3.12.3  Individual Income Tax Returns (Cont. 2)

3.12.3.6 
Section 03 Data—Income And Adjustments

3.12.3.6.4 
Correction Procedures

3.12.3.6.4.6  (01-01-2013)
Field 0310 State Income Tax Refund (Form 1040)

  1. Refer to EC 218.

3.12.3.6.4.7  (01-01-2013)
Field 0311 Alimony Received (Form 1040)

  1. Correction Procedure — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 218.)

3.12.3.6.4.8  (01-01-2013)
Field 0312 Combined Schedule C Profit/Loss (Form 1040)

  1. Refer to EC 202.

3.12.3.6.4.9  (01-01-2013)
Field 0313 Schedule D Profit/Loss (Form 1040)

  1. Refer to EC 204.

3.12.3.6.4.10  (01-01-2013)
Field 0310 Capital Gain Distributions (Form 1040A)

  1. Field 0310 is the amount for Total Capital Gains Distributions from line 10 of Form 1040A. (Refer to EC 218.)

3.12.3.6.4.11  (01-01-2013)
Field 0314 Other Gains or Losses (Form 1040)

  1. Refer to EC 218.

3.12.3.6.4.12  (01-01-2013)
Field 0315A/0311A Total IRA Distributions

  1. Refer to EC 218.

3.12.3.6.4.13  (01-01-2013)
Field 0315B/0311B Taxable IRA Distributions

  1. Refer to EC 218.

3.12.3.6.4.14  (01-01-2013)
Field 0316A/0312A Total Pensions and Annuities

  1. This field is ERS input only on Form 1040EZ (Field 03GPA). (Refer to EC 218.)

3.12.3.6.4.15  (01-01-2013)
Field 0316B/0312B Taxable Pensions and Annuities

  1. This field is ERS input only on Form 1040EZ (Field 03TPA). (Refer to EC 218.)

3.12.3.6.4.16  (01-01-2013)
Field 0317 Schedule E Income/Loss

  1. This field is located on line 17, Form 1040. (Refer to EC 206.)

3.12.3.6.4.17  (01-01-2013)
Field 0318 Combined Schedule F Profit/Loss

  1. This field is located on line 18, Form 1040. (Refer to EC 208)

3.12.3.6.4.18  (01-01-2013)
Field 0319/0313/0303 Taxable Unemployment Compensation

  1. Description — This field represents the taxpayer's Taxable Unemployment Compensation. Taxpayers who received an overpayment of unemployment compensation, during the tax year, and repaid it, during the tax year, are instructed to do the following (Refer to EC 218):

    1. Subtract their repayment amount from the total received and enter on line 19.

    2. Note "Repaid" and the amount to the left of line 19.

  2. Alaska Permanent Fund Dividend (APFD) recipients and taxpayers receiving "Income Tax Energy Rebates" from New Mexico and Oklahoma are instructed to claim these amounts as Taxable Unemployment Compensation.

  3. Supplemental Unemployment Benefits (sub-pay) should be reported on line 7 as wages (for TY87 and later).

  4. Correction Procedures — Correct coding and transcription errors.

3.12.3.6.4.19  (01-01-2013)
Field 0320A/0314A Gross Social Security Benefits

  1. Refer to EC 214.

3.12.3.6.4.20  (01-01-2013)
Field 0320B/0314B Taxable Social Security Benefits

  1. Description — For TY94 and later, social security can be taxed up to 85%.

  2. For TY93 and prior, up to 50% was taxable.

  3. Refer to EC 214.

3.12.3.6.4.21  (01-01-2013)
Field 0320V/0314V Taxable Social Security Verified

  1. Description — This field is for ERS input only. It is used when the computer cannot correctly compute Taxable Social Security. (Refer to EC 214.)

3.12.3.6.4.22  (01-01-2013)
Field 0321/03OTI Other Income

  1. Description — This field is located on line 21, Form 1040. On Form 1040A, Field 03OTI, is for ERS input only. (Refer to EC 218.)

3.12.3.6.4.23  (01-01-2013)
Field 0322/0315/03TOT Total Income

  1. Description — This field is located on line 22, Form 1040 (line 15, Form 1040A). For Form 1040EZ, this amount generates into Adjusted Gross Income on initial ISRP input.

  2. Correction Procedures — Correct Adjusted Gross Income, if necessary. (Refer to EC 218.)

3.12.3.6.4.24  (01-01-2013)
Field 03RTA Form 982 Indicator

  1. Description - This is a one-digit numeric field.

  2. Invalid Conditions — This field will be invalid if other than blank or 1.

  3. Correction Procedures - Code and Edit codes "1" in the left margin of Form 1040/1040A/1040EZ, across from line 23/16/4, when Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment), is present.

3.12.3.6.4.25  (01-01-2013)
Field 0323/0316 Educator Expense

  1. Description — This field is located on line 23, Form 1040 (line 16, Form 1040A). (Refer to EC 220.)

    Note:

    For TY06, Educator Expense and MSA were claimed on line 23. Form 1040.

  2. Correction Procedures - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.3.6.4.26  (01-01-2013)
Field 0324 Reservist/Other Business Expenses

  1. This field is located on line 24, Form 1040. (Refer to EC 228.)

3.12.3.6.4.27  (01-01-2013)
Field 0325 Health Savings Account

  1. This field is located on line 25, Form 1040. (Refer to EC 226.)

3.12.3.6.4.28  (01-01-2013)
Field 0326 Moving Expenses

  1. This field is located on line 26, Form 1040. (Refer to EC 228.)

3.12.3.6.4.29  (01-01-2013)
Field 0327 Deduction for Self-Employment Tax

  1. This field is located on line 27, Form 1040. (Refer to EC 211.)

3.12.3.6.4.30  (01-01-2013)
Field 0328 SE Retirement Plans Deduction

  1. This field is located on line 28, Form 1040. (Refer to EC 222.)

3.12.3.6.4.31  (01-01-2013)
Field 0329 Self Employed Health Insurance Deduction

  1. This field is located on line 29, Form 1040. (Refer to EC 228.)

3.12.3.6.4.32  (01-01-2013)
Field 0330 Penalty on Savings Withdrawal

  1. This field is located on line 30, Form 1040. (Refer to EC 228.)

3.12.3.6.4.33  (01-01-2013)
Field 03SSN Alimony SSN

  1. Description — This field is located on line 31b. (Refer to EC 078.)

  2. Invalid Conditions — Recipient's SSN will be invalid if it is present and contains any of the following:

    1. Fewer than 9 numerics.

    2. Digits less than 001010000.

  3. Correction Procedures - Enter 8 nines and a 1 (999999991), in Field 03SSN, when any of the following situations exist and Code and Edit did not edit:

    1. The amount claimed on line 31a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    2. Taxpayer indicates "unable to obtain" , "unknown" , "none" , "applied for" , or "NRA" or SSA 205(c).

    3. Tax period is TY84 or earlier.

3.12.3.6.4.34  (01-01-2013)
Field 0331A Alimony Paid

  1. Description - This field is located on line 31a, Form 1040.

  2. Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 228.)

3.12.3.6.4.35  (01-01-2013)
Field 0332/0317 IRA Deduction

  1. This field is located on line 32, Form 1040 (line 17, Form 1040A). (Refer to EC 222.)

3.12.3.6.4.36  (01-01-2013)
Field 0333/0318 Student Loan Interest Deduction

  1. This field is located on line 33, Form 1040 (line 18, Form 1040A). (Refer to EC 224.)

3.12.3.6.4.37  (01-01-2013)
Field 0334/0319 Tuition and Fees Deduction

  1. This field is located on line 34, form 1040 (line 19, Form 1040A). (Refer to EC 225.)

    Note:

    For TY06, Tuition and Fees Deduction and Domestic Production Activities were claimed on line 35. Form 1040.

3.12.3.6.4.38  (01-01-2013)
Field 0335 Domestic Production Activities Deduction

  1. This field is located on line 35, Form 1040. (Refer to EC 228.)

  2. When an amount is present on line 35, Form 1040, and Form 8903 is not attached, SSPND 211.

3.12.3.6.4.39  (01-01-2013)
Field 03MSA Archer MSA Deduction

  1. This field is located on the dotted portion of line 36, Form 1040. (Refer to EC 227.)

3.12.3.6.4.40  (01-01-2013)
Field 03ADJ Other Adjustments

  1. This field is located on the dotted portion of line 36, Form 1040. (Refer to EC 228.)

3.12.3.6.4.41  (01-01-2013)
Field 0336/0320 Total Adjustments

  1. Refer to ECs 228 and 230.

3.12.3.6.4.42  (01-01-2013)
Field 0337/0321/0304 Adjusted Gross Income (AGI)

  1. For Form 1040EZ, this amount generates from Field 03TOT.

  2. Refer to EC 230 and 250.

3.12.3.7  (01-01-2013)
Section 04 Data—Tax Computations, Statutory Credits, Other Taxes

  1. Section 04 includes the following information:

    • Taxable Income

    • Tax

    • Statutory Credits

    • Other Taxes

3.12.3.7.1  (01-01-2013)
Fields and Money Amounts

  1. All fields in Section 04 must be positive.

3.12.3.7.2  (01-01-2013)
Error Record Format Section 04

  1. Section 04 consists of the following fields:

    Field Designator Field Title Field Location
    1040 1040A 1040EZ    
    04ABI 04ABI   Age/Blind Indicator Line 39a (1040)
    Line 23a (1040A)
    04LSV 04LSV   Limited Standard Deduction Verified ERS Input Only (1040, 1040A)
      04SD3   MFS Itemized Deduction Indicator ERS Input Only (1040A)
    0443 0427 0406 Taxable Income Amount Line 43 (1040)
    Line 27 (1040A)
    Line 6 (1040EZ)
    04TIV 04TIV 04TIV Taxable Income Amount Verified ERS Input Only (1040, 1040A, 1040EZ)
    04AF     Additional Forms 8814 Attached ERS Input Only (1040)
    04AT     Additional Forms 8814 Tax ERS Input Only (1040)
    0444 0428 04TNT Tentative Tax Line 44 (1040)
    Line 28 (1040A)
    Line 11 (1040EZ)
    0444V 0428V 04TNV Tentative Tax Verified ERS Input Only (1040, 1040A, 1040EZ)
    0445     Alternative Minimum Tax Line 45 (1040)
    0447     Foreign Tax Credit Line 47(1040)
    0448 0429   Credit for Child and Dependent Care Line 48 (1040)
    Line 29 (1040A)
      0430   Credit for Elderly Line 30 (1040A)
    0449 0431   Education Credits Line 49 (1040)
    Line 31 (1040A)
    0449V 0431V   Education Credits Verified ERS Input Only
    (1040, 1040A)
    0450 0432   Retirement Savings Contribution Credit Line 50 (1040)
    Line 32 (1040A)
    0450V 0432V   Retirement Savings Contribution Credit Verified ERS Input Only
    (1040, 1040A)
    0451 0433   Child Tax Credit Line 51 (Form 1040)
    Line 33 (1040A)
    0451V 0433V   Child Tax Credit Verified ERS Input Only
    (1040, 1040A)
    0452     Residential Energy Credit Line 52 (1040)
    0453     Form 3800, 8801, and Other Credits Line 53 (1040)
    0453A     General Business Credits Line 53 (1040)
    0453B     Credit for Prior Year Minimum Tax Line 53 (1040)
    0453C     Credit for Elderly Line 53 (1040)
    04ADC     Adoption Credit ERS Input Only (1040)
    04MIC     Mortgage Interest Credit ERS Input Only (1040)
    04DC     DC Homebuyer's Credit ERS Input Only (1040)
    04QED     Form 8936 Qualified Plug-in Electric Drive Credit ERS Input Only (1040)
    04AMC     Form 8910 Alternative Motor Vehicle Credit ERS Input Only (1040)
    04QPE     Form 8834 Qualified Plug-in Electric Vehicle Credit ERS Input Only (1040)
    04OSC     Other Statutory Credits ERS Input Only (1040)
    0454 0434   Total Statutory Credits Line 54 (1040)
    Line 34 (1040A)
    04SCV 04SCV   Total Statutory Credits Verified ERS Input Only (1040, 1040A)
    0456     Combined Self-Employment Tax Line 56 (1040)
    0457     Unreported Social Security and Medicare Tax for Forms 4137 and 8919 Line 57 (1040)
    0458     Tax on Early Distributions Line 58 (1040)
    04AEI 04AEI   Advance Earned Income Credit Amount ERS Input Only (1040/1040A)
    0459A     Combined Household Employment Tax Amount Line 59a (1040)
    0459B     First Time Homebuyer Credit Repayment Line 59b (1040)
    04CBR     COBRA Premium Subsidy ERS Input Only (1040)
    04LIR     Form 8611 Recapture ERS Input Only (1040)
    04RTX     Recapture Tax ERS Input Only (1040)
    04USS     Uncollected SST Tax on Tips ERS Input Only (1040)
    0460     Other Taxes Line 60 (1040)
    0461 0435 0410 Total Tax IMF Line 61 (1040)
    Line 35 (1040A)
    Line 10 (1040EZ)
    0461V 0435V 0410V Total Tax IMF Verified ERS Input Only (1040, 1040A, 1040EZ)

3.12.3.7.3  (01-01-2013)
Invalid Conditions

  1. Fields are invalid if not all numeric.

3.12.3.7.4  (01-01-2013)
Correction Procedures

  1. Correction procedures for Section 04 fields follow.

3.12.3.7.4.1  (01-01-2013)
Field 04ABI Age/Blindness Indicator

  1. Description — Age/Blindness Indicator (ABI) Field is transcribed from the four boxes on line 39a, Form 1040 (line 23a, Form 1040A). (Refer to EC 252.)

  2. This field will appear with four generated zeros (0000) on the screen display and will be coded as follows:

    Code Position Situation
    1 1 (1000) Primary Taxpayer indicates 65 or over.
    1 2 (0100) Primary Taxpayer indicates blindness.
    1 3 (0010) Secondary Taxpayer indicates 65 or over.
    1 4 (0001) Secondary Taxpayer indicates blindness.

  3. Correction Procedures — Check for any of the following conditions when Code and Edit did not edit ABI and the taxpayer did not check an ABI box, but it appears that the taxpayer is claiming an Additional Standard Deduction ($1,400 for FSC 1, 4, or 7; $1,100 for FSC 2, 3, 5 or 6):

    • An entry for Schedule R.

    • The taxpayer indicates 65 or older near the ABI boxes.

    • Certification of blindness is attached.

    • An entry is present in line 39a (line 23a, 1040A) Total box.

  4. Use the following table to adjust the entry in Field 04ABI based on the preceding Code and Edit procedures for correcting Field 04ABI:

    Standard Deduction amount is... FSC is... Enter Field 04ABI as...
    $7,250
    (5,950 + 1,450)
    1 1000
    $8,700
    ($5,950 + $2,900)
    1 1100
    $12,750
    ($11,900 + 1,150)
    2 1000
    $13,900
    (11,900 + 2,300)
    2 1100
    1010
    $15,050
    (11,900 + 3,450)
    2 1110
    1011
    $16,200
    (11,900 + 4,600)
    2 1111
    $6,950
    (5,950 +1,150)
    3 or 6 1000
    $8,100
    (5,950+ 2,300)
    3 or 6 1100
    1010
    $12,750
    (11,900 + 1,150)
    5 1000
    $13,900
    (11,900 + 2,300)
    5 1100
    $9,250
    (5,950 + 3,450)
    6 1110
    $10,400
    (5,950 + 4,600)
    6 1111
    $9,950
    (8,700 + 1,450)
    4 or 7 1000
    $11,400
    (8,700 + 2,900)
    4 or 7 1100

3.12.3.7.4.2  (01-01-2013)
Field 04LSV Limited Standard Deduction Verified

  1. Description — This field is for ERS input only for Form 1040/A.

  2. Field 04LSV will be used when all the following exist:

    1. DSI code is 1.

    2. Earned income is less than the Basic Standard Deduction ($5,950).

    3. Earned income is present on the "Other Income" line (Field 0321, Form 1040 or Field 03OTI, Form 1040A). (Refer to EC 252.)

    Note:

    If the taxpayer has included Schedule E partnership income in the computation of the standard deduction accept the taxpayer's entry and enter in Field 04LSV.

3.12.3.7.4.3  (01-01-2013)
Field 04SD3 MFS Itemized Deduction Indicator

  1. Description — This field is for ERS input only for Form 1040A. Field 04SD3 sets standard deduction computer to zero.

  2. A 1 in Field 04SD3 indicates that the taxpayer's spouse is itemizing on a Form 1040 and that the 1040A filer (taxpayer) must enter a 0 (zero) for their Standard Deduction Amount. (Refer to EC 252.)

  3. Invalid Conditions — This field is invalid if other than 0 (zero) or 1.

  4. Correction Procedures — Enter 1 in Field 04SD3 to set the Standard Deduction Computer to zero when the FSC is 3 and the taxpayer checked box 23b.

3.12.3.7.4.4  (01-01-2013)
Fields 0443/0427/0406 Taxable Income Amount

  1. Description — The transcribed field will have a computer generated underprint to be used for comparison only. (Refer to ECs 252 and 265.)

3.12.3.7.4.5  (01-01-2013)
Field 04TIV Taxable Income Amount Verified

  1. Description — The Taxable Income Amount Verified Field is for ERS Input Only. Use this field when the taxpayer has used a special computation and the computer cannot arrive at the correct Taxable Income. (Refer to ECs 252 and 265.)

3.12.3.7.4.6  (01-01-2013)
Field 04AF Additional Forms 8814 Attached

  1. Description — Additional Forms 8814 Attached Field is for ERS Input Only. This is a one position field and is only valid for Form 1040.

  2. Only three Forms 8814 may be transcribed.

  3. Correction Procedures — Enter the number of additional forms, in excess of three, in Field 04AF (e.g., if five Forms 8814 are present, enter 2 in Field 04AF). If twelve or more Forms 8814 are present, enter a 9 in Field 04AF. (Refer to EC 265.)

3.12.3.7.4.7  (01-01-2013)
Field 04AT Additional Forms 8814 Tax

  1. Description — Additional Forms 8814 Tax Field is for ERS Input Only. This field is valid for Form 1040 only.

  2. Correction Procedures — Enter in Field 04AT the additional tax from the excess Forms 8814 that could not be transcribed. (Refer to EC 265.)

3.12.3.7.4.8  (01-01-2013)
Fields 0444/0428/04TNT Tentative Tax

  1. Description — Tentative Tax is transcribed from Form 1040, line 44 (Form 1040A, line 28).

    Note:

    For Form 1040EZ, the computer generates an amount from the Total Tax entry (Field 0410) to display in Field 04TNT (Tentative Tax).

  2. Refer to EC 265. For Form 1040EZ, refer to EC 265.

3.12.3.7.4.9  (01-01-2013)
Fields 0444V/0428V/04TNV Tentative Tax Verified

  1. Description — Tentative Tax Verified Field is for ERS Input Only. Use this field when the taxpayer has used a special computation and the computer cannot arrive at the correct tax. (Refer to ECs 260 and 265.)

3.12.3.7.4.10  (01-01-2013)
Field 0445 Alternative Minimum Tax—Form 6251

  1. Description - Alternative Minimum Tax is transcribed from Form 1040, line 45.

  2. Refer to EC 268.

3.12.3.7.4.11  (01-01-2013)
Field 0447 Foreign Tax Credit — Form 1116

  1. Description - Foreign Tax Credit is transcribed from Form 1040, line 47.

  2. Refer to ECs 274 and 310.

3.12.3.7.4.12  (01-01-2013)
Fields 0448/0429 Credit for Child and Dependent Care Expenses—Form 2441

  1. Description - Credit for Child and Dependent Care Expenses are transcribed from Form 1040, line 48 (Form 1040A, line 29).

  2. Refer to EC 278.

3.12.3.7.4.13  (01-01-2013)
Fields 0449/0431 Education Credits—Form 8863

  1. Description - Education Credits are transcribed from Form 1040, line 49 (Form 1040A, line 31).

  2. Refer to EC 284.

3.12.3.7.4.14  (01-01-2013)
Fields 0449V/0431V Education Credits Verified

  1. Description - Education Credits Verified Field is for ERS input only. Use this field when the taxpayer has used a special computation and the computer cannot arrive at the correct credit amount. (Refer to EC 284.)

3.12.3.7.4.15  (01-01-2013)
Field 0450/0432 Retirement Savings Contribution Credit — Form 8880

  1. Description - Retirement Savings Contribution Credit is transcribed from Form 1040, line 50 (Form 1040A, line 32).

  2. Refer to ECs 288 and 310.

3.12.3.7.4.16  (01-01-2013)
Field 0450V/0432V Retirement Savings Contribution Credit Verified

  1. Description - Retirement Savings Contribution Credit Verified Field is for ERS Input Only. It is used to enter the amount the taxpayer is entitled to when the computer cannot compute the amount accurately (usually because the disallowance of exemptions caused the field for the year of birth to show 00000000). (Refer to EC 288.)

3.12.3.7.4.17  (01-01-2013)
Field 0451/0433 Child Tax Credit

  1. Description - Child Tax Credit is transcribed from Form 1040, line 51 (Form 1040A, line 33). Child Tax Credit is valid for TY98 and later.

  2. Refer to EC 290.


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