Schedule M

[AJsTax]

This is a mess!

We just had two rejects of persons receiving Ohio Sers and STRS. Neither one is on SS, but spouse is. One said they did receive the 250 for each. How is that possible? anyone have any ideas? The spouse worked their entire life under STRS and will never be eligible for SS, yet they got a $250 check. It makes no sense with the information we have been given. The other one can find no record of receiving the check. We had to mark both spouses on each return as having received the payment in order to pass efile.
We have had more rejects on this one issue than we normally have all season for all reasons.
I sincerely hope they never try something like this again.

And better yet, those of us that do payroll and small businesses, wait until we get the mess of this new jobs bill. Figure FICA and then take some of it back off again, etc. etc.

[S T]

State Government

And I just had the California State Government reject from IRS on a t/p that receives State Retirment from the Teachers Retirement.

I doubt that IRS is going to show any of thos recorded on the webstie.

But at least something is better than nothing at all - and if we can at least review or check SSA, Va and RRb, that is a start and will help to assist in reducing the reject notices.

Sandy

[zeros]

VA Disability & Social Security

My one rejection of the schedule M was the taxpayer received $250.00 from the VA and also another $250.00 from Social Security. The spouse worked and was not eligible for these payments.

[Jiggers]

That's correct

Note this says VA, RRRB or SSA. It does not cover state government pensions.

SSA, VA, and RRRB were the only ones to issue $250 payments, correct?

State and other government pension recipients did not receive the payment.

That is why there is schedule M. If there were no $250 payment issued by SSA, VA, or RRRB, the the government pension recipient would be entitled to $250 by way of the Schedule M.

If the client said no $250 payment was received from SSA, VA, and RRRB, and we marked the Schedule M as none received, that is why there is a reject.

Now we can verify if there was a $250 payment from SSA, VA, or RRRB.

Though it is kind of late in the tax season.

[Burke]

Note this says VA, RRRB or SSA. It does not cover state government pensions.

[Jiggers]

IRS Website to check

Again if IRS - SSA or any other government would have given us an online checkpoint like they did with the Stimulus Rebates - we wouldn't be having these issues

Efile error rate has to "skyrocket" for the 2009 Tax Filing Season -

From another website: (PLEASE NOTE - THIS HASN'T BEEN CONFIRMED)

"IRS look up tool for Economic Recovery Payment -
The IRS has developed Economic Recovery Payment (ERP) look up tool because
many taxpayers are having difficulty filing their tax returns if they
received an ERP payment and are not reporting it properly on the Schedule M.
This normally occurs because taxpayers do not know or remember if they
received the one-time $250 ERP from SSA, VA or RRB. The Social Security
Administration, Department of Veterans Affairs, and Railroad Retirement
Board collaborated with the IRS to help taxpayers determine if they received
an ERP.

§ The IRS developed the "Did I Receive an Economic Recovery Payment?" look
up tool which can be accessed by phone in the initial phase. On March 23,
2010 a web application is expected to be available via IRS.gov. This tool
will give taxpayers an easy way to determine if they received the one-time
ERP and which agency made the payment."

March 8th is the date that you can access this by telephone.

March 23rd is the date that the IRS will have a website.

Tax season will almost be over by March 23rd. Can't theIRS get their act together and get this up and running today?

If only they would listen to us professionals and our organizations that have been harping about this since January.

[veritas]

We had one reject

the return filed originally indicated a $250 stimulus payment received.. It was rejected, the client in fact had not received the payment.

[S T]

Not Software

It is not the software, it is at the IRS level.

Spouse did NOT receive the $250 from STRS so of course I didn't enter it
IRS says they did or should have

So now just client says get the return filed
We will handle on the back - end and file amended with the necessary letter stating that the $ 250 was NEVER issued

Again if IRS - SSA or any other government would have given us an online checkpoint like they did with the Stimulus Rebates - we wouldn't be having these issues

Efile error rate has to "skyrocket" for the 2009 Tax Filing Season -

I already have 4 or 5 rejects and usually in a really good year I have none or "1" and I still have a long ways to go until 4/15 and beyond with extensions

Thanks to all who posted

Sandy

[ChEAr$]

I must say that my software, Taxwise, worked like a charm.

Husband had recieved his 250 from SSA and wife had none, since she is retired
U S Civil service. I "gave" her the 250 and efiled okay.

At least in my software you have to manually enter the 250 on next to last line.

[JG EA]

Oh I get it - you are trying to get the S's 250 now.

[S T]

Turns Out

The $6 for the $100 wages is non consequentail and doesn't not give any credit due to the SSA offsets, etc on Schedule M

The $250 from California STRS is the problem.(Government) So in talking with the client - said to show the $ 250 received (spouse does not receive ANY Social Security Benefits) and it cleared efile.

So he is obtaining the letter from Calif STRS - and we will file an amended for the $ 250 NOT received from Calif STRS

What a PITA

JG Thanks for asking!

Sandy

[JG EA]

So, you put 250 for TP and 0 for S? So there would not be any $6. $6 minus 250 is zero. Could that be the problem?

[S T]

Earnings were

almost nothing - $ 100 as a substitute teacher -

Seems like IRS is being "presumptious" on the $ 250 for the spouse - I have the client going back through deposits and bank records now. He swears they did not receive the $ 250 from the spouse's California STRS (government) and the spouse is not on the Social Security Records (not eligible because of the STRS) retirement. Only Medicare. There is always the possibility that the t/p missed the payment (he still receives actual checks and will not do anything on direct deposit) however, from past experience with this client he keeps impeccable records (wish I could hire him)

This is the second one that I have come across that they didn't receive the $250 but IRS says they did, because they are on "Medicare" ONLY.

Looks like I will have a few letter writings and possible amended's (or whatever we are suppose to do) after April 15th.

This whole Schedule M reporting relating to SSA and Govt retirement is a mess!



Sandy

[JG EA]

I do not understand, so I know someone out there understands these "rejects'

Taxpayer received the $ 250 from SSA - spouse is not receiving SSA but on California State Retirement Teachers Assoc - and was advised that she DID not receive $ 250 Entered only the t/p $ 250 on Schedule M

Spouse had W-2 earnings for substitute teaching which created a $ 6 Make Work Pay Credit.

...
...
Do I enter the $250 from STRS as received - which will reduce the refund and then submit paperwork later for IRS to refund the $520 separately????

Sandy

So, you put 250 in TP's column and zero in S's column?. And didn't check any boxes about another 250. How much was earned? Was it enough to eat up 250 or 500?

If it was enough there isn't a 500 separately. It is up to 800 minus what they got - not another 250 they didn't get. I'm not making sense but if I knew how much was earned we could probably figure out what happened. Try not checking any boxes if you did and see if that makes it understandable.

[S T]

I do not understand, so I know someone out there understands these "rejects'

Taxpayer received the $ 250 from SSA - spouse is not receiving SSA but on California State Retirement Teachers Assoc - and was advised that she DID not receive $ 250 Entered only the t/p $ 250 on Schedule M

Spouse had W-2 earnings for substitute teaching which created a $ 6 Make Work Pay Credit.

Here is the reject message:

Schedule M - Schedule M - Economic Recovery Payments Received does not
match IRS records. The IRS will not be able to provide this information. If a
taxpayer needs to know what their payment was, they can contact their respective
agency to find out. Social Security Administration: 800-772-1213, Veterans
Administration: 800-827-1000, or Railroad Retirement Board go to the RRB web
site at www.rrb.gov/recovery.
Form:SCH M 1040
Field:1132
Rej Code:0170
Multiple:01

Schedule M - If Filing Status of Form 1040/1040A equals "2" and Economic
Recovery Payments Received is not significant, Government Retiree Credit cannot
exceed $500. If Filing Status of Form 1040/1040A equals "2" and Economic
Recovery Payments Received equals $250. Government Retiree Credit cannot
exceed $250. If Filing Status of Form 1040/1040A equals "2" and Economic
Recovery Payments Received equals $500, Government Retiree Credit cannot be significant.

Form:SCH M 1040
Field:1135
Rej Code:0170
Multiple:01

Do I enter the $250 from STRS as received - which will reduce the refund and then submit paperwork later for IRS to refund the $520 separately????

Sandy