Massachusetts Update – Week 2

We noticed two TaxSlayer changes that affected Massachusetts returns this week.

  1. You are now required to enter an amount (even if it’s 0) for the Circuit Breaker credit in the custom questions/credits section of the efile process. This was always a required entry, but defaulted to 0.
  2. When completing the MA Schedule HC, the insurance company’s EIN now defaults to 12-3456789. You can ignore that if there is no private insurance. If there is private insurance and you know the EIN, simply overtype the default with the correct EIN. We have heard of instances where preparers couldn’t overtype the default – in that case, simply ignore the EIN and just enter the subscriber number.

Last week Massachusetts was rejecting returns in which the taxpayer chose to pay the optional higher 5.85 percent tax rate with a reject code of F1-1025 or FNRPY-1025. While this probably doesn’t affect many of our returns, if it does, please see this TaxSlayer blog post for more detail and resubmission instructions.

A few questions came up this week that others might have as well.

Question:  Can I efile a Massachusetts amended return?
Answer:  No. You must paper file the amended return.

Question:  How do I link multiple 1099-MISCs to a single Schedule C?
Answer:  Enter the first 1099-MISC and create a new Schedule C.  Then create and enter the next 1099-MISC. The screen will open that shows the existing Schedule C and asks if you want to create a new one.  Simply click on the edit pencil for the existing Schedule C and the 1099-MISC will be added to it.

For TY2017, there is a change to how we handle the situation in which a member of the tax household died or was born/adopted. Previously, we had to account for every month and request an exemption (code H) on Form 8965 for the months after death or prior to being born/adopted. This is no longer the case. You should only claim this exemption if you are also claiming another exemption on a Form 8965. If every family member had coverage – before death or after birth/adoption – that is considered full-time coverage.

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