User's Manual - Drake Software

Personal Service Income (W-2, 1099-MISC)
Drake Software User’s Manual
W-2
Screen code: W2
The W2 screen is designed to reflect the IRS Form W-2, Wage and Tax Statement.
Data entered here must match the client’s W-2 form. The following fields can be completed
automatically by the program:
• Names and Addresses — If the employer’s EIN is in your Drake database, the
employer’s information is filled automatically once you enter the EIN. The
employee information is filled automatically once T or S is selected at the top of
the screen. Nothing needs to be typed into these fields unless the information differs
from what was previously entered in the program.
• Wages and Withholding — When wages are entered in box 1, boxes 3–6 are
filled automatically. These amounts should match those on the taxpayer’s W-2.
NOTES
If, after contacting (or attempting to contact) the employer, you suspect
fraud, immediately contact the nearest IRS Criminal Investigation office
or call the IRS’s tax fraud hotline at (800) 829-0433.
Links
W-2
Verification
Links are provided from the W2 screen to screens 2441 (for entering Child and
Dependent Care Expenses), screen 8880 (for entering data to calculate the Qualified
Retirement Savings Contributions credit), and screen SEHI (for entering data to calculate
the Self-Employed Health Insurance deduction).
Verification fields (activated from Setup > Options > Data Entry) help ensure that
wage and withholding amounts are correct by requiring re-entry of federal and state
wage and withholding amounts at the bottom of screen W2 (Figure 5-5).
Figure 5-5: Verification fields for federal and state wages and withholdings
An EF message is generated if a verification amount does not match the corresponding
amount entered. Amounts must be corrected before the return can be e-filed.
Foreign
Employers
New for 2012: To indicate a foreign employer on screen W2, enter the city in the
“city” field of the employer address, and in the Foreign ONLY section, enter the
province or state, select a country from the Country drop list, and enter any relevant
Postal Code. See example in Figure 5-6 on page 103.
102 Tax Year 2012