Tax Software Training Program Fall 2013_ver 11_19_13
Contents
1. 2 Enter stock name or brokerage name and amounts received for each 1099 dividend form SCHEDULE D 8949 CAPITAL GAIN LOSS 1 This is income from sale of stock mutual funds or other personal assets Personal asserts are only reported if sold at a profit Form 1099B should be received from brokerage bank for stock or mutual fund sales 2 Call MAIN OFFICE if you have these transactions and a determination will be made case by case as to whether you should complete this form H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 14 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual FORM 8880 Credit for Retirement Contributions a The tax software will automatically calculate the credit when the client has contributions indicated in Box 12 W 2 But the preparer must verify current and prior year distributions Distribution years in question are 2012 2011 amp 2010 amp current year up through April 15 2013 Note Interview question can be Have you taken any money out of any retirement account in the last 3 years FORM 2441 Child Care Babysitting 1 Input provider name address SSN or Federal ID Number and amount paid to provider 2 Enter same information for all providers 3 NOTE Remember to enter amount paid for each child on dependent page 2 PAGE 4 ADJUSTMENTS 1 Enter deductible IRA Identify T or S 2 Student Loan Interest Paid Taxpayer must2. Store version of the Audit Trail Summary a After you calculate the tax return verify that all information recorded on the Audit Trail Summary is shown on the tax return If not find out why and correct either the Audit Trail or tax return Then calculate and verify information again EIC 1040 page 1 and 2 Indiana state and local withholding Rent or Real Estate Education expenses W2 input instructions make it look like the paper W2 a Always input directly from the W2 b Input T or S for every W2 c Input all information on W2 d Verify name amp address for both the taxpayer and the employer if different than current address change the address e Taxpayers address is automatically carried from page 1 but IRS requires the address shown on the W2 if different f Make sure resident state is correct You could have income from other states g Indiana requires input of Employer s State ID Number If this number is missing or incorrect it is likely that Indiana will not allow the withholding and may send the client a balance due notice instead of a refund Highlight Pg Dn at bottom of the screen especially when inputting W 2 s and dependent information How to delete a page Use Ctrl D Sometimes it s easier to delete a page than correct info i e W 2 Note that if you make an entry on a screen and then empty all the fields you must do a CTRL D or the return will rejec
3. forms Two forms if EF return and three forms if there is a bank product the printed forms are e EC_7216D allows information i disclosure for Bank Product c i i T amp S Yes No No e OF_7216D allows information Macro Command Alt C T amp S noose i disclosure for Fiscal Tax and the tax e nerate s hte ae o i i infoline pages e 7216_USE allows us to prepare the clients tax return Earned Income Credit Due Diligence EIC_QC ALL qualifying children T amp S Drake screen EIC1 Preparer i e EIC INC Income question Drake Print screen EIC2 _ Earned Income Credit Due 3to4 e EIC HOH3 Head of Household _ Diligence forms can be signed at the lt pages Drake screen EIC 3 _ same time as all other forms e EIC NOTE Added information Drake screen EIC 4 IRS 8879 can be signed at the same time as all other forms IRS Form 8879 8879 Indiana 8879 can be signed at the same time as all other forms Indiana Form 8879 IN8879 Print instructions Two copies of EPS_App PG7 T amp S e Twocopies of El_APP if E1_APP 8 EPS Debit Card is selected ifdebit pages One copy of the other 7 EPS cardis pages selected EPS_Info Shows bank product client their check amount after fees Form has place for signature but it s l No Optional l _ not req
4. BILL Bill Adjustments Macro Alt B from screen selector field H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 5 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual h PIN Alt P i CONS AIt C enter enter disclosure to other firms j Explain comparison sheet to client LEVEL2 k 1099 Pensions 1099 R 1 SSA Social Security Benefits m 99G Unemployment n INT Interest o DIV Dividends p ECOL Control V amp check against audit trail at this point q A Itemized Deductions r 3 Income State Refund etc s 2441 Child Care Credit t 2 Dependent Child Care Credit entries u 8880 Savers Credit v 8863 or 8917 Education Credits Tuition amp Fees Deduction w 4 Adjustments x DD direct Deposit y W2G Gambling Winnings Z IN SCH2 Indiana Lottery Worksheet aa 5695 Energy Credits LEVEL 3 bb 8283 Non Cash Charitable Contributions Macro Alt G for Goodwill name amp address cc 8379 Injured Spouse dd 8889 Health Savings Accounts ee 99M 1099 Misc ff C Schedule C gg ES Estimated Taxes hh 2106 Employee Business Expenses ii IN CC40 Indiana College Credit Jj IN 529 College Choice Credit kk 5 Payments Foreign Tax Credit No 1116 Required etc ll STAX Sales Tax Worksheet mm D Capital Gains amp Losses nn D2 Capital Gains Carryover 00 RRB Railroad Retirement pp NOTE Notes about the return qq 8332 Release of
5. Ctrl D use this Hot Key Note failure to us this will result in e filing errors Insert today s date in any date field Alt D Caution CTRL D will delete the screen H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Tax Software Handbook Page 3 of 16 Fiscal Tax Co 2013 14 User s Manual Navigation To access help for a particular field place the cursor in that field and press F1 If help is available for that particular field the Help is displayed Notes on Dependents 1 Input name SSN months lived in home and full date and year of birth 2 Relationship can be filled in by hitting ALT S son ALT D daughter or by typing first letter of relationship and enter e g D then enter Daughter 3 Amount paid for child care 4 Answer questions 10 11 13a 13b 13c amp 26 re EIC eligibility Also need to enter info on 8867 amp screen EIC2 Any documents used need to be photocopied or scanned and retained as part of our EIC due diligence 5 Mark with X any additional questions at the bottom of screen re student status disability residence INDIANA RETURN Page 1 1 County Lived for taxpayer As of Jan 1 2013 2 County Worked for taxpayer As of Jan 1 2013 3 County Lived for Spouse 4 County Worked for Spouse 5 School District Carries from Demographic screen page 1 Page SCH2 Deductions 1 Enter landlord s n
6. Exemption rr PREP Preparer Information use to enter paid preparer info from Tax Pack LEVEL4 ss 8606 IRAs tt ROTH Roth IRAs uu 5329 Additional Tax on IRA vv 3903 Moving Expenses ww 8396 Mortgage Interest Credit xx 8839 Adoption Credit yy 8829 Office in Home H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 6 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual zz 99A aaa 99C bbb 982 ccc E Rental Property ddd 4562 Depreciation eee K 1 K 1F K 1S Partner s Share Beneficiary s Share or Shareholder s Share fff ETA Estimated Tax Adjustments ggg PMT Electronic Funds Withdrawal must Print amp Sign Form 8878 hhh PIN Direct Debit Consent iii 8857 Innocent Spouse The next page shows the store audit trail H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 7 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual _ Use the Tab key to move to the next field Fields with drop down boxes type the first letter to choose the proper response For help hold the mouse over a field Fields in Yellow are required Fields Withholding Choose Return Type 7 Hispanic paren rT Choose one below Send a Friend If using send a friend choo Refund After 8880 No of Children for EIC Deductions Income IRA Teacher 1099 R Taxable Dist code Edu
7. Fiscal Tax Co 2013 14 User s Manual Tax Software Guide Instructions amp Training Program Version 11 19 2013 pm H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 1 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Logging in 1 2 BE SURE you are in Training program Click on the desktop training icon Open Drake software from the icon within this folder Drive J should be indicated in the lower border of the Drake window Drake login returning employees will use the same preparer and passwords as last year There are three student ids in the training module for new employees Studentl trainee student2 trainee student3 trainee General Information for Drake Data Entry 1 2 3 4 5 6 7 8 Primary SSN for problems should be 1 5 digits as shown in problem student selected last 4 Trainees who do not have a preparer or whose preparer or PIN do not work should use preparer 998 amp PIN 99 123 DO NOT USE PUNCTUATION Round figures to nearest dollar Do not input cents i e 9 34 should be entered as 9 The store Audit Trail Summary form is the most important form you complete It must be filled out before you input information for the tax return All W2 wages federal withholding Indiana State withholding and local withholding must be added manually and posted to the Audit Trail summary Use the
8. Macros available AlttW amp Alt Z 7 Remember that this screen is equivalent to attaching a W 2 to a paper return so be sure that all entries on the paper W 2 are entered on the screen W2 FORM 1099R PENSION 1 Enter T or S 2 Enter all information exactly as on the 1099R form Same as W 2 Forms 3 Enter exactly how it is on the 1099R if taxable amount is blank do not put zero 1099G GOVERNMENT PAYMENTS Unemployment Payments or State Tax Refund 1 Enter T or S 2 Box 1 Enter amount received 3 Box 2 Repaid amounts 4 Box 4 Enter federal withholding 5 Enter State IN or wherever It is not always Indiana unemployment State refunds are generally entered on screen 3 and only if the client itemized in the year the refund is for 1099 SSA Social Security Benefits 1 Box 1 Enter T or S 2 Box 3 enter Medicare Premium 3Box 5 Enter Amount received 4Box 6 Enter tax withheld if any W2G Gambling 1 Enter Tor S 2 Enter Fed ID Number 3 Complete form as you would a W 2 filling in all fields on form H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 13 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual C PROFIT AND LOSS FOM BUSINESS 1099 MISC Do not prepare schedule C unless you have experience or proper training 1 Enter T or S Enter Profession Business Code and address if different from Page 1 Hint for bus
9. ame and address 2 Enter total annual rent paid and number of months rented OR 3 Enter property real estate taxes paid on Fed screen A Making the entry on the IN screen prevents the software from determining whether the client can itemize on the federal return NOTE could have both rent amp real estate taxes 4 Complete A B and D if gambling winnings from Hoosier Lottery General Notes 1 Everyone must register or re register for a PTIN under the NEW IRS PTIN registration system General Information for Drake Data Entry 1 Primary SSN for problems should be 1 5 digits as shown in problem student selected last 4 Trainees who do not have a preparer or whose preparer or PIN do not work should use preparer 998 amp PIN 99123 H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 4 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual 3 The store Audit Trail Summary form is the most important form you complete It must be filled out before you input information for the tax return All W2 wages federal withholding Indiana State withholding and local withholding must be added manually and posted to the Audit Trail summary Use the Store version of the Audit Trail Summary a After you calculate the tax return verify that all information recorded on the Audit Trail Summary is shown on the tax return If not find out why and correct either the Audit Tra
10. c Page 15 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual 9 NOTE Business expenses such as mileage must be entered on FORM 2106 These are expenses incurred by an employee not a self employed person 10 Amount NOT subject to 2 of income 11 Line 28 if you use the pull down descriptor Gambling loss The software will limit the loss to the amount of gambling winnings flowing to line 21 FORM 8863 American Opportunity amp Lifetime Learning Credits Tuition and Fees Adjustment 1 Education credits for dependents taxpayer or spouse see input sheet for requirements and eligibility 8379 INJURED SPOUSE 1 Use this form whenever IRS might hold a refund caused by only one person on a joint return 2 The injured spouse is the person who does NOT owe the money 3 Do NOT make any or other allocation entries on this screen Instead make sure that all dependents income screens and expense screens are correctly assigned to either the taxpayer T or the spouse S 8396 MORTGAGE INTEREST CREDIT 1 Enter interest from mortgage statement Form 1098 2 Enter credit rate from mortgage credit certificate usually 20 or 25 3 Figure amount and then put remainder interest on Schedule A PIN Number 1 Enter current date ALT D 2 Tax Preparer pin must be 5 digit number Store No and your three digit preparer number 3 Input Second Field Last five digits of SSN will automatically po
11. cation Expenses 1099 G Unemplyment Student Loan Int pd Tuition Fees Ist amp 2nd Yr Print Local Tuition amp Fees after 2 yrs Indiana Email to Fiscal E m m Sch C Net fo Rent RE Taxes fC m m 1099 SSA W2G Gambling SCH C Gross Interest Div Hoosier Lottery W2 G correction Co Sch D Other Inco E After you print the Audit Sheet Locally for you records and verify the entries Besure to Print it at Fiscal also Then transmit the return Comments Current Date 10 28 10 H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 8 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Open A Return All returns are stored and accessed using the primary taxpayer s Social Security Number Social Security Numbers and Employer Identification Numbers are always keyed with no spaces dashes or other characters On the Menu Bar go to File gt Open a Tax Return Use one of the following options for opening a tax return 1 CTRL O from the Drake home page 2 Type the client SSN in the top box Press Enter 3 In the lower box is a list of the last nine 9 returns opened Select from one of these Create a New Return 1 Type the client SSN in the top box Then press Enter 2 If the program does not find the SSN the preparer is asked if a new file is to be created Press Enter to continue 3 Reenter the SSN 4 Sel
12. ect the type of return and enter first middle and last names Enter 5 The return automatically goes to screen 1 Name and Address field 1 Enter the new client information Update a Prior Year Return When a SSN is keyed to open a return the program searches both current year files and last year files If the client is not found in the current year program but is found in last year s program an update screen opens After the update has been performed the return opens the client s prior year information will auto fill the current years Press Enter in Window version Notes 2 Verify Indiana 8879 information after printed Names spelled correctly address is correct SS s a The client should verify this information when signing the form Verify name and address If the address is incorrect the State refund may never be delivered b Be sure to verify renter s information if applicable for Indiana renter s deduction or property tax deduction H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 9 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Print Instructions for Required Signature amp Rentention Forms Instructions 1 Consent to Use and Disclosure of Tax Return Information Complete two or three Consent to Sign anytime can be signed at the Disclosure of Tax Return Information Same time as all other forms
13. have 1099 form from the lender Identify as T or S Indiana does not allow interest deduction beyond the 1 60 months that payments are required You should ask how long they have been repaying the loan to determine whether an Indiana add back is needed 3 Educator expenses Identify as T or S A ITEMIZED DEDUCTIONS 1 Enter medical dental and eye care expenses paid plus amount of insurance paid by taxpayer that is not through a before tax employee plan 2 DO NOT enter state and local tax which has been entered on W 2 or 1099R which are automatically added on form 3 If taxpayer owed state taxes prior year this amount should be verified for prior clients 4 Enter real estate taxes paid Tax on main home in Indiana should be re entered on the next line Do not duplicate entries from screen 1098 Do not re enter these taxes on IN SCH2 5 Enter personal property taxes license plate fees 6 Enter mortgage interest paid Do NOT complete name address amp ID if client has 1098 7 Enter contributions both cash and non cash If non cash over 500 complete Form 8283 instead of entry on Sch A If Goodwill use ALT G to fill first several fields 8 Amount subject to 2 of income A description such as union dues is required Then enter amount Expenses could include safety glasses or shoes classroom expenses and investment expenses H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 do
14. il or tax return then calculate and verify information again i EIC form number of children on EIC due diligence form ii 1040 page 1 1 Income Wages Taxable pension Unemployment Social Security iii 1040 page 2 Federal withholding iv Indiana page 1 Indiana State withholding Local withholding v Dependent Care Paid vi Rent and or Real Estate taxes paid vii Education expenses viii Verify ALL credits appearing on the return ix Read any all NOTES amp MESSAGES b Complete Due Diligence Form if return has EIC with children 4 Required information a Social Security numbers required for all taxpayers and dependents b Dates of birth c Day amp evening phone numbers required on all returns First Return Instructions 1 Use New Student Practice Problem 1 This practice set contains information which will be included on the audit trail and additional forms to be input after the initial quality control check 2 Trainee completes Consent to Use Audit Trail and P1 input sheet Items to be included on audit trail are marked Focus on caring for the customer s data 3 Complete the following screens in the following order Initial Control V amp check against audit trail after item j Periodic Control V throughout additional screens LEVEL 1 a 1 Demographics b 2 Dependents c W2 d 8867 EIC Due Diligence EIC1 EIC2 EIC3 EIC4 e IN 1 f IN SCH2 Indiana Deductions alternate input IN D g
15. iness codes Shift S will reveal alphabetical categories of the codes Use 812990 for miscellaneous 2 Use input form for schedule C see and use examples of typical Schedule C to complete 3 Enter Gross Income and all expenses All Schedule Cs should include some expenses per IRS 4 This form will calculate Self employment tax and deduct 1 2 adjustment 5 Daycare providers must complete Office in Home Form 8829 showing business use by hours Also for food deduction they can use a per diem for meals A log must be kept for the number of meals and snacks served to each child See Pub 17 or Quickfinder PAGE 3 INCOME 1 State tax refund if itemized deductions prior year a Taxpayer should have form from State of Indiana prior customers amount will appear automatically but should be verified If amount is shown on this page in green verify the amount and delete the green by entering F4 2 Repaid unemployment should be entered on screen 99G INT Interest Income 1 Interest received 2 Enter Bank info and amount received for each 1099 Interest form 3 Savings bonds interest must be entered on line 3 This income is not taxed in Indiana and if entered here program will automatically deduct on Indiana return 4 On the first INT you must answer the question near the bottom of the screen that asks about foreign accounts DIV DIVIDENDS 1 Dividends received note total dividends and qualified dividends
16. l records guardianship papers medical records child care records previous year s tax return divorce decree W 2 Wages 1 Enter T or S for taxpayer or spouse 2 Enter Federal Identification Number EIN i If employer name and address automatically appears verify Check to be sure EIN is correct If so type in corrections to match the paper W2 If address does not appear verify EIN then type in the name and address and zip code The city and state is automatically filled based on the zip code ii If the zip code is wrong delete the city and state and enter the new zip code H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 12 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual 3 To make data entry easy and quicker enter amount box 1 By pressing Tab or enter key after entering the amount in Box 1 and 2 boxes 3 5 and 16 will fill in with the amount in Box 1 Boxes 4 and 6 will automatically calculate the Federal percentage amount If amounts are different enter correct amounts as shown on Form W 2 Make the screen look like the paper W 2 4 Enter Employer State ID Number on W 2 5 You must complete the 4 verification fields at the bottom of the screen federal wages amp withholding Indiana wages and withholding for each W 2 You will receive a message and return will not electronically file 6
17. pulate PIN needed for both Taxpayer and Spouse if joint return 4 Enter current date or date taxpayer is signing this return 5 PIN creates Form 8879 signature form for taxpayer s to sign after reviewing and return is complete 6 When you view return if no Form 8879 form shown in list or if Federal form 8453 appears you have not completed this page 7 Indiana State Form 8879 will be created 8 These two forms MUST be signed and kept in your file ECOL SCREEN EPS Financial Also known as bank products NOTE If return is rejected because last name of Taxpayer does not match their records you must change Name on Page 1 and also on the ECOL screen H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 16 of 16 Tax Software Handbook
18. rify or Enter day evening and cell phone numbers including area code Must be input twice if only one number for bank products 8 Verify enter email address 9 Dependent of another Dependent of Another e g a college student claimed by parent 10 FIRM your store number This controls the DCN unique identifier assigned to every electronic tax return and where checks are to be delivered 11 Preparer Number your store number plus one digit assigned to you 12 Misc Code 1 How did client hear about us Choose from drop down list Page 2 Dependents 6 Input name SSN months lived in home and full date and year of birth 7 Relationship can be filled in by hitting ALT S son ALT D daughter or by typing first letter of relationship and enter e g D then enter Daughter 8 Amount paid for child care 9 Answer questions 10 11 13a 13b 13c amp 26 re EIC eligibility Also need to enter info on 8867 amp scrn EIC2 Any documents used need to be photocopied or scanned and retained as part of our EIC due diligence 10 Mark with X any additional questions at the bottom of screen re student status disability residence 8867 EIC SCREEN Answer questions on screen 8867 This is in addition to questions 10 to 13c on Dependent screen Complete Screens EIC1 EIC2 EIC3 amp EIC4 as appropriate Ask for amp photocopy or scan documentation for new clients and or new dependents Examples are birth certificates schoo
19. t Encourage use of Hot Keys instead of the mouse it s much quicker H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 2 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Hot Key Rapid Reference Guide Desired Action Hot Keys Move cursor forward one field Enter Tab or Move cursor back one field Shift Tab Shift Enter or 4 Navigate up and down a data entry screen Ctrl 4 or Ctrl Move cursor within a field or gt Delete character before the cursor Backspace Return to previous screen exit Esc ee pee Activate the pop up calculator F10 View areturn Ctrl V Print a return Ctrl P Return to data entry Ctrl E or ESCAPE Help in a field very important F1 Fiscal Tax Shortcuts Macros Description Completes Consent to Disclose and Consent to Alt C Use Alt E Auto fills ABCV screen Alt P Auto fills PIN Screen Alt G Auto fills in Goodwill info on Form 8283 Alt W and Alt Z Moves cursor within W2 Alt B Bill adjustment Desired Action Hot Keys Additional Notes When selections are listed arrow to the desired For field help during data entry F1 choice and press ENTER on the keyboard to insert the data If you need to start over a screen or get rid of it Delete a data entry screen
20. uired f l REFERRAL Send a Friend coupons Attach to Client letter and review with customer Give to every customer Compare Three year comparison page Give to every customer H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 10 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Frequently Used Tax Program Screens Screen Description Name amp Address Miscellaneous Income al __ ECOL Bank Information 099R Pension or Withdrawal from Retirement 99G Unemployment or State tax refund nterest Income _4 Adj Student Loan Interest merican Opportunity amp Lifetime Credits Tuition amp Fees Adjustment ndiana county codes ll May have Federal and or State Withholding H ljohnwp 13_14 Tax Training Tax Software Training Program Fall 2013_ver 11_19_13 doc Page 11 of 16 Tax Software Handbook Fiscal Tax Co 2013 14 User s Manual Page 1 Name and Address 1 FILING STATUS MUST HAVE ENTRY 2 Verify SSN for taxpayer and spouse 3 Verify or Enter Date of Birth for taxpayer and spouse Enter as mmddyy Birthdates are required for taxpayer and spouse 4 Occupation entering is optional 5 Verify or Enter street Address Make sure apt numbers are present and are correct 6 Verify or Enter Zip Code If changed input zip code and city will automatically be replaced 7 Ve
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