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Quick Tips for users of QuickBooks 2000
How do I set up QuickBooks to transfer income tax information into TurboTax 2002 or ProSeries Tax 2002?
How do I verify income tax amounts from QuickBooks are in TurboTax 2002 or ProSeries Tax 2002?
Q: |
How do I set up QuickBooks to transfer income tax information into TurboTax 2002 or ProSeries Tax 2002? |
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A: |
You need to review and modify Company Information and Tax Lines in QuickBooks.
Review and modify Tax Year and Tax Form in Company Information:
For users of QuickBooks 1999 and 2000: You cannot transfer tax information into TurboTax 2002 or ProSeries 2002. The steps below provide little benefit if you plan to manually enter information in the tax software. Click here to upgrade to QuickBooks 2003. For users of QuickBooks 2001, 2002, and 2003: From the Company menu, choose Company Information.
Make sure the Tax Year is correct in Report Information. For most Form 1040, Schedule C filers the first month is usually January.
From the Income Tax Form Used list, select Form 1120 (Corporation), 1120S (S Corporation), 1065 (Partnership), or 1040 (Sole Proprietor). If you are not sure which form you should file, check with your accountant before selecting a form.
Choose OK.
Review and modify Tax Lines in the Chart of Accounts:
Choose Reports > Accountant & Taxes > Account Listing.
Review the Tax Line column for each Account.
If one of the lines is Unassigned or incorrect, double-click on the line.
Tip for Form 1040 "Schedule C Profit or Loss From Business:" Select only Profit and Loss accounts, such as Income and Expense. Balance Sheet accounts, such as Asset and Liabilities do not need to be transferred and should be Unassigned.
In the Edit Account window, click the drop down list and select the correct Tax Line.
Choose OK.
Repeat steps 7 through 9 for each Account/Tax Line that needs to be changed.
Start TurboTax 2002:
Start ProSeries Tax 2002:
Click here to download IRS Publication 509 Tax Calendars for 2003.
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Q: |
How do I verify income tax amounts from QuickBooks are in TurboTax 2002 or ProSeries Tax 2002? |
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You can run reports in QuickBooks and compare them to the tax forms.
Generate an Income Tax Report:
From the Reports menu, choose Accountant & Taxes.
Choose Income Tax Summary.
After the report displays, change Dates to Last Tax Year.
Print the report to paper.
Generate Financial Reports:
From the Reports menu, choose Reports > Company & Financial > Profit & Loss Standard.
After the report displays, change the From and To dates to match your tax year. If you are a calendar year tax entity, select 1/1/02 to 12/31/02.
Print the report to paper.
If you are a corporation or partnership, choose Reports > Company & Financial > Balance Sheet Standard.
After the report displays, change the As of date to match your tax year. If you are a calendar year tax entity, select 12/31/02.
Print the report to paper.
Start TurboTax 2002 or ProSeries Tax 2002:
Open the form you want to verify. Compare amounts from the two QuickBooks reports you printed to paper. For example, compare Form 1040 "Schedule C Profit or Loss From Business" to the QuickBooks Profit & Loss report.
If income or expense amounts are different, verify the QuickBooks reports and the tax forms are using the same basis (that is, Cash or Accrual).
If some expense amounts are different, the difference may be due to IRS rules and regulations. For instance, Meals and Entertainment have IRS limitations.
If you have depreciation expense in QuickBooks, the amount is not transferred to the tax software. You have to enter your asset information in TurboTax or ProSeries Tax. You can also enter assets in ProSeries Fixed Asset Manager and perform "Fixed Asset Import" into ProSeries Tax.
If you discover an account and amount that should have been transferred from QuickBooks, see How do I set up QuickBooks to transfer income tax information into TurboTax 2002 or ProSeries Tax 2002?
Click here to download IRS Publication 334, Tax Guide for Small Business.
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