Overview

The Comparison sheet is a form produced by Drake Software that shows summary data for the tax return for the current and two prior years (when available). This data pulls from the COMP screen in data entry and is based on the information carried forward from one year to the next. If this is the first year that the return was entered in Drake Tax, you can manually input return details on the COMP screen to have the information flow to the prior year columns in View/Print mode.

Comparison sheets for Schedules C, E, F, and 4835 are also produced when data from the prior-year is available. Changes for those sheets can be made by going to the C, E, F, or 4835 screen and clicking on the Prior-Year Compare tab.

Setup

The Tax Return Comparison sheet is enabled globally by going to Setup > Options > Optional Documents tab, and checking the box Prior year(s) comparison form.

In an individual return, you can also check the Produce Compare box on the PRNT screen in the return to produce the Comparison worksheet for that return (instead of global setup option).

Edit Amounts

Changes can be made by going to the federal COMP screen in data entry.

State-specific Comparison

Yes, a Tax Comparison page is produced for each state in View/Print mode as [StateAbbreviation] Tax Comparison. Changes to the prior year data for each state comparison page can be made by navigating to the state-specific COMP screen.

The state COMP screen is updated from the prior year where available. If the taxpayer no longer needs to file a return for that state, it may be necessary to delete the state COMP screen to prevent a state return from being generated.

Drake Tax 2023

The method for calculating “Deductions” on state Tax Return Comparisons changed between Drake Tax 2022 and Drake Tax 2023. While the amount of other deductions for both years is correct, the calculation change makes the “Difference” column for “Deductions” look different than in years prior.

Beginning with Drake Tax 2023, the “Deductions” line on the state comparison is considered other deductions and is computed as follows:

Total State Deductions – Applicable “Standard Deduction” or “Itemized Deduction”

In Drake Tax 2022 and prior, the “Deductions” row is considered total deductions and is computed as follows:

Other State Deductions + Applicable “Standard Deduction” or “Itemized Deduction”

In Drake Tax 2023, there is not an amount on the “Deductions” line if there were no deductions apart from the standard deduction or itemized deductions, because the “Deductions” line represents other deductions.

To use the new calculation method, so as to show no “Difference” in the “Deductions” row for 2021, 2022, and 2023:

1. In data entry, open the applicable state COMP screen.

2. In the 2021 column, for Deductions, subtract the 2021 applied “Standard Deduction” or “Itemized Deduction” from the total “Deductions” as seen on the worksheet, and enter the result. (For taxpayers taking the standard deduction, this amount is $0.)

3. In the 2022 column, for Deductions, subtract the 2022 applied “Standard Deduction” or “Itemized Deduction” from the total “Deductions” as seen on the worksheet, and enter the result. (For taxpayers taking the standard deduction, this amount is $0.)

4. Re-calculate and view the return to see the expected difference in other deductions—usually $0.​

The new calculation method will be used in future Drake Tax years. No manual adjustments are needed when updating the 2023 return to Drake Tax 2024.

Marginal vs. Effective tax rates

The marginal tax rate is the tax on the "next dollar earned" – in other words, the highest bracket to which the taxpayer is subject. The effective tax rate is the overall rate of tax the taxpayer paid, basically the amount of tax divided by the taxable income.

Deduction Comparison

Starting with Drake Tax 2023, the Comparison page shows the itemized deduction and standard deduction amounts along with which type of deduction was claimed on the return for each year for which data is available. If you do not want to see these amounts printed, use the check box Do NOT print itemized deductions on the Tax Return Comparison if claiming the standard deduction on the PRNT screen.

Since this feature is new for Drake Tax 2023, itemized deduction amounts from 2021 and 2022 must be entered on screen COMP directly, if desired. Itemized deduction amounts will be updated automatically to Drake Tax 2024.