Tax exempt income on form 1065

[jeancpa]

I'm using ProSeries, and I've encountered my first 1065 that has tax exempt income to be reported. I'm having difficulty deciphering where to enter it. Could someone help?

Thanks in advance.

[Rapid Robert]

From the Form 1065 instructions:

"Tax-exempt income.
Do not include any tax-exempt income on lines 1a through 8. A partnership that receives any tax-exempt income other than interest, or holds any property or engages in any activity that produces tax-exempt income, reports this income on line 18b of Schedule K and in box 18 of Schedule K-1 using code B.

Report tax-exempt interest income, including exempt-interest dividends received as a shareholder in a mutual fund or other regulated investment company, on line 18a of Schedule K and in box 18 of Schedule K-1 using code A.

See Deductions, after the instructions for lines 1a through 8 and before the instructions for lines 9 through 21, for information on how to report expenses related to tax-exempt income."

Interest income that is tax-exempt for federal may of course be taxable for state.

[jeancpa]

Thanks so much for your reply. I guess my question wasn't specific enough -- I was looking for assistance with ProSeries from other users. I'm hoping to call this morning.

[terryats]

Hi Jean, I use ProSeries. You asked the same question on Intuit, and I gave you the detailed info on how to do it in ProSeries. You should check back there

[Rapid Robert]

I was a ProSeries user for a number of years, but ended that some years ago. However, my proposition is that good tax prep software should take you directly from the tax form output line or box, to the input field. So, once you know where the numbers should show up on the final tax return, your software should point you back to the input screen or field, or at least a help screen. If ProSeries no longer does this, then shame on them.