User's Manual - Drake Software

Drake Software User’s Manual
Health Savings Account (HSA) Deduction
Multiple 2106 Forms
Clergy Expenses
If 2106 screens are established for both taxpayer and spouse, the primary taxpayer’s
2106 screen must be entered first (because the taxpayer is listed first on the return), or
the return will receive a reject code after it is transmitted.
If the taxpayer is a member of the clergy, mark the Pastor check box, located near the
bottom of the right-hand column of the 2106 screen. The program carries the
employee business expenses to the clergy worksheets (WK_CLGY1, WK_CLGY2)
when the return is generated. See “Ministerial Income Allocation” on page 140 for
more on data entry for clergy.
Directing Data Entry to Form 2106
To associate the data from a 2106 screen to that of another screen (such as the 4562
screen for depreciation), select 2106 from the For drop list at the top of the other
screen. Use the Multi-form code field as needed. (See “Associating One Screen with
Another” on page 73 for more on multi-form codes.) See Screen Help on the 2106
screen for more assistance in directing data entry to Form 2106.
NOTE
Be sure that either T (for taxpayer) or S (for spouse) is selected, as
applicable, on the 2106 screen.
Health Savings Account (HSA) Deduction
Screen codes:
8889, HSA
Qualified HSA Distribution
Form 1099-H
Moving Expenses
Screen code: 3903
Use the 8889 screen, accessible from the Adjustments tab, to enter HSA data for
Form 8889, Health Savings Accounts. Fields 1 (coverage indications) and 2 (HSA
contributions for the year) of this screen are required in order to e-file Form 8889.
An amount in the Qualified HSA distribution field of the 8889 screen flows to the
“Other Taxes” section of Form 1040 and is marked with a notation of “HDHP.”
Payment amounts from Form 1099-H, Health Coverage Tax Credit (HCTC) Advance
Payments, can be entered on the 8889 screen.
Use the 3903 screen, accessible from the Adjustments tab, to enter data for Form
3903, Moving Expenses.
Tax Year 2012 135