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1276 Share-TAX/1040 (tm) for 1996 U S E R ' S M A N U A L Bammel Software P.O. Box 382194 Duncanville, TX 75138-2194 972-296-8518 (voice and FAX) (for FAX press your SEND key) Internet e-mail: SEB777@aol.com http://members.aol.com/SEB777 DISCLAIMER THIS PROGRAM IS PROVIDED "AS IS", WITH NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, AND IN NO EVENT WILL BAMMEL SOFTWARE OR ANY INDIVIDUAL CONNECTED WITH BAMMEL SOFTWARE BE LIABLE FOR DIRECT, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES RESULTING FROM THE USE OF THIS PROGRAM. BAMMEL SOFTWARE, AND ALL INDIVIDUALS CONNECTED WITH BAMMEL SOFTWARE, SPECIFICALLY DISCLAIM THE ROLE OF TAX ADVISER. THIS PROGRAM ONLY PERFORMS THE MECHANICS OF TAX PREPARATION IN STRICT ACCORDANCE WITH IRS FORMS AND INSTRUCTIONS. THE USER MUST EXERCISE JUDGEMENT AS TO THE CORRECTNESS AND APPROPRIATENESS OF ANY AND ALL AMOUNTS ENTERED USING THIS PROGRAM, JUST THE SAME AS IN FILLING OUT THE IRS FORMS MANUALLY. C O N T E N T S 1. DESCRIPTION of Share-TAX/1040 1.1. What it Does 1.2. Ease of Use 1.3. New for 1996 1.4. Forms not Provided by the Program 1.5. Getting an Early Start on your Tax Return 1.6. Dollars and Cents, versus Whole-dollar Amounts 2. PRODUCT SUPPORT 2.1. Contacting Bammel Software 2.2. Registering Share-TAX 2.3. Duplication and Distribution of Share-TAX/1040 3. INSTALLATION and RUNNING THE PROGRAM 3.1. Machine Requirements 3.2. Using the WINDOWS SETUP Program 3.3. Unlocking the program under WINDOWS 3.4. Using the DOS INSTALL Program 3.5. Unlocking the program under DOS 3.6. Installing Upgrades 3.7. Older Computers without a Mouse 3.8. Running the Program from Diskette 3.9. Running the Program from Hard Disk 3.10. Exiting from the Program 3.11. Setting Screen Options 3.12. Setting Printer Options 4. GENERAL INSTRUCTIONS 4.1. Pull-Down Menus 4.2. Alphabetic Index 4.3. Taxpayer Lookup 4.4. Keyboarding Conventions 4.5. Screen Selectors and Multiple-instance Screens 4.6. Data Entry Fields 4.7. Calculated Data Fields 4.8. Calculations 4.9. Data Records 4.10. Multiple Versions of Data 4.11. Order of Screens 5. SCREEN-SPECIFIC INSTRUCTIONS 5.1. Form 1040 - Individual Income Tax Return 5.2. Form 1040-V Payment Voucher 5.3. Schedule A - Itemized Deductions 5.4. Schedule B - Interest and Dividend Income 5.5. Schedule C - Profit(Loss) from Business/Profession 5.6. Schedule D - Capital Gains and Losses 5.7. Schedule E - Supplemental Income Schedule 5.8. Schedule F - Farm Income and Expenses 5.9. Schedule H - Household Employment Taxes 5.10. Schedule R - Credit for Elderly and Disabled 5.11. Schedule SE - Social Security Self-Employment Tax 5.12. Form 2106 - Employee Business Expenses 5.13. Form 2119 - Sale/Exchange of Principal Residence 5.14. Form 2441 - Child/Dependent Care Expense Credit 5.15. Form 3903 - Moving Expense 5.16. Form 4137 - S.S. Tax on Unreported Tip Income 5.17. Form 4562 - Depreciation and Amortization 5.18. Form 6251 - Alternative Minimum Tax - Individuals 5.19. Form 8606 - Non-deductible IRA Contributions 5.20. Form 8615 - Under 14, Investmt Income over $1200 5.21. Form 8829 - Business Use of Your Home 5.22. Worksheet - W-2 Forms Wage Information 5.23. Worksheet - Schedule of Other Income 5.24. Schedule EIC - Earned Income Credit 5.25. Worksheet - Taxable Part of Pensions/Annuities 5.26. Worksheet - Taxable Social Security Benefits 5.27. Worksheet - IRA Contributions 5.28. Supplemental Schedules 5.29. Estimated Tax Worksheet 5.30. Client Invoice 6. PRINTING 6.1. Printing Individual Forms 6.2. Graphic Form 1040 6.3. Precautions for printing Graphic 1040 to a file 6.4. Fileable Computer Generated Form 1040 6.5. IRS Approval of Substitute Forms 6.6. IRS Requirements for Computer Generated Forms 6.7. Calculation Before Printing 6.8. Previewing Printouts on the Screen 6.9. Printing to a File 7. TAX PREPARER INFORMATION 8. EXCEPTION REPORT MESSAGES 1. DESCRIPTION of Share-TAX/1040 An easy to use tax preparation system suitable for both individuals and paid tax preparers. Features pull-down menus, mouse support, on-line help and automatic installation. Enter data in any order at any time, and instantly see the effect of changes on your tax due. Each return is automatically stored in a separate file to facilitate copying and archiving. A sample return is included to get you off to a fast start. Prints IRS-approved high-quality graphic Form 1040 on LaserJet, DeskJet, IBM ProPrinter, Epson FX and LQ and Cannon inkjet printers. Prints IRS-approved substitute forms for all other forms on any printer. Includes the following Forms and Schedules: 1040, A, B, C, D, E, EIC, F, R, SE, 2106, 2119, 2441, 3903, 4137, 4562, 6251, 8606, 8615, 8829. Includes the following worksheets: W-2 forms, Schedule of Other Income, Pensions and Annuities, Taxable Social Security Benefits, IRA contributions, Supplemental Schedules and Client Invoice. Minimum requirements: IBM PC or compatible with 390K avaliable RAM and 1 diskette drive. 1.1. What it Does Using the data you enter, Share-TAX/1040 does all computations and prints out your complete tax return ready to submit to the IRS. If you have a compatible LASER, ink-jet or dot-matrix printer, you can print a graphic image of the official Form 1040 which is IRS approved for inclusion in your tax return. For all schedules and forms other than Form 1040, it prints IRS-approved non-graphic substitute forms. It frees you from the drudgery of manually filling in the forms and manual calculations. The ease with which you can try out various combinations and situations adds a new dimension to tax preparation as compared to manual methods. 1.2. Ease of Use You need only enter the correct numbers, and Share-TAX/1040 will do all computations for you, forwarding amounts from one form to another as necessary. It displays and follows IRS forms as closely as possible so that you can see and understand clearly what is happening and so that you can make the proper judgements. The order in which you enter your data is completely arbitrary, and you can at any time suspend your data entry to work on a different tax return or exit the program. Later you can resume where you left off. Data is always automatically saved on disk. 1.3. New for 1996 Schedule H - Household Employment Taxes, is new. 1.4. Forms not Provided by the Program If you need additional forms not provided by the program, simply fill out these forms manually and enter the total(s) to the proper form in the program. Then submit the manually prepared forms along with those produced by the program. 1.5. Getting an Early Start on your Tax Return As you begin receiving your tax information, you can get an early start on your taxes by entering the data as soon as you receive it. At that point, by estimating the numbers you don't have yet, you can get an early idea of what your tax bite is going to be. Later, when you receive those last few missing numbers, you can enter them and in a few moments have your complete tax return ready to submit to the IRS. 1.6. Dollars and Cents, versus Whole-dollar Amounts The IRS allows you to enter your money amounts either as dollars and cents, or as rounded whole-dollar amounts, but whichever you choose, you must use it consistently throughout your return. However, they prefer whole dollars, and that is how Share-TAX/1040 is designed to operate. The IRS requires that when adding up amounts for a single entry on a form, that dollars and cents be used, and that rounding to whole dollars be done only after the addition. That is the reason why a few forms in Share-TAX/1040 have dollars and cents, in particular the individual W-2 Forms and the Supplemental Schedule. But you will notice that the totals are shown in whole dollars. 2. PRODUCT SUPPORT 2.1. Contacting Bammel Software You may obtain an up to the minute copy of Share-TAX/1040 from our homepage: http://members.aol.com/SEB777. You may place orders and correspond via our homepage, as well as via Internet e-mail to: SEB777@aol.com Automated voice and FAX is provided at 972-296-8518. When no one is available to personally answer your call, the voice system will guide you through placing an order or leaving a message. To send a FAX, just press the SEND key on your FAX after the voice answer. If you are having a problem and there is no one to personally answer your call, please leave your name and phone number. Someone will get back to you as soon as possible. Please also briefly DESCRIBE your PROBLEM. Many times a quick reply to your answering machine is all it takes, thus avoiding telephone tag. Share-TAX/1040 will be distributed (file name "STAX96.ZIP") via Compuserve, America-Online, Internet sites, CDs, etc., and to one or more nationwide BBS networks. It is therefore likely that you can obtain a copy locally. Or, for an up to the minute version see our homepage. You will not need a new key for newer versions. 2.2. Registering Share-TAX Share-TAX/1040(tm) software and reference materials are the sole property of Bammel Software and are protected by U.S. Copyright Law. Share-TAX/1040 is a trademark of Bammel Software. You are granted permission to copy Share-TAX/1040 for use in preparing and reviewing actual tax returns and for tax planning and estimating only if you pay promptly as follows: Right to use Share-TAX/1040 on one computer..... $19.00 (Texas residents please add 8.25% ($1.57) sales tax) This fee is payable to: Bammel Software MasterCard/VISA P.O. Box 382194 Duncanville, TX 75138-2194 972-296-8518 (Automated voice & FAX (press your SEND key)) Orders accepted via Internet e-mail: SEB777@aol.com and: http://members.aol.com/SEB777 When you register, you will receive a code to unlock all the features of the program. The same code will unlock all versions of the 1996 program. Use the convenient order form built into Share-TAX/1040 to pay your shareware fee, or call the above number and use your credit card. 2.3. Duplication and Distribution of Share-TAX/1040 1) Share-TAX/1040 must be copied and distributed in unmodified form, complete with copyright notices, licensing information and all documentation. 2) The code to "unlock" all the features of Share-TAX/1040 may not be divulged to any recipient(s) of such copies of the program. 3) A reasonable fee, not to exceed $10.00, may be charged for duplication and distribution services, but no fee may be charged for use of the program. Fees for the use of the program are payable only to the copyright owner, Bammel Software. Copying for any other purpose without the prior written consent of Bammel Software is expressly prohibited. The files which must be included for a complete copy are: READ.ME Information file and order blank INSTALL.EXE DOS installation program STAX96.EXE The executable program STAX96.MAN The User's Manual SAMPLE.T96 Sample tax return TOPTN.DAT Program options TPREP.DAT Preparers database FILE_ID.DIZ Program identification for BBSs VENDOR.DOC Shareware vendor information 1040.ICO Windows icon SETUP.EXE Windows installation program SETUP.INI Windows installation data 3. INSTALLATION and RUNNING THE PROGRAM 3.1. Machine Requirements Share-TAX/1040 needs approximataely 390K of free memory (that is memory remaining after subtracting that used by DOS and any resident utilities), and an additional 30K if you print the graphic Form 1040. It also requires at least one diskette drive with a minimum capacity of 360K. A hard disk is of course nice, but operation is quite acceptable on diskette. It is not expected that there be any problem in operating the program with any of the commonly used resident utilities. However if you have any difficulties in running the program with any such utilities installed, you should de-install them while running this program. 3.2. Using the WINDOWS SETUP Program Place the original diskette in drive "A:" or "B:" (any other valid path is also acceptable). Then from the Windows 3.x "Program Manager", 1) click on "File", 2) click on "Run", 3) type "A:SETUP.EXE" or "B:SETUP.EXE" (without quotation marks), and 4) then press the enter key or click on the OK button. Then 5) answer any questions. For Windows 95, do the same thing, but from the Start/Run menu. When the SETUP program is complete, to run the program just click on the Share-TAX/1040 icon. 3.3. Unlocking the program under WINDOWS When you receive the code to unlock all features of the program, just click on the Key icon in the Share-TAX/1040 group and enter the data requested. However, you may install and try out the program before receiving the code. 3.4. Using the DOS INSTALL Program Place the original diskette in drive "A:" or "B:" (for hard-drive installation, any other valid path is also acceptable). Then at the DOS prompt, type "A:INSTALL" or "B:INSTALL", respectively. The installation program will ask you if you are installing on a hard disk or not. If to a hard disk, it will create the necessary directory. If to a diskette, it will simply make a duplicate with the DOS DISKCOPY program. To prevent accidental erasure of your original diskette, be sure it has a write-protect tab on it before inserting it into the diskette drive. It is NOT recommended that you run Share-TAX/1040 from the original diskette. Always run it from a copy. 3.5. Unlocking the program under DOS When you receive the code to unlock all features of the program, 1) make the directory where you installed the program the current directory (e.g. At the DOS prompt type CD \STAX96), 2) Then at the DOS prompt run the INSTALL program again (type "INSTALL"), 3) Answer YES that you want to unlock the program, and 4) Then enter the data requested. 3.6. Installing Upgrades Use the SETUP or INSTALL program as described in the previous section. 3.7. Older Computers without a Mouse If your DOS is 3.0 or later, then the program checks to see if you have a mouse. If you want the program to assume that you do not have a mouse, and to not even check for one, run it with the /N option (Example, at the DOS prompt type: "STAX96 /N"). For DOS earlier than 3.0, the program assumes that you do not have a mouse and will not even check for one. The reason is that some older computers will hang with a blank screen when the program checks for a mouse. If in this case you do have a mouse, run the program with tne /M option (Example, at the DOS prompt type: "STAX96 /M"). 3.8. Running the Program from Diskette Put the diskette made by the Installation Program in drive "A:" or "B:". Then at the DOS prompt type "A:" or "B:" to make the diskette the current drive. Then type "STAX96" at the DOS prompt to run Share-TAX/1040. To obtain maximum working space on the run diskette, delete all files BUT: STAX96.EXE TPREP.DAT TOPTN.DAT *.T96 (tax return files) For even more diskette work space, place STAX96.EXE on another diskette drive if available. WARNING: If while running the program, the diskette fills up and runs out of space, the current tax-return file may possibly be DAMAGED. Therefore, it is important to backup regularly and to check from time to time how much space is left, and to limit the number of tax returns per diskette to a safe margin. As a rule of thumb, a very complicated tax return will take on the order of 20K of disk space. 3.9. Running the Program from Hard Disk From Windows, just click on the Share-TAX/1040 icon. From DOS, make the drive and directory where you installed Share-TAX/1040 your default. (example: Type "C:", and then "CD \STAX96"). Then run the program by typing: "STAX96". The same warning about disk space applies to hard disks as well as diskettes, but usually there will be much more free space on a hard drive, with little likelihood of running out from the operation of the program. 3.10. Exiting from the Program It is very IMPORTANT that you exit from the program through the EXIT screen BEFORE powering down or re-booting (using CTRL-ALT-DEL or otherwise). If you fail to exit properly, your current tax return file may be damaged. 3.11. Setting Screen Options To select the colors you want, go to the COLOR screen. Then use the cursor keys to position to the desired item, and press the F and B keys to change foreground and background colors, respectively. The colors selected will be automatically stored on disk in the current directory so that you will get them next time you run the program. The COLOR screen also allows you to select the method for displaying data on the screen. The default screen output is via BIOS which is the most compatible with different types of hardware, but is also the slowest. The next option is faster and is designed for use on CGA adapters prone to "snow". The last option is the fastest, and it writes directly to screen memory at maximum speed with no waits. The COLOR screen also has a color/monochrome selection. This is actually implemented by simply providing two sets of colors, and you can change either or both as you like. IF YOU HAVE A MONOCHROME SCREEN, in order to read the screen clearly, you can start up the program in monochrome mode by running with the /B option (run it by typing "STAX96 /B" at the DOS prompt). This may not be necessary with all monochrome CRTs, but is likely to be quite necessary with some laptops. You should then select "monochrome" on the COLOR screen, and next time you run the program it will remember your preferences. If you ever mess up the colors so badly that you cannot read the screen well enough to correct it (this is not an entirely unlikely possibility with some laptops), you can recover by copying ONLY the file TOPTN.DAT from your distribution diskette to your working diskette/directory. If you have altered other options, they will be reset also, and you will have to re-enter them. However, your tax-return data will not be affected. 3.12. Setting Printer Options To select the printer options you want, go to the Printer Setup screen and press the F2 key and select your printer type. As delivered, the printer control sequences are set up for the IBM ProPrinter. If your printer is not included in the list, you will need to enter the appropriate sequences as defined in your printer's manual. If your printer does not have a bold printing capability, the program can simulate it by overstriking. To activate this option, answer "Y" to the bold question and leave the control sequences blank. If your printer does not have an underlining command, the "_" character will be used. Note that for printer control sequences, NON-DISPLAYING ASCII characters must be entered as a two-character sequence where the first character is always a "^". For example, a control-C is entered as "^C", an escape followed by the character 0 as "^[0". This two-character notation is shown on the screen along with the decimal equivalents in parentheses. The decimal equivalents are given only for your information and are not entered as such in the control sequences. They are the values you would use with the CHR$ function of BASIC and are given in many printer manuals. 4. GENERAL INSTRUCTIONS 4.1. Pull-Down Menus All functions of the program can be accessed via the pull-down menu. Use your mouse to click on the desired items, or press F10 to activate the menu bar. Then use the left and right arrow keys or the highlighted character to select the heading and "pull" down the menu. Use the up and down arrows to select the item you want and press the ENTER key, or press the highlighted character to make your selection. All screens are also accessible with the PGUP and PGDN keys. The pull-down menu is usually most convenient for getting to the general area desired, and then PGUP and PGDN are convenient for accessing nearby screens. The order of accessing the screens when using PGUP and PGDN is shown below. 4.2. Alphabetic Index If you do not know on which form a particular item belongs, use the alphabetic subject index to find out. Either press F8 or access the "Go" / "Subject Index" pull-down menu. Use the up/down arrow, PGUP, PGDN, HOME and END keys, or type the leading letters of the subject to find what you want. Then press the ENTER key or click on the desired line with the mouse. 4.3. Taxpayer Lookup As delivered, the data files contain a sample tax return. You probably will not want to enter data into this tax return, but will want to create new ones for your use. You can also erase it entirely if you choose. Each tax return is stored in a separate file, with a file name of the form <name>.T96. Only tax return files in the current directory are accessible. When specifying a tax return file from in the program, do not specify either a path or the ".T96" file name extension. You can use any file name which is acceptable to DOS, consisting of 1 to 8 letters, numerals and certain special characters. When you need to select a tax return, a window will pop up on the screen. Use the arrow keys to select the desired tax return or type in the file name directly. When you have made your selection, press the ENTER key to complete it. If you do not wish to select a tax return at that time, press the ESC key. In this case, the program will enter a display-only mode and will just display the text of the screens with no data. To select a tax return after entering this mode, just press F10 for the pull-down menu again. 4.4. Keyboarding Conventions Normally a field is cleared when you type the first character. However, you can edit the previous contents of any field by making the first character you type an editing key (identified below with an asterisk). The function and editing keys normally act as follows (the notation "^" means hold down the Control key, then press the specified key): F2 Generally, this key is used to search for something, such as a tax return or a particular instance of a screen. Follow prompts on screen for instructions. F3 Allows erasing a "record" (see below). F4 Prints a form or complete tax return. PGUP Go to previous screen. PGDN Go to next screen. Shift-TAB Move to data-entry field to left. TAB Move to data-entry field to right. F8 Go to form via subject index. F9 Go back to previous data-entry screen. F10 Access the Pull-down menu. Use the cursor keys to select the item you want, or type the highlighted character. ^HOME Go to the first data-entry field on the screen. ^END Go to the last data-entry field on the screen. * Left-Arrow Move one colum to the left. * Right-Arrow Move one column to the right. * ^Left-Arrow Move to beginning of the word to left. * ^Right-Arrow Move to beginning of the word to right. * HOME Go to beginning of the data-entry field. * END Go to end of the data-entry field. * INSERT Toggle between insert and overstrike mode. * DELETE Delete the key under the cursor. * BACKSPACE Delete the key to the left of the cursor and move the cursor one to the left. * ^BACKSPACE Clear the data-entry field. ESC Cancel changes keyed before pressing ENTER. ENTER Enter changes keyed. In most cases it sequences through the fields the same as the TAB key, but in some cases it follows a more natural order. (* Field editing keys are indicated with an asterisk.) 4.5. Screen Selectors and Multiple-instance Screens Certain IRS forms may need to be filed more than once in a single tax return. There are two basic classes of these forms, namely those which have no fixed number (such as W-2's and Schedule C), and those which must be filed separately for Taxpayer and Spouse in joint returns (such as Schedule SE). Those with no fixed number are selected with letters "A" thru "Z", giving a maximum of 26. Those for taxpayer/spouse are selected with "T" or "S". To re-select with a different letter, use the "SEARCH" function, F2. 4.6. Data Entry Fields There are two types of data-entry fields, numeric and text. If you try to enter text in a numeric field, the program will complain and not accept it. Most single-character text fields are "YES"/"NO" fields. Enter "Y", "y" or "1" for "Yes", and "N", "n" or "2" for "No". A Few single-character text fields are "Taxpayer"/"Spouse" fields. Enter "T", "t" (or sometimes blank) for "Taxpayer", and "S" or "s" for "Spouse". The few other types of single character fields are identified as such on the screen. Dates can be entered with or without the slashes, for example "10188" or "01/01/88" or "1/1/88", and the program will then enter the slashes correctly. Date fields will also accept arbitrary text which does not look like a date such as "VARIOUS". The philosophy used throughout the program is that data entry fields are never changed by the calculations. A minor exception to this is a few fields which must always be positive or negative. In most of these cases, the program forces the necessary polarity. 4.7. Calculated Data Fields Data in these fields are calculated by the program and you cannot position the cursor to these fields. If you have chosen colors properly, these fields will have a different color (or shading with some monochrome monitors) from the data entry fields, and the background text. 4.8. Calculations Every effort is made to keep values passed from one form to another current. However, in the interest of efficiency, this cannot always be done. To bring all values up to date at any time, just select the Complete Calculation function. This takes just a few seconds with a hard disk, and something like 30 seconds on diskette for a large return. During the calculations, an "Exception Report" is displayed on the screen warning you of any obvious problems. This report can also be printed if there are any exceptions. 4.9. Data Records Data is organized in the files as "records". In some cases one screen constitutes one record, whereas in other cases a number of screens constitute one record. The Erase Current Record function erases records, not screens. Therefore, it will first inform you of the scope of the proposed erasure before asking you to confirm. In order to conserve disk space, data is organized so that zero-valued numeric amounts and blank-valued text do not occupy space in the file. Furthermore, records are not created until data has been entered, or in a few cases where the calculations automatically create records when necessary. At the upper-right corner of the screen, you will at times see and "R" and a "M". The "R" means that the record has been created. The "M" means that the screen has been modified with new data, and if the record has not been created yet, it will be created when you leave the screen. 4.10. Multiple Versions of Data Sometimes you might want to try out several situations for a given tax return. The "Copy Return" function allows you to do this easily. It merely copys the current tax return to a new file with a different file name which you must type in. You then can continue accessing the first file or the new file. 4.11. Order of Screens Using the menu, you can go directly to the desired form. Then use PGUP and PGDN to access individual screens of the form. The screens are in the following order when accessing them with the PGUP and PGDN keys: Sign-on Message Disclaimer Distribution of Program Product Support Screen Color Setup Printer Selection Custom Printer Setup Order Form Preparer Setup W-2 Forms Other Income Schedule EIC - Earned Income Credit Pension/Annuity Worksheet Social Security Worksheet IRA Worksheet Form 1040 Schedule A - Itemized Deductions Schedule B - Interest and Divident Income Schedule C - Profit or Loss From Business Schedule D - Capital Gains and Losses Schedule E - Supplemental Income and Loss Schedule F - Farm Profit (Loss) Schedule H - Household Employment Taxes Schedule R - Credit for the Elderly/Disabled Schedule SE - Self-Employment Tax Form 2106 - Employee Business Expense Form 2119 - Sale/Exchange of Residence Form 2441 - Child/Dependent Care Expenses Form 3903 - Moving Expenses Form 4137 - SS Tax on Unreported Tips Form 4562 - Depreciation and Amortization Form 6251 - Alternative Minimum Tax Form 8606 - Nondeductible IRA Contrib Form 8615 - Under 14, over $1200 Invest Inc Form 8829 - Business Use of Your Home Supplemental Schedule Client Invoice Complete Tax Return Calculation Exit to DOS 5. SCREEN-SPECIFIC INSTRUCTIONS The following is specific instructions for individual screens. Explanation will be given only for items which are not self-explanatory, and only with the purpose of helping you understand the mechanics of data entry. No attempt will be made to explain or analyze the IRS regulations; such information is available directly from IRS publications and other sources. 5.1. Form 1040 - Individual Income Tax Return Only the full Form 1040 is implemented, which will serve in all cases. The Taxpayer Information screen must be filled out first to setup the tax return. Some fields on this screen do not apply to all types of filing status; just leave those fields blank. Be sure to enter your basic exemptions and dependents on the front of Form 1040. Then be sure to check any boxes on the back which apply to you. Most numbers on Form 1040 come automatically from other forms. For the few which don't come from other forms, it is a very good idea to step through all 1040 screens to be sure that you have entered all necessary amounts. The tax computation will automatically choose the larger of your itemized deductions from Schedule A, or the Standard Deduction so that your taxable income will be minimum. The value chosen is displayed on the right. You can also override the automatic selection and choose Schedule A even if less than the Standard Deduction. 5.2. Form 1040-V Payment Voucher If you owe an amount with your return, the IRS now requires you to include a Payment Voucher with your payment. This will print only if you owe. 5.3. Schedule A - Itemized Deductions If you have filled in Schedule A it will always print whether it or the Standard Deduction is chosen. If you do not want it to print, erase it, or else simply do not submit it with your return if it does not apply. The charitable contributions section has a worksheet to provide convenient data entry and to limit the deduction to the amount allowed by the IRS. Usually the deductible amount is 50% of your Adjusted Gross Income (AGI), and therefore that is the default if you don't enter a different value, but in certain cases the limit is 30% or 20%. In figuring the limitation, first the 20% deductible amounts are computed, then the 30% and and last the 50% ones. Then the allowable deductions are first applied to contributions made in cash or by check, next to contributions other than cash, and finally to carryovers from prior years. 5.4. Schedule B - Interest and Dividend Income Enter Capital Gains Distributions in the Dividends section of Schedule B. This value will be automatically transferred to Form 1040 or Schedule D, as appropriate. 5.5. Schedule C - Profit(Loss) from Business/Profession You can have up to 26 Schedules C, one for each letter of the alphabet. Note that each Schedule C pertains to only one individual, even if you are filing a joint return. If both you and your spouse have income from the same business, you should file a separate Schedule C for each person. You generally may deduct only 50% of your business-related meal and entertainment expenses; however, there are exceptions. Therefore line 24b is entered as two amounts. The first amount, "Meals not subj 50%", is the portion which is not subject to the 50% limitation. The second amount, "Amt subj 50% limit", is that amount which is subject to the 50% limitation. 5.6. Schedule D - Capital Gains and Losses If you have sufficient capital gains, the Schedule D Tax Worksheet will automatically be used to computing your tax. 5.7. Schedule E - Supplemental Income Schedule Schedule E allows up to three properties per front page. If you enter more than three, then additional front pages will be printed, with totals for all front pages only on the last front page. Each side of Schedule E can stand alone, so that if only the front is needed, the back will not be printed, and vice versa. The way Schedule E is designed, the descriptions of "Other" on each front page apply to three properties. The screen only shows one property at a time. Therefore, in order to prevent you from entering conflicting descriptions, the descriptions if any, from the other two properties are displayed for you in their proper place, and you are not permitted to change them. The only way to change them is to (re)select the screen where you originally typed them in. 5.8. Schedule F - Farm Income and Expenses This schedule is analogous to Schedule C, except that it is for farm income and expenses. As with Schedule C, you can have up to 26 Schedules F, one for each letter of the alphabet. Note that each Schedule F pertains to only one individual, even if you are filing a joint return. If both you and your spouse have income from the same farm, you should file a separate Schedule F for each person. If the back of Schedule F is not needed, it will not be printed as per IRS instructions. 5.9. Schedule H - Household Employment Taxes Data-entry should be self-explanatory. 5.10. Schedule R - Credit for Elderly and Disabled Under certain circumstances, you must complete Form 6251 for the Schedule R worksheet. If this is necessary and you have not already done so, you will be warned on the Exception Report that you need to fill in Form 6251. 5.11. Schedule SE - Social Security Self-Employment Tax This form is created automatically if you have self-employment income. You need fill it in only if you have partnership (Form 1065) self-employment income, if you use the optional method, or if you need to make adjustments to lines 1 and/or 2 (seldom needed). Only the Long Schedule SE is programmed, which will serve in all cases; just don't fill out the parts which don't apply. 5.12. Form 2106 - Employee Business Expenses Amounts from line 10 may be carried to as many as 3 different places. Below line 10, enter amounts, if any, for Qualified Performing Artist and Handicapped Employee expenses. The total of amounts carried to other forms will automatically be limited to the amount on line 10. 5.13. Form 2119 - Sale/Exchange of Principal Residence The reason you are asked to indicate whether this transaction is short-term or not is so that the program will know which section of Schedule D to put the result. If you indicate that you have filled out a Form 6252 for this transaction, then the result will not be passed to Schedule D or anywhere else, and you will need to fill out Form 6252 (Form 6252 is not in the program and must be filled out manually, and any amounts will need to be entered manually on Schedule D on the appropriate line for Form 6252). If you need to file this form separately (not attached to your tax return) so that you need to sign it, use an original form from the IRS. 5.14. Form 2441 - Child/Dependent Care Expense Credit Under certain conditions, you must fill in Form 6251 to complete the worksheet for this form. In such a case, you will be warned on the Exception Report to complete Form 6251 if you have not done so already. 5.15. Form 3903 - Moving Expense Data-entry is self-explanatory. 5.16. Form 4137 - S.S. Tax on Unreported Tip Income Data-entry is self-explanatory. 5.17. Form 4562 - Depreciation and Amortization You can have up to 26 Forms 4562 (one for each letter of the alphabet) since each business or activity needs a separate form. THE TOTALS FROM THESE FORMS DO NOT AUTOMATICALLY CARRY TO ANY OTHER FORM. Therefore, you must enter the totals to the appropriate forms. 5.18. Form 6251 - Alternative Minimum Tax - Individuals This form will be automatically computed whether you have filled it in or not. If you have not filled it in, and the calculations show that tax is due from the form, you will be advised on the Exception Report that "You may need to file Form 6251, Alternative Minimum Tax." You must then complete this form to see how much, if any, Alternative Minimum Tax you owe. Under certain conditions, an amount from this form is needed for the Schedule R Worksheet and the Form 2441 Worksheet. If needed, and you have not filled it in, you will be so notified on the Exception Report. 5.19. Form 8606 - Non-deductible IRA Contributions This form will be automatically created and printed whenever nondeductible IRA contributions are calculated by the IRA Worksheet ("WI"). If you made contributions in 1997, you will need to fill in line 5 to indicate what part of your 1997 contributions, if any, you want to be nondeductible. IRA rollovers, if any, are also entered on this form. If you need to file this form separately (not attached to your tax return) so that you need to sign it, use an original form from the IRS. 5.20. Form 8615 - Under 14, Investmt Income over $1200 Be sure to keep the child's and parent's numbers straight. If this form is filled in, the tax on Form 1040 will be taken from it instead of being calculated in the normal manner. 5.21. Form 8829 - Business Use of Your Home This form is implemented so that one Form 8829 corresponds with one Schedule C. Therefore, the form Selector must match the desired Schedule C. 5.22. Worksheet - W-2 Forms Wage Information Enter each individual W-2 on a separate screen using a different screen selector. The totals for all W-2s will be shown on screen W2T. These worksheets need not be submitted to the IRS since you should have Forms W-2 for each. Keep them for your records. If you leave the "Taxpayer/Spouse" entry blank, then that W-2 will be assumed to be for the "Taxpayer". 5.23. Worksheet - Schedule of Other Income Enter here all amounts for Form 1040, line 22. If there is just one line entered, and if the description is short enough to fit directly on Form 1040, then it will be printed on the 1040 and this schedule will not be printed. If it won't fit, then the total is printed on Form 1040, the description on Form 1040 is printed as "SEE ATTACHED SCHEDULE", and this schedule is printed on a separate page. This schedule should then be submitted to the IRS with the rest of the return. 5.24. Schedule EIC - Earned Income Credit If it appears that you might qualify for this credit, and you have not answered the questions necessary on it, the Exception Report will notify you that you might qualify. 5.25. Worksheet - Taxable Part of Pensions/Annuities Data-entry is self-explanatory. 5.26. Worksheet - Taxable Social Security Benefits Data-entry is self-explanatory. 5.27. Worksheet - IRA Contributions This worksheet obscures a fairly simple thing. Everyone is entitled to contribute to his IRA the smaller of 1) his earned income, or 2) $2000; or with a non-working spouse the smaller of 1) earned income, or 2) $2250, but a maximum of $2000 per individual. The difference is in whether any or all of it is tax-deductible. Any non-deductible contributions must be reported on Form 8606. Just fill in the numbers on the first screen and everything else will be taken care of for you. If any of it is non-deductible, then you must complete Form 8606, and you will be warned by the Exception Report to do so if you haven't already. You will also need to fill in Form 8606 if you have any IRA rollovers. 5.28. Supplemental Schedules These schedules may be used to report detail which will not fit on the forms themselves. On the Form itself, enter "SEE SCHEDULE ATTACHED" and enter the total. Then on the supplemental schedule, enter the detail and in the title say what form it pertains to. NOTE: TOTALS FROM THESE SCHEDULES DO NOT AUTOMATICALLY GO ANYWHERE, and you must enter the totals where they belong. Submit these schedules to the IRS with your return. 5.29. Estimated Tax Worksheet This is the worksheet from IRS form 1040-ES, and is for estimating your 1997 taxes. Its main purpose is to calculate how much estimated tax you should pay quarterly, but is also of general interest for tax planning. 5.30. Client Invoice This was designed for use by the paid tax preparer. 6. PRINTING 6.1. Printing Individual Forms You can print individual forms without printing the whole return by going to a screen pertaining to the form in question, and accessing the Print Current Form Only item from the pull-down menu, or by pressing the F4 key. 6.2. Graphic Form 1040 This prints an exact duplicate of the Official Form 1040. This capability is available only for the following printers and compatibles: Hewlett-Packard LaserJet+, II, III, etc. Hewlett-Packard InkJet/DeskJet, etc. IBM ProPrinter and Epson FX series. (216 x 240 dots/inch) Epson LQ series. (180 x 240 dots/inch) The graphic Form 1040 is the default for Laser and Ink Jet printers, and may be accessed for the impact dot-matrix printers with the Print Graphic Form 1040 menu item. For the impact dot-matrix printers, because the dots are so dense and overlap, you will probably get better results with an OLD ribbon. Expect it to take at least 30 minutes on an average-speed dot-matrix printer. If your result is too long or too short, select the other Epson series. 6.3. Precautions for printing Graphic 1040 to a file If you print to a file first, note that the file size is over one megabyte in some cases, so be sure you have sufficient disk space before doing it. The Graphic 1040 for all supported printers produces binary data. The DOS PRINT command will not correctly print such a file because it mis-interprets binary data as TABs, etc. Instead, to print the file, you will need to execute the following DOS command: "COPY/B file-name PRN", or you will need a print spooler which will faithfully copy binary data to your printer. The "/B" selects binary mode and insures that the data is transferred unchanged to the printer. Networks may present other problems. However, the objective is always to get the data from Share-TAX/1040 to the printer with no alterations of any kind. 6.4. Fileable Computer Generated Form 1040 This is a non-graphic Form 1040 which has been approved by the IRS for submission as part of your tax return. It will print on almost any printer which can underline (or has the "_" character) and which can return the carriage without advancing the paper. 6.5. IRS Approval of Substitute Forms Substitute forms are computer generated forms with typewriter-style characters used in place of the IRS official forms. All substitute forms and schedules printed by this program have been approved by the IRS. However, there are factors under your control which must meet requirements also, which are explained below. 6.6. IRS Requirements for Computer Generated Forms Your printer must be set to 6 lines per inch vertically and 10 characters per inch horizontally. These are the normal (default) values for almost all printers. Form 1040 itself MUST be submitted using the IRS pre-printed form or a high-quality duplicate (offset press, photocopy, etc.), or an approved graphic or computer generated substitute. As stated earlier, the graphic and computer generated Forms 1040 produced by this program are approved by the IRS for inclusion in your tax return. Or, you can print your 1040 by selecting the Print IRS Form 1040 option and simply placing single-sheet blank IRS Forms 1040 in your computer printer. In this case, the program will always pause for you to put the blank form in the printer. The tricky part is getting the Form 1040 positioned correctly at the beginning of printing. If you have plenty of blank 1040's, just experiment with them until you get it right. Otherwise, one way of doing it is to print the 1040 data on blank continuous paper. Then fasten the actual 1040 over the continuous paper in the proper position and re-run the paper through the printer without altering the top of form position. One caveat, the bank routing and account numbers on the back of the 1040 will not line up. Another way to meet IRS requirements for Form 1040 is to use a copier and overlays which you can purchase or make yourself. To make your own, you will need to use a copier which does not significantly shrink or enlarge the copy. First make an "overlay" of a blank IRS Form 1040 on transparent plastic of the type designed for use in a copier. Then print the Form 1040 on blank paper, position the overlay correctly over the printout, and then make a copy of the combination. The fileable computer generated Form 1040 and the other computer generated forms and schedules must meet the following requirements: 1) A high standard of legibility is required. Low quality printers should not be used (good dot matrix is OK). The originals must be filed, NOT carbon copies. 2) Paper must be at least 18 lb. weight, be 8" x 11" or 8.5" X 11" in size, and must have 1/4" to 1/2" margins on all sides after removal of pin-feed holes. 3) Paper color must be white or cream colored, and may be color-barred. 4) Black ink must be used for printing. 5) Printing must be 6 lines per inch vertically, and 10 chars per inch horizontally. 6) Forms must be assembled with Form 1040 first, then the schedules and forms in their sequence number order (the sequence number is given after the "1996 *" at the top right), then supporting schedules in the order of the forms they refer to. When you select the "print all forms" option, they will automatically be printed in the correct order. 7) Social security numbers must be printed in the format: 000-00-0000, thus you must key them in in that form. 6.7. Calculation Before Printing Most forms require that a Complete Calculation be current. That is, no data should have been changed since the last Complete Calculation. The print program checks to be sure that this is so, and if so, it will print. If not, it warns you and will not print, until you have done a Complete Calculation. 6.8. Previewing Printouts on the Screen You can conveniently preview the printout by looking at it on the screen. Just select the "S" printer output option. 6.9. Printing to a File In addition to printing to the printer and to the screen, the program has two options for printing to files. The first option, overwrite "O", will erase any data that was in the file and overwrite it. This option will prompt you if the file already exists to be sure you want to over-write it. The other option, append "A", will add the data at the end of what is already in the file, if anything. This option will prompt you if the file does not already exist. 7. TAX PREPARER INFORMATION If you use this program as a paid tax-preparer, your name and address, etc. must be entered at the bottom of the back of the 1040. The Preparer Setup allows you to enter this information into the database, and then prints it. There is space on the database for 20 preparers, numbered 1 through 20. If you are using this program only for your own use, or for family members and friends where you receive no remuneration, you should not enter any preparer information. Select preparer number 0 when you setup your return. Then these fields will be left blank on the 1040 printout. 8. EXCEPTION REPORT MESSAGES "No room for 'Form 2106' description on Form 1040, line 30" This message occurs when you enter a description on Form 1040, line 30 and there is also a value from Form 2106 for the same line. In this case you will need to use a separate schedule to list all the necessary information and carry the total from it to Form 1040, line 30. "Excess FICA withheld by one employer, obtain refund from employer." If one employer withholds more than the maximum, you cannot obtain a refund for the excess on your tax return. You can only obtain a refund from the employer. This message will continue to display even though your tax return is correct. "Form 1040: 6a unchecked, assume you are dependent on another's return" This is fine if that is what you want. "Sch A, non-cash contrib over $500, be sure to file Form 8283" "Schedule A contributions reduced by AGI limitation" "Must answer Sch B, part III since more than $400 interest/dividends" "You may need to file Form 6251, Alternative Minimum Tax." "Form 6251 not implemented for Children Under Age 14" "You need to complete Form 6251 for Form 2441 Worksheet." "You need to complete Form 6251 for Schedule R Worksheet." Even if you don't otherwise need Form 6251, you must fill it out for these worksheets and forms. "Filing status must be "Single" (1) for Form 8615" "Must enter PARENT's filing status on Form 8615" "You must complete Form 8606." This message occurs when your IRA worksheet results in non-deductible IRA contributions. Go to Form 8606 and fill it out for taxpayer and/or spouse as needed. "You may qualify for Earned Income Credit. Go to screen EIC." "Not joint return, but "S" (spouse) selected on screen W2" "Not joint return, but "S" (spouse) selected on Schedule C" "Not joint return, but "S" (spouse) selected on Schedule F" "Not joint return, but "S" (spouse) selected on Schedule SE" "Not joint return, but "S" (spouse) selected on Form 2106" "Not joint return, but "S" (spouse) selected on Form 4137" "Not joint return, but "S" (spouse) selected on Form 8606" One of these errors is likely to occur if you start entering your tax return as a joint return, but then later change it to an individual return. Normally, these errors must be corrected to get correct results.