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Lesson 1 of 4 · 3:25
W-7 ITIN Application
Flag a dependent who needs an ITIN and complete Form W-7, Application for ITIN, so it prints with the return for mailing.
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Written instructions
Flag the dependent as an ITIN applicant
Go to Basic Information → Dependents/Qualifying Person and click the edit (pencil) icon for the person you are applying for.
- Check Check box if the dependent does not have an SSN/ITIN/ATIN.
- Under This dependent will be completing a Form W-7, Application for ITIN, select Yes.
Leave the rest of the record (date of birth, relationship, etc.) as is and click Continue. The dependent grid now shows Applied for ITIN in the Social Security Number column.
Open Form W-7
Type W7 in the Form Finder and choose the Application for ITIN form. You can also reach it from Federal Section → Miscellaneous Forms → Form W-7.
Confirm the applicant and choose the application type
On Form W-7, Applicant Information, the person you flagged is already selected in Person Applying for ITIN. If more than one person is flagged, pick the right one from the dropdown.
In Application Type, select Apply for a New ITIN, or the renewal option if the person already has an ITIN that needs renewing.
Select the reason for filing
Choose the applicable option from Reason for Filing Form. Some reasons open extra required fields. For example, Nonresident alien required to obtain ITIN to claim tax treaty benefit adds Treaty Country and Treaty Article Number.
Fill in any extra fields and click Continue.
Enter the applicant's personal information
On Form W-7, Personal Information:
- Select the Applicant's Gender.
- Check that the Mailing Address pulled from the return is correct. Check Applicant has a Foreign (non-U.S.) Address that differs from the Mailing Address or Applicant's Birth Name differs from the Name listed above only if they apply.
- Enter Country of Birth (required), City of Birth, State of Birth and Country of Citizenship (required).
Click Continue.
Enter the identification submitted
On Form W-7, Identification Submitted, check the document type under ID Type(s) Submitted: Passport, Driver's License/State I.D., USCIS Documentation or Other.
Complete the fields for that document: ID Issued By, ID Number, ID Expiration Date, Date of Entry into the U.S. and Foreign Tax ID, if any. Check Applicant previously received a TIN or EIN if it applies, then click Continue.
Print the W-7 with the return and mail it
The applicant now appears on the Form W-7, Application for ITIN list, which has a Print link. When you print the return, Form W-7 is included in the package.
Send the package to the IRS processing center. ITIN applications must be mailed.
- Anyone you flag appears in the Person Applying for ITIN dropdown. That includes a dependent with the no-SSN/ITIN/ATIN box checked or a taxpayer entered with an all-zeros SSN.
- The same form handles new ITIN applications and renewals of existing ITINs. Just pick the right Application Type.
Lesson 2 of 4 · 6:14
Amended – Fixing Another Office's Errors
Prepare and e-file a Form 1040-X for a new client whose original return was filed by another preparer. Enter the original figures, then make your corrections.
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Written instructions
Open the client and start the return
This workflow is for a client you did not serve last year. Their original return was filed elsewhere, so none of it is in your software.
Find the client in Client Search and click Select, or create them with Start New Tax Return.
Enter only the basic information
Under Basic Information, complete Filing Status, Personal Information and Dependents / Qualifying Person. Don't enter anything else yet.
Open the Amended Return section
In the left menu, click Amended Return, which is labeled with the tax year. The Amended Tax Return - Form 1040X page lists every part of the process: Original Federal Return Information, Make Corrections for Amended Return, Amend State Return(s), Explain Changes, Print Amended Return and Delete Amended Return.
Enter the figures from the original return
Click Begin next to Original Federal Return Information. Under Original Amount, copy each figure from the return the client brought you: Adjusted gross income, Itemized or standard deduction, Tax, Credits, Other taxes, Federal income tax withheld…, Estimated tax payments…, Earned income credit, and so on.
If you're not sure where a figure is, click Where is this located? under the field. A pop-up shows the line number, for example AGI is Form 1040 line 11 (or Form 1040-X line 1).
Save the original figures
Check the address, Presidential Election Campaign and exemption boxes at the bottom only if those items are changing. Click Continue. The original column now matches what the other office filed, and the button next to Original Federal Return Information changes to Edit.
Make the corrections in the return
Click Begin next to Make Corrections for Amended Return and click Continue. This takes you back into the regular return screens.
Enter whatever was missing or wrong, the same way you would on an original return. In the example, a 1099-DIV was added under Federal Section → Income → Interest or Dividend Income. Click Continue to save.
Explain the changes
Return to Amended Return and click Begin next to Explain Changes. Type why the return is being amended, for example that the previous preparer left out a 1099-DIV, and click Continue. This text prints in Part III, Explanation of Changes, of Form 1040-X.
Print the amended return
Click Begin next to Print Amended Return. The print set includes Form 1040-X with the original amount, net change and correct amount columns, followed by the supporting forms. Close the PDF when you're done reviewing.
Set up the e-file for the 1040-X
Click E-file and choose a Federal Return Type. Under Amended Return Information, set Does the taxpayer want to file Form 1040-X electronically? to Yes.
Answer any required Questions, then click Save.
Transmit the amended return
On the Submission page, a warning says this return is not a bank product. Collect your fee by cash, check or card before you transmit, because it can't come out of the refund. Have the taxpayer sign.
Check Is Complete and click Save and Transmit Amended Return.
- The Original Federal Return Information page must match the return that was filed. Make all fixes through Make Corrections for Amended Return, never on the original page.
- You don't need to rebuild the other preparer's entire return. Entering the line totals from their Form 1040 is enough to create the original column.
- Amended returns can be e-filed, so you don't need to mail the printed 1040-X.
Lesson 3 of 4 · 3:58
Amended – Accepted Client Return
Amend a return you already e-filed and the IRS accepted. The original figures carry over automatically, so you only make and explain the corrections.
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Written instructions
Open the client's accepted return
Use this workflow for your own client whose return you e-filed and the IRS accepted, for example when they bring in a document they forgot. Open the client from Client Search by clicking Select.
Go to the Amended Return section
In the left menu, click Amended Return, which is labeled with the tax year, to open Amended Tax Return - Form 1040X.
Review the original figures
Click the button next to Original Federal Return Information. Because the return was accepted, the Original Amount fields fill in automatically from it (AGI, deduction, tax, credits, withholding and so on).
Check that they match the accepted return and click Continue. Don't change this page unless you have already mailed in an amended return. In most cases it should match the return the IRS accepted.
Make the corrections
Click Begin next to Make Corrections for Amended Return. You go back to the return with all your earlier entries in place. Make the changes, such as adding a W-2 or adding or removing a dependent, and save each screen.
Explain the changes
Go back to Amended Return, click Begin next to Explain Changes, describe what changed and why, and click Continue.
Print the amended return (optional)
To review or give the client a copy, click Begin next to Print Amended Return.
E-file the 1040-X
Click E-file. Under Amended Return Information, choose Yes for filing Form 1040-X electronically. Then finish on the Submission page with Save and Transmit Amended Return, the same as in the previous lesson.
- Two scenarios: for another office's return, type the original figures from their Form 1040. For your own accepted return, the original column fills in for you.
- In both cases, make all fixes through Make Corrections for Amended Return, then explain them before you e-file.
Lesson 4 of 4 · 1:41
Application For Extension
Complete Form 4868 and e-file an extension of time to file for a client.
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Written instructions
Open Form 4868
Type extension or 4868 in the Form Finder and choose Go to Form Application For Extension now.
You can also go to Federal Section → Miscellaneous Forms and click Begin next to Form 4868, Application for Extension.
Enter the liability and payments
On Form 4868 - Application for Extension:
- Tax Liability: enter the total tax, or click use current liability amount to fill it from the return.
- Amounts previously paid for current tax year: enter any estimated payments or withholding already made.
- Amount Paid with Extension: enter the amount the client will pay the IRS with the extension (federal only).
Click Continue.
Review the summary
The summary shows Tax Liability, Tax Payments and Amount of Tax Payment. Use the pencil icon to fix anything, otherwise click Continue. Form 4868 now shows Edit on the Miscellaneous Forms list.
Go to E-file and choose to file the extension
Click E-file. The software detects the application for extension and asks whether you want to make changes to the return or file the extension. Choose to file the extension.
Confirm and submit
On Submit Extension, read the notice. After you click Continue, the extension is processed, and the client is still responsible for paying any balance due by the date shown.
Check I Understand and click Continue to send the extension.
- An extension gives the client more time to file, not more time to pay. Interest and penalties can build on any unpaid balance after the due date.
- Fill in Amount Paid with Extension if the client is sending a payment, so the extension shows what they paid.