- 3.12.3.12 Sections 09, 10 And 11 Data—Schedule C/C–EZ
- 3.12.3.13 Section 12 Data—Schedule D
- 3.12.3.14 Section 13 Data—Schedule E
- 3.12.3.15 Section 14 And 15 Data—Schedule F
- 3.12.3.16 Section 16 Data—Schedule R/Schedule 3
- 3.12.3.17 Sections 17 And 18 Data—Schedule SE
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Invalid Conditions — Statutory Employee Indicator Field will be invalid if other than the following:
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Blank (box is not checked)
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1 (box is checked)
Note:
Statutory Employees are individuals in specified occupational groups who are not common law employees; these include: Industrial homeworkers, full-time life insurance salespersons, certain agent or commission drivers (engaged in the distribution of meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry cleaning services) and traveling or city salespersons.
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Field 0901 represents the taxpayer's Gross Receipts.
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These fields are transcribed from Part 1, Schedule C.
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Description — These fields are transcribed from Part II, Schedule C.
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Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return.
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return. Line 26 represents the taxpayer's total salary and wages paid or incurred for the tax year. It does not include salaries and wages deducted elsewhere on the return or amounts paid to the taxpayer filing this Schedule C. The taxpayer will reduce this deduction by the current year credits claimed on Forms 5884, 8844, and 8845. When line 26 is present, Field 09EIN should also be present. If ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
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GTSEC 09, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when adding Section 09 from an attachment.
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Description -- This Field is transcribed from line 28, Schedule C (line 2, Schedule C-EZ).
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Correction Procedures — Correct coding and transcription errors.
Caution:
Schedule C-EZ, line 2, is often mistakenly entered in Fields 0902 and 09EXP.
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Description — The taxpayer's entry is transferred from Form 8829, line 35.
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Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Description — The At Risk Code is located on either line 32a or 32b of Schedule C.
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Invalid Condition — This field will be invalid if the code is other than 1, 2, or 3 or blank.
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Correction Procedures — Enter At Risk Code 3 when a loss is taken on Schedule C.
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Enter Field 09AR based on the entry to the At Risk question as follows when line 31 is a loss on Schedule C:
If Schedule C... Then enter... A] Has only box 32a checked (all is at risk), 1 in Field 09AR. B] Has box 32b or both 32a and 32b checked (some is not at risk), 2 in Field 09AR. C] Has neither box 32a or 32b checked, 3 in Field 09AR. D] Is for TY85 or prior return, 3 in Field 09AR. (Refer to EC 070.) Exception:
Code 3 in Field 09AR when all the following exist:
1. Schedules C have been combined (multiples).
2. Creates a loss of $1,000 or more.
3. No single Schedule C has a loss of $1,000 or more.Note:
Whenever the line 32b (some is not at risk) box has been checked or no box has been checked, and the loss on line 31, Schedule C, has been limited, adjust the entry in Field 09EXP (Total Expenses) to reflect the taxpayer's limited loss. To do this, add line 21, Form 6198 (treat in this instance as a positive amount) to line 7, Schedule C and enter the result in Field 09EXP.
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Refer to EC 204.
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Schedule D is used to report Capital Gains and Losses which include the following:
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Capital Gain Distributions not reported directly on Form 1040, line 13.
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The sale or exchange of a capital asset not reported on another form or schedule.
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Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit.
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Nonbusiness bad debts.
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Part I of Schedule D is used to report short-term capital gains and losses from assets held one year or less as follows:
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Taxpayers will report their short-term gains or losses in column (f).
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Taxpayers may complete Schedule D–1 as a continuation sheet for short-term gains or losses reported in Part I (line 2).
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For TY2003, taxpayers will report Post May 5 gains/losses in column (g).
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Part II of Schedule D is used to report long-term capital gains and losses from assets held more than one year as follows:
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Taxpayers will report their long-term gains or losses in column (f).
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For TY2003, Taxpayers will report Post-May 5 gains/losses in column (g).
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Taxpayers may complete Schedule D–1 as a continuation sheet for long-term gains reported in Part II (line 9).
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For TY2002 and prior, Taxpayers will report their long-term gains or losses subject to the 28% tax rate in column (g).
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Part III of Schedule D is the total of Parts I and II and is used to figure the amount for line 13, Form 1040. It is also used to determine whether the computation using Capital Gains Tax Rates is applicable to the taxpayer. For TY04 and later, Part III directs the taxpayer to the Schedule D Tax Worksheet in the Instructions to figure the tax on taxable income that is reported on line 44 of the Form 1040.
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Part IV, TY2003, of Schedule D is used to figure tax on the taxable income and is reported on line 41 of Form 1040.
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For TY03, taxpayers are instructed to complete Part IV, Schedule D when line 40, Form 1040 is more than zero and either of the following:
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Line 16, Schedule D is a gain, or
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Qualified Dividends are reported on line 9b, Form 1040.
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For TY02 and prior, taxpayers are instructed to complete Part IV to figure their tax if both of the following exist:
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Both lines 16 and 17, Schedule D, are gains.
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Form 1040, line 40, is more than zero.
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Schedule D–1 (sequence number 12A) is a continuation sheet for Schedule D and is used to list additional short and long term transactions that could not fit on lines 1 and 8 of Schedule D. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The combined totals of all Schedule D–1s are brought forward to lines 2 and 9 of Schedule D. For prior years, the continuation sheet for short-term and long-term transactions was on page 2 of Schedule D.
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Fields 1207, 1215, and 12DV may be either positive or negative, all other fields must be positive.
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Section 12 consists of the following fields. The underprint for Field 0313 represents the amount the taxpayer brings forward from line 16 or 21 (line 17 or 18 for TY02 or prior) of Schedule D.
Field Designator Field Title Field Location 1203 Short-Term Sales Price Line 3, column (d) 1207 Net Short-Term Gain or Loss Line 7, column (f) 1210 Long-Term Sales Price Line 10, column (d) 1213F Capital Gain Distribution Line 13, column (f) 1215 Net Long-Term Gain or Loss Line 15, column (f) 12DV Schedule D Profit/Loss Verified ERS input only 1218 28% Rate Gain or Loss Line 18 1219 Unrecaptured Section 1250 Gain Line 19
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Enter T in Field 01RPC when all of the following conditions are met and it was not coded by Code and Edit:
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A positive amount of more than $1 is present on line 13 (line 13a, TY 2003), Form 1040.
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Schedule D is not present.
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The box on line 13 (line 13a, TY 2003), Form 1040, is checked.
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These fields are transcribed from Part I, Part II, and Part III, Schedule D.
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Refer to EC 206.
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Schedule E is used to report supplemental income or loss from any of the following:
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Rents and royalties, Part I
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Partnership and S Corporations, Part II
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Estates and Trusts, Part III
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Real Estate Mortgage Investment Conduits, Part IV
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Summary (Farm Rental), Part V
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The Passive Activity loss rules may limit the amount of losses the taxpayer can deduct in Parts I, II, and III, and on line 40 of Schedule E. A Passive activity is any business activity in which the taxpayer did not materially participate, or any rental activity, regardless of material participation, except for material participation by a real estate professional.
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Fields 1339 and 1340 may be either positive or negative. All other fields must be entered as positive.
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Section 13 consists of the following fields. The computer will underprint the computed Schedule amount under Field 0317.
Field Designator Field Title Field Location 13RV Rental Vacation Property Line 2 box(es) 1303 Rents Received Line 3 1304 Royalties Received Line 4 1312 Mortgage Interest Paid Line 12 1314A Repairs — Column A Line 14 — Column A 1314B Repairs — Column B Line 14 — Column B 1314C Repairs — Column C Line 14 — Column C 1319 Rental Expenses Line 19 1320 Rental Depreciation Line 20 1324 Rent/Royalty Income Line 24 1325 Rent/Royalty Loss Line 25 1327 Passive Income Indicator Line 27 1329G Partnership/S Corporation Passive Income Line 29a, column g 1329J Partnership/S Corporation Nonpassive Income Line 29a, column j 13PIG Passive Partnership Loss Included in Column F Line 29b, column f 1329H Partnership/S Corporation Nonpassive Loss Line 29b, column h 1330 Partnership/S Corporation Income Line 30 1331 Partnership/S Corporation Loss Line 31 1334D Estate/Trust Passive Income Line 34a, column d 13PET Passive Estate and Trust Loss Line 34b, column c 1335 Estate/Trust Income Line 35 1336 Estate/Trust Loss Line 36 13ES Schedule K-1 ES Payment Indicator Line 37, dotted portion of line 1339 REMIC Line 39 1340 Farm Rental Income/Loss Line 40 1342 Farm and Fishing Income Line 42
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Section 13 will be invalid if not all numeric.
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Additional invalid conditions are also given for Fields 13RV, 1327, and 13ES.
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Correction procedures for Section 13 fields follow.
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Description — This field is transcribed from the box(es) on line 2, Part I, page 1, Schedule E.
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Invalid Conditions — This field will be invalid if other than blank, 1 or 2.
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Correction Procedures — Determine the correct code based on the taxpayer's answer to the question on line 2. Take the following action:
If the taxpayer checked... Then... A] Any yes box, Enter 1 in Field 13RV. B] Both yes and no boxes, Enter 1 in Field 13RV. C] Only no box, Enter 2 in Field 13RV. D] Neither box and/or you are unable to determine, Delete any entry in Field 13RV.
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Description — This field is transcribed from line 27, Schedule E.
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Invalid Conditions — This field will be invalid if other than 0,1, or 2.
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Correction Procedures — Determine the correct code based on the taxpayer's answer to the question on line 27. Take the following action:
If the taxpayer checked... Then... A] The yes box, Enter 1 in Field 1327. B] The no box, Enter 2 in Field 1327. C] Both boxes Enter 1 in Field 1327. D] Neither box is checked Enter 0 in Field 1327.
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Description — This field is transcribed from the dotted portion of line 37, Schedule E.
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Invalid Conditions — This field will be invalid if other than blank or 1.
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Check the dotted portion of line 37 and code Field 13ES as indicated in the following table:
If the taxpayer... Then... A]Indicates "ES Payment claimed" , Enter 1 in Field 13ES. B] No indication present, Delete any entry in Field 13ES.
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Schedule F is used to report Farm Income and Expenses. (Refer to EC 208.)
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The first Schedule F appears as Section 14 and the second as Section 15.
Note:
For the remainder of this text Schedule F will be referred to as Section 14; however, all correction procedures will apply equally to Sections 14 and 15.
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The taxpayer may choose either the cash or accrual accounting method to report farm income. Taxpayers are instructed to report gross income for both cash and accrual on line 11. Code and Edit is instructed to "X" line 11 when the taxpayer is using the accrual method.
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Field 1402 through 1411 are used for the cash method.
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Fields 1439A through 1451 are used for the accrual method.
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If the taxpayer has filed more than two Schedules F, Code and Edit will merge schedules and adjust all transcription fields according to the accounting method used.
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Fields 1411 and 1451 may be either positive or negative. All other fields must be positive.
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Section 14 consists of the following fields:
Field Designator Field Tilte Field Location 14NCS NAICS Code Box B 14EIN Employer Identification Number Box D 1402 Cost or Other Basis Line 2 1405A Cooperative Distributions Cash Line 5a 1406A Gross Agricultural Program Payments Line 6a 1406B Taxable Agricultural Program Payments Line 6b 1407B Gross CCC Loans Forfeited or Repaid Line 7b 1408A Gross Crop Insurance Line 8a 1408B Taxable Crop Insurance Line 8b 1409 Custom Machine Hire Income Line 9 1411 Gross Income (Cash) Line 11 1415 Custom Machine Hire Line 15 1421 Gas, Fuel, and Oil Line 21 1423A Mortgage Interest Line 23a 1427 Repairs and Maintenance Line 27 1430 Supplies Purchased Line 30 1435 Total Farm Expenses Line 35 14AR At Risk Code Line 36 box(es) 1439A Gross Cooperative Distributions Line 39a 1439B Taxable Cooperative Distributions Line 39b 1440A Gross Agricultural Program Payments Line 40a 1441B CCC Loans Forfeited Line 41b 1445 Gross Receipts Line 45 1451 Gross Income (Accrual) Line 51
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All fields will appear invalid if not all numeric.
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Additional invalid conditions are given for Fields 14NCS and 14EIN.
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When the taxpayer files more than two Schedules F and they have not been merged by Code and Edit, merge the schedules and adjust all transcription fields according to the Accounting Method used.
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Additional correction procedures for Section 14 fields follow.
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Description — This field is transcribed from box B in the header portion of Schedule F.
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Invalid Conditions — This field will be invalid if other than 6 numeric characters or blanks.
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Correction Procedures — Enter the code, entered by the taxpayer on Schedule F, using the following table:
If the taxpayer has entered... Then... A] More than one code, Enter the first code listed. B]A 3–digit Agricultural code, Enter the code with three leading zeros (i.e., "123" would be entered as "000123" ). C] A code other than 6 numeric characters and the previous instruction does not apply, Delete any entries in Field 14NCS.
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Description — This field is transcribed from box D in the header of Schedule F.
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Invalid Conditions — This field will be invalid if other than nine numeric characters have been transcribed.
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Correction Procedures — Do not enter a number that is the same as the Primary or Secondary SSN. Blank the field, if unable to determine.
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Description — These fields are transcribed from Part I (Cash Method of Accounting) of Schedule F.
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Description — These fields are transcribed from Part II (Farm Expenses) of Schedule F.
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Description — This field is the total of all Farm expenses in Part II, Schedule F.
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Description — The at risk code is located on either line 37a or 37b of Schedule F.
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Invalid Conditions — This field will be invalid if other than 1, 2, or 3.
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Correction Procedures — Enter Field 14AR based on the entry to the at risk question, as follows, when line 36 is a loss on Schedule F:
If Schedule F... Then enter... A] Has only box 37a checked (all at risk), 1 in Field 14AR. B]Has box 37b or both 37a and 37b checked (some is not at risk), 2 in Field 14AR. C] Box 37a and 37b are not checked, 3 in Field 14AR. D]Is for TY85 or prior return, 3 in Field 14AR. (Refer to EC 072) Exception:
Code 3 in Field 14AR when all of the following exist:
a. Schedule F has been combined (multiples).
b. Creates a loss of $1,000 or more.
c. No single Schedule F has a loss of $1,000 or more.Note:
Whenever the line 37b (some is not at risk) box has been checked or no box has been checked, and the loss on line 31, Schedule F, has been limited, adjust the entry in Field 1435 (Total Farm Expenses) to reflect the taxpayer's limited loss. To do this, add line 21, Form 6198 (treat in this instance as a positive amount), to line 11, Schedule F and enter the result in Field 1435.
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Schedule R/Schedule 3 is used to compute the amount of Credit for the Elderly or the Disabled. (Refer to ECs 086, 280, and 282.)
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Qualifications for the credit are 65 years or over or the taxpayer meets both of the following:
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Under the age of 65 and permanently and totally disabled.
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Receives a taxable disability income.
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For Forms 1040 and 1040A, Section 16 consists of the following fields:
Field Designator Field Title Field Location 16FSI Filing Status Age Indicator Code Part I Questions 1611 Taxable Disability Income Line 11 1613C Other Pensions and Annuities Line 13c 1620V Credit for the Elderly Verified Line 24, Schedule R
(Line 22, Schedule 3)
(ERS Input Only)
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All fields will appear invalid if not all numeric.
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Additional invalid conditions are given for Field 16FSI.
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Correction procedures for Section 16 fields follow.
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Description — Field 16FSI is transcribed from Part I of Schedule R/Schedule 3 based on the box checked by the taxpayer. This field is transcribed as one digit.
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Invalid Conditions — This field will be invalid if Section 16 is present and Field 16FSI is blank or other than 1 through 9.
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Correction Procedures — Use the Filing Status and/or Age Blind Indicator on the return to determine the correct FSI code. Use the following table to correct Field 16FSI:
Example:
If the taxpayer has checked the Age/Blind box for "65 or older" and is FSC 1, 4 or 5, enter a 1 in Field 16FSI.
If... And... Then... A] Any of the following:
1. No FSI box is checked,
2. Multiple FSI boxes are checked,
3. FSI is inconsistent with filing status box checked,Enter FSI code based on determination. B] Proper Code cannot be determined, No tax liability, DLSEC 16. A tax liability exists, SSPND 211.
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Description — This field is transcribed from Part III, Schedule R.
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Description — This field is transcribed from Part III, Schedule R.
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Schedule SE is used to report Self-Employment (SE) (Social Security and Medicare) Tax of a primary or secondary taxpayer. (Refer to EC 209.)
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Section 17 data is for the primary taxpayer.
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Section 18 data is for the secondary taxpayer.
Note:
For the remainder of this text Schedule SE will be referred to as Section 17; however, all correction procedures will apply equally to Sections 17 and 18.
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If the taxpayer's total for wages and tips subject to Social Security or Railroad Retirement Tax plus net earnings from self-employment is more than the following:
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TY08 - $102,000
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TY07 - $97,500
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TY06 - $94,200
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Any taxpayer may use the Long version. The Short version cannot be used when Self-Employment Income is from any of the following sources:
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Taxpayer is a minister and owes Self-Employment Tax on other than minister earnings.
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Taxpayer has Government Employee SE Wages.
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Taxpayer has Church Employee SE Wages.
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Taxpayer has tip income subject to Social Security Tax that was not reported to the employer.
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Taxpayer uses the "Optional Method" to figure Self-Employment Tax.
Note:
For TY88 and later, taxpayers are able to choose between a Short or Long Schedule SE. The Short Schedule SE cannot be used.
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For TY90 and later, taxpayers will do both of the following:
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Deduct 7.65% of their SE income by multiplying line 3, Schedule SE by .9235 . (Refer to EC 209.)
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Reduce their AGI by one half of their assessed SE tax as an adjustment to income. (Refer to EC 211.)
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For TY06through TY08 the SE Tax rates are 12.4% for Social Security Tax and 2.9% for Medicare Tax. Self-Employment Medicare Tax is paid on all earnings while SE Social Security Tax is limited as follows:
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TY08 - $102,000
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TY07 - $97,500
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TY06 - $94,200
Note:
The taxpayer's SE rate is 15.3% (12.4% + 2.9%) of the limited amount plus 2.9% of any amount over that limit.
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The taxpayer may elect to compute SE Tax using the regular method, the optional method or both methods when there is more than one source of SE Income. See IRM 3.12.3.17.4(5).
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Fields 1701aand 1702 may be either positive or negative. All other fields must be positive.
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Section 17 consists of the following fields:
Field Designator Field Title Field Location 17SSN SE SSN Header of Schedule SE 1701a Net Farm Profit/Loss Line 1a (Long and Short Schedule SE) 1701b Conservation, Reserve Program Payments Line 1b (Long and Short Schedule SE) 1702 Net Non Farm Profit/Loss Line 2 (Long and Short Schedule SE) 17TE Tentative Earnings Line 3 (Long and Short Schedule SE) 1704B Optional Method Income Amount ERS Input Only 17QC SE Quarters Covered Edited in right margin of line 4c (Long Schedule SE) or line 4 (Short Schedule SE) 17CHW Tentative Church Wages Line 5a (Long Schedule SE) 17TSW Total Social Security Wages Covered Line 8d (Long Schedule SE) 17MCD SE Method Code Edited on bottom center margin (Long Schedule SE) 17SEV SE Tax Verified ERS Input Only
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All fields will appear invalid if not all numeric.
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Additional invalid conditions are given for Fields 17SSN, 17MCD and 17QC.
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Correct coding and transcription errors and misplaced entries on displayed fields.
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Compute and enter accordingly when a transcribed line is blank and there are entries leading to an amount.
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Check for one of the following indicators to determine if the taxpayer may be exempt from paying SE Tax when the taxpayer indicates zero SE tax or does not complete Schedule SE:
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"Statutory Employee" (Schedule C, line 1 box checked)
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"Exempt"
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"Exempt-Notary"
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"Not liable"
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"QJV" (qualified joint venture, noted to the left of line 57, Form 1040)
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Form 4361 (minister or member of a religious order)
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Form 4029 (Members of Certain Religious Sects having conscientious objections to SE Tax)
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Take the following steps when any of the preceding conditions apply and no tax is present for exempt income:
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Enter S in Field 01RPC (if not already present).
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Delete Section 17/18.
Exception:
Do not enter RPC S if one spouse is exempt and the other spouse is liable for Self-Employment.
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The taxpayer may elect to compute SE using both methods (regular and optional) because they have more than one source of SE Income. This will be indicated by an entry on both line 3 and line 4b of the long Schedule SE.
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Additional correction procedures for Section 17/18 fields follow.
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Description — This field is transcribed from the header of Schedule SE as follows:
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The SSN in Field 17SSN must be for the primary taxpayer.
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The SSN in Field 18SSN must be for the secondary taxpayer.
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When Section(s) 17/18 is present, Field 17/18SSN cannot be all blanks. A valid S–SSN is required in Field 01SS if Section 18 is present.
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Invalid Conditions—This field will appear invalid if it contains fewer than nine digits or any non-numeric character(s).
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Description — This field is the amount of farm income (Schedule F) and/or farm partnership income.
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Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Enter amount from line 36, Schedule F when Field 1701a is blank.
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Description — This field is the amount Conservation Reserve Program Payments claimed on line 6b, Schedule F.
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Correction Procedures — Enter the amount from line 6b, Schedule F when Field 1701b is blank.
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See EC 209 procedures for Field 1701b.
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Description — This field is the amount of Schedule C/C–EZ income and or other Non-Farm Self-Employment Income.
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Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Enter amount from Schedule C/C–EZ when Field 1702 is blank.
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Description — This field represents the taxpayer's total of lines 1 and 2.
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Use the following table to correct Field 17TE:
If the taxpayer has... And the taxpayer... Then... A] Used the optional method (an amount is present on line 15 or 17 and 4b), 1. Enter line 4b amount in Field1704B.
2. Enter the appropriate Method Code in Field 17MCD.B] noted "Exempt-Notary" and an amount to the left of line 3, Subtracted the noted amount from the total of lines 1 and 2, Schedule SE, Reduce line 2 amount by the "Exempt-Notary" amount (if not already done by Code and Edit). -
Accept the taxpayer's entry if they are paying SE Tax because of Chapter 11 Bankruptcy. They will, enter on the dotted line to the left of line 3, Schedule SE "Chap. 11 Bankruptcy Income" and the amount of their net profit or loss. They will combine that amount with the total of lines 1 and/or 2 and enter the result on line 3.
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Description — This field is for ERS Input Only. It is used when the taxpayer is using one or both of the optional methods.
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Description — This code will be used on short year returns only.
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This code is edited by Code and Edit in the right margin of line 4c of long Schedule SE or line 4 of short Schedule SE.
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Invalid Condition — This field will appear invalid if transcribed as other than 1, 2, or 3. Code 0 (zero) is also valid, but is computer-generated and cannot be transcribed.
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Correction Procedures — Compare the field on the screen to the entry on the return. Correct any editing or transcription error(s).
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Determine the number of quarters covered by the tax period when code is invalid and code as follows:
If number of... Then... A] Quarters is 1 Enter 1 in Field 17QC. B] Quarters are 2 Enter 2 in Field 17QC. C] Quarters are 3 Enter 3 in Field 17QC. D] Quarters are more than 3 or cannot be determined, Blank the code to generate Code 0 (zero). Note:
A fraction of a quarter counts as a full quarter. The quarters begin in January, April, July and October.
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Correction Procedures — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Description — This field is the total of lines 8a, 8b, and 8c.
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Correction Procedures — Correct Field 17TSW using the following table:
The taxpayer has... And... Then... A] Not entered an amount on line 8d, Has an entry on line 8a, 8b, and/or 8c, 1. Compute the amount for line 8d (8a + 8b + 8c).
2. Enter the amount in Field 17TSW.B] No entries on lines 8a, 8b, 8c or 8d, A Form W-2 for the liable taxpayer is attached and shows SST wages, Enter the Social Security Tax (SST) wages in Field 17TSW and on line 8d. C] Entered an amount on line 8d that is $102,000 or more, 1. Line 8b and 8c are blank,
2. The total SST wages on Form W-2(s) is $102,000 or less,Enter the amount from the W-2(s) in Field 17TSW. Note:
Enter CCC V when an entry is made that will lower the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, and the Self-Employment income is less than or equal to the maximum amount of wages subject to Social Security Tax for that tax year.