![]() ![]() Occasionally, the tax shown on a return will be reported as 0, even when there is enough taxable income to anticipate a tax liability. ![]() ![]() In addition, in view mode of the return, look for one or more of the following worksheets for a further breakdown of how the tax was calculated: Tax Calculation Method If there is no taxable income on the return, the Tax Computation Worksheet will not produce. On the left side of this screen, check the Produce Tax Computation Worksheet box. To produce this worksheet for a single client, from data entry of the client's return, go to the Miscellaneous tab > PRNT Print Options screen. To produce this worksheet globally, from the main page of the software, go to Setup > Options > Form & Schedule Options tab and check the box that reads Always show tax computation worksheet. This worksheet can be produced globally, for all clients, or for a single client within data entry of the return. If more than one of these tax rates apply, Drake Tax will use the calculation that is most advantageous for the taxpayer. The tax computation could be based on any of several calculations including from the IRS tax tables, tax on capital gains, tax on recaptured education credits and/or additional tax on Section 1292 elections. Ensure that the taxpayer and spouse both have an accurate DOB, and then review the worksheets listed below. Note: A missing date of birth on federal screen 1 may also result in the tax calculation being different than expected (or an unneeded Wks 8615). It shows how the tax on Form 1040 was calculated. Starting in Drake17, look for the Tax Computation Worksheet in the View mode of individual returns. The return may have an alternative minimum tax rate, there may be foreign income involved, or the return may have qualified dividends and/or capital gains which may be taxed at a different rate. There are multiple reasons that a return would calculate a tax different from that on the tax tables. When I view the 1040, why is the tax different from what is on the tax table, even though t here is taxable income on the return? ![]()
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