User's Manual - Drake Software

Drake Software User’s Manual
Personal Service Income (W-2, 1099-MISC)
Claiming a Dependent (for Split Returns)
T = Taxpayer
S = Spouse
J = Joint
If taxpayers are married and want to split the return to see if filing separately would be
more beneficial than filing jointly, use the TSJ drop list on screen 2 to assign the
dependent information to the correct person. (See Figure 5-4 in the following section.)
A TSJ code should also be selected if the state has an MFS (Married Filing Separate)
combined option. The program default is T (Belongs to the Primary Taxpayer).
Entering State Data for a Dependent
Select a state from the State drop list (Figure 5-4) to specify which state should
receive the dependent data. This selection helps ensure that dependent credit information
flows to the correct state return. This information is necessary in some situations
(for example, if the parents of the dependent are MFS and reside in different states).
Figure 5-4: Fields for TSJ, State and State codes
Enter a state code (disabled, adopted, etc.) as applicable. To view all state codes, click
inside the State codes field and press F1. Double-click a displayed code to select it.
Additional Dependent Information
Screen 2 contains fields for other dependent-related data. Information on the belowlisted
fields is provided elsewhere in this document.
• Childcare Expense Information — See “Child and Dependent Care Expenses
Credit” on page 142.
• EIC Information (and related due diligence questions) — See “Earned Income
Credit (EIC)” on page 154.
It could be necessary to override or further clarify dependent information entered on
screen 2—for example, if a child is over 18 and disabled or is not a U.S. citizen. Use
the Additional Information section of screen 2 for this kind of data.
NEW FOR
2012
Drake has redesigned both the Dependents screen and screen 8863 to
conform to new requirements for Form 8863, Education Credits. The
Education Expense Information has been removed from the Dependents
screen and moved to the redesigned 8863 screen. See “Education
Expenses” on page 138.
Personal Service Income (W-2, 1099-MISC)
Use the W2 and 99M screens, both accessible from the General tab, to enter personal
service income data from a taxpayer’s W-2 and 1099-MISC forms, respectively.
Tax Year 2012 101