Drake Tax – State Taxable Refund: Update to Screen 3
Article #: 10175
Last Updated: October 21, 2024
The taxable amount updates to screen 3, Schedule 1, part I, line 1 rather than the full refund amount. To view where this amount is coming from, open the prior year Drake Tax return and refer to the Wks Refunds form in View/Print mode. Along with determining the taxable refund amount, this worksheet also performs a calculation to determine if the amount should be reduced by unused sales tax.
The amount is updated as an item to verify. If you think it should be different, you can adjust accordingly.
Note State income tax refund may be taxable in the current year if the client itemized deductions on Schedule A in the prior year. If the client is itemizing this year and taking the state income tax deduction on line 5 of the Schedule A, the software will generate Wks Refunds.