User's Manual - Drake Software

First-Time Homebuyer Credit
Drake Software User’s Manual
First-Time Homebuyer Credit
Screen code:
HOME
Taxpayers who bought a home in 2008 and took advantage of the first-time homebuyers
credit must repay the amount in 15 equal installments, beginning with the 2010
return. If you have prepared the client’s tax returns using Drake Software, the Home
screen keeps track of the amount repaid every year.
Direct Deposit
If you didn’t prepare this taxpayer’s return previously using Drake, go to the Home
screen, and in the Form 5405 Repayment Information section on the right side of
the screen, enter the required information. If the taxpayer no longer used the house as
his or her main home, enter the Date home ceased to be main home if not sold field.
For more information, click Screen Help for the Home screen (or select Screen Help
from the right-click menu.)
Screen codes: DD,
8888
Use the DD screen, accessible from the General tab, to indicate that a refund is to be
deposited directly into the taxpayer’s account.
NOTES
The DD screen contains fields for completing IRS Form 8888, Direct
Deposit of Refund to More Than One Account.
This section refers to refunds that are not in the form of bank products.
Enter account information for bank products on the applicable bank
screen. See “Additional Disbursement Methods” on page 220.
Required Information
The name of the financial institution, the bank’s routing number (RTN), the client’s
account number, and the type of account (checking or savings) are required. The
RTN, Account number, and Type of account information must be entered twice
(Figure 5-47) or an EF message is generated and the return cannot be e-filed.
Figure 5-47: Repeat account information for RTN, account number, and type of account
Direct Deposit of Federal Refund
If a single account is entered on the DD screen, the information flows to the “Refund”
section of Form 1040. If multiple accounts are entered, the program produces Form
8888. You can enter up to three accounts.
Form 8888
Conditions
The following conditions must apply for the taxpayer to file Form 8888:
• The taxpayer cannot choose to get any part of the refund as a check.
• The account indicated for the refund deposit is a checking, savings, or other
account such as an IRA, MSA, etc.
158 Tax Year 2012