3.12.3  Individual Income Tax Returns (Cont. 2)

3.12.3.6 
Section 03, Income And Adjustments

3.12.3.6.4 
Correction Procedures

3.12.3.6.4.8  (01-01-2014)
Field 0312, Combined Schedule C Profit or Loss (Form 1040)

  1. Refer to EC 202.

3.12.3.6.4.9  (01-01-2014)
Field 0313, Schedule D Profit or Loss (Form 1040)

  1. Refer to EC 204.

3.12.3.6.4.10  (01-01-2014)
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  (01-01-2014)
Field 0314, Other Gains or Losses (Form 1040)

  1. Refer to EC 218.

3.12.3.6.4.12  (01-01-2014)
Field 0315A and 0311A, Total IRA Distributions

  1. Refer to EC 218.

3.12.3.6.4.13  (01-01-2014)
Field 0315B and 0311B, Taxable IRA Distributions

  1. Refer to EC 218.

3.12.3.6.4.14  (01-01-2014)
Field 0316A and 0312A, Total Pensions and Annuities, Form 1040 and Form 1040A

  1. Refer to EC 218.

3.12.3.6.4.15  (01-01-2014)
Filed 03GPA, Total Pensions and Annuities, Form 1040EZ

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

3.12.3.6.4.16  (01-01-2014)
Field 0316B and 0312B, Taxable Pensions and Annuities, Form 1040 and Form 1040A

  1. Refer to EC 218.

3.12.3.6.4.17  (01-01-2014)
Field 03TPA, Taxable Pensions and Annuities, Form 1040EZ

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

3.12.3.6.4.18  (01-01-2014)
Field 0317, Schedule E Income or Loss

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

3.12.3.6.4.19  (01-01-2014)
Field 0318, Combined Schedule F Profit or Loss

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

3.12.3.6.4.20  (01-01-2014)
Field 0319, 0313, and 0303, Taxable Unemployment Compensation

  1. 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. Correct coding and transcription errors.

3.12.3.6.4.21  (01-01-2014)
Field 0320A and 0314A, Gross Social Security Benefits

  1. Refer to EC 214.

3.12.3.6.4.22  (01-01-2014)
Field 0320B and 0314B, Taxable Social Security Benefits

  1. 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.

3.12.3.6.4.23  (01-01-2014)
Field 0320V and 0314V, Taxable Social Security Verified

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

3.12.3.6.4.24  (01-01-2014)
Field 0321 and 03OTI, Other Income

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

3.12.3.6.4.25  (01-01-2014)
Field 0322, 0315, and 03TOT, Total Income

  1. 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. Correct Adjusted Gross Income, if necessary. (Refer to EC 218.)

3.12.3.6.4.26  (01-01-2014)
Field 03RTA, Form 982 Indicator

  1. This is a one-digit numeric field.

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

  3. 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.

3.12.3.6.4.27  (01-01-2014)
Field 0323 and 0316, Educator Expense

  1. 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. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.3.6.4.28  (01-01-2014)
Field 0324, Reservist and Other Business Expenses

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

3.12.3.6.4.29  (01-01-2014)
Field 0325, Health Savings Account

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

3.12.3.6.4.30  (01-01-2014)
Field 0326, Moving Expenses

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

3.12.3.6.4.31  (01-01-2014)
Field 0327, Deduction for Self-Employment Tax

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

3.12.3.6.4.32  (01-01-2014)
Field 0328, SE Retirement Plans Deduction

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

3.12.3.6.4.33  (01-01-2014)
Field 0329, Self Employed Health Insurance Deduction

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

3.12.3.6.4.34  (01-01-2014)
Field 0330, Penalty on Savings Withdrawal

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

3.12.3.6.4.35  (01-01-2014)
Field 03SSN, Alimony SSN

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

  2. 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.

3.12.3.6.4.36  (01-01-2014)
Field 0331A, Alimony Paid

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

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 228.)

3.12.3.6.4.37  (01-01-2014)
Field 0332 and 0317, IRA Deduction

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

3.12.3.6.4.38  (01-01-2014)
Field 0333 and 0318, Student Loan Interest Deduction

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

3.12.3.6.4.39  (01-01-2014)
Field 0334 and 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.

3.12.3.6.4.40  (01-01-2014)
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.

3.12.3.6.4.41  (01-01-2014)
Field 03MSA, Archer MSA Deduction

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

3.12.3.6.4.42  (01-01-2014)
Field 03ADJ, Other Adjustments

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

3.12.3.6.4.43  (01-01-2014)
Field 0336 and 0320, Total Adjustments

  1. Refer to ECs 228 and 230.

3.12.3.6.4.44  (01-01-2014)
Field 0337, 0321, and 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  (01-01-2014)
Section 04, 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  (01-01-2014)
Fields and Money Amounts

  1. All fields in Section 04 must be positive.

3.12.3.7.2  (01-01-2014)
Error Record Format Section 04

  1. Section 04 consists of the following fields:

    Field name Title 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 10 (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)
    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)
    0460A     Form 8959 Additional Medicare Tax Line 60a (1040)
    0460B     Form 8960 Net Investment Income Tax Line 60b (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  (01-01-2014)
Invalid Conditions

  1. Fields are invalid if not all numeric.

3.12.3.7.4  (01-01-2014)
Correction Procedures

  1. Correction procedures for Section 04 fields follow.

3.12.3.7.4.1  (01-01-2014)
Field 04ABI Age or Blindness Indicator

  1. 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. 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 ($1,500for FSC 1, 4, or 7; $1,200 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.

    Standard Deduction amount is... FSC is... Enter Field 04ABI as appropriate...
    $7,600
    (6,100 + 1,500)
    1 1000
    $9,100
    ($6,100 + 3,000)
    1 1100
    $13,400
    (12,200 + 1,200)
    2 1000
    $14,600
    (12,200 + 2,400
    2 1100
    1010
    0011
    0110
    0101
    $15,800
    (12,200 + 3,600)
    2 1110
    1101
    1011
    0111
    $17,000
    (12,200 + 4,800)
    2 1111
    $7,300
    (6,100 + 1,200)
    3 1000
    0100
    $8,500
    (6,100 + 2,400)
    3 1100
    $13,400
    (12,200 + 1,200)
    5 1000
    0100
    $14,600
    (12,200 + 2,400)
    5 1100
    $7,300
    (6,100 + 1,200)
    6 1000
    0100
    $8,500
    (6,100 + 2,400)
    6 1100
    $9,700
    (6,100 + 3,600)
    6 1110
    1101
    1011
    0111
    $10,900
    (6,100 + 4,800)
    6 1111
    $10,450
    (8,950+ 1,500)
    4 or 7 1000
    0100
    $11,950
    (8,950 + 3,000)
    4 or 7 1100

3.12.3.7.4.2  (01-01-2014)
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 ($6,100).

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

3.12.3.7.4.3  (01-01-2014)
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. The number 1 in Field 04SD3 indicates that the taxpayer's spouse is itemizing in a Form 1040 and that the spouse filing Form 1040A must enter a 0 (zero) for the standard deduction. (Refer to EC 252.)

  3. Invalid Conditions. The entry in the field is valid only if it's 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 has checked box 23b.

3.12.3.7.4.4  (01-01-2014)
Fields 0443, 0427, and 0406, Taxable Income Amount

  1. Description. The transcribed field has a computer-generated underprint. Refer to EC 252 and 265.

3.12.3.7.4.5  (01-01-2014)
Field 04TIV, Taxable Income Amount Verified

  1. Description. The field Taxable Income Amount Verified is for ERS Input Only. Use this field when the taxpayer has used a special computation or the computer cannot arrive at the correct taxable income. Refer to EC 252 and 265.

3.12.3.7.4.6  (01-01-2014)
Field 04AF, Additional Forms 8814 Attached

  1. Description. The field Additional Forms 8814 Attached is for ERS Input Only. This one-position field is valid for Form 1040 only, holds only a positive number, and is for use only when more than three Forms 8814 are present. The largest allowable number in the field is 9.

    • Three Forms 8814 may appear in a return, in section 40, 41, and 42.

    • Field 04AF holds the number of Forms 8814 for which there is no section. If four Forms 8814 are present, for instance, the first three appear in section 40, 41, and 42 and you enter the number 1 in Field 04AF. If there are five Forms 8814, you enter the number 2 in Field 04AF.

  2. Correction procedures. Make sure that the first three Forms 8814 appear in section 40, 41, and 42. Subtract three from the number of Form 8814 and enter the result in Field 04AF. If twelve or more Forms 8814 are present, enter the number 9 in Field 04AF. Refer to EC 265.

3.12.3.7.4.7  (01-01-2014)
Field 04AT, Additional Forms 8814 Tax

  1. Description. The field Additional Forms 8814 Tax 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 Forms 8814 not in section 40, 41, and 42. Refer to EC 265.

3.12.3.7.4.8  (01-01-2014)
Fields 0444, 0428, and 04TNT, Tentative Tax

  1. Description. Tentative tax is transcribed from line 44 of Form 1040 or line 28 of Form 1040A.

    Note:

    For Form 1040EZ the computer generates a total tax in Field 0410 for display in Field 04TNT.

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

3.12.3.7.4.9  (01-01-2014)
Fields 0444V, 0428V, and 04TNV, Tentative Tax Verified

  1. Description . The field Tentative Tax Verified is for ERS-Input Only. Use this field when the taxpayer has used a special computation or the computer cannot arrive at the correct tax. Refer to EC 260 and 265.

3.12.3.7.4.10  (01-01-2014)
Field 0445, Alternative Minimum Tax, Form 6251

  1. Description. Alternative minimum tax (AMT) is transcribed from line 45 of Form 1040.

  2. Refer to EC 268.

3.12.3.7.4.11  (01-01-2014)
Field 0447, Foreign Tax Credit, Form 1116

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

  2. Refer to EC 274 and 310.

3.12.3.7.4.12  (01-01-2014)
Fields 0448 and 0429, Credit for Child and Dependent Care Expenses, Form 2441

  1. Description. The Credit for Child and Dependent Care Expenses is transcribed from line 48 of Form 1040 or line 29 of Form 1040A.

  2. Refer to EC 278.

3.12.3.7.4.13  (01-01-2014)
Fields 0449 and 0431, Education Credits, Form 8863

  1. Description. The Education Credit is transcribed from line 49 of Form 1040 of line 31 of Form 1040A.

  2. Refer to EC 284.

3.12.3.7.4.14  (01-01-2014)
Fields 0449V and 0431V, Education Credits Verified

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

3.12.3.7.4.15  (01-01-2014)
Field 0450 and 0432, Retirement Savings Contribution Credit, Form 8880

  1. Description. The Retirement Savings Contribution Credit is transcribed from line 50 of Form 1040 or line 32 of Form 1040A.

  2. Refer to EC 288 and 310.

3.12.3.7.4.16  (01-01-2014)
Field 0450V and 0432V, Retirement Savings Contribution Credit Verified

  1. Description. The field Retirement Savings Contribution Credit Verified is for ERS-input only. Use it to enter the allowable credit 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  (01-01-2014)
Field 0451 and 0433, Child Tax Credit

  1. Description. The Child Tax Credit is transcribed from line 51 of Form 1040 or line 33 of Form 1040A. The Child Tax Credit is valid for TY98 and later.

  2. Refer to EC 290.


More Internal Revenue Manual