DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

There is a difference. I need to connect with a colleague to verify these steps for you. It may be tomorrow before I circle back, but I wanted to acknowledge your message. Stay tuned.

 

Thanks and have a great evening

 

Andy

JYF
Valued Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

I have the boxed software DELUXE...i'm wondering if perhaps this option is only available in the Premium version? I have the option of upgrading for $20 but hate to do that if I don't know for sure because otherwise the Deluxe covers all my needs. Thanks in advance.

Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

Hi JYF -

 

Sorry for the delay. Our software program does not have a specific section to enter nonbusiness bad debts. You have a couple options here. First, you can utilize the online program following the steps I provided and, if you choose that route, I can separately provide instructions to obtain a refund for the purchase price of the software you already bought. If you don't want to go that route, you can enter the transaction in the section for "Sales of Collectibles and Other Capital Assets" and take the following steps:

 

- Enter nonbusiness bad debt - name of debtor in the description box,

- Enter the date acquired as 01/01/2017 (to ensure the loss is treated as a short-term capital loss),

- Enter the amount of the debt in the cost basis section,

- Enter the date sold as the date the debt became worthless during the year,

- Enter the sales price as 0,

- Enter 0 for accrued market discount and disallowed wash sale loss,

- Leave the pull down as no special type,

- Enter 0 for adjustment.

 

Now you still need to enter the statement that we discussed before. To do that, just complete a statement explaining all of the items listed before. Because you won't be able to include that statement electronically, you'll then need to print your return, include the bad debt statement with it and mail the return following the instructions that are provided in the software when you indicate you'll be paper filing. It will tell you the mailing address and what to attach.

 

Again, if you don't want to go this route, please let me know and you can utilize the online program.

 

Thanks and have a great evening

 

Andy

JYF
Valued Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

Wow. Thanks so much for all your help but I don't understand why both don't offer the same thing. Very disappointing as I have been using H&R Block/Taxcut forever and never had issues. So, if I do it the way you state with the software that I purchased would you guess that things will be "close enough" to be in the right spots that the IRS should not have a problem? Sure wish by next year they would get it straightened out. When I used chat support whoever I was speaking with was giving me such bad information that she shouldn't have that job. Thanks again for your help. i guess I will muddle through with it with the software that I have. I'm sure I will get flagged for an audit LOL

Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

Hi JYF - 

 

You're welcome. I apologize for the frustrating experience and I will definitely pass on your feedback for a software enhancement to update this. If you follow those steps, everything will be in the exact place it should be. The only thing that is missing is the ability to include the statement electronically. That is why you'll need to print and mail your return to include it. If you follow those steps, that portion of your return will be exactly as it should be. 

 

On your feedback on the support received outside of the Community, I would like to let you know that the Ask a Tax Adviser service (live chat for substantive tax issues) will reopen 1/15 at 10 central. We've been closed for training, but will be open next week. This is an issue that could be addressed via live chat once it's available. 

 

Thanks and have a great day

 

Andy