Schedule M and 2555EZ

[Margaret CPA in OH]

I was surprised to read in the Sch M instructions that people filing 2555 and 2555EZ were also entitled to the Making Work Pay credit. However, I don't think the flow through is happening. At least not in my program and, yes, I have updated. Any insights or comments? Foolishly I called tech nonsupport and gave up after only 20 minutes thinking this may be a tax issue despite my reading of Sch M.

[MargaretMort]

I am inclined to think it is a pain for everyone because it doesn't want to let you put in the info required without over-riding and doesn't make a lot of sense. I have a client who receives a small pension from the VA. I had to override to put that in. I had an IRS email concerning the Schedule M, thought I had printed it out but can't find it. My impression was that everyone is having trouble. MM

[MargaretMort]

going to try to paste the IRS alert. Don't know if it will work. Subject: Instructions for Completing Form 1040 Schedule M

We have received numerous e-file returns in which the Form 1040, Schedule M was completed incorrectly causing high fallout to the Error Resolution System (ERS). E-file returns that fallout to ERS may cause a delay in the processing for 2 to 3 weeks. The YES and NO boxes should be checked per the Schedule M line instructions. If the NO box is checked on line 10 or line 11 of the Schedule M, please do not enter an amount on either line.

On a joint return, if both spouses received an economic recovery payment in 2009, check the YES box and enter $500 on line 10 of the Schedule M. Then, if both spouses received a government pension or annuity in 2009, check the YES box and enter -0- on line 11.

On a joint return, if only one spouse received an economic recovery payment in 2009, check the YES box and enter $250 on line 10 of the Schedule M. Then, if the other spouse received a government pension or annuity in 2009, check the YES box and enter $250 on line 11.

On other than a joint return, if the taxpayer received an economic recovery payment in 2009, check the YES box and enter $250 on line 10 of the Schedule M. Then, if the taxpayer also received a government pension or annuity in 2009, check the YES box and enter -0- on line 11.

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[Margaret CPA in OH]

Thanks, I recall reading that as I am on all the IRS email thingys. However, that isn't my exact problem. If I follow the instructions, it appears as though the foreign earned income qualifies and it says to put the amount from ln 18 of 2555EZ on ln 5 of Sch M. But it doesn't. When I follow all the bunny hops I get nowhere and the worksheets don't seem to support this particular situation. Guess we will paper file...

[MargaretMort]

I found the bunny hops just hopped and hopped and ran me in circles. I think both the L and M are make work forms that just frustrate. MM

[Margaret CPA in OH]

Agreed!!! So I think I will do more research to confirm qualifications and paper file.