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Article #: 19048
Other Income (Loss)
Use screen INC to enter amounts for the Other income line of Form 1120, page 1, line 10. Screen INC also holds other page 1 income items that do not use a separate schedule; for a full list of 1120 screens, see Drake Tax – Federal 1120: Screen List (KB 20055).
Specific INC screen entries are displayed on attached statements in View/Print mode (Figure CRP-2).
Figure CRP-2: Statement containing Other income entries from screen INC
After you enter Other income amounts on screen INC, open View/Print mode to review the return. The program attaches a statement that itemizes those entries. In the Drake Tax manual, this output is shown as Figure CRP-2 (Statement Containing “Other income” Entries from Screen INC).
Additional fields for other income on screen INC
Other income-related fields on screen INC include:
- Amount of credit for tax on fuels
- Interest income on receivables
- Recoveries of bad debts incurred in earlier years
- Section 481 adjustments
- State tax refund (cash basis)
- Taxable income from insurance proceeds
- Other (itemize) — a Detail Worksheet is required when you use this field
- Ordinary income from partnerships (see Partnership Schedule K-1, below)
When a Detail Worksheet is required, complete it for the field (double-click the field or press Ctrl+W). For trial balance import, only IRS-required Detail Worksheets should remain on the return; see Drake Tax – Trial Balance Import (KB 11166).
Amounts from other screens
Enter data from Schedules K-1 received from partnerships on screen K1P.
Amounts from the following screens also flow to line 10, Other income, of Form 1120:
- Screen 6478 — Form 6478, Biofuel Fuels Credit
- Screen 8864 — Form 8864, Biodiesel and Renewable Diesel Fuels Credit
- Screen F — Schedule F, Farm Income and Expense
Partnership Schedule K-1 (screen K1P)
Screen K1P (Partnership K-1) is for entering information from Schedule K-1 (Form 1065). Amounts flow to the appropriate forms, schedules, and lines in the 1120 return, the same as in other packages.
For partnership ordinary income reported on screen INC:
- Ordinary income flows to Form 1120, page 1, line 10, Other income, with the partnership’s name and EIN (required).
- Ordinary losses flow to Form 1120, page 1, line 26, Other deductions, with the partnership’s name and EIN (required).
Depending on your setup, the partnership’s name and EIN may appear in a statement (for example, Statement #1) referenced on line 10 or line 26.
K-1 codes or lines that do not flow elsewhere may require additional information the program cannot derive. Enter that information on the appropriate screens in Drake Tax.
To export K-1 data from a partnership return into the corporation’s K1P screen, see Drake Tax – Exporting Forms K-1 from 1065, 1120-S or 1041 (KB 12095).