Form 1040 line 25c

[fesemagu]

Taxpayer's return was prepared and emailed on February 25,2023 for review. Line 25c had other tax payment of $3,317.and the return had a refund of $1,420. The return was e-file March 3.

After more than 6 weeks, taxpayer contacted me because she cannot locate her refund on IRS website. Upon review, I noticed that the amount on line 25c  is  zero and the taxpayer have a balance due of $1,897.

I have reviewed the tax return several times and could not determine why line 25c had $3,317 on the return I emailed to the client and line 25c had zero on the return that was e-filed.

I called intuit and I was told it might be due to program update. If it is, how should I resolve this issue with my client?

[BobKamman · Accepted solution]

Did you review the return first, before sending it to the client?  Line 25(c) is "Payments -- Other Forms (See Instructions)."  Did you notice that?  Any idea where it came from?

[sjrcpa]

First, you need to rereview the entire return and see which version is correct.

If the efiled one is correct, you apologize to the client.

[IRonMaN]

Two helpful hints for next year:

1.  After entering all of the data into a return, closely review the return to be sure your data was entered correctly and that all of the numbers on the return make sense.

2.  Before transmitting a return, compare the refund or balance due showing on the 8879 with the amount being reported on the return.  

[BobKamman]

And something I do most of the time, but should do even more often:  Compare this year's return with last year's return.  For returning clients, there's the "2-Year Comparison" feature on ProSeries.  For new clients, you have to look at the paper copy of last year's return.  

For many practitioners, February 25 is about the busiest day of tax season.  Haste makes waste.  Take another look at last night's work, when you start the next morning.  

[Just-Lisa-Now-]

I dont remember there being any issues or updates to address an amount as "other withholding". 

The figure on that line, 25c,  comes from the Tax Payments Worksheet.

[IRonMaN]

" For returning clients, there's the "2-Year Comparison" feature on ProSeries"

After I have all of the data entered, my standard operating procedure is to then review that comparison.

[BobKamman]

Mine, too, except when I forget. 

[Sabertooth Girl]

Hi Everyone!

I figured out Line 25C in Pro Series. It has to do with additional Medicare taxes on clients that make over $250,000. They are charged additional Medicare tax. My particular client's employer must have known that because they took out additional Medicare withholding I believe to cover this. So the additional Medicare tax that was withheld shows up on this Line. Look at Form 8959 and it shows the reconciliation at the bottom! 🙂