Question
How do you input "Exempt Community Income" on Schedule 2, Part II line 4? This is per IRS instructions when allocation self-employment community income.
Program does not allow override. IRS wants to see this in that line. Got nailed last year and client refund held up 6 months. I did attach a note, but they don't always read them. Same problem this year. Any suggestions or better yet a fix.
IRS instructions -
"Spouse who didn’t carry on the business. If you aren’t the spouse who carried on the business and you had no other income subject to SE tax, enter “Exempt community income” on Schedule 2 (Form 1040), line 4. Don’t file Schedule SE."
IRS instructions -
"Spouse who didn’t carry on the business. If you aren’t the spouse who carried on the business and you had no other income subject to SE tax, enter “Exempt community income” on Schedule 2 (Form 1040), line 4. Don’t file Schedule SE."
