User's Manual - Drake Software

Drake Software User’s Manual
Passive and Investment Income (1099-DIV, etc.)
NOTE
Purchase W-2 downloads in sets of 15 ($25 per set). Each instance of a
downloaded W-2 counts as one against your total (even if the same W-
2 is downloaded twice). If, however, the client has W-2s from multiple
employers and all W-2s are downloaded in the same session, it counts
as only one download. If the W-2s are downloaded in separate
sessions, each session counts as one against your total.
2D Barcode
Scanning
For W-2 forms with a 2D barcodes, W-2 and K-1 data can be scanned into Drake
(1040 package only). Open the program to the client’s Data Entry Menu (not the W2
or K1 screen) to scan the barcode; the scanned information appears on the applicable
screen. For example, if a W-2 is scanned, a W2 screen is opened that contains the data
from the W-2. Guidelines for scanning are provided below.
• When scanning the information, the program opens a new screen containing the
information. It does not overwrite previously entered data on a W2 or K1 screen.
• The IRS issues guidelines for the 2D barcode. If the software producing the barcode
follows these guidelines, the correct information will be entered on the
Drake screen. If not, you will need to verify that the scanned data was correctly
transferred to the screen.
• For Form W-2, the 2D barcode picks up only what is on the W-2. In the case of
multiple city withholding (which is on a separate schedule that does not fit on the
W-2), the extra information must be typed in after the barcode is scanned.
• Most barcode scanners can be used, but Drake recommends the Honeywell/Metrologic
MS1690 Focus.
1099-MISC
Screen code: 99M
Use the 99M screen to enter data from Form 1099-MISC. Select from the TS drop list
at the top of the 99M screen to whom (taxpayer or spouse) this 1099 information
belongs. To associate the 99M information with a specific line or form within the
return, make a selection from the For drop list. If associating it with one of multiple
forms, enter a Multi-form code. (See “Associating One Screen with Another” on
page 73.)
Passive and Investment Income (1099-DIV, etc.)
Interest and Dividends
This section covers interest and dividend income from both domestic and foreign
sources. To enter rental income data in Drake, see “Supplemental Income” on
page 121. To enter foreign earned income, see “Foreign Earned Income” on page 134.
The INT and DIV screens in Drake reflect the 1099-INT and 1099-DIV forms,
respectively. Data from the INT and DIV screens is carried primarily to Schedule B,
Interest and Dividends, and, when applicable, to Form 1116, Foreign Tax Credit.
Tax Year 2012 105