1040-US: Special data-entry requirements for the Filing Status Optimization utility

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Question

Are there any other special data-entry requirements when using the Filing Status Optimization utility?

Answer

The following situations require special input for a married filing separate return to calculate correctly.

IRA: Covered by a retirement plan?

The application determines this information based on information you enter elsewhere in the joint return. The spouse information is not available in a split return. You must make an entry in this field to transfer the information to both the taxpayer and spouse clients created by the utility.

8814: T, S, J

Please refer to Form 8814 instructions for the appropriate entries for this field. When the Filing Status Optimization utility is run, any unit of information with an S entry is included in the spouse's return when split. All other entries in this field are included in the taxpayer's return.

Foreign interest and dividends

When the Filing Status Optimization utility is used on clients with interest and dividend income from foreign sources, which qualifies for the Foreign Tax Credit, enter all information on Screen B&D, Screen Broker, or Screen 1116. Carefully review married filing separate returns containing information on these screens.

Married filing separate luxury autos

Carefully review married filing separate returns that contain a luxury auto whose ownership was defined as joint in the joint client.

Dependents

Dependents entered in the Dependent information statement dialog in Screen 1040 are included in the filing status optimization calculation. The application optimizes dependents coded J and assigns them to the taxpayer or the spouse based on which scenario generates the greatest tax savings for a married filing separate status. Dependents coded T (or blank) will always be assigned to the taxpayer and dependents coded S will always be assigned to the spouse.

Note: When dependents coded J are present in the return, the filing status optimization process will take longer to complete.

Details on the Filing Status Optimization utility.

Related topic: Filing Status Optimization utility FAQs (1040)

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