User's Manual - Drake Software

Passive and Investment Income (1099-DIV, etc.)
Drake Software User’s Manual
Income Less
than $1,500
In general, no Schedule B is required if interest and dividend income does not exceed
$1,500; amounts can be entered instead directly on screen 3 (Income) (Figure 5-9).
Figure 5-9: Interest and dividend fields on screen 3
The Income screen amounts are calculated and the results flow directly into Form
1040. Any interest or dividend income entered on the INT or DIV screens is combined
with the screen 3 amounts when the return is calculated. Do not duplicate
entries.
Schedule B, Interest and Ordinary Dividends
Schedule B is required if taxable interest or ordinary dividends exceed $1,500. Use the
INT and DIV screens to report interest and dividend income that exceeds this amount.
Amounts are generated for Schedule B and flow into Form 1040.
Reporting
Portions of
Dividends
Certain portions of ordinary dividends (domestic dividends not taxable by a state and
ordinary dividends that are U.S. Government dividends) can be expressed on the DIV
screen as either amounts or percentages (Figure 5-10).
Figure 5-10: Enter portions of ordinary (line 1a) dividends
as amounts or as percentages of the total.
Schedule B,
Part III
Some taxpayers with bank or other financial accounts in foreign countries must file
Schedule B, regardless of the income amount. This data, along with other Schedule B
data, is entered in the Schedule B Part III section of the INT screen, (Figure 5-11 on
page 107).
NOTE
This section has a field for indicating whether or not the taxpayer is
required to file Form TD F 90.22.1, Report of Foreign Bank and Financial
Accounts. If the Schedule B Part III section is being completed, a
selection from this drop list is required.
106 Tax Year 2012