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Drake Software User’s ManualOther IncomeMedical &HealthSavingsAccountsEnter distributions from Medical Savings Accounts (MSAs) on the 8853 screen (Form8853, Archer MSAs and Long-Term Care Insurance Contracts). Enter distributionsfrom Health Savings Accounts (HSAs) on the 8889 screen (Form 8889, Health SavingsAccounts (HSAs)). The taxable amounts from these screens flow automatically toForm 1040. For more on the MSA and HSA forms, see IRS Pub. 969._NOTELines 1 (coverage indications) and 2 (HSA contributions for theyear) of the 8889 screen are required if Form 8889 is to be e-filedwith the return.Gambling Income & LossScreen code: W2GUse the W2G screen, accessible from the General tab, to enter gambling income andloss information from Form W2-G. Data from the W2G screen is carried to line 21(and line 22, if applicable) of Form 1040.NEW FOR2008The W2G screen now has check boxes for Lottery Winnings andElectronic Games of Skill. Not all states tax the gambling winningsfrom lotteries or electronic games. Select the boxes as applicable, butfirst press F1 in a field to access further information on each item.Cancellation of DebtScreen code: 99CUse the 99C screen to enter data from Form 1099-C, Cancellation of Debt. From theFor drop list at the top of the 99C screen, select 1040 to indicate a non-business debt.Select one of the other available choices, as applicable, to indicate a business debt.The For list selections, along with the line on the tax return where the cancelled debtamount flows, are shown in Table 5-5.Table 5-5: Cancellation of Debt“For”Field ItemWhere Flows on Tax Return1040 Form 1040, “Other income” lineCEFSchedule C, “Other income” lineSchedule E, “Rents received” lineSchedule F, line 10, “Other income” line4835 Form 4835, “Other income” line982 Form 982, “Total amount of discharged indebtednessexcluded from gross income” lineForeign Earned IncomeEnter foreign earned income amounts on the appropriate income screen (W2, C, FEC,etc.; see “Foreign Employers” on page 87). Foreign earned income is calculated intothe total income shown on line 22 of Form 1040.Tax Year 2008 109