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Form 8615, Parent's tax calculation Line 9

SFBacct
Level 3

In May I finished a tax return for a minor child that had substantial investment income due to her grantor type special needs trust.  I just got the e-file signature form back from the parents and when I went to e-file the return I noticed the tax decreased.  Everything was the same except the tax calculations on Form 8615, line 9 of the parent's tax calculation.  Apparently I didn't catch that the form was miscalculating the tax and ProSeries must have recently updated the program to fix this.  I am very frustrated and angry with ProSeries!  First, we rely on their tax software to correctly calculate tax due after we have correctly prepared the tax return.  Second, why no notice of this error and update?  Had I known the software was not calculating the tax correctly I would have manually calculated it.  I got no alerts and have searched everywhere and see no explanation.  I am so sick of ProSeries this year.  Anyone have a better software recommendation?  

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2 Comments 2
sewcpa
Level 5

I am not excusing the lack of transparency.

There was a law change regarding kiddie tax this year. In the old days we had to use parents tax rates and simultaneously do the whole family to enter taxable income/capital gain income/etc into each return for parents and each child (method A).  Then rules changed to use the super high trust tax rates instead (method B).  Now for this year we get to choose method A or method B. In other words at least 3 times the work just to properly take care of client. 

I do not know when all of this was finally put into the software. But could the tax change that you found be related to this horrible procedure? [I think that Congress and IRS are also at fault in addition to Intuit]

SFBacct
Level 3

It gave me no error message when it completed the calculations on the parent's Form 8615 worksheet which is part of the child's tax return.  It had a completely different tax figure on line 9 when I completed this in May from when I went to e-file the tax return over the weekend.  

There was obviously an error in their calculations for Form 8615 parent's worksheet that got fixed on a recent update, but they did not provide any notifications about this.  Don't you think they should have sent out an alert about this?  How many tax returns were affected by this?  

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