User's Manual - Drake Software

Drake Software User’s Manual
Self-Employment Adjustments
Figure 5-33: Override SE printing for taxpayer (left box) or spouse (right box).
NEW FOR
2012
A new section, Statement for Partner Expenses... at the bottom of
the SE screen is for entering certain items that are deducted from selfemployed
income that don’t normally flow to the “Schedule SE - Partner’s
Allowable Expense” statement. Enter these deductions in the
fields at the bottom of the SE screen to have them appear on the statement.
Church
Income
Code church income as C or P on screen W2. (Select the correct code from the Special
tax treatment drop list at the top of the screen.) Any income entered in the
Wages of church employee... field of the SE screen will be added to the W-2 amount.
(For more information on entering data for clergy, see “Clergy Expenses” on page 135
and “Ministerial Income Allocation” on page 140.)
SE Health Insurance Deduction
Enter insurance deductions for a self-employed taxpayer in one of four places:
• Screen C or screen F, Family Health Coverage field
• SEHI screen, line 1 (An entry here overrides system calculations from screen C
or F; an entry might be required on line 4 to effect correct system calculations.)
• Screen 4, Self-employed health insurance deduction field (An entry here overrides
system calculations from the screens listed above.)
Be aware that the SEHI and screen 4 fields are overrides. Do not duplicate entries.
SEHID
Worksheet
The top half of the SEHI screen incorporates the Self-Employed Health Insurance
Deduction Worksheet (WK_SEHID in Drake) from the 1040 instructions.
If entering an override on screen 4, type the deduction allowed—not the total premium
paid. To have the software calculate the WK_SEHID, leave the screen 4 field blank
and enter the total insurance premium paid on the C or F screen as applicable.
NOTE
Self-employed health insurance deduction information is entered on the
same screen as self-employed pension (SEP) information. This screen
can be accessed using either the SEHI or SEP screen code.
Self-Employment Pensions
Screen code: SEP
SEP screen data flows to the WK_SEP worksheet for Self-Employed Rate and
Deduction. To have the program calculate the maximum SEP contribution, enter the
plan contribution rate as a decimal number on the SEP screen.
Tax Year 2012 137