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The joint client merge tool is designed to help you merge client date from two separate returns into a married filing joint return or a domestic partnership return for state use. Once two clients are merged, you can recombine them if any individual changes happen.
Before you start
- You can only add state tax information after merging two clients. State information you add before the merge will be lost.
- Federal Client Organizer data and Assets will transfer to the joint client. State Organizer and asset data will not.
- Federal returns can't be filed jointly for domestic partnerships or civil unions.
- If you are licensed for UltraTax CS Client Organizer and sent organizers to the taxpayer and spouse, complete the merge process after the client organizers are returned and all federal data has been entered.
- If information in the taxpayer or spouse client changes after the initial merge, they can be recombined to overwrite the joint client.
- UltraTax CS adheres to the following default rules when merging data:
- Data in amount fields in single-unit input screens are added together and transferred to the joint client.
- Non-financial data in single-unit input screens transfers only from the taxpayer client.
- Data entered in statement dialogs in single-unit input screens transfers from both taxpayer and spouse clients, with the taxpayer items appearing first and followed by the spouse items.
- All data in multiple-unit input screens transfers to the joint client.
In some situations, the default merge rules listed above do not apply. UltraTax CS will make assumptions for screens and forms. Show me.
Merge individual clients for a married filing joint return
Use this procedure to merge the client data from two individual clients into one joint client for purposes of filing a married filing joint return.
Add state tax information after merging for a married filing joint return. Any state information you add before the merge will be lost.
- Complete the individual tax returns as much as possible before merging, including the Filing Status in the General input folder on the 1040 screen.
- Select File, then New Client.
- Select a preparer (if applicable), and enter a unique client ID for the new joint client.
- In the Entity information group box, select the 1040 option and select Domestic Partner from the 1040 drop-down list.
You need to select Domestic Partnership for married filing joint returns and will change this later.
- Do not add states in this screen yet.
- Select the Advanced Properties to open the Advanced Properties dialog, then select the Domestic Partners tab.
- In the Domestic Partners tab, select the taxpayer in the client list and select Select Taxpayer.
- Select the spouse in the client list and select Select Spouse.
- Select OK to close.
- In the New Client dialog, select OK to begin the merge process.
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If critical errors and/or warnings are generated during the merge process, the Merge Client Data Results dialog opens detailing those critical errors and/or warnings. Critical error messages should be addressed by the preparer before proceeding with the merged client. Warning messages are generally informational and may not require additional attention from the preparer.
Note: To print the list of critical errors and/or warnings created during the merge process, select Print in the Merge Client Data Results dialog.
Do one of the following:
- If the Merge Client Data Results dialog did not open, there were no critical errors or warnings and the merge is complete. Proceed to the next step.
- If critical errors were generated and you want to resolve those critical errors before completing the merge,
- Select Print print or save the list of critical errors and warnings.
- In the Merge Client Data Results dialog, select Cancel to stop the creation of the new joint client.
- Select OK.
- Open the appropriate taxpayer and/or spouse file, correct the critical errors, and close the client(s).
- Return to the beginning and attempt to create the file again.
- If critical errors were generated and you want to ignore them, select OK to complete the merge and proceed to the next step. UltraTax CS will generate a diagnostic message in the merged client when unresolved critical errors still exist.
- If only warnings were generated, select OK to complete the merge, and then proceed to the next step.
- The new joint client will open when the merge is complete.
- Select File, then Client properties.
- Change the 1040 field from Domestic partnership to Individual.
- Select Add State(s) to add state returns to the joint file.
- Select OK to close the Client Properties dialog. If a warning message requires additional attention, make the necessary changes in the new joint client.
If you recombine data from taxpayer and spouse clients into an existing joint client, any changes made to federal data in the existing joint client will be overwritten.
After changing a Domestic Partnership return to an Individual return, the return type cannot be changed back to a Domestic Partnership return.
- Review the the merged joint client to ensure you have the desired results.
Merge individual clients for a domestic partnership return
Use this procedure to merge the client data from two individual clients into one joint client for purposes of filing a domestic partnership return.
If you are processing proforma'd domestic partner returns, see the Working with proforma'd domestic partner clients to preserve carryover amounts section.
- Complete the individual federal returns to the point of being read to file before you merge. Don't add state information until after the merge.
- Select File, then New Client.
- Select a preparer (if applicable), and enter a unique client ID for the new joint client.
- In the Entity information group box, select the 1040 option and select Domestic Partner from the 1040 drop-down list.
- Select the Add State(s) to add state returns to the joint client. If you don't see the state you'd like to add, it is likely that state does not allow Domestic Partner returns.
- Select the Advanced Properties to open the Advanced Properties dialog, then select the Domestic Partners tab.
- In the Domestic Partners tab, select the taxpayer in the client list and select Select Taxpayer.
- Select the spouse in the client list and select Select Spouse.
- Mark the Separately list individual returns in DPR transmittal letter checkbox if you would like the list of returns to appear in the Transmittal Letter.
- Select OK to close.
- In the New Client dialog, click OK to begin the merge process.
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If critical errors and/or warnings are generated during the merge process, the Merge Client Data Results dialog opens detailing those critical errors and/or warnings. Critical error messages should be addressed by the preparer before proceeding with the merged client. Warning messages are generally informational and may not require additional attention from the preparer.
Note: To print the list of critical errors and/or warnings created during the merge process, select Print in the Merge Client Data Results dialog.
Do one of the following:
- If the Merge Client Data Results dialog did not open, there were no critical errors or warnings and the merge is complete. Proceed to the next step.
- If critical errors were generated and you want to resolve those critical errors before completing the merge,
- Select Print print or save the list of critical errors and warnings.
- In the Merge Client Data Results dialog, select Cancel to stop the creation of the new joint client.
- Select OK.
- Open the appropriate taxpayer and/or spouse file, correct the critical errors, and close the client(s).
- Return to the beginning and attempt to create the file again.
- If critical errors were generated and you want to ignore them, select OK to complete the merge and proceed to the next step. UltraTax CS will generate a diagnostic message in the merged client when unresolved critical errors still exist.
- If only warnings were generated, select OK to complete the merge, and then proceed to the next step.
- The new joint client will open when the merge is complete.
Recombine clients into an existing married filing joint or domestic partnership return
If individual taxpayer and spouse clients are merged into a joint client, and information in either individual client changes after the merge, they can be recombined into the joint client.
If you are recombining proforma'd domestic partner clients and want to preserve carryover amounts, see the Working with proforma'd domestic partner clients to preserve carryover amounts section before proceeding.
Recombining data from taxpayer and spouse clients into an existing joint client will overwrite any changes made to federal data, including State if different fields, in the existing joint client. You can enter new information manually into the joint client instead of recombining the data to avoid overwriting information specific to the married filing joint client, such as amounts entered for section 179 elections.
- Open the joint client whose individual taxpayer and spouse client data you want to recombine.
- Select File, then Client Properties.
- Select the Advanced Properties to open the Advanced Properties dialog, then select the Domestic Partners tab.
- In the Domestic Partners tab,
- Verify that the selected taxpayer and spouse clients are the proper clients. If necessary, select a different taxpayer and/or spouse client.
- Mark the Recombine the federal data of the taxpayer and spouse clients checkbox.
- If you are recombining proforma'd domestic partner clients, also mark the Retain prior year carryover amounts when re-combining current year data checkbox.
- If the new joint client will be used to prepare a Domestic Partnership return, mark the Separately list individual returns in DPR transmittal letter checkbox if you would like the list of returns to appear in the Transmittal Letter.
- Select OK to close the Advanced Properties dialog.
- In the Client Properties dialog, select OK to begin the recombine process.
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If critical errors and/or warnings are generated during the merge process, the Merge Client Data Results dialog opens detailing those critical errors and/or warnings. Critical error messages should be addressed by the preparer before proceeding with the merged client. Warning messages are generally informational and may not require additional attention from the preparer.
Note: To print the list of critical errors and/or warnings created during the merge process, select Print in the Merge Client Data Results dialog.
Do one of the following:
- If the Merge Client Data Results dialog did not open, there were no critical errors or warnings and the merge is complete. Proceed to the next step.
- If critical errors were generated and you want to resolve those critical errors before completing the merge,
- Select Print print or save the list of critical errors and warnings.
- In the Merge Client Data Results dialog, select Cancel to stop the creation of the new joint client.
- Select OK.
- Open the appropriate taxpayer and/or spouse file, correct the critical errors, and close the client(s).
- Return to the beginning and attempt to create the file again.
- If critical errors were generated and you want to ignore them, select OK to complete the merge and proceed to the next step. UltraTax CS will generate a diagnostic message in the merged client when unresolved critical errors still exist.
- If only warnings were generated, select OK to complete the merge, and then proceed to the next step.
Working with proforma'd domestic partner clients to retain carryover amounts
When processing domestic partner returns that were proforma'd from the prior year, all three returns related to the merge - the individual taxpayer, individual spouse, and merged domestic partner return - must be proforma'd to preserve the joint carryover amounts calculated in the prior year.
- Proforma all three related prior-year returns: the individual taxpayer return, individual spouse return, and the merged domestic partner return.
- In the proforma'd individual taxpayer and spouse federal returns, enter the current-year federal data.
- Recombine the individual taxpayer and spouse returns as described in the Recombining taxpayer and spouse clients into an existing married filing joint or domestic partnership return section.
Note: The items listed in the table below will be retained in the merged client upon recombining the individual returns.
- In the domestic partner return, enter current-year state-specific data in the applicable state input screens in addition to the information retained during the recombine process. Show me.
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