10 February Update

Most sites kicked off their season this past week. The first week is always challenging and this year was no exception. We received a few questions/comments, so today’s post responds to those.

Schedule C. The IRS released guidance on the QBI deduction and any returns you were holding pending that can now be efiled — but be sure to reopen each return to ensure the calculations are updated. There are two very useful documents in the Volunteer Portal libraries for sites preparing Schedule Cs – Schedule C Guidelines Release 3 and the QBI Deduction Update.

Rejects.  Any ERO who gets an IRS Reject R0000-905-01 should notify his/her DC immediately so we can get it resolved.

Health Care.  A taxpayer who has health care coverage or a valid exemption for all months without insurance is considered to have full-time coverage – so you should check that box in the federal health insurance section.  You no longer need to file a Form 8965 if the taxpayer has a valid exemption for all months without health care coverage, but be sure to document this on the taxpayer’s Intake sheet.

Massachusetts Estimated Payment Vouchers.  You can find the Massachusetts estimated payment vouchers in the State section, under Miscellaneous Forms.  Be sure the click “Yes” in the first drop down menu, otherwise the forms won’t print.

Pub 17 (2018) and Massachusetts Form 1 NR/PY (2018) Instructions have been posted online. Links to these are on the Reference Materials page.

The DOR hasn’t approved the printed forms (Form 1, etc) — that’s why they’re still watermarked “Do Not Mail.”  We have not heard when they will be approved.

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