Discussion:Alt Min Tax - NJ ProSeries Error
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Discussion Forum Index --> Tax Questions --> Alt Min Tax - NJ ProSeries Error
| April 13, 2008 | |
| Line 7 of the Form 6251 reports State Tax Refunds as an negative AMT adjusting entry. New Jersey taxpayers also receive a real estate rebate as a small % of the exorbitant real estate taxes paid in this state. ProSeries reports this on the 1040 Line 21 as "Other Income". The software's entry reference is the OTHER INCOME WORKSHEET -Line 10b (select Real Estate Tax from the "TYPE OF TAX" drop-down box). This amount automatically flows to the 1040 Line 21 and then to Line 7 of the AMT Form 6251. Several clients have received IRS notices disallowing this Real Estate Tax rebate. Any other NJ ProSeries preparers familiar with this problem? If so, how did you report the RE Tax Rebate? Thanks. | |
Death&Taxes (talk|edits) said: | 13 April 2008 |
| It is a recovery of a previously deducted item and belong on Line 21 of the 1040. Seems to me the problem is not the software but getting IRS on board with the calculation. Haven't seen one of these yet but I do only 75 or so NJ returns. | |
| April 14, 2008 | |
| Thanks, guess I'll contest this IRS Notice Change and wait for their response. | |
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