User's Manual - Drake Software

Drake Software User’s Manual
Other Income
Medical &
Health
Savings
Accounts
Enter distributions from Medical Savings Accounts (MSAs) on the 8853 screen (Form
8853, Archer MSAs and Long-Term Care Insurance Contracts). Enter distributions
from Health Savings Accounts (HSAs) on the 8889 screen (Form 8889, Health Savings
Accounts (HSAs)). Taxable amounts from these screens flow to Form 1040.
IMPORTANT
Lines 1 (coverage indication) and 2 (HSA contributions for the
year) of the 8889 screen are required if Form 8889 is to be e-filed
with the return.
Gambling Income & Loss
Screen code: W2G
Cancellation of Debt
Screen code: 99C
Use the W2G screen, accessible from the General tab, to enter gambling income and
loss information from Form W2-G. Data from the W2G screen is carried to line 21
(and line 22, if applicable) of Form 1040.
NOTE
The W2G screen has check boxes for Lottery Winnings and Electronic
Games of Skill. Not all states tax the gambling winnings from
lotteries and electronic games. Select boxes as applicable, but first
press F1 in a field to access further information on each item.
Other gambling winnings can be entered in the Gambling winnings field near the
bottom of screen 3.
Use the 99C screen, accessible from the Income tab, to enter data from Form 1099-C,
Cancellation of Debt. From the For drop list at the top of the 99C screen, select 1040
to indicate a non-business debt. Select one of the other available choices, as applicable,
to indicate a business debt. The selections, along with the line on the tax return
where the cancelled debt amount flows, are shown in Table 5-5.
Table 5-5: Cancellation of Debt
“For”
Field Item
Where Flows on Tax Return
1040 Form 1040, “Other income” line
C
E
F
Schedule C, “Other income” line
Schedule E, “Payments not reported” line
Schedule F, “Other income not reported...” line
4835 Form 4835, “Other income” line
982 Form 982, “Total amount of discharged indebtedness
excluded from gross income” line
Tax Year 2012 133