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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

This topic provides general information about procedures.

The following includes special processing information about some of the forms and schedules included in the tax application.

"No" prints to the left of line 66a according to IRS instructions if the tax application determines that a taxpayer does not qualify for the Earned Income Credit.

Note that the name fields at the top of this page include the first name, middle initial, and last name of the person to whom the foreign taxes belong, as identified in Screen 1116.

Excess employer reimbursements are automatically transferred to Form 1040, line 7. This amount is added to the Wage Report as well.

"MFS" (married filing separately) displays and prints to the right of the text on line 13 when applicable.

"MFS" (married filing separately) displays and prints in the extra fields next to line 5, when applicable. You can enter a different dollar limitation percentage on Screen OthAsset.

When viewing Form 4684, Page 1 on screen, notice the field above the Casualty and Thefts heading. This field contains the text "Page X of Y" when there are multiple occurrences of Form 4684, Page 1. The field to the right of the Personal Use Property heading shows the casualty or theft occurrence.

When viewing Form 4684, Page 2 on screen, notice the field above the Casualty and Thefts heading. This field contains the text "Page X of Y" when there are multiple occurrences of Form 4684, Page 2. The field to the right of the Section B - Business and Income Producing heading shows the casualty or theft occurrence.

When viewing this page on screen, notice there is a long, blank field at the top of the form. As requested in IRS instructions, UltraTax CS prints "Related Party Like-Kind Exchange" in that space when there are gains transferring from a related party like-kind exchange to this form.

When viewing this page on screen, notice there is a long, blank field at the top of the form. This field states "Page X of Y" when there are multiple occurrences of Form 4797, Page 2.

If any item claimed as a deduction is $500 or less, columns (e), (f), and (g) are left blank in accordance with IRS instructions for the form.

Schedule A mortgage interest automatically reduces by the credit calculated on Form 8396, line 3.

This form does not print if it meets one of the exceptions stated in the instructions. You can force the form to print, if desired.

This form only prints if Form 6251 prints and there are passive activities on the return.

For alternative minimum tax, the amount for Form 6251, line 4 is automatically calculated based on the portion of deductible home mortgage interest attributable to home equity debt. The AMT version of Form 4952 automatically includes the portion of home mortgage interest attributable to home equity debt to the extent of investment interest calculated on the ratio of average investment principal balance to total average principal balance.

Part IV is not completed if there is a Form 4562 associated with this business activity.

When viewing this page on screen, you will notice there is a long, blank field at the top of the form. As requested in IRS instructions,  "Related Party Like-Kind Exchange" prints in that space when there are gains transferring from a related party like-kind exchange to this form.

According to IRS instructions, if your client has more than three rental or royalty properties, multiple copies of Page 1 print rather than a statement or another report listing the additional items.

Your firm information cannot be overridden on any signature page. The following calculating forms have signature pages.

Calculating forms with signature pages
FinCEN Form 114a
FinCEN Form 114, Page 5
Form 1040, Page 2
Form 1040A, Page 2
Form 1040EZ, Page 1
Form 1040NR, Page 2
Form 1040NR-EZ, Page 1
Form 1040PR, Page 1
Form 1040SS, Page 1
Form 1040X, Page 2
Form 1045, Page 1
Form 656, Page 5
Form 433-A, Page 4
Form 433-A (OIC), Page 8
Form 433-F, Page 2
Form 3520, Page 6
Form 5329, Page 2
Form 8379, Page 2
Form 8606, Page 2
Form 8697, Page 2
Form 8857, Page 7
Schedule H, Page 2

With limited exceptions, the worksheets provided are requested in, and based on, the instructions to the forms. The following includes special processing information about some of the worksheets and reports included in UltraTax/1040.

This worksheet reports contributions to and distributions from the ABLE (Achieving a Better Life Experience) accounts entered on Screen 1099QA. The worksheet calculates excess contributions and taxable distributions reported on Form 1040, line 21 and Form 5329, Parts III and VIII.

These reports compare actual amounts for Schedule A or Schedule C in a return to estimated IRS averages, based on available IRS statistics. The reports also indicate if the difference between the actual amount and the IRS estimated average amount is outside a specified deviation range.

The At-Risk Allocation worksheet is designed to show prior suspended at-risk amounts, current-year income or deduction amounts, current-year amounts allowed, and the amounts suspended to next year. Amounts overridden do not carry back to the return.

This worksheet lists client bank accounts selected for direct deposit or direct debit payment. The worksheet is designed to be presented to the client so they can verify that their banking information is correct.

The tax application produces the following basis related worksheets.

  • Partner Basis Worksheet, Page 1, is designed to calculate the partner's basis in the partnership and gain recognized on distributions. End-of-the-year basis will proforma to next year.
  • Partner Basis Worksheet, Page 2, is designed to show prior-year suspended basis losses, current-year basis losses generated, current-year basis losses allowed, and disallowed losses to be carried forward. Amounts overridden do not carry back to the return; however, any override in the Disallowed Loss Carryforward column will proforma to next year.
  • Shareholder Basis Worksheet, Page 1, is designed to calculate the shareholder's stock and loan basis in the S Corporation. End-of-the-year stock and loan basis will proforma to next year. The worksheet also calculates gains recognized on excess distributions and repayments of shareholder loans.
  • Shareholder Basis Worksheet, Page 2, is designed to show prior-year suspended basis losses, current-year basis losses generated, current-year basis losses allowed, and disallowed losses to be carried forward. The worksheet will indicate if basis is reduced by nondeductible items before deductible items, or if Regulation 1.1367-1(g) election is in effect and deductible items are allocated before nondeductible items. Amounts overridden do not carry back to the return; however, any override in the Disallowed Loss Carryforward column will proforma to next year.
  • Partner Basis Worksheet, Page 1, AMT is designed to calculate the partner's AMT basis in the partnership and gain recognized on distributions. End-of-the-year basis will proforma to next year.
  • Partner Basis Worksheet, Page 2, AMT is designed to show prior-year AMT suspended basis losses, current-year AMT basis losses generated, current-year AMT basis losses allowed, and disallowed AMT losses to be carried forward. Amounts overridden do not carry back to the return; however, any override in the Disallowed Loss Carryforward column will proforma to next year.
  • Shareholder Basis Worksheet, Page 1, AMT is designed to calculate the shareholder's AMT stock and loan basis in the S Corporation. End-of-the-year stock and loan basis will proforma to next year. The worksheet also calculates AMT gains recognized on excess distributions and repayments of shareholder loans.
  • Shareholder Basis Worksheet, Page 2, AMT is designed to show prior-year AMT suspended basis losses, current-year AMT basis losses generated, current-year AMT basis losses allowed, and disallowed AMT losses to be carried forward. The worksheet will indicate if the AMT basis is reduced by nondeductible items before deductible items, or if Regulation 1.1367-1(g) election is in effect and deductible items are allocated before nondeductible items. Amounts overridden do not carry back to the return; however, any override in the Disallowed Loss Carryforward column will proforma to next year.

This report shows the application of current-year and carryover credits of Form 3800, General Business Credits

This worksheet details each Form 1099-C entered and reconciles the amount of cancelled debt included in taxable income. Details include the activity's form and unit, taxable cancelled debt, and exception/exclusion amounts, and documents the reason for the exception/exclusion.

See Worksheets showing AGI limitations.

This worksheet is found in Form 1040 instructions and IRS Publication 972 and calculates the child tax credit to be shown on Form 1040, line 52, Form 1040A, line 35, or Form 1040NR, line 49.

These worksheets are based on IRS Publication 517 and are used to calculate any taxable income from a parsonage or parsonage allowance. They also show the calculation of the tax-free percentage of income, the application of the percentage to deductions for ministerial expenses, and the calculation of minister/clergy self-employment income.

The tax application produces the following Credit for Small Employer Health Insurance Premiums Worksheets.

  • Credit for Small Employer Health Insurance Premium Optimization Worksheet - This worksheet is designed to calculate the optimal credit amount by generating the Full-Time Equivalent employees using the three methods: Actual hours worked, Days-worked, and Weeks-worked. This worksheet uses the information reported on Credit for Small Employer Health Insurance Premium Worksheets, Pages 1-4. The information used to generate the optimal credit is reported on Form 8941.
  • Credit for Small Employer Health Insurance Premium Worksheet, Page 1 - This worksheet is designed to calculate Worksheets 2, 3, 5, 6, and 7 located in Form 8941 filing instructions. The worksheets are calculated using the three methods of generating Full-Time Equivalent employees.
  • Credit for Small Employer Health Insurance Premium Worksheet, Page 2 - This worksheet is designed to calculate Worksheet 1 located in Form 8941 filing instructions. The worksheets are calculated using the three methods of generating Full-Time Equivalent employees.
  • Credit for Small Employer Health Insurance Premium Worksheet, Page 3 - This worksheet is designed to calculate Worksheet 4 located in Form 8941 filing instructions. The worksheets are calculated using the three methods of generating Full-Time Equivalent employees.
  • Credit for Small Employer Health Insurance Premium Worksheet, Page 4 - This worksheet is designed to calculate Worksheet 4 located in Form 8941 filing instructions. The worksheets are calculated using the three methods of generating Full-Time Equivalent employees.

This report provides diagnostic messages to identify inconsistencies in data you entered. Diagnostic messages display the level of importance. Correct any diagnostics listed as Critical to ensure a complete and accurate return. Review diagnostics listed as Informational (FYI) for informational purposes.

Other items listed in the Diagnostic Page include messages specific to electronic filing and overrides present in the return. Messages listed in the To Do section indicate items that were present in the prior-year return but not in the current-year return. Messages listed in the Estimated Values section indicate fields that contain an estimated value.

This report generates information about the elections made by the taxpayer. Information such as tax year taken, effective period, and additional comments are provided for both current and prior-year elections.

This worksheet generates a report which details the calculation for excess Social Security and/or RRTA tax withholding that is reported on Form 1040, Page 2, line 71.

This worksheet is found in the Form 1040 instructions and calculates the exemption amount allowed after any limitations. The exemption amount is reported on Form 1040, line 42.

The Federal Financial Aid Application Information Worksheet provides information necessary to complete the Free Application for Federal Student Aid (FAFSA). It does not carry back any calculations to any tax form.

This report provides information about whether filing a married filing separate or married filing joint return is more advantageous for your client.

For more information, see Using the Filing Status Optimization utility.

This worksheet is designed to report the taxpayer's foreign bank account in the format required by the BSA E-Fle Services. FinCEN Form 114 cannot be submitted on paper. This worksheet can be used by the taxpayer when e-filing via their own BSA E-File account, or as a record of accounts that were e-filed via the tax application.

The First-Time Homebuyer Credit Worksheet provides information on the 15-year installment payments if the home was purchased in 2008, as well as the credit that may have to be repaid if the home was purchased after 2009 and sold before the 36-month holding period.

Taxpayers receiving Form 1099A or 1099C are required to report gains or losses due to abandoned, foreclosed, or repossessed property. This worksheet generates the gain or loss due to abandonment, foreclosure, or repossession on property.

Taxpayers claiming the foreign earned income exclusion or housing exclusion on Form 2555 or 2555-EZ are required to calculate tax using the Foreign Earned Income Tax Worksheet included in the Federal 1040 instructions. The Foreign Earned Income Tax Worksheets in the following table are provided to show how the applicable tax was calculated using the Foreign Earned Income Tax Worksheet(s) and in which folders the worksheets are located.

Worksheet Folder location
Foreign Earned Income Tax Worksheet - 1040 Line 44 2555Tax
AMT Foreign Earned Income Tax Worksheet - 6251 Line 31 2555Tax
Form 8801 Foreign Earned Income Tax Worksheet - Form 8801 Line 11 8801
Next Year's Form 8801 Foreign Earned Income Tax Worksheet - Projected Tentative Minimum Tax Credit WS Line 11 8801
Schedule J Farm Income Averaging Worksheet 2 - Foreign J
Tax Projection Worksheet - Foreign Earned Income Tax Worksheet TPWTax

The Estimated Tax Payments Worksheet is designed to show how the tax application arrives at the total amount of the estimates for the coming year. Because these are information-only fields, you can access them, but you cannot change the calculations. You must change the amounts using Screen Est.

This worksheet calculates the itemized deduction limitation on Form 1045 and Schedule B for prior years when applicable.

This worksheet is the AMT equivalent of the regular Form 1045 - Schedule B - NOL Carryover. This worksheet calculates the Alternative Minimum Tax NOL carryover using AMT carryovers rather than regular carryovers.

The tax application produces eight Form 1116 worksheets.

  • The Foreign Tax Credit Worksheet for Form 1116, Page 2, line 18 is designed to calculate the amount of tax to enter on Page 2 if the tax was figured using the special rates on capital gains.
  • The Foreign Tax Credit Worksheet is produced for activities reported on the Form 2555 Foreign Earned Income Allocation Worksheet and Form 1116. The worksheet is designed to be submitted with the return and provides detail for the following Form 1116 lines.
    Line Description
    Line 1 Gross income from sources within the applicable country
    Line 2 Expenses directly allocable to gross income
    Line 3d Gross foreign source income
  • Foreign Tax Credit Carryover Worksheet is designed to calculate the amount of unused or excess foreign tax credits. Any unused foreign tax credits are then reported on the Foreign Tax Credit Carryover Report.
  • The four Foreign Tax Credit Capital Gain/Loss Worksheets are designed to calculate any necessary adjustments to Form 1116, line 1a if foreign capital gains and/or losses are present in the return.
  • The Form 1116 Page 1 Detail Worksheet for Regulated Investment Company (RIC) Income accumulates multiple Screen 1116 "RIC" amounts that are summed for column A on the related Form 1116.

If you override numbers on this worksheet, also override the numbers on the return.

This worksheet is designed to allocate deductions to excluded income. Deductions allocated to foreign earned income during the assignment on the Form 2555 Foreign Earned Income Allocation Worksheet transfer to this worksheet. On this worksheet, an amount is allocated to excluded income using an exclusion ratio of foreign earned income and housing exclusion to total foreign earned income. The worksheet is designed to be submitted with the return.

This worksheet is designed to report the allocation between U.S. and foreign earned income. Income allocated to foreign earned income during the assignment is used to calculate the Form 2555 exclusion. Foreign income earned before, during, and after the foreign assignment is reported, less any applicable exclusion, by Form 1116 as eligible for the foreign tax credit. The worksheet reports the following:

  • how the current-year foreign earned income reported on Form 2555, Page 2 calculates.
  • how amounts reported in the Foreign During Foreign Assignment column are reported on Form 2555, Page 2, Part IV.
  • how any housing deduction carryover reported on Form 2555, Page 3 calculates. The Housing Deduction Carryover Worksheet is located at the bottom of the worksheet.
  • how deductions to be allocated to excluded income calculate. Allocable deductions reported in the Foreign During Foreign Assignment column carries to the Form 2555 Deductions Allocable to Excluded Income Worksheet to be allocated and then reported on Form 2555, Page 3.

These worksheets are located in the Form 5471 instructions and they calculate income to be carried to Form 5471, page 4, Schedule I, lines 1 through 4.

Taxable IRA Distributions with IRA Contributions: This worksheet is found in Publication 590-B and calculates the taxable and nontaxable portion of IRA distributions when IRA contributions exist.

Form 8615 Tax Line 5 Worksheets: Line 5 Worksheets 1, 2, and 3 are used to calculate the taxpayer's net capital gain from Form 8615, line 5 included on line 8 of the form. The worksheets are located in the Form 8615 instructions.

Form 8615 Worksheets: This worksheet contains various worksheets detailing amounts used in the calculation of Form 8615. The worksheets are based upon the instructions located in IRS Publication 929.

  • Qualified Dividends Included on Form 8615, line 8
  • Qualified Dividends Included on Form 8615, line 14
  • Form 4952, line 4g Included on Form 8615, line 8
  • Form 4952, line 4e Included on Form 8615, line 8
  • Net Capital Gain Included on Form 8615, line 8
  • Net Capital Gain Included on Form 8615, line 14
  • 28% Rate Gain & Unrecaptured Section 1250 on Form 8615, line 8
  • 28% Rate Gain & Unrecaptured Section 1250 on Form 8615, line 8 when Schedule J is used
  • Net Capital Gain Included on Form 8615, line 14
  • The Taxpayer’s Information For Use When Preparing Other Children’s Returns Using Parent’s Information worksheet accumulates the information needed to prepare all other children's returns. This worksheet serves as an audit trail for information data shared within the family unit, or if entering the data manually, is to be used to enter the data in each child’s return

Form 8615 Capital Gains Tax Calculation Worksheet: This worksheet calculates tax on Form 8615, lines 9 and 15 using the maximum capital gains rates. Information regarding using the maximum capital gains rates and/or Schedule J can be found in IRS Publication 929. Support for many of the amounts used on this worksheet can be found on the Form 8615 Worksheets (listed above).

Form 8615 Excess Capital Gain Worksheet displays how excess capital gains calculate when any of the family group filed Form 2555. The modified amounts, if any, will be used on the Form 8615 Capital Gains Tax Calculation Worksheet.

Form 8615 Line 9 Schedule J Worksheet displays how Form 8615 calculates when Schedule J is used to calculate tax on the parent's return.

The Next Year's Tentative Minimum Credit Worksheet will calculate next year's tentative minimum tax credit and the projected prior-year minimum tax credit for reporting on the Tax Projection Worksheet.

Modified AGI Worksheet: This worksheet is found in Form 8839 instructions and is used to calculate Modified AGI on Form 8839.

Form 8960 - Net Investment Income Worksheet 1: This worksheet provides an audit trail of income, gains, and losses that are not subject to net investment income tax and are reported as adjustments on Form 8960, lines 4b and 5b. It also details the calculation of the net investment income adjustment for a capital loss carryover.

Form 8960 - Net Investment Income Worksheet 2: This worksheet reports the other modifications to investment income for Form 8960, line 7, including the NII net operating loss.

Form 8960 - Net Investment Income Worksheet 3: This worksheet contains two worksheets found in the instructions for Form 8960, Net Investment Income. The first part details the calculation of the state and local income taxes and miscellaneous expenses allocable to net investment income. The second part reports the calculation of the adjustment from the disposition of partnership interest or S corporation stock.

Form 8960 - Net Investment Income Worksheet 4: This worksheet calculates the percentage of a net operating loss that is applicable to net investment income. It displays the NOL calculation using only the items that apply to net investment income.

Form 8960 - Net Investment Income Worksheet 5: This worksheet is found in the instructions for Form 8960 and calculates any applicable tax deduction recovery.

Shared Policy Allocation of Premium Tax Credit: This worksheet provides an audit trail of the amounts reported on Form 8962, lines 12 through 23, when there are multiple policies and/or allocated policies.

Alternative Calculation for Year of Marriage: This worksheet is based on the Form 8962 instructions and calculates the alternative premium assistance amount to use in the year covered individual(s) marry.

PTC Worksheet W: This worksheet is found in Publication 974, Premium Tax Credit, and calculates the allowable self-employed health insurance deduction for premiums that are eligible for the Premium Tax Credit.

PTC Worksheet X: This worksheet is found in Publication 974, Premium Tax Credit, and calculates the allowable self-employed health insurance deduction for premiums that are eligible for the Premium Tax Credit.

PTC Simplified Calculation Method: This worksheet is found in Publication 974, Premium Tax Credit, and calculates the allowable self-employed health insurance deduction for premiums that are eligible for the Premium Tax Credit.

PTC Worksheet Y/Z: This worksheet is found in Publication 974, Premium Tax Credit, and calculates the allowable self-employed health insurance deduction for premiums that are eligible for the Premium Tax Credit.

This report is designed to tie multiple Forms W-2G to the total gambling winnings reported on the tax return and is intended to provide you with an audit trail. It is not intended nor designed to carry back calculations to any of the tax forms. If you find an error, correct it in data entry, not on this report.

This worksheet is located in the Form 8965 instructions and is used to calculate the individual responsibility payment that is reported on Form 1040, line 61. Data entry for this worksheet is found on Screen ACA Tax in the Taxes folder.

This report lists all input activities that have been marked as inactive. Activities listed on this report are not included in the calculation of the tax return.

This worksheet is used to determine the amount in which a taxpayer is insolvent to exclude cancelled debt from gross income.

This report itemizes, on one concise report, all gross IRA distributions received during the year as well as the taxable amount if there was a basis in an IRA and Form 8606 has been calculated as a result. This report helps your clients determine how UltraTax CS calculates the taxable line of IRA distributions on Form 1040.

Traditional IRA Deduction Worksheet: This worksheet is found in Form 1040 instructions and calculates the deductible portion of traditional IRA contributions.

Traditional IRA MAGI Worksheet: This worksheet displays the items included in Modified Adjusted Gross Income (MAGI).

Roth IRA Contribution Worksheet: This worksheet is found in Form 8606 instructions and calculates the maximum amount of Roth IRA contributions for the current tax year.

Roth IRA MAGI Worksheet: This worksheet displays the items included in Modified Adjusted Gross Income (MAGI).

Worksheet for Determining Roth IRA Basis Amounts: This worksheet is found in the Form 8606 instructions and calculates your basis in the current-year Roth contributions and conversions.

This worksheet is found in the Schedule A instructions and calculates allowed itemized deductions after limitations to be reported on Schedule A, line 29.

This worksheet is designed to show how individual data entry in Screens K1 or K1T resulted on the tax return after any basis, at-risk, or passive-loss adjustments. Overrides on this form do not carry back to the return. If you find an error, correct it in data entry, not on this worksheet.

This report is designed to list multiple Screens K1 and K1T on one concise report, listing income, deduction, and credit amounts to provide you with an audit trail. It is not intended nor designed to carry back calculations to any of the related tax forms. If you find an error, correct it in data entry, not on this report.

This worksheet is designed to show how the tax application calculates Keogh, SIMPLE, SEP, or 401(k) deductions for each activity with a self employed retirement plan. This worksheet is based on the Deduction Worksheet for Self-Employed found in IRS Publication 560, Retirement Plans for Small Businesses.

This worksheet shows the details of the taxpayer's calculated self-employed retirement plan deduction and any remaining balance of contributions to be made (or excess contributions) after factoring in contributions already made to the plan for the tax year. The information on this worksheet is also used to complete the Keogh/SEP Plan Contrib (TL) custom paragraph, when applicable.

This worksheet itemizes on one concise report the calculations made to determine the late filing penalty, late payment interest, and late payment penalty reflected at the bottom of Form 1040, Page 2, if applicable.

The worksheets are designed to show prior-year suspended passive losses and credits, current-year passive loss generated, current-year passive losses utilized, and passive losses suspended to next year. Amounts overridden do not carry back to the return; however, any override amounts shown on the form will proforma to next year.

Note: Overridden Suspended Losses will proforma to the following year.

This report is designed to tie multiple Forms 1099-R to the total pension and annuities line on the tax return and is intended to provide you with an audit trail. It is not intended nor designed to carry back calculations to any of the tax forms. If you find an error, correct it in data entry, not on this report.

This worksheet is comprised of two separate worksheets from IRS Publication 575 and is designed to calculate the taxable portion of pension distributions using the General Rule or Simplified Method if you have a cost to recover from your pension or annuity plan. Enter data for these worksheets in the Pension/Annuity section of Screen 1099R.

This report is designed to assist you in verifying the numbers calculated by UltraTax CS. It is not intended nor designed to carry back calculations to any of the tax forms. If you find an error, correct it in the input screen(s), not on this report.

This worksheet shows how AGI limitations are applied to current-year charitable contributions and carryovers of charitable contributions. It also shows the portion of charitable contributions that have been absorbed as part of an NOL.

Allocation of Education Expenses for ESAs and QTPs Worksheet: When a taxpayer has distributions from both an Education Savings Account (ESA) and a Qualified Tuition Program (QTP), this worksheet is used to allocate the expenses between them.

Qualified Tuition Program Distribution Worksheet: This worksheet calculates the taxable portion of distributions reported on Form 1099-Q from QTPs.

Qualified Tuition Program Contribution Worksheet: This worksheet reports contributions to QTPs entered in Screen 1099Q. Contributions to State QTPs are reported in the top section of the worksheet and contributions to Private QTPs are reported in the bottom section of the worksheet.

These reports compute and summarize required minimum distributions for 2017 for the RMD Worksheet and Summary and also calculate differences between 2016 required minimum distributions and the projected 2016 amounts for the RMD Comparison Report.

This report is designed to tie multiple Forms W-2 and other items reported as wages on Form 1040, line 7 to the various lines on the tax return and is intended to provide you with an audit trail. It is not intended nor designed to carry back calculations to any of the tax forms. If you find an error, correct it in data entry, not on this report.

Investment Income Worksheet: This worksheet is found in IRS Publication 596 and calculates the investment income used to determine eligibility for the Earned Income Credit.

Earned Income Worksheet: This worksheet is found in IRS Publication 596 and calculates the earned income to be used in computing the Earned Income Credit Worksheet B, line 4b.

Earned Income Credit Worksheet B: This worksheet is found in Form 1040 instructions and calculates the earned income credit to be reported on Form 1040, line 66a; Form 1040A, line 42a; and Form 1040EZ, line 8a.

These worksheets calculate the amount of tax using the applicable tax rates for the current year and the three prior years.

Social Security Worksheet: This worksheet is found in Form 1040 instructions and calculates the taxable amount of Social Security benefits.

Worksheet 1 For Social Security Recipients Who Contribute To An IRA: This worksheet is found in Appendix B of Publication 590-A and calculates the Modified AGI for taxpayers who receive Social Security benefits.

Worksheet 2 For Social Security Recipients Who contribute To An IRA: This worksheet is found in Appendix B of Publication 590-A and calculates the traditional IRA deduction for taxpayers who receive Social Security benefits.

Worksheet 3 for Social Security Recipients Who Contribute to An IRA: This worksheet is found in Appendix B of Publication 590-A and calculates taxable Social Security benefits for taxpayers that receive Social Security benefits and take a traditional IRA deduction.

Worksheet 1 for Social Security Recipients Who Receive a Lump-Sum Payment: This worksheet is found in Publication 915 and calculates the taxable Social Security benefits for those who receive a lump-sum payment for previous Social Security benefits. This worksheet is compared with worksheet 4 for lump-sum payments to calculate taxable benefits.

Worksheet 2 for Social Security Recipients Who Receive a Lump-Sum Payment: This worksheet is found in Publication 915 and calculates the additional taxable Social Security benefits for years after 1993 for those who receive a lump-sum payment.

Worksheet 3 for Social Security Recipients Who Receive a Lump-Sum Payment: This worksheet is found in Publication 915 and calculates the additional taxable Social Security benefits for years before 1994 for those who receive a lump-sum payment.

Worksheet 4 for Social Security Recipients Who Receive a Lump-Sum Payment: This worksheet is found in Publication 915 and calculates the taxable Social Security benefits for those who receive a lump-sum payment and are electing the lump-sum election method to find out if they can report lower taxable benefits. This worksheet is used in conjunction with worksheet 1, 2, or 3 for lump-sum payments.

This worksheet is found in the Form 1040 instructions and calculates the standard deduction allowed for dependents of another or taxpayers with additional standard deduction amounts for being age 65 or blind.

These reports calculate differences between the calculated 2017 tax return and 2016 amounts for the Two Year Comparison Report; 2018 amounts for the Tax Projection Worksheet; or projected 2017 amounts from the prior year Tax Projection Worksheet. Because the 2017 amounts are calculated from data within the return, you cannot override amounts reflected in the 2017 columns using these reports. If you want to change a 2017 amount, correct it in data entry, not on this report.

The Tax Reconciliation Worksheet generates automatically when filing Forms 1040, 1040A, 1040EZ, 1040NR, and 1040NR-EZ. This worksheet displays how tax is calculated for both ordinary income and capital gain income, and it specifically details the amount of income taxed at each tax rate.

Note: Due to the complex tax calculation that occurs when filing the following forms, the Tax Reconciliation Worksheet does not generate for them. Please refer to those forms, schedules, and related worksheets for the tax calculation.
  • Schedule J – Income Averaging For Farmers and Fishermen
  • Form 8615 – Tax for Certain Children Who Have Unearned Income

This report is designed to give an overview of historical tax information compared with current and projected information. The report also prints with charts of key figures to facilitate comparisons. The prior years information for 2012 through 2015 transfers from Screen History, while the current year amounts are calculated from data in the return and next year amounts are calculated from the Tax Projection Worksheet.

This worksheet is designed to show how the vacation home limit reported on Schedule E, Page 1 calculates. Amounts calculated, or overridden, as expenses to be transferred to next year will proforma to next year.

This worksheet is designed to calculate the expected federal income tax withholdings for the Tax Projection Worksheet. It is based on the number of allowances calculated on Form W-4. Projected changes in income, filing status, dependents, and other variables can be entered in Screens W4 or TPW.

This report is designed to tie withholding from multiple sources to the total withholding reported on the tax return and is intended to provide you with an audit trail. It is not intended nor designed to carry back calculations to any of the tax forms. If you find an error, correct it in data entry, not on this report.

You can create multiple copies of the same input screen. When more than one input screen is used, each copy is referred to as a unit. Screen Sale, for example, is a multiple-unit input screen that enables you to use a separate input screen for reporting each sale.

The table below lists the multiple-unit input screens and the maximum number of units available for each screen. These maximums are the number of units possible up to the per-return limit.

For information about accessing multiple-unit input screens, refer to the Multiple-unit input screens topic.

Multiple-unit input screens Number of units possible
Screen 656, Offer in Compromise 2
Screen 673, Claiming Exemption from Withholding on FEI 2
Screen 970, Application to Use LIFO Method No practical limit
Screen 1042S, Withholding US Income No practical limit
Screen 1095A, Health Insurance Marketplace Statement No practical limit
Screen 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes No practical limit
Screen 1099C, Cancellation of Debt No practical limit
Screen 1099M, Miscellaneous Income No practical limit
Screen 1099P, Distributions from Cooperative No practical limit
Screen 1099Q, Payments from Qualified Education Programs No practical limit
Screen 1099QA, ABLE Account Information No practical limit
Screen 1099R, Pension and Annuity Information No practical limit
Screen 1099R-2, Pension and Annuity Information, Page 2 No practical limit
Screen 1099R-3, Pension and Annuity Information, Page 3 No practical limit
Screen 1099SA, Health, Medical Account Distributions No practical limit
Screen 1116, Foreign Tax Credit No practical limit
Screen 2106, Employee Business Expenses No practical limit
Screen 2120, Multiple Support Declaration No practical limit
Screen 2555, Foreign Earned Income Exclusion 2
Screen 3115, Change in Accounting Method No practical limit
Screen 3520, Transactions with Foreign Trusts, Receipt of Foreign Gifts No practical limit
Screen 3520-2, Foreign Trust Transfers, Distributions and Gifts No practical limit
Screen 3520-3, Form 3520-A, Return of Foreign Trusts with U.S. Owner No practical limit
Screen 3903, Moving Expenses 2
Screen 4562, Depreciation & Amortization 250
Screen 4684B, Business Casualty/Theft Loss No practical limit
Screen 4684P, Personal Casualty/Theft Loss No practical limit
Screen 4835, Farm Rentals* 600
Screen 5405, First-Time Homebuyer Credit 2
Screen 5498SA, Health, Medical Account Contributions No practical limit
Screen 6198, At-Risk Form 6198 600
Screen 8275, Disclosure Statements No practical limit
Screen 8283P1, Noncash Contributions <$5,000 No practical limit
Screen 8283P2, Noncash Contributions >$5,000 No practical limit
Screen 8288A, Withholding on Disposition of US Property No practical limit
Screen 8332, Release of Child Exemption Claim 2
Screen 8594, Asset Acquisition Statement No practical limit
Screen 8621, Passive Foreign Investment or Electing Fund No practical limit
Screen 8621-2, Passive Foreign Investment or Electing Fund No practical limit
Screen 8805, Withholding Sec 1446 Foreign Partnership No practical limit
Screen 8814, Parent's Election to Report Child's Income No practical limit
Screen 8822, Change of Address - Home No practical limit
Screen 8822-B, Change of Address - Business No practical limit
Screen 8824, Like-Kind Exchanges No practical limit
Screen 8828, Federal Mortgage Recapture 2
Screen 8829, Home Office Expenses No practical limit
Screen 8834, Qualified Electric & Plug-In Vehicle Credit No practical limit
Screen 8886, Reportable Disclosure Statements No practical limit
Screen 8886-2, Reportable Disclosure Statements No practical limit
Screen 8898, Bona Fide Residence in a U.S. Possession 2
Screen 8903, Domestic Production Deduction No practical limit
Screen 8910, Alternative Motor Vehicle No practical limit
Screen 8918, Material Advisor Disclosure Statement No practical limit
Screen 8936, Qualified Plug-In Electric Motor Vehicle Credit No practical limit
Screen 8938-2, Statement of Specified Foreign Financial Assets, Page 2 No practical limit
Screen Afford, Health Care Affordability No practical limit
Screen Auto, Auto Worksheet No practical limit
Screen Broker, Consolidated Broker Statement No practical limit
Screen C, Schedule C* 600
Screen CODI, Deferral of Cancellation of Debt Income No practical limit
Screen COGBCr, Carryovers, General Business Credits No practical limit
Screen F, Schedule F* 600
Screen FAFSA, Federal Student Aid Application Information 4
Screen FEC, Foreign Employer Compensation (FEC) No practical limit
Screen FrgnAcct, Foreign Financial Accounts - Forms 8938 and 114 (FBAR) No practical limit
Screen H, Household Employment Taxes 2
Screen Home, Sale of Personal Residence 2
Screen IDTheft, Identity Theft Affidavit 2
Screen Insolve, Insolvency Worksheet 2
Screen InstPY, Prior Year Installment Sale No practical limit
Screen Keogh, Keogh/SEP/SIMPLE Contributions 250
Screen K1, Schedule K-1, 1065, 1120S* No practical limit
Screen K1T, Schedule K-1, Form 1041* No practical limit
Screen MortgInt, Home Mortgage Interest No practical limit
Screen OGWell, Oil/Gas Well Information 9999
Screen POA, Power of Attorney and Tax Information Authorization 2
Screen Rent, Rent & Royalty Properties* 600
Screen Sale, Forms 4797 & 6252 No practical limit
Screen SSA-1042S, Social Security, Tier 1 Railroad Retirement Benefits No practical limit
Screen SSA-1099, Social Security, Tier 1 Railroad Retirement Benefits No practical limit
Screen St Pmt, State and City Payments No practical limit
Screen W2G, Gambling Winnings No practical limit
Screen W2, Wages No practical limit
Screen W4, Employer's Withholding Allowance Certificate No practical limit
Screen W7, Application for Individual Taxpayer Identification Number No practical limit

* Due to the capacity of detailed asset data entry, the number of units that can have assets is limited to 250.

The following states and municipalities are available.

States
Alabama
Arizona
Arkansas
California
California PPT
Colorado
Connecticut
Delaware
District of Columbia
Florida PPT
Georgia
Georgia PPT
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Kentucky Cities
Kentucky PPT
Louisiana
Maine
Maryland
Massachusetts
Michigan
Michigan Business Tax (MBT)
Michigan Cities
Michigan PPT
Minnesota
Mississippi
Missouri
Missouri Cities
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York (includes NYC & Yonkers)
North Carolina
North Dakota
Ohio
Ohio Cities
Ohio Counties
Ohio PPT
Oklahoma
Oregon
Oregon Cities
Oregon Counties
Pennsylvania
Pennsylvania Cities
Rhode Island
South Carolina
Tennessee
Texas PPT
Texas LLC
Utah
Vermont
Virginia
West Virginia
Wisconsin

The following tax assumptions are built into the tax application.

When you leave the Taxpayer, Spouse, Joint field on a screen blank, the tax application assumes that the information on that screen applies to the taxpayer.

Pass-through losses reported on Schedule K1 are subject to the following limitations: (1) basis limitations, (2) at-risk limitations, and (3) passive loss rules. Each limitation must determine the allowable amount of loss for the next limitation. Applicable limitations are calculated in the sequence reported.

The tax application calculates and suspends losses based on basis, at-risk, and passive-loss rules.

For purposes of Form 8867, Paid Preparer's Earned Income Credit Checklist, UltraTax/1040 assumes the following:

  • The taxpayer and spouse, if filing jointly, have a Social Security number that allows them to work. If the Social Security number is present, the tax application assumes that it is a qualifying Social Security number. SSN entries of "Applied For," "W7 Attached," or "Amish" are not considered qualifying entries for EIC purposes.
  • The taxpayer and spouse, if filing jointly, are not a qualifying child of another person in the current tax year.
  • The taxpayer's and spouse's main home, if filing jointly, was in the U.S. for more than half the year. (Military personnel on extended duty outside the U.S. are considered to be living in the U.S. during that duty period.)
  • If an otherwise qualifying child is married, the taxpayer is claiming the child as a dependent.
  • A qualifying child lived with the taxpayer in the U.S. for more than half the year.
  • The taxpayer's AGI is higher than the AGI of all other taxpayers for whom a qualifying child is also a qualifying child.

Unit numbers are generally used to tie several input screens together. For instance, the information coded as 4562, Form F, Unit #1 will be linked to Screen Farm, Unit #1.

If the AMT fields are blank, the tax application assumes that the AMT fields are zero, unless specified otherwise. AMT amounts do not default to regular amounts.

Note: For Screens K1-5 and K1-7, the beginning-of-year AMT basis fields defaults to the regular tax basis at the beginning of the year if the AMT fields are blank.

The tax application assumes that all producers are small producers. Therefore, no disallowance of percentage depletion occurs with larger productions.

The following list outlines the capacities of the tax application.

  • Accommodates 1000 installment sales and automatic depreciation recaptures for each client.
  • Handles multiples of the following: rent and royalty properties; Schedules C and F; Forms 970, 1042-S, 1045, 1095-A, 1098-C, 1099-C, 1099-MISC, 1099-P, 1099-Q, 1099-R, 1099-SA, SSA-1042S, SSA-1099, 1116, 2120, 4562, 4684, 4835, 4972, 5498-SA, 6198, 8283, 8288-A, 8332, 8594, 8621, 8805, 8814, 8822, 8822B, 8824, 8829, 8839, 8886, 8891, 8918, and foreign financial accounts; and Screens W2, W4, W7, W2G, and K1.
  • Transfers depreciation and amortization from Form 4562 to the relevant forms for all business activities.
  • Handles unlimited Forms 2106, and two of each of the following: Forms 2555, 2848, 3903, 4137, 5329, 8606, 8821, 8828, 8889, 8898, 8919, FinCEN Form 114, and Schedule SE.
  • Accommodates an unlimited number of different tax preparers.
  • Handles dollar amounts up to $999,999,999,999.
  • Handles up to 32,000 assets per client in the integrated asset module.
  • Allocates client data as needed to minimize disk space requirements.
  • Accommodates 20,000 active clients at the same time.
  • Allows up to 65,500 statements.
  • Allows up to 5,000 capital gain transactions entered in Screen B&D.
  • Accommodates up to 600 passive activities.

The following tips pertain to using the tax application.

Enter data directly on the forms only when you want to override a calculation or when you want to use the Attach text feature. For initial data entry, always enter tax data on the input screens via either the Client Organizer or the tax data-entry input screens. Do not enter data directly on the forms unless you want to override calculated information.

The tax application automatically calculates the excess Social Security and Railroad Retirement withholding for the taxpayer and/or spouse when there are two or more Screens W2 present with different EINs, with (non-railroad) or without (railroad) amounts entered in the SS wages field. Also enter data in box 14 of Screen W2 for the tier 1 and tier 2 Railroad Retirement amounts. The worksheet also calculates when there are two or more Screens W-2 present with the same EIN and the Common reporting agent field is marked on each screen.

Form 1040-V only prints with Form 1040, 1040A, 1040EZ, or 1040NR balance due returns. The IRS does not want Form 1040-V filed with 1040NR-EZ, 1040-PR, 1040-SS, or 1040X.

There are some instances where the calculations for the Page 2 vehicle expenses may not match the actual depreciation taken on the auto. This occurs because the asset module calculates the precise depreciation and section 179 expense This situation is particularly evident in the later years of an auto's life or in the event of a trade-in auto.

If you want to optimize between the actual auto expenses and the standard mileage, mark the Optimize option in the Additional 1040 vehicle information group box in the Vehicle/Listed tab accessed through the asset module. If you are not using the asset module to enter auto information, either enter 1 in the Method field in Screen 2106-2 or leave the field blank (the default is 1 for Optimize).

Note: The ability to optimize a 1040 luxury auto between standard mileage and actual cost is limited to the first year the auto is placed in service.

If you have a trade-in auto situation, enter both autos in the asset detail for Auto 1. If you have two autos that are non-trade-in, enter them in Auto 1 and Auto 2, respectively.

You cannot override business miles on Form 2106. In the event that you want to change the business miles, you must overwrite your original data entered in either Screen 2106 or in the asset module.

You can enter information for up to two Forms 2555. Information in the first Screen 2555 can be designated for either the taxpayer or the spouse.

Each unit should be used for only one person, and the taxpayer cannot be designated in more than one unit.

If the same plan participant received multiple lump-sum distributions, you must combine them and enter them on one set of Screens 1099R and 1099R-2. The distributions do not automatically combine.

Enter miscellaneous income subject to self-employment tax in Screen Income in the Other income statement dialog. Enter 1 in the SE Inc column of the statement dialog, and then enter the amount you want to carry to Schedule SE, line 2 in the Amount column. Other income treated as self-employment income is also displayed on the Net Earnings from Self-Employment Worksheet. If the taxpayer received miscellaneous income reported on Form 1099-MISC or Form 1099-K, use Screen 1099M in the Income folder to report the income. Use the Subject to self employment tax field on this screen to indicate whether the income is subject to self-employment tax.

The tax application always produces Form 2210 when a penalty is calculated and the IRS requires it. You can suppress printing of Form 2210 in Screen Pen even if the form is required, or you can simply not select the form for printing.

You can enter a filing status for any of the prior years necessary to calculate Schedule J, Farm Income Averaging. If you leave the filing status blank, the tax application efaults to the filing status for the current year. If you enter a filing status, the tax automatically calculates based on that status.

Also, if you enter data in the Elected Farm Income section of the Schedule J - Farm Income Averaging section, the tax application  determines the optimal amount to use to calculate the least amount of tax. If you want to force the tax application to use the total amounts you enter in this section to calculate the tax, enter X in the Income averaging (Force) field.

To calculate the deduction for a miscellaneous activity with other self-employment income entered in the Other income statement dialog in Screen Income, or for self-employment income from contracts/saddles (Form 6781), enter the self-employed health insurance/long-term care premiums in Screen Coverage. For Schedules C, F, and K1 activities, enter the self-employed health insurance/long-term care premiums on the related activity Screens C, F, and K1-3. For S Corporation shareholders filing Schedule K1, enter the shareholder health insurance premiums and long-term care premiums on the related activity Screen W2 (box 14). For family members of S Corporation shareholders under IRC Sec. 318(a)(1), enter the health insurance premiums on Screen W2 (box 14), and select the corresponding W2 unit from the Screen W2 unit # under IRS Sec. 318(a)(1) family distribution attribution rules field in Screen Other Adj.

If you enter X in the Statutory employee field in Screen W2, the amount of wages you enter in Screen W2 transfers to Form 1040, line 7. If the statutory employee has related expenses, use Screen C and select the related W-2 wages in the W-2 unit # for statutory employee field. The tax application automatically reports the amount of statutory employee wages reported in Screen C, Schedule C, line 1, Gross receipts. Form 1040, line 7 is automatically reduced by the amount of statutory employee wages, and the net statutory employee wages after related expenses is reported on Form 1040, line 12.

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