1040 ValuePak Professional. Tips & Tricks

1040 ValuePak Professional Tips & Tricks

Table of Contents 1040 ValuePak Portal:... 4 How do I install the 1040 ValuePak?... 4 How do I access the 1040 ValuePak software from another computer?... 4 How do I add preparers to my account so they can each have their own login?... 4 How do I prevent my tax preparers from Efiling tax returns without my permission?... 4 How do I log into the Tax Preparation System?... 4 1040 ValuePak Software:... 5 How does the Recent Returns Screen work?... 5 How do I complete an estimate?... 6 Where do I enter my tax preparation fees for the first time?... 6 How do I update my pricing profile from last year so I don't have to retype all of my per form pricing?. 7 How do I open (Proforma) a tax return from last season?... 8 How do I move a return from one Preparer in my office to another Preparer in my office?... 8 If I have completed disclosures in my software, do I need a physical signature?... 9 How do I skip the Interview and go directly to the forms?... 9 How do I use the OPEN FORM box?... 9 How do I go from one field to the next when navigating the tax forms?... 10 How do I select additional states?... 10 Tax Preparation Help... 11 How do I do a First Time Home Buyer s Repayment?... 11 Where do I enter the Identity Theft Protection Pin?... 12 When can I e-file a return with a substitute W-2?... 12 Where do I enter a 1098-T?... 12 Tuition and Fees Deduction Rules... 13 Why did this taxpayer not get the Child and Dependent Care Credit (2441)?... 13 A taxpayer is not getting EIC. What are some things that prevent EIC from generating?... 14 What is considered earned income for EIC purposes?... 14 What should I do when IRS disallows EIC and refers to Form 8862?... 15 What form do I use in order to make monthly payments for an IRS debt?... 15 How does a taxpayer apply for an ITIN?... 15 How do I complete a 1040X?... 17 Where do I mail my 1040-X if I am sending multiple years of amendments?... 17 I'm filing multiple years of Form 1040X. Should I send them all together? What should I attach?... 17 How do I file for an Extension?... 18 How do I delete a Tax Return?... 18 Refund/Balance Due Options... 18 How do I request a check disbursement for a customer who is paying me upfront for tax preparation?18 How do I do a Direct Deposit without a bank product?... 18 How do I add a bank product to the return I am working on?... 19 Are there any age limitations to apply for (receive) a bank product?... 19 How will the taxpayer know what the bank fees are?... 19 How do I update by Fee Deposit information with the bank I am partnered with?... 20 Diagnostics... 20 Common EF Errors (Software)... 20 Efiling... 22 2 P a g e

How do I complete the ERO PIN Signature information?... 22 How do I tell my employees to complete the PIN information screen?... 22 How do I efile a return?... 22 What year 1040 can I e-file?... 22 How does the E-File Selection screen work?... 23 Printing... 24 How do I print a Return?... 24 Printing Checks... 25 How do I print test checks?... 25 How do I reprint a check?... 25 Acknowledgements... 26 How do I check my Acknowledgements?... 26 What is a submission ID (SID)?... 27 Does the SID appear in View on Forms 8878, 8879 or 9325?... 27 What does an SID look like?... 27 Why do I have the code BAD as my acknowledgement code on a return?... 27 What does an S acknowledgement mean?... 28 What does a P acknowledgement mean?... 28 What does an "E" acknowledgement mean?... 28 What information is available when I click on View Ack Detail?... 28 What kind of information is available when a return gets rejected?... 29 How can I tell whether my customer's bank product has been funded by looking at the ACK detail?... 29 Common IRS rejects:... 31 3 P a g e

1040 ValuePak Portal: How do I install the 1040 ValuePak? There is no installation needed. You simply need access to Internet Explorer or Google Chrome in order log in to the tax preparation system. How do I access the 1040 ValuePak software from another computer? To access the 1040 ValuePak Professional from another computer, please go http://www.1040valuepak.com Click on "Click here to enter 1040ValuePak.com" If prompted to enter a password, please type: taxprep (all one word, no spaces or dashes) Then click on Submit Password. How do I add preparers to my account so they can each have their own login? Complete the Preparer Setup Form. It s located on the 1040 ValuePak Portal. Click on Getting Started. Go to Section 2, Step 1. A password is needed to access this form. If you do not have the password, you will need to call technical support to obtain it. Please note that ERO's are the only ones that can submit our password protected forms. If you are not the EFIN holder (ERO) for the office, you will not be provided with the password. How do I prevent my tax preparers from Efiling tax returns without my permission? Contact technical support to remove efile capabilities from anyone's login. How do I log into the Tax Preparation System? Click on. Click the Current Year login link for 1040 ValuePak Professional. 4 P a g e

Use the same username and password that you created when you submitted the preparer setup form. If you did not write down your username and password at the time you created it, you can call Technical Support at 954-946-8235 or email us at help@taxsoftwaresupport.com. Please have your Customer # handy when you call. 1040 ValuePak Software: How does the Recent Returns Screen work? The recent returns screen is the first screen you see when you log into your software. There is a lot of information available to you from this screen. It displays in the grid the last 20 returns you worked on. 1- Logged in as feature displays which member of your office you are currently logged in as. It's not unusual for EROs to log in as their employees to view their returns. However, Admins need not log in as an employee to access returns prepared by employees. 2-Return Lookup-To find returns that no longer appear in the grid, you can search for a return using the SSN or Name of the taxpayer. If you are trying to access a return prepared by another preparer in your office, you will need to change the drop down box from My Returns to My Firm's Returns. My Firm's Returns allow you to search for any return prepared under your EFIN. NOTE: All consent forms must be completed for you to access a return prepared by another preparer in the office. 3-Create Return-To Create a return, enter the SSN and Confirm the SSN before clicking on the Create Return button. 4-Create Test Return-If you are training or practicing in the software, always use the Create Test Return button. The software will assign a "dummy" SSN to the return. 5-Preparer-Column-Lists the person who prepared the tax return. (Useful for offices with multiple preparers) 6-Resident State-This column shows you which Resident state return was created. 7-ACK- Displays an acknowledgement code of Accepted or Rejected. 8-Reports Menu-Use this menu to run the various comprehensive reports available in your software. 9-Tools Menu-Use this menu to access additional tools available to you such as Blank forms etc. 5 P a g e

10-Setup Menu-This menu contains things such as Office Pricing, Send for Review etc. How do I complete an estimate? Once you log in to the Tax Preparation System click on the Tools Menu and then click on Tax Estimator. Note: Care should be taken to advise the taxpayer that this is only an estimate. Should their tax information change during the actual return preparation process their refund or balance due could be more or less than Tax Estimator shows. Where do I enter my tax preparation fees for the first time? Set up your Office Billing Schedules by clicking on Setup->Pricing. 6 P a g e

Select whether you want to Set Pricing on Federal or State Forms. Select the form you want to set pricing for from the Available Forms drop down box. Click the Set Pricing button. NOTE: The program will automatically add up the Form totals and place it on the Invoice which generates when you View the Return. How do I update my pricing profile from last year so I don't have to retype all of my per form pricing? Go to Setup->Pricing. Click on Update Pricing From Prior Year. 7 P a g e

You can indicate whether you want to increase your office pricing by completing the appropriate boxes. Always review your Office Pricing setup carefully before preparing returns. How do I open (Proforma) a tax return from last season? Enter in the SSN in the Create New Return box. Confirm SSN. Click Create Return. When prompted, click on Continue with Import. How do I move a return from one Preparer in my office to another Preparer in my office? Returns can be moved from one preparer account to another easily. NOTE: Returns can only be moved to another preparer account within the same Office (same EFIN). However, if you have multiple locations and would like to move a return from one of your EFINs to another of your own EFINs, please contact technical support. When you login, select My Firm s Returns and enter the SSN to search for the return. Once you find the return, open the return. Scroll to the bottom of the Taxpayer information screen. Select the preparer that you would like to move the return to from the Preparer drop down box and click Save. 8 P a g e

If I have completed disclosures in my software, do I need a physical signature? Yes, you should always have your customers sign their disclosures. If you want to print out blank copies of disclosures ahead of time, you may do so by going to Getting Started, Section 3, Step 5. How do I skip the Interview and go directly to the forms? Many preparers utilize the Interview Method (1) of data entry. Likewise, many preparers utilize the Data Forms Method of data entry. It s not unusual for each type of preparer to find the other method annoying, time consuming, and frustrating. When preparing a tax return the Interview Mode is the default method. To use the Data Forms Mode, follow the steps below: 1. Open a tax return. 2. Complete the Taxpayer Information screen. 3. Complete the Disclosures. At this point most of the links in the blue left Navigation pane will become active. 4. Click "Your Forms" in the Navigation pane. Your Forms (2) is a quick way to select and edit any federal forms. Notice the tabs that have appeared at the top of the screen titled My Forms (all forms completed in the return), Dependents, Income, Deductions, Credits, Health Care, Miscellaneous and State. The tabs appear in the same order as those categories would appear if you read the Form 1040 from top to bottom. If you completed The Tax College s Individual Income Tax Course you ll see that this is the same order in which you took the lessons. How do I use the OPEN FORM box? Please review the instructions by clicking on the link here: 9 P a g e

Using the Open Form Dialogue Box We recommend you print a copy for easy access. Using the OPEN FORM codes can speed up the process for accessing and completing forms in your returns. You may access the document on OPEN FORM Codes by going to the 1040 ValuePak Portal and clicking on Using the Open Form Dialogue Box under Prepare Returns. How do I go from one field to the next when navigating the tax forms? Press the Tab button on your keyboard. How do I select additional states? 1040 ValuePak will automatically prepare most state returns based upon the federal data you ve entered. In the Resident State section of the Taxpayer Information screen, the Default state is usually the state that the Taxpayer resides in. If the taxpayer resided in multiple states, select, I lived in Multiple States. If the taxpayer resided in a different State during the tax year, select the appropriate Resident state from the drop down box. To add additional states to your State Return, click on States and then Click on Next. Select the states you want to add to your return. 10 P a g e

Tax Preparation Help How do I do a First Time Home Buyer s Repayment? To do a First-time Homebuyer's Repayment (Pg 2 of 5405), type HOME in the OPEN FORM box. Click GO. 1- Whose Form is this?- Select whether this form belongs to the Taxpayer, Spouse or Jointly to both. 2- State-Select the taxpayer's state from the drop down box. 11 P a g e

3- Date home was purchased-enter the purchase date here. If you enter the wrong date, the program will NOT calculate correctly. 4- Original Credit from Form 5405-What was the amount of the credit the taxpayer/spouse received the year they purchased the home? 5- Amount of original credit repaid in prior years-how much has the taxpayer/spouse repaid to the IRS for the credit they received. Click Save. View the return and make sure you see the 2nd page of the 1040 displaying the calculated repayment amount.. Where do I enter the Identity Theft Protection Pin? Click on Your Forms Click on MISC Open the Miscellaneous Return Options Form. The IPPIN should be entered at the bottom of the form. Alternatively, you can type in MISC into the OPEN form box to find the Miscellaneous Return Options Form. When can I e-file a return with a substitute W-2? From Topic 154 - Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received): Employers/payers have until January 31 to issue certain informational documents. If you do not receive your Form W-2 or Form 1099-R by January 31, or your information is incorrect on these forms, contact your employer/payer. If you do not receive the missing or corrected form by February 14 from your employer/payer, you may call the IRS at 800-829-1040 for assistance. When you call, please have the following information available: your name, address (including ZIP code), phone number, and social security number. You will also need to provide your employer/payer's name, address (including ZIP code), and phone number, employer identification number (if known), an estimate of the wages you earned, the federal income tax withheld, and your dates of employment. After February 14, the IRS will contact the employer/payer for you and request the missing form. The IRS will also send you a Form 4852 (PDF),Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., along with a letter containing instructions. If you do not receive the missing form in sufficient time to file your tax return timely, you may use the Form 4852 to complete your return. If you receive the missing or corrected Form W-2 or Form 1099-R after you file your return and a correction is needed, use Form 1040X(PDF), Amended U.S. Individual Income Tax Return. For additional information on filing an amended return, refer to Topic 308. Both of these documents are available on the IRS website, www.irs.gov. Where do I enter a 1098-T? Enter information from Form 1098-T, Tuition Statement, on screen 8863 for the taxpayer, spouse or dependent. For help determining which lines and amounts from 1098-T should be entered on Form 8863, please see instructions for Form 8863 (link available at bottom of article), some of which is reprinted below: Who can claim a dependent's expenses. If a student is claimed as a dependent on another person's tax return, all qualified education expenses of the student are treated as having been paid by that person. Therefore, only that person can claim an education credit for the student. If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit. 12 P a g e

Expenses paid by a third party. Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. However, qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. Therefore, you are treated as having paid expenses that were paid by the third party. For more information and an example, see Who Can Claim a Dependent's Expenses in Pub. 970, chapter 2 or 3. Adjusted Qualified Education Expenses For each student, reduce the qualified education expenses paid in 2013 by or on behalf of that student under the following rules. The result is the amount of adjusted qualified education expenses for each student. Tuition and Fees Deduction Rules The deduction limit is $4000 per taxpayer. Enter it on screen 8917 in the field Enter current-year qualifying expenses to force the tuition and fees deduction. Rules: MAGI must be less than $80,000 S-HOH-QW or $160,000 MFJ. If the MAGI is larger than $65,000 ($130,000 MFJ), the maximum deduction per taxpayer is $2000. Cannot be claimed with Hope, American Opportunity or Lifetime Learning Credit for the same student in the same year. Cannot be claimed in MFS return. The student o cannot be the dependent of another. o cannot be a nonresident alien for tax purposes. NOTE: MAGI is AGI + certain amounts, so if the AGI (line 37) is already over the limit the taxpayer won t qualify for the credit/deduction. See Pub. 970. Why did this taxpayer not get the Child and Dependent Care Credit (2441)? Make sure that the amounts paid to the provider are entered on the 2441 screen AND on screen 2 (Dependents). These amounts must match. If the Filing Status is Married Filing Joint (MFJ), both the Taxpayer and Spouse must have earned income. There is an exception for a disabled person or a person who is a student. See Publication 503, Child and Dependent Care Expenses and the Instructions for Form 2441 for information on the amounts to enter on the 2441 screen. If filing status is 3 - Married Filing Separate (MFS), the taxpayer does not qualify for the credit. (A taxpayer with separate filing status 6, 7, 9, or B can qualify.) What is the tax liability shown on page 2 of the 1040/1040A? Child Care Credit is limited to this amount. If the tax liability is $0 then the Child Care Credit is $0. The Child and Dependent Care Credit can take the tax liability to zero but that's all it can do; it's a non-refundable credit. Are employer-provided Dependent Care Benefits present on the W-2, Line 10? If present, page 2 of the 2441 will show the calculation for taxable benefits. Only dependent care amounts in excess of the Dependent Care Benefits qualify for the credit. If Dependent Care Benefits are greater than 13 P a g e

amounts paid for child care the excess is shown as taxable income on the 1040, Line 7 (DCB is printed in the margin to the left of line 7). Note: Dependent Care Benefits must also be entered on Screen 2 (Dependents) for each dependent involved. A taxpayer is not getting EIC. What are some things that prevent EIC from generating? Here are some things you can check if EIC is not generating for the taxpayer: 1. Are all the entries completed for Screen 2 (Dependents) and 8867 (Earned Income Credit Checklist)? 2. Check the adjusted gross income and earned income. Both must fall within specific limits to qualify for EIC. (See Pub. 3524, EITC Eligibility Checklist.) 3. Check the filing status. The filing status cannot be married filing separately. 4. Check the residency status; the taxpayer must be a U.S. citizen or resident alien all year long. 5. Check the age of the taxpayer. The taxpayer (or spouse) must be age 25 but under 65 if there are no qualifying children. 6. Do the taxpayer, spouse, and any qualifying children have a valid SSN? An ITIN or ATIN does not qualify for EIC purposes. 7. Is form 2555 or 2555-EZ present? If it is, the taxpayer will not qualify for EIC. 8. Check the investment income to be sure that it is not above the limit allowed for the current year. Remember that Schedule E income is viewed as investment income. 9. A qualifying child must meet relationship, age, and residency tests; also, the qualifying child cannot be used by more than one person to claim EIC. 10. The taxpayer (or spouse) cannot be the qualifying child of another person. 11. If you do not have a qualifying child, you must have lived in the U.S. more than half the year. 12. Is there a large loss on the front of the 1040 that is creating a negative AGI? If so, there will be no EIC (since you must have earned income). 13. Check the Months in home number on the Dependent screen (screen 2). Is it correct? See also Pub. 596, Earned Income Credit (EIC). What is considered earned income for EIC purposes? Earned income for EIC purposes includes: Wages, salaries, tips, and other taxable employee pay. Employee pay is earned income only if it is taxable. Net earnings from self-employment. Gross income received as a statutory employee. Strike benefits. Amounts received for performing ministerial duties as an employee. Disability benefits received under an employer s disability retirement plan until you reach minimum retirement age. NOTE: Nontaxable combat pay can be included as part of the earned income. Earned income for EIC purposes does not include: Interest and dividends. Pensions and annuities. Social Security and railroad retirement benefits. Workers compensation benefits. 14 P a g e

Alimony and child support. Welfare benefits. Unemployment compensation. Nontaxable foster care payments. Veterans benefits, including VA rehabilitation payments. Certain dependent care benefits. Certain adoption benefits. Earnings while an inmate. Workfare payments. See Publication 596, Earned Income Credit (EIC) for information about the inclusion of income in a community property state for EIC purposes. What should I do when IRS disallows EIC and refers to Form 8862? If IRS denies or reduces a taxpayer's EIC claim, for any reason other than a math or clerical error, the taxpayer may be required to attach Form 8862, Information to Claim Earned Income Credit after Disallowance, to the next tax return in order to qualify for EIC. See Publication 596, Earned Income Credit (EIC), for more information about disallowance and Form 8862. What form do I use in order to make monthly payments for an IRS debt? Form 9465 is used for this request. It can be electronically filed with the 1040. It can also be filed separately after the 1040 has been filed. See "E-filing the 9465, Installment Agreement Request With, or After the 1040" for help setting up Form 9465 for e-filing (see Related Links at the bottom of this page). How does a taxpayer apply for an ITIN? Complete the W7 screen to produce a Form W-7. Where possible, Names and Date of Birth will pull from screen 1 for the spouse. Dependents information must be reentered. Instructions for completing the form are on the second page of the form, available at IRS.gov. This form cannot be electronically filed. Form W-7 must be submitted on paper with the tax return and appropriate documentation in person at any IRS Taxpayer Assistance Center in the U.S., by mail to: Internal Revenue Service ITIN Operation P.O. Box 149342 Austin TX 78714-9342. or by private delivery service to Internal Revenue Service Mail Stop 6090-AUSC 3651 S. Interregional, Hwy 35 Austin, TX 78741-0000 (In some cases, a W-7 can be submitted without a tax return. See the W-7 instructions.) 15 P a g e

Allow 6 weeks for the IRS to notify you of your ITIN (8-10 weeks if submitted during peak processing periods or if you are filing from overseas). NOTES: If the ITIN applicant is the primary taxpayer, you will have to open a new return with a dummy number, since the primary taxpayer has neither SSN nor ITIN. You can clear the dummy number from the SSN field on screen 1 and print the return with a blank SSN (this function is not available to PPR users). The dummy number will continue to be the file number by which the return is identified. Once the ITIN is assigned, you can change the file number (Taxpayer Information screen) and enter the correct number in the return. 16 P a g e

How do I complete a 1040X? To complete a 1040X, open the return. Type X in the OPEN FORM box Click GO. Click Prefill this Form. Enter in the Tax Year at line 23 Enter Part III-Explanation of Changes. Click Save. Now return to your data entry and make the necessary changes. You will need to View the Return and print and mail the 1040X to the IRS as the IRS does not accept amended returns electronically. Where do I mail my 1040-X if I am sending multiple years of amendments? The addresses for amended returns are listed under Where to File in the 1040-X instructions. I'm filing multiple years of Form 1040X. Should I send them all together? What should I attach? According to IRS Tax Topic 308, you should file a separate amended return for each year you are amending and mail each in a separate envelope. Attach any forms or schedules that are being changed as a result of the amendment, including: 1. A copy of any Forms W-2, W-2c, and 2439 supporting changes made on the return, 2. A copy of an Form W-2G and 1099-R that support changes made on the return, but only if tax was withheld, 3. A copy of any Forms 1042S, SSA-1042S, RRB-1042S, and 8288-A that support changes made on the return, 4. Any Form 8805 that supports changes made on the return. If you owe tax, enclose but do not attach your check or money order in the envelope with the amended return. 17 P a g e

How do I file for an Extension? 1) Login to 1040 ValuePak Professional and create the return for which you need to file an extension. 2) Complete the Taxpayer Information Screen and Disclosures. 3) In the OPEN FORM box located at the top of the gray navigation panel, type in 4868 and click Go to find the Form 4868-Extension request form. 4) Complete the Form 4868 and save it. 5) If there is no tax liability owed to the IRS, skip the instructions on Form 4868 with ACH Payment and see the instructions on Completing the PIN Screen next. If the taxpayer owes money and would like to mail a check to the IRS, you can create the 1040V by entering the Voucher amount on the 4868. If the Taxpayer would like to pay his/her tax liability by using a debit or credit card, see the section on Form 4868 with ACH Payment. 6) Click on Efile Selection from the Navigation bar. Then, click on Advanced Efile Options Select 4868 from the E-file Selection Screen and click the Continue button. How do I delete a Tax Return? For security reasons, we do not allow you to delete returns. You can, however, call technical support with the SSN you want to delete and we'll take care of it for you. Refund/Balance Due Options How do I request a check disbursement for a customer who is paying me upfront for tax preparation? By Default, the program assigns MAILED CHECK from the IRS as its default refund option. If you wanted to change this to either Direct Deposit or select a Bank Product instead, you could click on Return Balance in the navigation bar. How do I do a Direct Deposit without a bank product? Click on Return Balance in the Navigation Bar. Then click on Direct Deposit. 18 P a g e

How do I add a bank product to the return I am working on? Are there any age limitations to apply for (receive) a bank product? All banks currently have the same age requirement. The taxpayer (and secondary taxpayer, or spouse, if MFJ) must be at least 18 years of age to apply for any bank product. How will the taxpayer know what the bank fees are? When you complete the Bank Information Screen, you tell the software that you are planning on doing a bank product. You must disclose all of the fees to your customers. As a result 1040 ValuePak Professional, provides you with a breakdown of the fees as a part of the documentation that needs to be printed and signed when a bank product is done. To view these forms, click on View Return and View the PDF of the Return. 19 P a g e

How do I update by Fee Deposit information with the bank I am partnered with? Complete the Bank application form. It s located on the 1040 ValuePak Portal. Click on Getting Started. Go to Section 2, Step 2. A password is needed to access this form. If you do not have the password, you will need to call technical support to obtain it. Please note that ERO's are the only ones that can submit our password protected forms. If you are not the EFIN holder (ERO) for the office, you will not be provided with the password. Diagnostics Common EF Errors (Software) The following are common error codes which appear on the Results screen. These are NOT IRS Reject Codes. These codes are being generated by the internal audit of your program. 5007 UNVERIFIED FIELD PRESENT. The federal return contains an unverified field. SOLUTION: To clear this error, please click on the hyperlink of the error on the Results screen. It takes you to the screen with the error. Scroll down until you see the bright green field. Right click on the bright green field. Click Verify Field. Scroll to the bottom of the page and click on Save. Then go back to Results and make sure that the error is cleared. 5099 The Bank screen is marked to include a state refund in the bank product but the return does not have a state refund. To correct, click on the Return Balance menu selection and then click on Bank Information. Remove the state selected to receive a refund. Click Save at the bottom of the form to save the change. SOLUTION: The error means that you have selected a state in which the state does not require a state return to be filed. Go to Return Balance->Bank Information Change your selection in the State Drop down box from ALL STATES to the blank line above it. Save the Bank Information screen. 5131- Both names together must not exceed 35 characters. SOLUTION: 1) Use initials for second given name. Mary Sue Jones -> Mary S Jones 2) Delete second initials, if necessary. Mary S Jones -> Mary Jones 3) Use initials only for spouse's given name. Mary Jones -> M Jones 4) Use initials only for primary taxpayer's given name. Jonathan Smith -> J Smith 5303- If you receive this error (5303), please contact your Home Office for assistance. 20 P a g e

SOLUTION: There is an invalid character on the W-2 in the Employer's Name section. Only numbers, letters, &, -, /,+, and spaces are allowed in that section. 5330 You have keyed an incorrect ERO PIN signature. To correct, click on PIN Information and correct the ERO PIN signature to be the preparer PIN assigned by your home office. If you do not know the correct ERO PIN signature, contact your tax preparer home office. SOLUTION: Type PIN in the OPEN Form box and enter your ERO PIN, the PIN Signature Date and the TP or SP pins. 5361 If you receive this error (5361), please contact your Home Office for assistance SOLUTION: Go to Return Balance->Bank Information->Product Options. Get It Card- Card # needs to be verified. 5826 If you receive this error (5826), please contact your Home Office for assistance. SOLUTION: No RTN and DAN have been entered for the Bank Product. 5830 The state refund is not sufficient to cover the bank product fee. SOLUTION: Click on the Return Balance menu selection and then click on Bank Information. Remove the state from the state drop down box. 21 P a g e

Efiling How do I complete the ERO PIN Signature information? Click on Pin Information. Enter in the PIN Signature Date. (The date you are signing the return) Enter in the ERO Pin Signature. NOTE: The ERO is the EFIN holder NOT the Preparer. The Preparer Pin can be entered in the Preparer s PIN box. If you are both the ERO and the Preparer, you only need to enter the ERO Pin Signature. In most cases the Pin is the last 5 digits of your SSN. TIP: OH and NY ERO's should read and check the appropriate boxes on the PIN Information Worksheet. Click Save and Continue. How do I tell my employees to complete the PIN information screen? 1. Pin Signature Date-The date you are efiling the return. 2. ERO's Pin Signature-The EFIN holder's PIN signature. 3. ERO Override-Only select the ERO's name from the drop down box if someone other than the ERO prepared the tax return. 4. Preparer's PIN-This is the 5 digit preparer pin. Only use this box if the preparer is different from the ERO. How do I efile a return? Complete the return Click on Results Click on Continue if you have cleared you errors. Follow the on screen instructions as you complete the EFILE Interview. What year 1040 can I e-file? Beginning in 2014, you will be able to e-file the current year Individual 1040 Tax Return and the two prior years. 22 P a g e

EXAMPLE: In calendar year 2014, you will be able to efile the 2013 current tax return and also the 2012 and 2011 prior year returns. How does the E-File Selection screen work? To E-file a Federal return without a state return, go to the E-File Selection Screen. 1-Advanced e-file options display your e-file selections. The screen is divided into different sections. 2-State E-file Override-You may select a state/city to e-file by choosing it from the drop down box. However, if not selections are made only the eligible states/cities will be automatically e-filed. 3-Do not send any states- If you do NOT want to send a state return, click on Do Not Send any states. 4-Suppress 1040 E-file-Select Suppress 1040 to suppress the 1040 return from the e-file transmission. 23 P a g e

Printing How do I print a Return? Go to View Return (1) Select the Print packet you want to view or print out. (2) Click on Continue. Then click the button. Choose whether you want to Open or Save a copy of the PDF. To select a specific page to print in the Print packet you have selected, choose the bookmark option and select the page. 24 P a g e

Printing Checks How do I print test checks? From the 1040 ValuePak Portal, click on Prepare Returns. Enter your Username and Password to Log into the Tax Preparation System. Click on Tools->Print Checks at the top of the Recent Returns Screen. Log into Web Check Printing using your EFIN and Password. You can print a Test Check using the Test Check which is available to you in the Web Check Printing Screen by clicking on Print Test Check. Click on View Check to open the file in Adobe Reader. Then click on the Print icon to Print your Test check. If the check does not print correctly, you may want to adjust the settings by clicking on Settings and then adjusting the check Printing up or down. Don t forget to click Save when you select your Printer Settings. How do I reprint a check? You can print the check out as many times as you need to. Log into the check print area with your EFIN and 1040 ValuePak Professional password. Search by SSN or Name for the customer's record in the Box provided. The check should appear on your screen. Click on the Reprint icon. Enter in the check number. Print the check again. TIP: you can use the Printer Settings button to align checks... 25 P a g e

Acknowledgements How do I check my Acknowledgements? To monitor the status of your returns, please go to Reports->Client Status Reports Click Apply Filter to view ALL of your Returns regardless of their status. You will be able to sort the data by SSN or Name. You may also wish to Export the information to Excel. There's a built in export feature available with all of our reports. If, however, you would like to create your own reports, simply uncheck the boxes representing the fields you do NOT want to see and click Apply Filter. If you choose to save your custom reports, you can do so by giving your report a name in the Save Filter As box. Then click Save. The next time you want to run this report, you will select it from the Load Saved Filter drop down box. You may choose to utilize the Built in Client Status Reports. To do so, simply click on Built in Client Status Reports. Select the report you want to run. Click Apply Filter. 26 P a g e

In addition, you may open an individual return and click on the Return Status link to check the status of a return. NOTE: Since the introduction of MeF (Modernized E-Filing), Acks are sometimes returned in seconds. However, the average time for Acks to be returned by the IRS is usually from within minutes to up to 48 hours. With states, it may take anywhere from 1 day to 7 days for Acks to be returned. Of course, response time is based on the IRS/States. We encourage you to contact technical support should you identify that you have returns that have not been acknowledged by the IRS and that the normal processing time has passed. Additional Tips on using the Client Status Manager: View the status of ALL Returns prepared under the Office s EFIN Change the ROWS per PAGE to view up to 100 returns on your screen without having to go to the next page. View the Acknowledgement Details by clicking on ACK DETAIL. Useful information available in the ACK DETAIL include details on IRS rejects/state rejects. Click on ANY column heading to sort your data in ascending or descending order. What is a submission ID (SID)? The submission ID is a 20-character string that identifies an MeF e-file submission. It is created when 1040 ValuePak Professional transmits your return to the IRS or to a state DOR. When the return is accepted and the acknowledgement processed, the SID becomes part of your local EF database. Does the SID appear in View on Forms 8878, 8879 or 9325? No. There is a submission ID field on these forms, but IRS does not require the SID to appear as long as the associated acknowledgement meets retention requirements (Pub. 4164, p. 47). In View Return, On Forms 8878 and 8879, the DCN appears in the Submission Identification Number (SID) field. On Form 9325 after acceptance, paragraph 2 displays both o o The DCN. The first six digits (the EFIN component) of the submission ID. The SID can be completed manually after printing the form, if desired. What does an SID look like? A submission ID looks like "11111120140358a56rfn". The IRS definition: Submission ID - A globally unique 20 digit number assigned to electronically filed tax returns with the following format: (EFIN + ccyyddd + 7-digit alphanumeric sequence number). Why do I have the code BAD as my acknowledgement code on a return? A code BAD could mean several things. Generally this indicates that a return has been REFUSED by the Filing Center. Returns go from your computer to our filing center where they go through preliminary checks and then passed on to the IRS/State. 27 P a g e

A Code Bad when there is a Bank Product present may indicate that your record is not certified to do bank products. This often happens when an ERO has not completed Compliance Training with the bank or has not allowed enough time to pass for their Bank Certified status to be updated in the system. If a return is REFUSED by the filing center for a Code BAD, please contact technical support and have the SSN of the return handy. What does an S acknowledgement mean? The S Ack is used for returns that have been mailed in with bank product direct deposit information contained on the return. This happens when a return is rejected and the preparer is unable to get the return fixed, retransmitted and accepted. The S Ack allows the preparer to print ERC/RT type checks on those refunds in the office and still receive a direct deposit for the preparer fees as well. An S ack can also appear briefly when a bank ack posts before the IRS ack - the S will convert to A when the IRS ack posts. What does a P acknowledgement mean? A P ACK indicates that you have transmitted and 1040 ValuePak Professional has received a live return, which will be forwarded to the IRS or state DOR. What does an "E" acknowledgement mean? The E ack indicates that the Imperfect Return Indicator was selected for this return and it has been processed and accepted. What information is available when I click on View Ack Detail? There is a wealth of information available when you View your Acknowledgement Details. Here are some tips to make it easy to understand the info that you are seeing: 1. Taxpayer's SSN 2. Name and Address of Taxpayer 3. Transmitting EFIN 28 P a g e

4. Submission ID 5. Date return was accepted. 6. Refund Method 7. Preparer Number identifies the preparer in the office that did the return. 8. State transmitted What kind of information is available when a return gets rejected? 1. If a return is rejected, the details are available in the Box titled Rejected Transmissions. 2. Submission ID 3. Filing Status: a. 1-Single b. 2-MFJ c. 3-MFS d. 4-HOH 4. Reject Code is a hyperlink so you can click on it for rejection details. 5. The SSN causing the rejection. 6. The tax year that was efiled. How can I tell whether my customer's bank product has been funded by looking at the ACK detail? 1. Bank that you are doing business with 2. Status of the bank product 3. Type of Product which will always be RAC (Refund Anticipation Check) 4. Deposit Date and amount 5. Prep Fee Deposited 6. Transmission Fee (taken out of the taxpayer's refund so you don't have to pay for efile) 7. Additional Fees charged by various entities so you may have the ability to offer bank products. Also includes your Rebate if you are with Advent. 29 P a g e

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Common IRS rejects: 0010 Look for punctuation that is not allowed: usually hyphens, periods, or apostrophes. A field contains a character that is not allowed for its field type. For example, an alphabetical entry in a numeric field is not allowed. Form Payment - Taxpayer's Daytime Phone Number is a required field and cannot equal all zeros or all blanks. 0501 Name and SSN don t match IRS records which pull from SSA records; check spelling, name change due to divorce, which last name is used if there are two last names. Qualifying SSN (SEQ 0015, 0085) of Schedule EIC and the corresponding Qualifying Child Name (SEQ 0007, 0077) must match data from the IRS Master File. How to read and understand reject code: SSN Form SeqNum ErrorCode Problem 400001001 EIC 15 501 (1st dep's SSN) 400001002 EIC 20 501 (1st dep's YOB) 400001003 EIC 11 501 (1st dep's Name) 400001004 EIC 85 501 (2nd dep's SSN) 400001005 EIC 90 501 (2nd dep's YOB) 400001006 EIC 81 501 (2nd dep's Name) SOLUTIONS 1) Verify dependents SSN card. (Confirm SSN & Name) a) If card does not match data entry; correct data entry onscreen number 2, recalculate, and retransmit file. b) If card matches data entry; contact Social Security Administration 2) Verify dependents Birth Certificate. (Confirm DOB) a) If certificate does not match data entry; correct data entry on screen number 2, recalculate, and retransmit file. b) If certificate matches data entry; contact Social Security Administration 0502 EIN on W2 does not match IRS records. In the example below, the Form # shows that the problem is on the first W2. 0503 Spouse name and SSN do not match IRS records. 0504 31 P a g e

Dependent name and SSN do not match IRS records. The sequence number points to the SSN of the dependent at issue. 0175-1 st dependent 0185-2 nd dependent 0195-3 rd dependent 0205-4 th dependent The example below refers to the first dependent. 0507 Dependent has already been claimed by someone. 0510 This may mean a dependent has filed his own return and not checked Dependent of Another. I am getting a reject code (SEIC-F1040-501-01, R0000-504-01) that says the name doesn't match the IRS Master Files. This list of name conventions may help you to match what the IRS has in their Master Files (all names are fictional examples): NAME FIRST MIDDLE LAST SAMUEL E. GARDEN SAMUEL E GARDEN NANCY S. BIRCH NANCY S BIRCH PAUL MCFADDEN PAUL MCFADDEN ALEXANDER PAYNE MACGUNTHER ALEXANDER P MACGUNTHER CARSON V. O GRADY CARSON V OGRADY LISTON P. AG LISTON P AG BOHN TI LO BOHN T LO NAM QUAN TRAN NAM Q TRAN ASA AI SR. ASA AI VAN, VON, VANDER, AL, EL, ABU, DI, DEL, DE and DE LA are considered part of the last name HEIDI J. VAN HEDRICK HEIDI J VAN HEDRICK LAMR EL BAYOUDI LAMR EL BAYOUDI FELIX DE LA QUINTA FELIX DE LA QUINTA A hyphen is sometimes used when there are two last names. ELEANOR C. BIRDMAN-WHYTE ELEANOR C BIRDMAN-WHYTE LEMUEL T. EL-BIANCA LEMUEL T EL-BIANCA When two Hispanic last names are involved, use the first last name (father s family name). In some cases there are 3 names shown on a SSN card and the tax payer has no middle name; ask if the second name is the father s family name. DONA MARIA MARTINEZ-GONZALEZ DONA M MARTINEZ-GONZALEZ 32 P a g e

PEDRO MORALES MORENO PEDRO MORALES MORENO MARIA GARZA Y LOPEZ MARIA GARZA Y LOPEZ Asian-Pacific names including VAN and THI are not used as part of the last name. First names may be hyphenated. JIN-JAING NGUYEN JIN-JAING NGUYEN YEN VAN PHAM YEN V PHAM NHAT THI CHIU NHAT T CHIU JIN-YIN LA JIN-YIN LA Native American last names generally start with the first word of the surname. MINNIE GREAT EAGLE MINNIE GREAT EAGLE SAM HAS MANY HORSES SAM HAS MANY HORSES LINA BIG PERSON LINA BIG PERSON The taxpayer's return was rejected with R0000-902, which says that it has already been filed and accepted. Is this a case of identity theft? R0000-902 Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return. Questions to answer before you consider identity theft: Did you type in the correct SSN for the Taxpayer? Did you accidentally transmit the return twice? Has the taxpayer filed the return with another tax preparer? If the answers to these questions are No, you can assist your client by directing them to the information found below on IRS.gov (Indications your identity may have been stolen and how to report it): Indications your identity may have been stolen and how to report it to us Your identity may have been stolen if you receive a letter from the IRS stating or learn from a tax professional that... 1.... you filed more than one tax return or someone has already filed using your information. 2.... you have a balance due, refund offset or have had collection actions taken against you for a year you did not file. and / or 3.... you received wages from an employer you have not worked for. If you receive such a letter from the IRS and you suspect your identity has been stolen, respond immediately to the name, address, phone number or fax listed on the IRS letter or contact the IRS to determine if the letter is a legitimate IRS letter. If you become the victim of identity theft outside of the tax system or believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity or credit report, etc., you are 33 P a g e

encouraged to contact the IRS at the Identity Protection Specialized Unit, toll-free at 1-800-908-4490 so we can take steps to further secure your account. The IPSU hours of Operation: Monday Friday, 7 a.m. - 7 p.m. your local time (Alaska & Hawaii follow Pacific Time). You will need to fill out the IRS Identity Theft Affidavit, Form 14039. Please be sure to write legibly and follow the instructions on the back of the form. More information is available from the IRS Taxpayer Guide to Identity Theft. 34 P a g e