User's Manual - Drake Software

Drake Software User’s Manual
Taxable Refunds
Taxable Refunds
Screen code: 99G
Screen code: 3
required and you don’t want one generated, select 1116 NOT required. (See Figure 5-
13 on page 108 to view the check box as it appears on the DIV screen.)
For more on Form 1116 in Drake, see “General Business Credits” on page 144.
Enter state and local taxable refunds for the current year on the 99G screen (Form
1099-G, Certain Government Payments). Taxable refund amounts are calculated and
carried to the “Taxable refunds” line of Form 1040. Because the amount shown on this
line can be affected by limitations computed from the Drake worksheets, the program
allows you to adjust it.
To adjust the taxable refund amount shown on the 1040, go to screen 3 and enter the
amount of prior-year state or local refund the taxpayer received in the current year. Be
aware that no calculations are done on the amount entered on screen 3. Use the 99G
screen if you want the system to compute the taxable amount.
NOTES
A flagged Taxable refund field indicates that the displayed amount was
carried forward from a prior-year return. To clear the field, press F4 (if
the amount is correct) or enter a new amount.
Screen 99G is also called the Unemployment Compensation screen.
Alimony
If the taxpayer received alimony, enter the amount on screen 3 in the Alimony
received field. Enter paid alimony information on screen 4.
Self-Employment Income (Schedule C)
Screen code: C
Screen C, Self-Employed Income, covers Schedule C, Profit or Loss from Business
(Sole Proprietorship). Access screen C from the Income tab. Several screens in Drake
(such as the 99M, AUTO, and 4562 screens) can be associated with a Schedule C
using the For and Multi-form Code boxes of those screens. (See “Associating One
Screen with Another” on page 73.)
NOTE
Enter data for Schedule C, Part IV, Information on Your Vehicle, on the
AUTO screen.
Program Defaults for Screen C
The program’s default accounting method (item F) is cash. Select Accrual or Other,
as applicable, for accounting methods other than cash. If Other, include a description.
The program’s default position for activity type (item G) is that the activity is not a
passive activity (option D). For more information on activity-type options, see “Activity
Type Codes,” following.
Tax Year 2012 109