DC Preparers, D-40 Question

[G2R]

Hello,

I have to file a simple DC return this year for my one client that lives & works in DC. I've inputted the W-2 info into ATX and I notice the wages pushed to the D-40 is the federal wage amount, not the DC wages listed at the bottom of the W-2.  The instructions say to do this as well, I'm just curious how the DC wages on the W-2 were even calculated?  

Also, ATX is saying I have to attached a copy of the federal return. I assume this is only for a paper, and that I don't have to separately attach a PDF of the federal return for the e-file.  Please confirm. 

Thanks!

[Pacun]

Yes, DC gets the income amount when you input box 1 of the W2. I have my program to calculate automatically, so I enter box 1, box 2, box 15, and box 17, besides entering the name of the company and FEI number. 

When you efile, you don't have to do anything special for DC and the 1040 is automatically attached when the efile file is created.

If you are filing married, DC has special category "married filing separate on the same return" and it is helpful when both spouses work. Let's say that each earn 100K, you split the income and taxes is higher when paying on $200K and cheaper when paying taxes on $100K and 100K. 

Another helpful refundable credit is rental paid for apt or house on Sch H. Income limit is about 60K I think but you have to have lived in DC the whole tax year.

Regular years, DC give you 40% of Federal EIC, but this year was increased to 70% but the extra 30% is sent evenly every month for 11 months. 

If you are filing 1099-NEC with Schedule C, you might need to eliminate form D-30 because ATX automatically adds it and send 1099-NEC income to that form but most of the time is not needed. 

 

[G2R]

Thanks so much for all the helpful hints.  I've printed your reply and stuck it the folder for future reference!  Thanks again.