User's Manual - Drake Software

Self-Employment Adjustments
Drake Software User’s Manual
Form 3903 Qualification
Multiple Moves
If the mileage is less than 50, and the Mileage test does not apply to this move box is
marked on screen 3903, Form 3903 will not be generated. As the preparer, you must
determine if the taxpayer qualifies for the moving-expense deduction. See IRS Pub.
521 for details.
If there are multiple qualifying moves within a single year, use a separate 3903 screen
for each move. Press PAGE DOWN for additional screens.
Self-Employment Adjustments
Table 5-6 lists screens in Drake for entering adjustments to self-employment income.
Table 5-6: Self-Employment Adjustment Screens
Screen
Purpose
SE (Self-Employment Adjustment)
SEHI (SE Health Insurance)
Schedule SE
Self-Employed Health Insurance Deduction
4 (Adjustments) Adjustments to SE SEP, SIMPLE, and Qualified Plans
Screen codes:
SE, SEHI
The SE and SEHI screens are located under the Adjustments tab. Screen 4 is located
under the General tab.
Self-Employment Tax (Schedule SE)
Schedule SE is required if net earnings from self-employment exceed $400 ($108.28
for church employees). If these conditions are not met, the program does not produce
Schedule SE with the return. To force Schedule SE to be printed, select the applicable
Force Schedule SE box on the SE screen.
Data from Schedules C and F, along with any self-employment income from partnerships,
flow to Schedule SE of the return. All other self-employment income should be
entered directly on the SE screen.
Short or
Long SE
Depending upon the employment terms, the taxpayer must complete a short (Schedule
SE, page 1) or long (Schedule SE, page 2) Schedule SE. Drake determines the form
required and processes it accordingly. To force the long form, select an applicable
Force Schedule SE box in the middle of the SE screen. (Figure 5-33 on page 137.)
136 Tax Year 2012