Drake Tax – Setup Options Overview

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Article #: 18202

You can customize Drake Tax by going to Setup > Options and selecting from the options on the available tabs. Note that some options vary depending on the year of Drake Tax being used and your preparer security settings or rights.

Image of Setup > Options > Data Entry tab

Watch the video Setup Options for a demonstration.

Data Entry Tab

Calculation & View/Print Tab

Form & Schedule Options Tab

  • Print Schedule A only when required – Produce Schedule A only when taxpayer qualifies for itemized deductions.

  • Print Schedule B only when required – Produce Schedule B only when taxpayer has enough interest income to require filing Schedule B.

  • Print Form 4562 only when required – Produce Form 4562, Depreciation and Amortization, only when the tax return requires it.

  • Print Form 6251 only when required – Produce Form 6251, Alternative Minimum Tax, only when the tax return requires it.

  • Next-year depreciation schedule – Produce a depreciation schedule for tax year 2026 in addition to the one for 2025. See Drake Tax – Next Year Depreciation Schedule

  • W-2/1099 forms – Produce and display all Forms W-2 and 1099-R with the return in View/Print mode.

  • Carryover Worksheet – see 1040 – Net Operating Loss FAQs and Drake Tax – 1040 – State Taxes on Wks CARRY

  • Print ES vouchers only when screen ES indicates – Print estimated tax vouchers only when screen ES exists. See Drake Tax – Printing Estimate Vouchers and Entering Estimates Paid and Drake Tax – 1040: Amounts Updating to ES Screen

  • Always show reason for no EIC – Generate a Return Note explaining why the taxpayer does not qualify for the Earned Income Credit (EIC). See Drake Tax – EIC: Frequently Asked Questions

  • Always show tax computation worksheet – Generate the Computation of Regular Tax worksheet (“Tax Computation” in View/Print mode), showing how the program calculates the tax on line 16 of Form 1040. See Drake Tax – 1040 – No Tax or Tax Different than Tax Table

    • Print shareholder’s/partner’s adjusted basis worksheet (1120-S/1065 packages only) – Automatically print a partner’s or shareholder’s Basis Worksheet (“Wks Adj Basis” (1065)/“Wks SBAS” (1120-S) in View/Print mode). See Drake Tax – 1040: Basis Worksheets

  • 1040-SR suppress – Choose to have Form 1040 generated and Form 1040-SR suppressed globally when the taxpayer is eligible to use Form 1040-SR. See Drake Tax – Form 1040-SR

  • Form 8879 bank account options – Select an option for printing bank account information on Form 8879. See Form 8879 – Frequently Asked Questions

  • Select to Turn On – Produce lists of the following items (W-2, W-2G, 1099-M, 1099-NEC, 1099-R, federal withholding lists, dividends, interest, and K-1s) when the selected number is exceeded.

    • W-2 list if greater than __

    • W-2G list if greater than __

    • 1099-M list if greater than __

    • 1099-NEC list if greater than __

    • 1099-R list if greater than __

    • Federal Withholding Summary – see Drake Tax – Federal Withholding Worksheet

    • List of Dividends and Interest if more than __

    • K-1 list (bus. returns only) if greater than __

Optional Documents Tab

  • Folder coversheet – Description Generate a folder cover sheet on which the taxpayers’ names, as well as the name, address, and phone number of the preparer’s firm, are printed

  • Prior year(s) comparison form – Produce a comparison sheet containing data from the current and prior-year returns. See Drake Tax – Comparison Sheet – Frequently Asked Questions

  • Return summary – Produce a return summary with every return prepared

  • Bill summary – Produce a summary of the taxpayer’s bill with each return.

  • Labels – Print a sheet of “mail to” addresses on compatible labels.

  • Envelope Sheet (address drop lists) – Choose the size of the envelope on which to print the addresses of the taxpayer, IRS Service Center, state tax department, and city tax office, as well as the address for filing Schedules K-1 and the address of the preparer’s firm.

    • IRS service center address

    • State address

    • City address

    • K-1 address

    • Firm address

  • Do not print taxpayer envelope sheet with organizer – Prevent a cover sheet addressed to the taxpayer from being included with organizers; any selection from the Taxpayer address drop list is still included when the return is printed.

  • Do not print firm envelope sheet with organizer – Prevent a cover sheet addressed to the firm from being included with organizers; any selection from the Firm address drop list is still included when the return is printed.

  • Estimated payment coversheet (Nelco ENV500) – Print cover sheets for applicable estimated tax payment addresses using Nelco ENV500 envelope dimensions (1040 and 1041 returns with quarterly taxes only).

  • Order Nelco compatible presentation products – Go to the NELCO website to order such Drake Tax-compatible products as envelopes, IRS forms, and checks.

Optional Items on Return Tab

  • Date on return – this option prints the Paid Preparer Signature date on the main form of the return.

    • The dates for taxpayer/spouse are printed if entered on the PIN screen. These dates are printed regardless of your setup option selection, if present on the PIN screen.

  • Print dates for taxpayer and spouse signatures (excludes 1040) – this option prints the date on Form 8879 for the taxpayer and spouse. The date that appears on Form 1040 comes from the PIN screen, if completed.

  • Taxpayer phone number – see Drake Tax – Taxpayer’s Phone Number

  • Taxpayer email address

  • Automatically calculate penalties and interest on returns filed after the due date. Drake Software automatically updates quarterly interest rates when needed. See Drake Tax – Calculating Federal Late-Filing Penalties and Interest

  • Third party designee drop list – see Drake Tax – Third-Party Designee Setup

Client Communications Tab

Billing Tab

States Tab

  • Choose a state for state-specific options.

EF Tab

Administrative Options Tab

This tab is shown for preparers with admin level logins only.

Related Links

Drake Tax – View/Print Mode Setup Options