This article will help resolve the following e-file critical diagnostic:
- e-file: e-file Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States: Enter Income Allocation information in the e-file MFS Income Allocation screen. (ref #6403)
This diagnostic is triggered for MFS returns living in a community property state.
An entry in Screen 3, Miscellaneous Info in the field for Apply Community Property Rules will generate this diagnostic. If this field is blank, continue with the steps below.
To resolve this diagnostic:
- Go to Screen 3.1, Community Property Income Allocation (8958).
- Hold down Ctrl+E in the fields listed under the Income Allocation Details subsection.
- Enter the following information in the taxpayer and spouse's applicable amounts. Only the spouse's amounts will display on the input screen, but both amounts will reflect on Form 8958.
- State income tax refund (Ctrl+E)
- Self-employment income (Ctrl+E)
- Capital gains and losses (Ctrl+E)
- Pension income (Ctrl+E)
- Rents, royalties, partnerships, estates (Ctrl+E)
- Deductible SE tax (Ctrl+E)
- Self-employment tax (Ctrl+E)
- Taxes withheld (Ctrl+E)
- Other items (Ctrl+E)
- Enter the Social Security number in Other registered domestic partner's SSN (if RDP).
- Enter the first and last name in Other registered domestic partner's first name (if RDP).
If the taxpayer filed as MFS or RDP in the prior year, the information could have proforma'd to Screen 3.1, Community Property Income Allocation.
If this is the case and your taxpayer is filing Single this year, you'll need to delete any codes or amounts present on Screen 3.1 to resolve this diagnostic.
To delete codes and amounts:
- Go to Screen 3.1, Community Property Income Allocation.
- Hold down Ctrl+W on your keyboard to to to batch mode.
- Make sure that 3.1 Income Alloc is selected from the left panel.
- Place your cursor on the first code listed.
- Hold down Ctrl+D until all codes and amounts are deleted.
- Hold down Ctrl+W again (this will take you back to the interactive mode).
Be sure to establish if the return was MFS or RDP in the prior year. It's possible that information could have been proforma'd from the prior year and is hidden in the background. In this case, switch to batch mode (Ctrl+W) and delete (Ctrl+D) the information that is causing the diagnostic.