ProSeries Frequently Asked Questions

Products Affected:

• ProSeries/1040
• ProSeries Basic/1040

Situation

If more than four dependents are entered and Form 1040A is used, the program may incorrectly calculate the amount of the client's estimated Economic Stimulus tax rebate payment. As a result, the amount on the Child Credit line in the How Much Will I Get? area of the Estimated 2008 Economic Stimulus Tax Rebate Payment worksheet and line 29b of the Carryover Worksheet may be understated.

To resolve this situation use one of the following workarounds, as appropriate:

Workaround 1

1. Open the Carryover Worksheet.
2. Right click on line 29b, Child Credit, and select Override from the pop-up menu.
3. Enter the correct amount. (The program will automatically update the amounts on line 29d, Total Estimated Rebate, of the Carryover Worksheet, AND the Child Credit and Total Estimated Rebate lines in the How Much Will I Get? area of the Estimated 2008 Economic Stimulus Tax Rebate Payment worksheet.)

Workaround 2 (We recommend that you NOT use this workaround when there are VA benefits.)

1. Open the Federal Information Worksheet.
2. Scroll down to Part IX, Additional Federal Return Information. In the Main Form Selection area, check the Use Form 1040 Even If Taxpayer Qualifies to Use Form 1040A or 1040EZ box. (The program will use Form 1040 instead of Form 1040A and will calculate the estimated Child Credit amount and the Total Estimated Rebate amount correctly on the Carryover Worksheet and the Estimated 2008 Economic Stimulus Tax Rebate Payment worksheet.)

   Note About VA Benefits: In order to qualify for the rebate, the return needs to show at least $3,000 of "qualifying income." Qualifying income is earned income (wages, tips, self-employment income, etc.) plus social security income, RR retirement income, certain VA benefits, and nontaxable combat pay that is elected to be treated as earned income.
   
   If, in order for the taxpayer to reach the $3,000 threshold VA benefits need to be included, the abbreviated Form 1040A must be used (this box must be checked on the Federal Information Worksheet). In this case, if the "Use Form 1040 even if taxpayer qualifies to use Form 1040A or Form 1040EZ" box is checked, the VA benefits will not be shown on Form 1040 (per IRS directive) and therefore will not be included in the calculation of "qualifying income" to be eligible for the rebate.