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Drake Software User’s ManualSelf-Employment AdjustmentsChurchIncomeChurch income should be coded on the W-2 (W2 screen) as C or P. Any incomeentered in the Wages of church employee field of the SE screen will be added to theW-2 amount. (For more information on entering data for clergy, see “ClergyExpenses” on page 111 and “Ministerial Income Allocation” on page 116.)SE Health Insurance DeductionEnter insurance deductions for a self-employed taxpayer in one of three places:• Screen C or screen F, Family Health Coverage field• SEHI screen, line 1 (An entry here overrides system calculations from screen Cor F; an entry might be needed on line 4 to effect correct system calculations.)• Screen 4, Self-employed health insurance deduction field (An entry here overridessystem calculations from the screens mentioned above.)Be aware that the SEHI and screen 4 fields are overrides. Do not duplicate entries.SEHIDWorksheetThe top half of the SEHI screen incorporates the Self-Employed Health InsuranceDeduction Worksheet (WK_SEHID in Drake) from the 1040 instructions.If entering an override on screen 4, type the deduction allowed—not the total premiumpaid. To have the software calculate the WK_SEHID, leave the screen 4 field blankand enter the total insurance premium paid on the C or F screen as applicable._NOTESelf-employed health insurance deduction information is entered onthe same screen as self-employed pension (SEP) information. Thisscreen can be accessed using either the SEHI or SEP screen code.Self-Employment PensionsScreen code: SEPSEP screen data flows to the WK_SEP worksheet for Self-Employed Rate Deduction._NOTETo have the program calculate the maximum SEP contribution,enter the plan contribution rate as a decimal on the SEP screen.For more on SEP contributions, refer to IRS Pub. 560.Adjustments to SEP, SIMPLE, and Qualified PlansSelf-employed health insurance deduction information entered on the SEHI or SEPscreen will be adjusted by any entries made in the SEP and/or SIMPLE andKEOGH fields on screen 4 (Figure 5-31).Figure 5-31: Adjustment fields on screen 4.Tax Year 2008 113