User's Manual - Drake Software

Drake Software User’s Manual
Domestic Production Activities Deduction
(screen 2). Now, regardless of whether the student is the taxpayer, the spouse, or the
dependent, all education expenses are entered on the 8863 screen.
NOTES
If a dependent does not qualify for an education credit, the software
does not apply this information when calculating the federal return.
Student and
School Info
Form 1098-T
Enter the SSN and the name of the student and the qualifying expenses in the top section
of the 8863 screen. If more than one 8863 screen must be used (for families with
more than one student), enter the information on lines 23-26 and the qualifying
expenses only on the first screen. In the lower section of the 8863 screen, enter the
information about the schools the student attended.
If the amounts of qualifying expenses came from a Form 1098-T, Tuition Payments
Statement, supplied by the educational institution, enter the amount of qualifying
expenses, then mark the proper check boxes in the lower section of screen 8863. For
an amount received from any taxable scholarship that was not reported on a Form W-
2, enter the amounts on screen 3.
Domestic Production Activities Deduction
Screen code: 8903
Use the 8903 screen, accessible from the Adjustments tab, for Form 8903, Domestic
Production Activities Deduction.
Entering Data from Multiple 8903 Forms
Other Adjustments
Only one Form 8903 can be attached to a taxpayer’s e-filed return. To e-file data from
multiple 8903 forms on a return, calculate the total for each of the 8903 items and
enter the combined totals onto the 8903 screen.
Other adjustment-related screens in Drake are listed in Table 5-7. These screens are all
available from the Adjustments tab.
Table 5-7: Other Adjustment Screens Available from Adjustments Tab
Screen Form or Worksheet Notes
CLGY Ministerial Income Allocation See “Ministerial Income Allocation,” following.
8082 Form 8082, Notice of Inconsistent
Treatment or Administrative
Adjustment Request
MFS Community Property Allocation Use for MFS in a community property state
8873 Form 8873, Extraterritorial
Income Exclusion
Tax Year 2012 139