Level 3

Question

Program calculation error on Form W2 $5000 DCAP benefits

Forum|Forum|3 years ago
March 31, 2023
3 replies
25 views

I wanted to post what I believe is a calculation error in the software.

Prepare a MFS return with a w2 that has $5000 in Box 10 (DCAP).

This is a situation where the taxpayer is "not considered unmarried".

The software is only carrying $2500 to Line 12, part III. This is results in to

taxable benefits on the MFS return. There should be $2500. If anyone wants to

reach out to me from ProSeries, I can explain in detail. Thanks, Charles Markham

ProSeries Professional

This topic has been closed for replies.

T

TaxGuyBill

Level 15

@charles11 wrote:

This is a situation where the taxpayer is "not considered unmarried".

Do you actually mean "not" considered unmarried? If so, $2500 seems to be correct. Can you clarify your problem?

But on my testing it, it seems like if you ARE "considered unmarried", the program may be doing it incorrectly.

C

charles11Author

Level 3

The terminology "not considered unmarried" is a double negative, but that is the terminology used. See the "Married Filing Separately worksheet" on the 2441 form.

In my case, my taxpayer is married. Both he and his spouse earn 6 figures. He has 2 kids that he is claiming and $5000 in box 10 DCAP on the W-2. If he was "considered unmarried" then he could claim the whole $5000 of DCAP. (He can't get the child tax credit, but he could use up the $5000). In other words, it's like he's single.

My client is definitely. The most EACH SPOUSE can get is $2500 on their individual tax returns.

Since he had $5000 in DCAP, he should wind up with $2500 added back into his wages if he files MFS. The software is NOT doing this.

I am happy to walk somebody through this and send them the sample return and they'll see the problem.

T

TaxGuyBill

Level 15

@charles11 wrote:

Since he had $5000 in DCAP, he should wind up with $2500 added back into his wages if he files MFS. The software is NOT doing this.

Yeah, for some reason line 12 of the 2441 is only importing $2500 from the W-2, rather than $5000. I would just override line 12 and enter $5000 there.

I

Intuit_SCarter6

Level 3

Hello,

We are unable to recreate the issue you described.

Please contact support. If you choose to provide your tax file through our support system, we can review and help you get this issue resolved.

1-800-434-6818

https://proconnect.intuit.com/community/order-products-from-intuit/help/how-to-contact-proseries-for-help/00/4714

Thank you!

T

TaxGuyBill

Level 15

@Intuit_SCarter6 wrote:

Hello,

We are unable to recreate the issue you described.

So you are saying you created a tax return that had $5000 in Box 10 of the W-2, and the MFS return shows $5000 on line 12 of Form 2441?

C

CloudYY

Level 2

Hmm. Wondering if this makes difference. Based on 2441 line 12 instruction, it uses "married employees filing separate returns" term. Unlike other reference of instruction using "filing status is married filing separately"

C

charles11Author

Level 3

I am pleased to note that ProSeries has fixed this bug in a release sent out on 4/13/2023.

Whew! I hope Intuit doesn't have a lot of claims from TurboTax users who get notices from the IRS in a year or two. (Since we use the same tax engine)

But, ProSeries is good to go.

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