Family Link (8615)
PrerequisitesYou should be familiar with or have completed the Interactive Input exercise in the Input Techniques section (Program Operations tutorial). ObjectiveIn this exercise, you will transfer specific information between two individual returns using the Family Link . |
LESSONS
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Facts
Use the following information to restore two clients from the DEMODATA directory. Use the Family Link to bridge information from the parent's return to the child's return. Print the information that is being transferred.
| Parent's Return | |
| Client number: | 16SAMPLE |
| Client name: | A Sample, Dad and Mom |
| File location: |
?\LACERTE\05TAX\DEMODATA Where ? represents the drive letter where you installed the program. |
| Child's Return | |
| Client number: | 15SAMPLE |
| Client name: | A Sample, Child |
| File location: |
?\LACERTE\05TAX\DEMODATA Where ? represents the drive letter where you installed the program. |
Program Considerations
- The Family Link enables you to link together a group of returns to compute Form 8615, Tax for Children Under Age 14 Who Have Investment Income Of More Than $1,600. Form 8615 is filed as part of the child's tax return but requires information from the parents' and other siblings' tax returns.
- The Family Link transfers all the federal tax information required to complete the federal Form 8615 as well as the state forms for California and Hawaii and determines the correct tax rate for the child's investment income based on the information.
- You must first complete the parent's and children's returns prior to using the Family Link.
- If you make changes in any of the linked returns after you have transferred the information, the program prompts you to update all of the returns.
- The child must fulfill the requirements to file Form 8615 in order for the Family Link to be successful.
How?
To use the Family Link:
- From the Tools menu, select Family Link (8615).
- From the Available Clients list, select the parents' return.
- Click Add Parent.
- From the Available Clients list, select the child's return.
- Click Add Child.
Note: Repeat steps 4 and 5 to include additional children's returns in the family link.
- From the Family Links window, highlight the parents' return.
- Click Preview Tax Data.
- Click Print to print a copy of the information.
Note: If you estimated the parent's information when completing their return you must check the Parent's Information is Estimated box.
- Click Transfer.
Tips & Shortcuts
- Instructions for each step in the Family Link are available by clicking the Help button from within the Family Link window.
- When the return information has been transferred to the appropriate returns, the folder next to the parent's name in the Family Link window will be yellow. If there is new information that needs to be transferred, the folder will have a red exclamation mark on it.
Review
You should have transferred information from the sample parent's return to the children's return and produced the following results on the child's Form 1040:
| Line 37 - Adjusted Gross Income | $3,000 |
| Line 40 - Standard Deduction | $800 |
| Line 43 - Taxable Income | $2,200 |
| Line 44 - Tax | $431 |
Troubleshooting
Problem: I'm not able to transfer the information into the child's return.
Solution: You must have REP for both the parent's and the child's return in order to successfully transfer this information.
