Tax Returns
PrerequisitesYou should be familiar with or have completed the Setup and Items to Print exercises. ObjectiveIn this exercise, you will print the options available at the Tax Return tab in the Options and learn how to adjust them as necessary. FactsAccess the Tax Return tab in the Options and print your current settings for each of the sections. View the Program Considerations, compare the function of each option to your current settings, and make any desired changes to your current configuration. |
Program Considerations
The Tax Return tab is broken into two sections: Tax Return Options and Federal Tax Options. There is also a section for any state(s) that you have installed.
In Tax Return Options, you can set options that control the way the program prints information on all forms in the return, such as the text style, the order of descriptions, etc. The options are described below.
| Use this option: | To: |
| Text Style | Print all program-generated descriptive text in uppercase or mixed case letters. Choose Uppercase to capitalize all descriptive text. Choose Mixed case to print all program-generated descriptions in mixed case and all user-entered descriptions exactly as you enter them. |
| Sort Descriptions | Sort descriptions for the same input field into alphabetical order when printing returns. Choose Yes to sort descriptions into alphabetical order. Choose No to print the descriptions in the order you entered them. |
| 2-Year Comparison | Print a 2-year comparison on the tax summary for clients processed through the Proforma program and for other clients for which you have entered prior year summary information. If you set this option to Yes, the program prints three columns on the tax summary. The first column shows the client's tax summary for the current year. The second column shows the client's tax summary for the prior year. The third column shows the difference between the two tax summaries for each line item. If you set this option to No, the tax summary includes only the current year tax summary. |
| Filing Instructions | Print separate filing instructions for all clients. The filing instructions list the form(s) they need to file, the signatures required, whether or not they need to make a payment or are receiving a refund, and when and where to file the return. If you set this option to Yes, the program overrides any client letter you selected and prints the Filing Instructions Letter instead. This eliminates the possibility of having duplicate information in the Client Letter and the Filing Instructions Letter. You can edit the Filing Instructions Letter, but you cannot select another letter to print in its place if you print Filing Instructions. If you set this option to No, the letter contains all filing instructions. |
| Credit Card Instructions | Print credit card instructions in the client letter and filing instructions. If you set this option to Yes, the program includes a paragraph that informs taxpayers that payments can be made by check or credit card. If you set this option to No, the program omits this paragraph. |
| Tax Return Folder | Set the size of the address slip sheet to use with the Professional Tax & Accounting Products Presentation Folders. Choose Large Window or Small Window for the appropriate folder. |
| Tax Filing Envelope | Set the size of the address slip sheet to use with the Professional Tax & Accounting Products Tax Return Filing Envelopes. Choose 6 x 9 Landscape or 9 1/2 x 11 1/2 Landscape for the appropriate envelope. |
| Return Mailing Envelope | Set the size of the address slip sheet for use with the Professional Tax & Accounting Products Organizer/Return Mailing Envelopes. Choose Landscape or Portrait for the appropriate envelope. |
| Return Mailing Slip Sheet | Print slip sheets for client correspondence. Choose To Client for a sheet addressed to the client; choose From Client for a sheet addressed to your firm; choose Both for one sheet addressed to the client and one sheet addressed to your firm. |
| MACRS Depreciation | Select a depreciation formula. The IRS allows you to calculate MACRS depreciation using the 150 and 200 declining balance formulas or the optional IRS tables contained in the Form 4562 instructions. The program defaults to IRS tables. Set this option to DB/SL formula if you prefer the alternate depreciation calculation. |
| Sort Oil and Gas Properties | Choose the order in which to sort oil and gas properties when printing oil and gas schedules. |
| e-Filing Instructions | Print preparer e-file instructions for a step-by-step guide to e-filing tax returns. |
| e-file PIN Signature | e-file all applicable e-file returns using the paperless e-file signature (PIN) method. Using the PIN method alleviates the need to have the Form 8453 signed and mailed to the IRS after the return has been Accepted. Taxpayer(s) must sign Form 8879, IRS e-file Signature Authorization when using the PIN method; however, there are no forms to mail to the IRS. If you do not wish file all applicable e-file returns with the PIN signature method, set this option to Suppress. If this option is suppressed, Form 8453 will generate for all e-file clients, unless the paperless filing override entries are present in Screen 4.1 for the client. |
| Computer Generated PIN(s) | Automatically generate PINs for paperless e-files (the IRS allows PIN signatures to be computer generated when using the paperless signature method). The program default is set to Yes which will alleviate the need for you to enter the Taxpayer (and Spouse, if applicable) PIN(s) for each client. The program will assign a 5 digit numeric PIN (taxpayer and spouse, if applicable), which will print on Form 8879, IRS e-file Signature Authorization. If you set this option to No the preparer must enter the PIN signatures in screen 4.1 for the taxpayer and spouse, if applicable. The preparer will also have to enter the PIN Authorization (Ctrl+T) [O] in Screen 4.1 to indicate how the PIN(s) were entered in the program. |
| Computer Date as PIN Signature Date | Enter the PIN signature date automatically. The program will use the current computer date when the return is transmitted for electronic filing. The program default is set to No, which requires the Taxpayer's signature date to be entered in the Paperless Filing Signature Section of Screen 4.1 for all returns using the e-file PIN Signature method. Note: The PIN Signature Date generated by the computer (or entered by the preparer in Screen 4.1) must match the signature date entered on Form 8879 by the taxpayer. |
| Suppress SSN | Print or omit Social Security Numbers on all tax return documents where taxing agencies do not require SSNs. |
| Certified Mailing Instructions | Choosing Yes: Adds a line at the end of the letter to mail all returns certified return receipt for timely filing. |
In the Federal Return Options and State Returns Options sections, you can control how and when the program prints specific forms.
| Use this option: | To: |
| Form 1040 Label | Select the format for the printing of the taxpayer information on the 1040. |
| Presidential Campaign Fund | Set a default entry for the Yes/No boxes for the Presidential Election Campaign on Form 1040. |
| Allow Designee/IRS Discussion | Set a default entry for the Yes/No boxes for the "Do you want to allow another person to discuss this return with the IRS?" on the Federal main form and state equivalent. |
| Designee Information | Print the Third Party Designee information (name, telephone number, and PIN) on the tax return. |
| Preparer Name on 1040 | Print or omit the printing of the preparer's name on the signature line of the federal and state forms. Note: IRS Notice 2004-54, dated August 16, 2004, states that "the Internal Revenue Service will permit income tax preparers to sign original returns, amended returns, and requests for filing extensions by rubber stamp, mechanical device, or computer software program." Setting this option to Yes meets this requirement. |
| Daytime Telephone Number | Set a default for printing the daytime phone number on applicable forms. |
Use this table to set the options for Form 1040A through Form 8867.
| Set the option to: | If you want to: |
| When applicable | Print the item in the applicable copy when the client meets IRS requirements. |
| Suppress | Suppress the item in all cases. |
| With worksheets | Collate the item to print with the worksheets. |
| With the tax return | Collate the item to print with the Federal tax return. |
| No | Exclude the item from the applicable copy. |
You can also set the following options according to your firm's preferences.
| Use this option: | To: |
| Sale of Home on Schedule D | Force: Report a sale of home transaction on Schedule D whether or not it results in a taxable gain. When Applicable: Report a sale of home transaction on Schedule D only when it results in a taxable gain. |
| Wage Schedule | With the Tax Return or With Worksheets: Print a wage schedule consisting of all W-2, pension, and IRA distribution information for each return. No: Suppress wage schedules from printing. |
| Prior Year State Refund Worksheet | With the Tax Return or With Worksheets: Print a statement or worksheet detailing the computation of state and local refunds that are taxable on this year's return. This statement or worksheet is computed based on entries in the State Refund worksheet and 1099-G input section (screen 14.2) No: Suppress the prior year state refund worksheet from printing. |
| Sch A Optional Stmt: Medical, Mortgage, Contributions, etc | With the Tax Return or With Worksheets: Print statements for entries on Screen 25, Itemized Deductions that are not required by the IRS. This includes entries for medical expenses, home mortgage interest paid to financial institutions, deductible points, investment interest expense, and charitable contributions. No: Suppress non-required Schedule A statements. |
| Sch A Optional Stmt: Real Estate Taxes | With the Tax Return or With Worksheets: Print statements for entries on Screen 25 in the Real Estate Taxes input section that are not required by the IRS. No: Suppress non-required Schedule A statements for real estate taxes. |
| Tax-exempt Interest Optional Statement | With the Tax Return or With Worksheets: Print a statement for entries on Form 1040, line 8b (Tax-exempt interest). No: Suppress tax-exempt interest statements. |
| Qualified Dividends Optional Statement | With the Tax Return or With Worksheets: Print an optional statement or worksheet for qualified dividends on Form 1040 or 1040A. No: Suppress qualified dividends statement or worksheet. |
| Capital Gain Distributions Optional Statements | With the Tax Returns or With Worksheets: Print an optional statement or worksheet for capital gain distributions on Form 1040 (1040A) or Schedule D. No: Suppress capital gain distributions statement or worksheet. |
| Schedule C optional statement | Yes: Print amounts and descriptions for Schedule C-Other Income and Cost of Goods sold entries as supporting statements. No: Suppress Schedule C-Other Income and Cost of Goods sold supporting statements. |
| Schedule F optional statement | Yes: Print amounts and descriptions for Schedule F-Other Income and Cost of Goods sold entries as supporting statements. No: Suppress Schedule F-Other Income and Cost of Goods sold supporting statements. |
| Form 2106 Business Exp Stmt | Yes: Print amounts and descriptions for Form 2106-Other Business Expense entries as supporting statements or worksheets. No: Suppress Form 2106-Other Business Expense supporting statements. |
| Basis Schedule | Choose With statements for S-Corp loss K-1's to have the program print the basis schedule for those shareholder K-1's that total to a loss in the statements, and have all other activities print in the worksheets. Choose With Worksheets to print the basis schedule with the worksheets. Choose Suppress to turn off the printing of the basis schedule. Please note the calculation will still be done, only the printing of the worksheet will be shut off. |
| Schedule of Loss Limitations | Choose With statements for S-Corp loss K-1's to have the program print the schedule of loss limitations for those shareholder K-1's that total to a loss in the statements, and have all other activities print in the worksheets. Choose With Worksheets to print the schedule of loss limitations with the worksheets. Choose Suppress to turn off the printing of the schedule of loss limitations. Please note the calculation will still be done, only the printing of the worksheet will be shut off. |
| State K-1 Reconciliation | Choose When Applicable to print the State K-1 Reconciliation when there are federal and state differences. Choose Suppress to not show the state K-1 reconciliation in all cases. |
| Form 4868 with Return | Determine whether or not Form 4868 prints with the tax return. |
| Form 4868 Reply Address | Use the firm or client's address for the IRS reply. |
| Reason for Extension | Enter a reason for extension to be used on all state extension forms that require a reason or explanation. This entry prints on all such forms unless overridden in the extension input screen (Screen 9). |
| Form 1040-ES Options | Set the default option for Lacerte to use when calculating estimates. |
| Form 1040-ES Threshold | Select the minimum dollar amount to generate estimates. Lacerte prints estimates only when the estimated tax calculated is equal to or greater than this amount. |
| Form 1040-ES Rounding | Select a rounding amount for the vouchers. |
| Estimated Tax Payment Record | Set the default print option for the estimated tax payment record. |
| 4th Quarter State Estimate | Select the default date for paying the last state estimate. |
| Community Property State | Set the allocations for income and deductions on the MFJ/MFS worksheet. Note: Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. |
| Effective Tax Rate | Set the print option for the effective tax rate on the General Information page and tax summary. |
| Local Sales Tax Rate (.xxxxxx) | Enter the local sales tax rate for computing the local sales tax deduction on Schedule A when using the Optional State Sales Tax Tables. A rate entered in this field will apply to all clients. |
| Suppress Federal Estimates when Paid Electronically | The program default is set to No, which generates the 1040ES Vouchers for printing even if the estimates are being paid electronically. Changing this option to Yes will suppress the vouchers. |
| MFS/MFJ Exemption Diagnostics | Choose When Applicable for diagnostics to generate as needed. Choose Suppress to prevent the diagnostics from generating. |
| Email Address | Several states provide an option for taxpayers to include their email address as contact information. Choose Print to always print the email address when available. Choose Print (suppress when optional) to only print the email address when required by the state. Choose Suppress to never print the email address. |
How?
To access and print the Tax Return options:
- On the Settings menu, click Options.
- Click the Tax Return tab.
- Print your current settings for this tab by clicking Print at the bottom of the Options window.
Tips & Shortcuts
You can open the Options by clicking the Options icon 
on the toolbar or by pressing [Ctrl]+[O]. We recommend that you keep a printed copy of your settings for reference.
Troubleshooting
Problem: I cannot access the Tax Return tab in Options.
Solution: You cannot access this option due to access rights issues. See your network or program administrator.
