There are just four weeks left in the tax season – so this is a good time for a couple reminders as we near the end.
Now is a good time to check the status of your state acceptances to make sure everything’s been acknowledged so far. One of the easiest ways to do that is use the built-in management reports (Production Detail). If there are any questions about how to do this, please let us know.
With the new higher standard deductions for all filing statuses, we are seeing fewer instances of the need to itemize. For a refresher on itemized deductions, see Pub 4012, starting on page F-3. One thing to remember – if a taxpayer paid state taxes in 2018 because they owed when filing their TY2017 state return, you need to enter that manually on the Itemized Deductions Taxes Paid screen (see 4012, page F-7) – it’s not carried over automatically.
One credit that’s easy to miss is the Credit for the Elderly or the Disabled. While this applies to relatively few taxpayers, we need to make sure we add Schedule R to the return when applicable. See 4012, starting on page G-17, for the criteria and how to add the credit. One scenario where you might see it is a federal, state, or municipal retiree with a modest pension and no or very low Social Security. It’s a good idea to add a note to the taxpayer’s return when it applies as a reminder for next year.