line 21 indicating self-employment
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Notation of prior year earned income (PYEI)
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Alimony and child support
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Interest and dividends
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Non-disability pensions and annuities (e.g., Form 1099R showing income other than Distribution Code 3)
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Nontaxable foster care payments
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Social Security and railroad retirement benefits (including disability benefits)
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Unemployment compensation (insurance)
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Veterans' benefits (including VA rehabilitation benefits)
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Welfare benefits
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Workers' compensation benefits
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Refer the return to AMTAP when EIC is being claimed and the only attached Form W–2 is altered, handwritten, or a substitute or similar statement.
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Edit RPC "B" when there is no significant entry on line 64a and the taxpayer has written:
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"No" or "None" in the line 64a area. (See Figure 3.11.3–97.)
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"Amish" or "Mennonite" anywhere on the return.
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"Exempt Notary" , "Exempt Form 4029" , or "Exempt Form 4361" anywhere on the return.
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A clear indication that s/he does not want or does not qualify for EIC
Note:
A blank is not a "clear indication" . Do not edit RPC "B" solely because the form has zeros or dashes on all unused lines. The zeros or dashes may indicate that the lines are not being used, not that the taxpayer does not want or qualify for EIC. If, however, the ONLY zero present is in the payment section (lines 62 - 71) on line 64a, edit RPC "B" .
Exception:
Do not edit RPC "B" when "EIC" is noted on or to the right of line 64a, "888" has been edited to line 64a, or if a Schedule EIC with entries is attached.
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"X" the amount on line 64a and edit RPC "B" when there is a clear indication that an exemption from SE tax was given on Form 4029 or 4361. Delete the amount when Form 4029 or 4361 is attached or a notation of "Exempt/Notary," "Amish," or "Mennonite" is present.
Figure 3.11.3-97This image is too large to be displayed in the current screen. Please click the link to view the image.
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Correspond for a missing Form 8812 when there is an amount present on line 65, and three or more children (that are not ITIN-Rejected) are claimed on line 6c, Form 1040.
Reminder:
Take no action if Form 8812 is not attached to support an entry on line 65 and less than three children are claimed on line 6c.
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If Form 8812 is present and line 65 is blank, then edit the amount from Form 8812, line 13 to line 65, Form 1040.