Discussion:Pro Series Uncollected FICA Tax Question
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Discussion Forum Index --> Tax Questions --> Pro Series Uncollected FICA Tax Question
SkidWehunt (talk|edits) said: | 12 February 2008 |
| I need to report $6 of uncollected FICA tax on line 59 of form 1040 for a retired GM employee who received a $77 W2 form for a legal service benefit. The amount does not fit any of the explanations for either form 4137 or 8919 so I use the override function of the software to enter the amount. When I error check the return the software indicates the return might have a problem if e-filed because of the override. The client wants to e-file. Should I ignore this error message or should the retun be mailed? | |
| 12 February 2008 | |
| do an adjustment on the item statement line rather than an override.taxea | |
Death&Taxes (talk|edits) said: | 12 February 2008 |
| don't the letters M and N appear in Block 12 of the W-2....if so, in the past Proseries has done the computation. | |
SkidWehunt (talk|edits) said: | 12 February 2008 |
| Nothing appears in block 12 and the $77 amount appears in boxes 1,3,5 and 16. The uncollected FICA is reported in box 14 as: UNC FICA HI $1.13 and UNC FICA SS $4.83. The explanation with this W2 said to report it on line 59 with the explanation 'uncollected FICA tax' and no other form was required. However, the software just doesn't like that method! | |
Death&Taxes (talk|edits) said: | 12 February 2008 |
| This is not a 8919 situation.
Move those amounts to Box 12 and label them M - 4.83 N - 1.13 and you will see them pop into the other taxes block on the second page. Employer should have put them there. I see a number like this with retirees. | |
SkidWehunt (talk|edits) said: | 13 February 2008 |
| Yes, I thought about that method since the end result is the same. Thanks for the advice D&T. :-) | |
| 13 February 2008 | |
| Are people actually entering pennies into the program? | |
| 28 February 2008 | |
| I ran into just this situation as well with my father-in-law, and I have been going round and round with GM and the IRS over this. The GM Benefits Center, whose phone number was on the notice with the W-2, knew nothing about it and asked me to fax their own letter back to them, go figure! I'm still waiting to hear back from them. Two IRS agents said that the instructions from GM were wrong, and one said that the W-2 was incorrect and the amounts should have gone in Box 12 as said above. However, strictly speaking M & N are for uncollected FICA taxes on group life insurance, whereas GM is reporting uncollected FICA taxes on imputed income for their Legal Services Plan. I wish someone would get this straight -- all this trouble just so we can make sure to send the IRS the $6 he owes!
Anyway, if we were e-filing then we would probably do as you suggest and enter these as M & N in Box 12, since that does let us pay the money correctly and no one would know the difference. But since he owes tax we will mail in the return (why pay extra to e-file just so the IRS can take their money earlier?) in which case we must include the actual W-2, so I better make the software match the real W-2. So I will probably just do the override on line 59, print out the return, and *hand write* the explanation on the printed return (how backward!!). Sheesh! | |
Death&Taxes (talk|edits) said: | 28 February 2008 |
| Paying extra to efile is up to the preparer, but date of filing means nothing as to when the tax is paid. You are permitted to designate the date of withdrawal and it can be April 14th or whatever. | |
| 28 February 2008 | |
| Thanks, I did not know that. Still, what is the benefit to me of e-filing when I owe tax, especially when that does cost more than USPS mail? In this case we are talking about commercial consumer tax software, so yes the "preparer" does charge a fee. | |
