Default Style Register
Daycare.com Forum
Daycare and Taxes>TaxAct Form 8829 Issue
Lyss 10:03 PM 02-16-2013
I did my taxes myself (on paper) first using the 2012 Tax workbook (Tom's; ) and I know my numbers are correct. I've seen some of you post that you have used TaxAct so I'm wondering if anyone has ran into this issue.

I had no problems with the software until I paid and then could access all my forms. I could preview my 1040 before paid and all the information that was transferred to my 1040 from my schedule C and 8829 was correct so I assumed that the forms themselves were correct, but this is not the case with my 8829.

Line 5 is entered as the full year number (8,784) but I only worked part of last year (5880). The weird thing is that the calculation of line 6 and line 7 (my t/s%) is based off my actual hours worked. So line 6 and beyond are actually correct but if the IRS looks at line 5 and divides it by my hours worked (line 4)they will get a different amount and think my whole return is wrong.

I've emailed support but no response as of yet and I'm wondering if I should just demand a refund (I haven't e filed yet)
Reply
Michael 03:49 AM 02-17-2013
https://www.daycare.com/forum/tags.php?tag=form+8829
Reply
Angelsj 06:41 AM 02-17-2013
Line 5 is the total number of POSSIBLE hours you can have in a year. As long as the rest is correct, I wouldn't worry about it. I am not sure this line can be changed and still Efile with Tax Act. You can adjust certain things and not others.

You could play with that and see. You can always put it back if tax act fusses about it. However, if playing with it causes a large difference, you may want to paper file.
Reply
TomCopeland 08:42 AM 02-17-2013
Originally Posted by Lyss:
I did my taxes myself (on paper) first using the 2012 Tax workbook (Tom's; ) and I know my numbers are correct. I've seen some of you post that you have used TaxAct so I'm wondering if anyone has ran into this issue.

I had no problems with the software until I paid and then could access all my forms. I could preview my 1040 before paid and all the information that was transferred to my 1040 from my schedule C and 8829 was correct so I assumed that the forms themselves were correct, but this is not the case with my 8829.

Line 5 is entered as the full year number (8,784) but I only worked part of last year (5880). The weird thing is that the calculation of line 6 and line 7 (my t/s%) is based off my actual hours worked. So line 6 and beyond are actually correct but if the IRS looks at line 5 and divides it by my hours worked (line 4)they will get a different amount and think my whole return is wrong.

I've emailed support but no response as of yet and I'm wondering if I should just demand a refund (I haven't e filed yet)
I don't know how this software deals with a partial year. If line 7 (your time-space % result) is correct, then the rest of the form is correct and you can leave it alone. If line 7 is not correct, one way to solve this is to enter the number of hours on line 6 (your hours worked) so that line 7 will be correct. This will mean raising the number of hours you worked. If you do this you need to only enter your expenses on this form that represent the number of months you were in business.
Reply
Lyss 02:22 PM 02-19-2013
Thanks!

TaxAct support got back to me and said on their end (and what the IRS will see) it is recorded correctly. They weren't sure why on my end it was not showing the 5880. I just went ahead and submitted it and on my printed copy I made note of the actual hours and also printed the email from customer service just in case.
Reply
frugalmama4 04:04 PM 02-19-2013
Originally Posted by Lyss:
Thanks!

TaxAct support got back to me and said on their end (and what the IRS will see) it is recorded correctly. They weren't sure why on my end it was not showing the 5880. I just went ahead and submitted it and on my printed copy I made note of the actual hours and also printed the email from customer service just in case.
Hi Lyss,

Just so you can sleep easy. I too had the same issue with TT...but all my numbers are correct (I used Tom books also). When I looked over my tax paperwork from last year (a Tax Pro did them using TaxSlayer) its the same way on my copies...not sure why??? but I do know all the information gets carried over to the IRS correctly.

It's Tom great!
Reply
Tags:form 8829, taxact
Reply Up