User's Manual - Drake Software

Social Security and Railroad Benefits
Drake Software User’s Manual
Social Security and Railroad Benefits
Screen code: SSA
Use the SSA screen to enter data from Form SSA-1099. If this form was not distributed,
use screen 3 to enter the following Social Security (or equivalent) benefit
amounts (see Figure 5-31):
• Social Security benefits that apply for the current year
• Lump-sum benefits from prior years (total received and taxable portion)
• Railroad Tier 1 benefits for the current year
Figure 5-31: Screen 3 fields for Social Security benefit amounts
These figures are combined with any Social Security or equivalent benefit amounts
from the SSA screen, calculated, and displayed on the “Social security benefits” line
of Form 1040.
NEW FOR
2012
To treat Medicare premiums as self-employed health insurance, mark
the Treat Medicare premiums... box on the SSA screen to have the
Medicare premiums flow to the Self-Employed Health Insurance
Deduction Worksheet (WK_SEHID) instead of Schedule A.
Screen code: RRB
To enter data from the federal RRB-1099R form, use the RRB screen. This screen
reflects the federal form.
NOTE
Railroad Retirement Board payments should be reported on the SSA
screen.
Other Income
Taxable Distributions
The Other income fields on screen 3 are available for reporting taxable income not
reported elsewhere on the return. Amounts entered here are produced on line 21 of
Form 1040, and descriptions are listed in a statement.
Several screens are available in Drake for entering other types of income, as described
in the following sections.
1099-Q If the amount on Form 1099-Q, Payments From Qualified Education Programs,
exceeds the amount of education expenses, compute the taxable amount of the distributions
and enter it on screen 5329 (Part II, line 5) and on screen 3, line 21.
132 Tax Year 2012