Discussion:Efiling When Withholding is More Than 50% of Income
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Discussion Forum Index --> Tax Questions --> Efiling When Withholding is More Than 50% of Income
| February 14, 2007 | |
| In 2005 and prior years, a return couldn't be efiled if the withholding on a 1099-R or W-2 was more than 50% of the taxable income on the 1099-R or W-2. Yesterday, I was able to efile a return with $600 Federal withholding and taxable pension of $1,070 on one of the 1099-R forms. The return was accepted today. Just wanted to let you all know about this... | |
| February 14, 2007 | |
| OHHHH!!!!!! Tell me it's true! Now wondering who's got a W2 that I can try....ohohohoh, getting excited and hopeful. | |
| 14 February 2007 | |
| Maybe it's also based on the amount?? $600 may be low enough. | |
| February 15, 2007 | |
| I'm not sure, PVV, but for this particular client, I've never been able to efile her return before this year, since the withholding on that 1099-R was always more than 50% of the taxable distribution. ProSeries always told me I couldn't efile the return due to this limitation, until this year. And it was accepted fine this year. I only have one client that has this situation, and I'll probably be preparing her final return next year.
I remember that this situation was mentioned by someone in one of the discussions on this site at some time in the past. Of course, I was unable to find that discussion using search words of "withholding" or "withheld." | |
| 15 February 2007 | |
| Show tax withholding as an estimated tax payment instead and you can E file. | |
| February 15, 2007 | |
| DZ - Did you read what I said above? My point was that I can efile these type of returns now, when I couldn't before 2006. Also, I wouldn't do as you suggested, because withholding is not an estimated tax payment, and I believe the IRS would have a problem during the process of matching actual estimated payments with what is reported on the return. | |
| 15 February 2007 | |
| IRS program will have no problem accounting for all taxes paid for a taxpayer by all sources of payments no matter how you list them. Sorry, the above method worked perfectly in prior years using E file. | |
| February 15, 2007 | |
| Deback, I have a client in the exact same situation. He takes his RMD in December and uses these funds to deal with all of his quarterly estimated tax payment requirements for the year. Gross distribution about $16K, Fed WH about $12,500. We have never been able to e-file. | |
Death&Taxes (talk|edits) said: | 15 February 2007 |
| Now if they will only permit us to efile returns with more than (?) states in blocks 15-17, I could do my three baseball trainers. Just the postage to send a return out with 5-8 states is ridiculous, and some states like California and Minnesota require complete copies of the Federal return. | |
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