Chapter 4 - Tax Returns

10 articles

Prepare a tax return in Web1040 Pro

SUMMARYThis article pertains to Web1040 Pro Preparing a tax return________________________________________________________________________________________________________________________________________________________________Return PreparationWeb1040 Pro is a collaboration of award-winning software...

Federal & State Section

Federal SectionOver the next few sections the following topics will be covered: Income, Deductions, Other Taxes, Payments & Estimates and Miscellaneous Forms.IncomeThe Income portion of the Federal Section is the first opportunity a preparer can use Web1040 Pro’s Guide Me feature. Guide Me is an aid...

Interest & Dividend Income

Interest and Dividend IncomeUp next on the Income menu is Interest and Dividend Income. Clicking BEGIN will open a new menu with three items listed: Interest or Dividend Income Did you have interest in a foreign bank account? Exclusion of Interest from Series EE & I US Savings Bonds Selecting Intere...

IRA/Pension & Social Security Benefits

IRA/Pension and Social Security BenefitsThe next Income section pertains to retirement, most notably railroad and social security benefits. Guidance is provided for entering retirement benefits in Web1040 Pro, including income reported on the following forms: 1099-R, SSA-1099, RRB-1099-R, and RRB-10...

Schedule C, E, K-1

Schedule C—Profit or Loss from BusinessThe next item on the Income main menu is for Schedule C – Profit or Loss from Business. This is the seventh item on the Income main menu.After completing the information above, you will be directed to the Schedule C main menu. Separate menus are available for e...

Deductions

DeductionsThe Deductions portion of the Federal Section is used to enter all deductions, adjustments or subtractions on the tax return. The Preparer will be given two options from the main income page.Select Guide Me to launch a step-by-step series of questions to help determine the various types of...

Adjustments & Credits

AdjustmentsMedical Savings Account (Form 8853)The Medical Savings Account Form in the tax program must be entered manually. Distributions from a Medical Savings Account are reported to recipients on Form 1099-MSA.Educator ExpensesTeachers and other educators can deduct as much as $250 that they spen...

Payments, Estimates, Misc Forms & Application for Extension

Payment and EstimatesThe Payments & Estimates portion of the Federal Section is used to enter such items as estimated payments, to apply overpayments to next year’s return, and to print payment vouchers. Select the Begin button next to any payment or estimate item to enter in data applicable to the ...

Health Insurance & State Section

Health InsuranceUnder the TCJA, the penalty for not having health coverage has dropped to $0. If the taxpayer purchased coverage through the Marketplace, they may be eligible for the premium tax credit or need to reconcile any advance payments made on their behalf. 1095-A amounts will still need to ...

Summary, Print, Due Diligence, & E-Filing

Summary/Print PageThe Calculation Summary page is an overview of the tax return. It will show an interactive 1040 View for you to quickly review and select the areas you need to check/adjust. You can also choose to use the Summary View, which is a line-by-line breakdown of what items are included in...