Tax software question

[Roberts]

Why are they all so different when it comes to DIVIDEND and INTEREST information?

TaxWorks I could type in the name of the bank and the interest - easy stuff. Same requirement with Dividends.
With other software (and my current) I've had to type in Tax Numbers, name, address before entering the dollar figures.

Some clients have 10+ different banks they deal with for CDs. They go to whoever is offering the best deal in the paper.
This could be a pain.

[Matt Sova]

Huh

What type of software requires that???

[FEDUKE404]

Wasted energy

Sounds like Q&A (not forms) and tax software for dummies.

IRS certainly does not require that information....are you sure the software really does (leave other than name blank to see what happens) ??

FE

[Roberts]

Sounds like Q&A (not forms) and tax software for dummies.

IRS certainly does not require that information....are you sure the software really does (leave other than name blank to see what happens) ??

FE

I'm going to try that.

It's not Q&A - it's entering the 1099 EXACTLY as the client received it just like you would do with a W-2.

[taxea]

My tax software doesn't require it but I put in the bank name and last for of the acct # so I know quickly from year to year if anything is missing and can then ask the client whether the account is still open.

[Lion]

I can put in detail, might be handy if an employee with little training was entering data so it looked more like a 1099. But, I use the grid with just the name (so I can check to see if a bank is missing) and amounts. Very fast to type. I like having choices in my software.

[taxea]

I can put in detail, might be handy if an employee with little training was entering data so it looked more like a 1099. But, I use the grid with just the name (so I can check to see if a bank is missing) and amounts. Very fast to type. I like having choices in my software.

I like having detail that transfers from the prior year. I even go so far as to put notes on some lines to remind me of prior handling of things. Too many clients to keep all the details in my head. Vehicle worksheet gets a note that says taking mileage or depreciated in first year. This really speeds up the prep time for me, not having to pull up the prior year to refer to.

[David1980]

I've seen both options available in some software. The form and also a quick-entry detail worksheet where you can enter just names/amounts.

[DonPriebe]

It's not Q&A - it's entering the 1099 EXACTLY as the client received it just like you would do with a W-2.

The difference is that all the W-2 information is transmitted to the IRS but the 1099-INT information goes only to Schedule B. If it were a paper return you would attach a copy of the W-2 but not a copy of the 1099-INT.

[Larmil]

The difference is that all the W-2 information is transmitted to the IRS but the 1099-INT information goes only to Schedule B. If it were a paper return you would attach a copy of the W-2 but not a copy of the 1099-INT.

I agree. The IRS already has the 1099-INT info - The W-2 info is transmitted to Social Security - not the IRS.

[Roberts]

I like having detail that transfers from the prior year. I even go so far as to put notes on some lines to remind me of prior handling of things. Too many clients to keep all the details in my head. Vehicle worksheet gets a note that says taking mileage or depreciated in first year. This really speeds up the prep time for me, not having to pull up the prior year to refer to.

You know, if I don't make notes you can basically guarantee the information is lost forever. Plus, if something should happen to me I prefer the client have my notes in their hands when I give them the 1040.

[Lion]

I also make lots of notes within my software, but that doesn't mean I have to use the data entry screen that mimics a Form 1099-INT or any other form. I can still use the summary or grid screens. They usually allow names and account numbers if I need further ID. But, I often use a List form that pops up whenever I need it. I can give lots of detail, with or without amounts. My most common use of List is for mortgage interest paid so I can distinguish between that paid by a bank via escrow vs directly by the tax payer, and list multiple banks and amounts if a HELOC or refi. I can have my Lists print with the return, or print to .pdf along with the return. My Lists pro forma to the next year, so I can ask if taxpayer has their 1098 from BoA or where ever. Love those Lists. Easy to use, only have to type in the info I consider important, etc., and they are "attached" to that line item. Also have Return Notes and Preparer Notes. Return Notes transmit with the return. Preparer Notes stay with me, and I can choose to put them in the taxpayer copy or only in mine and choose to pro forma to next year or for current year only, all with quick check boxes, to be able to keep whatever info I want with the return.

[taxea]

Why are they all so different when it comes to DIVIDEND and INTEREST information?

TaxWorks I could type in the name of the bank and the interest - easy stuff. Same requirement with Dividends.
With other software (and my current) I've had to type in Tax Numbers, name, address before entering the dollar figures.

Some clients have 10+ different banks they deal with for CDs. They go to whoever is offering the best deal in the paper.
This could be a pain.

This is what you get the big bucks for.

[taxea]

I also make lots of notes within my software, but that doesn't mean I have to use the data entry screen that mimics a Form 1099-INT or any other form. I can still use the summary or grid screens. They usually allow names and account numbers if I need further ID. But, I often use a List form that pops up whenever I need it. I can give lots of detail, with or without amounts. My most common use of List is for mortgage interest paid so I can distinguish between that paid by a bank via escrow vs directly by the tax payer, and list multiple banks and amounts if a HELOC or refi. I can have my Lists print with the return, or print to .pdf along with the return. My Lists pro forma to the next year, so I can ask if taxpayer has their 1098 from BoA or where ever. Love those Lists. Easy to use, only have to type in the info I consider important, etc., and they are "attached" to that line item. Also have Return Notes and Preparer Notes. Return Notes transmit with the return. Preparer Notes stay with me, and I can choose to put them in the taxpayer copy or only in mine and choose to pro forma to next year or for current year only, all with quick check boxes, to be able to keep whatever info I want with the return.

When dealing with any fiancial institution info I put the firm name and last four of the acct number (one line for each account). The idea is if you type it on the lines you only have to do this once because it transfers over from year to year. In the mortgage area I list each firm, last 4 #s of acct and whether it was closed, escrow, refi yr and anything else that I think may be helpful to transfer to the next year. Don't most of us charge for the work even though the computer did most of it after the first year of entry?