Name: Intuit ProConnect: Business Returns
Uploaded: 2025-09-18T18:16:18.399Z
Duration: 1 h 12 s
Description: Intuit ProConnect: Business Returns

Transcript for "Intuit ProConnect: Business Returns": Hello, and welcome. Thank you so much for joining us. Today, we'll talk about business returns in Intuit ProConnect tax. Let's get started with a quick intro. My name is Alnisha. Thank you for spending the next hour or so with me. I am a CPA. I'm also the founder of ACE Group. And my favorite title, if you know me, you know this. I'm a mom of three. It is what I do, what I do, and the way I do it. I started the firm where we empower small business owners to run strong and sustainable businesses, but we also work with, individuals without businesses. I've won a couple of awards. They're listed here, and I've also been a participant in Intuit's tax council or the ProConnect customer council. I'm a mentor at my alma mater, Go Moncler State, and I measure success by how much control I have over my time. I think that's important to mention because it tells you a lot about why I work the way I work. I'm all about efficiencies and finding ways to do things quicker so so that I can get home and do the job that I really want to do, which is mommy my three very cool children. So who should be in today's webinar? If you are a new user to ProConnect, welcome. And if you are familiar with the fundamental program concepts, this is a great place to be. If you are a current user and you wanna reinforce your understanding of business tax returns, also perfect for you. We'll go through a couple of business tax returns. And then if you are a tax pro who would like to see how business returns are handled in ProConnect, you are also more than welcome here. This will be a very jam packed hour, and as I mentioned, we'll go through a couple of examples. By the end of this webinar, you should be able to do the following. Enter business use of home expenses for ten forty tax returns, efficiently allocate income and generate k one packages for ten sixty five. I'll also show you how to generate those k one packages for s corp returns. Enter alter comp and shareholder distributions for eleven twenty s returns. And resolve common balance sheet issues and apply strategies to suppress unnecessary schedules for several of the returns in ProConnect. Now the good thing is through these returns, although they are different returns, a lot of the functionality is similar and familiar. So once you've seen it for a couple, I think it starts to sort of, like, set in for the others. Here's our agenda. We'll look at that ten forty business use of home. All of this will be demoed for you. I'll take you through a few screens in the partnership returns as well as the trust return, and then the eleven twenty s. I'll also show you a little bit about officer compensation as long as we have some time in that eleven twenty return. We'll talk about the QBI deduction and then some balance sheet troubleshooting tips. So a little bit of housekeeping. You will hear this audio through your computer speakers. If I don't sound loud enough, I promise you, I've been told them loud by quite a few people to just try to turn your volume up. I do strongly recommend that you use Chrome or Safari for your best viewing experience. And if you have any, like, ad blockers or firewalls, I suggest suppressing those. It will make them look more difficult for you to, participate. As this event is wrapping up, you will be prompted to take your short survey. This is really helpful for Intuit. Let's them know if this content is helpful to you and that they should provide more of it. So please please please complete it. I promise you it's short, and the feedback is very much appreciated. Once this webinar wraps, you will be able to access a recording of it via the magic link. So the same link you're using to access it now, you will be able to access it later to view a recording. Polling, because I'm sure some of you are here for CPE, and this is very important. So when poll questions are announced, I will give you some time to answer, so no worries there. I'll announce it. You'll see the question come up on your screen, and you'll be able to answer in two ways. It will either take over your screen and you'll answer there, or you'll be able to answer via the polls tab. If you have any issues when that polling question comes up, please message us in the chat box so we can attempt to provide you with some guidance on answering. There are several extra polls here. So if you missed the first one, do not panic. CBE and CE credit. This session is eligible for one CPE, one CE credit. You must be interactive, which means that you need to answer polling questions. At least one, but as I mentioned, just to make sure that you get your credit, answer as many of them as you can just in case you miss one. And then you have to attend for a minimum of fifty minutes. This is a one hour webinar. Only live webinars are eligible for credit, so you cannot view the webinar later, on demand to get the credit, and then you will receive your certificate via email. If you happen to not find your certificate within the next couple of days, you wanna email the email address you see here, [email protected]. And our disclaimer, this is educational in nature, should not be construed as tax advice. So let's get started. Ten forty business use of home. This is for our sole proprietors and single member LLCs working from home, which seems to be nearly every business owner. Let's talk through the deductions. Now I'm sure you're probably really familiar with these deductions, so I won't go into major detail, but I do just wanna lay the groundwork before we get into the platform. ProConnect is capable of calculating and optimizing between between the Simplify and the actual expense deduction. This is an annual choice. And if you are working with a business owner who has several businesses that they operate out of the same office, you have to consistently apply each method. So if they're using one office for two businesses, you have to either use the simplified for both or the actual expense for both. You cannot split the two. If they happen to have totally separate and exclusive home office spaces for several businesses, then you could decide to do simplified for one and the actual for the other. This here is a clickable link should you wanna go to the IRS publication. And then this information on the side is just going to, provide some additional detail on simplified versus that actual expense method. Now what I like to do especially with new business owners, I like to have them gather the actual expense information because the only way we can really tell them which option is better for them is to have them actually gather the information. And then from there, if they decide that they'd like to proceed with the simplified, then they make the election. They tell us that, and then we'll just continue on with the simplified deduction. But until we can show them the real numbers, that's a little bit difficult. So when you are inputting this information into ProConnect, you're going to use the actual expenses, and ProConnect will produce a worksheet. It's gonna tell you which one is more beneficial, actual versus the simplified method. If you put in those actual expenses and ProConnect determines that the simplified method would have been best, you'll get a diagnostic. So on that check return screen where all of your diagnostics are, it's gonna tell you that the simplified method, would be more beneficial for your taxpayer. Because you can input this information, in one screen, you're gonna streamline your input of direct versus indirect expenses. Don't worry. I'll show you. We'll be able to allocate the home office deduction between multiple businesses. We can check a box to adjust the mortgage interest and real estate taxes so that only the non business portion is going to appear on the schedule a for itemized deductions, and it will maintain the information to carry forward home office deductions that you weren't able to take this year so that you can use them next year. So if you have a home office and it's used in more than one business, you run two businesses from home, they share an office, here's how you're gonna input this information. Now I think this is really helpful if you're watching this and sort of following along on a replay. But since you are likely here live, I wanna make sure that I show you how in a demo. We'll walk through the steps, and then I'll show you in ProConnect. You're gonna enter the full square footage of the home office on both screens, and I'll show you what that looks like. Your indirect expenses, we're putting on both screens. Think of your mortgage interest, your property taxes. Indirect expenses are essentially expenses that are not solely for the business versus direct expenses. They are specific to the business, specific to that specific home office. I'll show you that. As I mentioned, if the worksheet says, hey. SimpliFi would really be more beneficial for the taxpayer, you'll get that diagnostic so that you can go back and elect it. When you're at the drop down screen, this definitely works better in demo, so I'll show you this. But you're gonna select that first home office for both businesses, and then you'll indicate which percent of the indirect business, the indirect expenses apply to one business versus the other. Okay. So when the taxpayer is selecting the standard deduction, and the taxpayer has paid mortgage interest and, property taxes, this gets split a little bit different on the tax return. So lines ten and eleven on the tax return are for expenses shared between personal and business use if they itemize. Lines sixteen and seventeen, those are business only expenses when the standard deduction is taken. As I mentioned, ProConnect has that little checkbox. It's gonna allocate that for you. And while it doesn't make a difference, like, at the end for the final deduction, this is technically the correct way to report it. And my goal here is to show you the correct way, especially since it's literally just a checkbox to make sure that it's allocated appropriately. Alright. So let's do a demo. I'm gonna switch over to ProConnect, and then I'll show you how to input this information into a sample return. Okay. So I'm in a ProConnect demo tax return, and I'm just going to search for my name because I've got a bunch of little samples in here. And let's start with Bob. Alright. So here, almost everything I start with here, especially if I've already worked on the return, if this is a real return, I'd start here and select for e file. But generally speaking, you'll almost always start from the input return section after you've selected what you want to, do for e filing. So here we can see that our taxpayer, Bob, has two businesses, a welding business and a consulting business. And Bob has told us that he uses one home office for both of these businesses. So what I'm gonna do is go to the deduction screen and business use of home. So you'll see here that I have two tabs because there are two different business uses of the home. Here you'll select what schedule we're talking about. And because we selected schedule c and there are two schedule c's, we only have two options here. So I'm gonna go with the welding option. I'll put the business use square footage here and total because I need easy math while we're while we're demoing. So I'm putting the 300 and the 1,500. Now what I typically do because I'm a huge fan of flagging things in ProConnect, when you flag items, they bunch up over here in the flagged item section. And for me, this is a lot easier to see, like, what I had questions about. And if I'm working through some figures or I'm trying to see the impact of something, flagging it gives me a really easy way to get right back to it. So as part of the review process, if I'm really not sure for this taxpayer if we're gonna go actual or simplify, I'll flag it because it's part of our review process process. We clear the flags. And the beauty of flagging, is that it will track the ones that you resolved. So even though you resolved it, as long as you actually click resolve, you didn't just remove the flag, it will show up in that resolve area there. So I'll flag this because that means I'm gonna come back to it. I don't know what my taxpayer is gonna do yet, so I'll just flag that. And then I'm just gonna come down. Now carryover, if you are working with the taxpayer and they had some carryover from their prior year return, you can input that here. Otherwise, we'll just move on to the indirect expenses. This is also one that I usually flag and I check. I don't know if my tax payer is gonna benefit yet at this point from standard or itemizing. So to me, I just wanna keep that a little bit open. So I'm gonna just go ahead and enter these indirect expenses. My taxpayer's mortgage interest, I'm just gonna use same numbers for I need simple math for demo. I'll put in the insurance. I'll put in the utilities. Alright. And then we'll move down to direct expenses. As you know, direct expenses pertain solely to this business and this home office. So I'll put some in for this one. Perfect. And then I'll keep scrolling down. I'm not gonna do anything for depreciation here because as you can see, this is an override. We have a whole depreciation screen and, workflow in ProConnect and, of course, for home office, you do wanna put that in. But putting that in is no different from any other depreciable asset, and we do a lot of webinars on depreciation. So the interest of time, I'm not gonna go through the depreciation workflow, but that is where I'll put it in this left side depreciation screen. Now here, allocation of indirect expenses, I'm gonna select that home office one, and then I'll put what percent. So Bob tells me he uses the office 60% for welding, so I put my 60% there, and then I move on to my second screen. Now, again, I select the schedule c. These are both schedule c businesses. That's the only other option I have, consultant, and then I'm gonna input that home office space again. The total total home office space is 300 square feet. Total home is 1,500 square feet. I'm a flagger, so I'm gonna flag that. And I'm going to go ahead and flag this. I'm also gonna enter my mortgage interest in full, my real estate taxes in full because ProConnect will allocate these for me. And for this business, he doesn't have any direct expenses, so I'm gonna just go ahead and skip that. I'm skipping that depreciation area. Again, there's a depreciation module here. And then I'm gonna select home one because there's still only one office being shared. And then he used the 60% for the welding business, so he must be using it 40% for the consulting business. So now I can review my return, and I could also have done this from the check return screen. And let's take a look at this $88.29. So this one is for the welding business. You see here that it's used the calculation of 60%. So 60% of 300 is a 180. That's 12% of the home for business. Here are my indirect expenses here. Here are my direct expenses here. And it's done the calculation to allocate my indirect expenses based on home office size and total square footage of the home, and then it being just, a portion of the home office, and then my direct expenses carry down. This produces a $3,160 deduction. If I go to my consulting eighty eight twenty nine, I can see here that it's 8%. So we know that the home office in total was 20%. 8% of that 20% goes to consulting, 12% to the welding business. I did not put any direct expenses, so I don't have any there. I do have the indirect expenses. It is appropriately allocating, and it tells me I have $1,440 of a home office deduction here. So now it has allocated between the two. Now let's say you do all this work and Bob said, you know what? That actually was a lot of work together. I have zero interest in using the the itemized I'm sorry, the, actual expense. I just wanna go ahead and do the simplified deduction. Thank you, Bob, for letting me do all that work. Let me just go back and make that election. So now I'm back to my business use of home screen, and then here where I flagged it, I'm just gonna enter enter a two here. So I'd like to use the simplified method, and I'm gonna do that one here as well. And then when I go to review my return again, I can see here that I don't have eighty eight twenty nine forms because I don't need those, but I do still have my schedule c's. And then I can see here my simplified calculation. Now I know in total that deduction should be 1,500 because this is one off. It's split between two businesses. I expect to see a portion here, which is 900, and then a portion here, which is 600 producing that full $1,500 deduction. I didn't have to, like, take all of the calculations or the data inputs out. I just went in and selected that, election to use the simplified deduction. And then all the other schedules go away, and then I'm just left with that. So that's why I say if you're working with a new client, you might as well get all the data in. And if whatever reason they elect to use a simplified method or it is more beneficial, it's literally two numbers if there were, you know, two businesses. And then just like that, you're back to your simplified method. Okay. So I'm gonna stop sharing screen here, and then we'll go back into the slide so that we can move on to the next section. So poll question number one. We are at our first poll. What is your primary reason for attending this webinar? Is it to earn free CPE, explore new solutions, solve a specific problem, general interest slash education, or other. Could be to hang out with me. Please don't answer the poll in the comments. You're you're more than welcome to chat about it. But to make sure that you get credit, you wanna either answer, on the pop up that is on your screen or in the polling tab. I'll give you a few seconds to answer that. And if you're having any issues, please feel free to chat with us so that we can assist you. Poll question number one is live. I'll leave you with a few more seconds for that. And I'm counting you out last five seconds. Keep in mind that there are no wrong answers to any of the polls. You get credit by selecting an answer, but not by selecting the right answers. Just select anything. I know this one has no wrong answers, but make sure that you select an option even if it's not the correct answer. Last five, four, three, two, one. So we'll go ahead and close out the poll so I can get you over to the next section. Now we'll look at partnership returns form ten sixty five in ProConnect. So, special allocations, I think ProConnect does a phenomenal job at making special allocations pretty easy. What I do wanna say is that you don't wanna start at the special allocation screen. You gotta give it something to allocate before you can start flipping stuff. Right? You gotta bake the pie before you can slice it and serve it. So we wanna make sure that you are inputting the information into the main screen. I will show you in demo what that looks like. You have two options for allocating. You can do an amount or a percentage. It does even calculate, like, a difference to make sure that you're getting to zero. So I find that helpful. You don't have to break out your calculator, to make sure that you were fully allocating. If you do not allocate the full amounts, any remainders will flow to the rounding partners k one. Special allocations do work for both the federal and the state level. But if the allocation is different, you will need to allocate at the state level or the state will just revert to the partner percentages. Keep in mind that each state does vary on what can be allocated depending on what the k one is reporting. So just pay attention to what the state is allowing. I think this feature is actually underutilized, but this is sending k one packages in procurement. So it's sending, not printing, not mailing, not putting the burden on the, primary contact for the, partnership. But you can actually send password protected k one packages directly to the partners and shareholders. This works for eleven twenty s's as well. And you can take a look at who you're sending these to. You can make a change to the email address if you need to. It's secure, so they're gonna get a unique password sent to their email. You don't have to create the passwords. You're literally clicking a couple of buttons and sending k one packages out. And while, you know, for two or three partners, it might seem like, oh, it's not much of a time saver. But if you have a few more, this is a huge time saver. You can even track which k ones are open. And this is a full k one package. So this is a letter. This is the k one. This is any additional schedules or elections, full k one package. I do recommend, that you update in the contact information in the tax return. I'll show you this. The email address is so that you don't have to waste time changing them when you actually go to send these out. The only other thing to mention here is that both the email addresses and the passwords are case sensitive when you're accessing the k one. So if you put the email address in, it's all lowercase. You wanna make sure that the partner or shareholder knows that they also need to input it in that manner. So let's go ahead and look at a ten sixty five return. I'm just going to switch screens again so that I can get over to the tax return. K. So let's find the demo 1065. Alright. Perfect. So as I mentioned, I'm almost always going to start with that input return tab profile. It's gonna just let me select which returns I'm e filing, if I'm doing any extensions or amendments. But here, I'm just gonna go from general to client information. Here's where I'm gonna enter the partnership, the name, the DPA, EIN. Now if this is a return that I did in a previous year in ProConnect, then this information is gonna carry over. So I don't have to reenter this information. I'm just checking to make sure that it's still current. So primary contact name, the partnership's address, phone number, email. I find I use these checkboxes whenever we're preparing and reviewing, just because I think it teaches you to double check these things. But especially for a new client, just double checking that that federal ID matches some sort of documentation. I find that to be helpful. And then addresses because businesses do move. So as part of our preparation, they have to check that. And then the reviewers just double checking that it was checked. Meaning that the preparer did do what they were supposed to do, there. Once I make sure that this information is in and accurate, then my next step is the other information screen. I like to come here and immediately answer, assuming I know the answer, then I'll go ahead and answer whether or not question four requirements are met. And if I don't know, in my brain, I immediately come and flag this. Because, again, as part of that review process, we wanna come back and see are the question four requirements met. So either we know it and we're checking it off. Keep in mind that we work with our clients year round. So their numbers are not a surprise to us when we get to tax, filing season. But if we don't know that, then I wanna just go ahead and flag this box so that I can come back to it. Wherever you see this little question mark and a little circle, it'll give you some additional information here. So if you check this box, the question for, schedule b requirements are met, then some schedules are going to be suppressed. But if you happen to be, a superstar or a tax pro and you wanna generate these schedules for your taxpayer anyway, you do have the ability to force these to print. If you would like to force these to print, then you're just gonna go to balance sheet here on the left side. Balance sheet miscellaneous. And then here, I'm just going to put a one in there to override it and force it to print whether or not you can question for requirements from it. Alright. So now let's go to partner information. Again, if this is a taxpayer that you work within the previous year, this information is gonna carry over. And if not, we're inputting it. So here, I'm just confirming partner name, partner ID, address, email. Again, this email is important because when we send those k ones later, this is where that's pulling from. Make sure that this information is all correct, whether or not they're a general partner. Make sure that that's checked off. Date interest begin. So here, I'm only showing two partners, but let's say I had a lot of partners. We're gonna run out of real estate right here. So you can either a, use that little hamburger icon, and now we can see up to 20 in one page and whatever partner you wanted to make adjustments to. Now you just click one details, or you can use this little drop down here and you can select. So if you have a lot of partners that you're working through, either of those will provide you with a little more space to see what's happening there. So now let's go to partner percentages. Here we can see that the percentages are fifty fifty. It's two of them. They split everything equally. When we go to ordinary income, here's what we're gonna enter their income, cost of goods sold, deductions. I'm gonna come over to deductions so that I can show you some special allocations. So for guaranteed payments, we have this sixty two five. I'll just change this to 65 for this example. And then if I come to special allocations at the top, here's where I can choose what to allocate. So before I do that, I'm just gonna show you that that sixty two five have or 65 now. If I do nothing, it is going to split it based on the fifty fifty partner percentages that I put in. So that 65,000 is showing up as thirty two five here, thirty two five there. That's both k ones. Right? If I go back and I say, you know what? The 65,000, it is correct. I don't have any issues there, but I do wanna make the change to the special allocations. And I click on guaranteed payments. Now I can split that however I needed to split it. Here's where I was saying it's gonna calculate what the difference is. So then I can split those there. If I go back to check return and this is a summary, so I can see here that the 65,000 is still there. I have not double entered it, but if I just took you to your $10.65, the 65 k is still there. And then if we look at the k ones, now we can see that the guaranteed payments are now split as we indicated in our special allocation screen. 37 k there for Piyush and 28,000 for Mayesh. So you can use those special allocations, to make whatever adjustments might need to be made based on that partnership agreement. Ideally, they are based on the partnership agreement. And if not, you wanna revisit, but that's another webinar. But you can use those special allocations for anything that is not going to be split based on that ownership, percentage. Here, I made the change to federal. If I wanted to make the change to New Jersey, I just have to click on that drop down here. That is not going to just push over automatically if I make an adjustment at the federal level. So just keep that in mind. Now if I go back to, the file return screen, here at the bottom, this is not a super new feature, but here's where you would click to send those k one packages. So, again, if you have a ton of partners, it's gonna really come in handy. You'll select who you wanna send the k one packages to. You'll confirm the emails pulled from the tax return, and you'll click continue. I'm not able to do that because this is a test return. I can't actually send any. But this can be a huge time saver. It's also super secure. And, again, it takes the burden off of you as the tax preparer and also, as the primary contact, whoever that person is, it takes the burden off of them from splitting it. Alright. So why might a partnership use special allocations? This is poll two. Why might a partnership use special allocations? They could to ensure partners receive equal shares of income and expenses, allocate specific items of income or deductions differently than the standard ownership percentages, to reduce the total taxes paid by the partnership, or to make filing form ten sixty five easier. We are on poll number two. You can answer from the, pop up on your screen or from the poll tab. You have about thirty seconds to answer. You don't need the right answer, but you do need an answer for credit. About ten seconds left. This is poll number two. Closing this one out in five, four, three, two, one. And if you were interested, the correct answer there is number two or bullet number two to allocate specific items of income or deductions differently than the ownership percentages. So now let's talk ten forty one, estates and trust. This can also be done in ProConnect. Specifically here, I'll go through a grantor trust. And if you are unfamiliar with them, we don't do many trust returns. But the grantor trust is when the grantor remains in control and benefits, which means they are now responsible for the taxes on trust income. So the trust will not be taxed. The grantor will be taxed. If there happens to be more than one grantor and you don't enter any percentages on the screen in which I will demo for you, then the program won't generate a grantor letter. That's usually a good sign that something is missing in the tax return. But when you do assign it, and that's a very important step, hence why I wanna show you in the demo, then you will get that grantor letter to generate. When you were entering that grantor letter info on the ten forty for the grantor, because remember that's where the taxes are going to be paid, you wanna enter that income directly in the screens based on income type. So for example, if there were, interest and dividend line items there, you want to take the interest and dividend amounts from that grants or letter, and you wanna input those on the ten forty in the interest income section and in the dividend income section. So back to ProConnect so that I can show you what this means. I think it just makes a little bit more sense when I get to, actually show you in the platform. So bear with me while I just switch screens really quickly. Okay. So now we're in a ten forty one tax return. I'm gonna start with that general and client information. This is again a return that I am using from a previous year that I've rolled over. So you can see the entity name has already populated. Just keep in mind that there are character limits here. I don't know how many characters it is, but it'll tell you 40 characters. So if you go over characters, you might just need to abbreviate a bit or just go over to name line two, but you can enter that there. Entity EIN, primary contact, fiduciary information, you're gonna input all of this into your client information screen. You have those check boxes. Remember I was mentioning that a lot of this starts to feel familiar, and the information that you see even, like, in a, ten forty on a schedule c, you'll see here, as well. So we're inputting all this information here. It is important that you put the type of entity here. We're selecting grants or trust, which is number four. So I can unflag that because I have confirmed that that that is exactly what we want to put there. I did indicate if there are full year resident, county, all of that sort of information. Under electronic filing, I'm gonna put the grantor information. This is only required for grantor returns. So as you recall in that client information screen, this could have been any of these. Right? So I'm specifically selecting grantor trust. And then on that electronic filing, I did enter my grantor's information there. So now I'm gonna go to beneficiary and grantor information. So I think this could be a little bit confusing, so I wanna make sure that I call it out for you. Even though this screen does say beneficiary slash grantor, as you see there, here, it doesn't say beneficiary slash grantor. You are putting both beneficiaries and grantors in this area. So I did put Bob, who was meant to be the grantor, and I also put Anna, who was meant to be the beneficiary. The information that I had to put in for them, both the same. Right? Anna should have a phone number and Anna should also have an email address in there. But, yes, Anna's meant to be the beneficiary. Now here's the important part. I'm gonna go to grantor distribution. And this is how I'm going to indicate to ProConnect who is my grantor. So I'm gonna put here the percent. I'm gonna put a 100 for Bob and is that Anna? Yeah. So take that out for Anna, and I'm gonna put that in for Bob. Perfect. So this is letting ProConnect know Bob is our grantor and our is our beneficiary. If you don't do this, then the program doesn't know who is who, so we can't generate that grantor letter. And then while I'm here, I'm just gonna go to grantor letter options. You have some options here. I like to do the ten forty line references. I think that could be helpful. So I would input that there. And then who really is concerned about graphics borders? You may or may not be concerned, but you have the ability to, input those borders as an override. Once I've done this, then I'm going to just go over to review my return. Now keep in mind that when it comes to these returns, the income is considered earned by the grantor, which means that even if it's distributed to the beneficiaries, it's gonna be taxed to the grantor. So our expectation when we look at this return here, is that we see this information for Bob and we don't see it for Anna. So when I look at the granter ten forty one, I expect for the majority of this to be blank. I expect to see this blurb here. And as you can see, I don't see any numbers, which is what my expectation is. When I come to my grantor letter, I expect to see this income for Bob because that's what we indicated, in the tax return, and I do not expect to see any for Anna. So that lets me know that this information did go in correctly. And then when Bob is doing his ten forty, he's gonna use this grantor letter to input this information. Now here is where we indicated in that, the options that we wanted to put the line on the ten forty. And if someone is preparing their own return, I find that it could be helpful because they're not getting perhaps a schedule that they may be used to getting like a w two with 99 INT statement. So it may be helpful to include those line numbers on this grantor letter. So here's what we'll talk about s corp and c corp tax returns. Alright. So I will show you this in product because I think that's just a lot more helpful. S corp and c corp returns, as far as entering officer, shareholder information, I think they do look pretty similar. What I'll show you is, in the s corp return, the eleven twenty s, where you go to enter things like shareholder compensation and distributions. And then I'll immediately go right into the eleven twenty to show you where you put officer compensation so that you can see they are in similar places. But I think it can sometimes be confusing as to putting it in the place where I think it's a little more clear versus putting it in an override area. So let's take a look at that very quickly and then we'll come back and do poll number three. So let's go here. We are doing an s corp return first. Alright. So, again, I'm always I'm almost always going to start with that client information screen. Here's where you're gonna just make sure that you've filled in your s corp name, the federal ID number. Let's make our primary contact. It can be Periwinkle. So I'll just copy Periwinkle's name here, and I'll make Periwinkle our primary contact. Address information. Again, once you verify the address, verify the EIN, we're gonna fill that in. All this information is carried over from the previous year. We confirm that it is still accurate, and then we can move on. So if we go to officer information, here you'll see that we have our two officers here, and then we have this box, officer compensation. This is where I recommend inputting the wages for your, shareholders. So let's say they both get a 100,000. There we go. And Violet also gets $100,000 in wages. Now generally speaking, I think the mindset is like, oh, we just put this in deductions. By putting it on the the actual officer screens, we can attribute it to those officers, and it's still gonna get picked up on our eleven twenty s. So here, compensation of officers, this is an override box. Right? And, of course, you have that little question mark here. I recommend pushing it right into the shareholder information as opposed to using that override box. And then for other employees of the company, I put their salaries and wages here. And when we go to review that return, which you can also do by going to check return. Usually, when we are reviewing a return, we'll have the input screen on one side, and then we like this here because you can just keep refreshing it. And if there's a change made in the data entry screen, you'll see it here immediately. So if we look at that eleven twenty s, I'll just expand this so it's a little easier to see. You can see here that the salary and wages, for the regular employees shows up separate from the compensation of officers here, the 200 k. And if we look here at the 11/25 e, we didn't make any special elections. This is populating because total receipts, as you can see here, total receipts are over 500 k. So this is automatically populating, and we can see our shareholders full social here. Let's say we don't love to see that. I'll show you how you can make an update there. While we are here, I'll show you where to go for distributions. So here we were in shareholder information. We can make whatever changes we need to make there. Officer information, you can input your officer compensation. Distributions. You're gonna do your distributions, where distribution should have been done according to the ownership percentages. So let's say they both took 51. Let's make it 51,000. We'll input those there. And then the other thing that I'm going to do is just hide. I'm a searcher. I think the search here is phenomenal. You'll get a lot of options, but you will find what it is that you're looking for. So we wanted to hide those socials on that 1125. If we just do search and then let me just scroll up Here. Here. And we are doing here. So we want to hide socials. Wherever we wanna hide socials, here, schedule k one package. I don't love it to be hitting on the k one, but let's say you need to hide it there. Yes. If I wanna hide it on my eleven twenty five, I can also choose to hide it on my eleven twenty five so that it's not showing up. You have immense levels of overrides when it comes to your returns. Probably almost too many overrides, but whatever it is that you did not want to show up, you have the ability to hide it. If we go to officer information, miscellaneous, override that you have here, you could choose California. I know nothing about California returns. But if you wanted to force the schedule, you could force this here. If you wanted to force the 11/25 e because the full receipts are not over half a million, you could force that to come up. If you only wanna print the last four digits of the officer's Social Security numbers, you can force that. And then if you wanted to print officer and director schedules, you can also force that. If you're not sure if you wanted to, again, I'm a flagger. Just flag the items here, and then you can always come back to it. Let's go back to review that tax return. And I'm gonna show you the distributions, as well as those k ones, and I'll also show you the eleven twenty five e. So I'm gonna just make that a little bit bigger. That eleven twenty, we see the 200, we see the 26. If we look at that k one, we can see here 16 d, the distributions, 51 k. For each of our shareholders, 51 k. The $11.25 e, split fifty fifty. We only see the last four digits of the social, there as we wanted to show. And then also the k ones. We also hit it on the hit it on the k ones. Or did we hide it on the k let me go back and take a look. Right. And back here. Scheduled k one package. Oh, so on the k one package. So let's say when they get their k ones, not the main k one. When they get their k one package, which some of the one you send your partner, that's where you're gonna hide it. So when you go to file return, just like we did with that partnership return, send k one packages. We click this. And then when you go to send it, which I can't send because this is a demo, that is where you'll see just the last four digits. Now if they are going to be sharing it with outside parties, you might find that to be helpful. We will typically show the social, and then if they say, hey. I have to send this to someone else. We just say, hey. Let us send you another copy with your social hidden. You have options to do that. Now while I'm here, I'm gonna just go ahead and do the eleven twenty so I can show you where that officer comp compensation would go. And then similar to the eleven twenty s, again, as I mentioned, this all starts to sort of, like, feel, or should start to feel very similar. You have the client information here. You confirm this. You have your officer information here where you can confirm this. We have the ownership information. If there were any changes you needed to make here, again, this is a return that I'm carrying over from a previous year, so I don't have a whole lot of stuff to put in there. And then in my deductions, I'm gonna go ahead and fill in my officer compensation. So Diane one and Dawn two. Let's say they each made this gives Diane 125. Let's give going to 85 k, 125 and $85,210,000. So when we go over to look at the return, now you've seen me do the review return button here. I'm coming to the check return screen. I get to see, like, this little summary here. But if I wanna see my actual forms, I can just click on that US button there. Click on the eleven twenty, and then I'm able to see the compensation of officers. The form eleven twenty five e is not populating here, but, of course, if I wanted to force it, I do have the ability to force it to print. You will almost always be able to not eleven twenty five a, eleven twenty five e. If you wanted to force it, you can force two, and this option is force. And now I can force that to show up even though I did not have to display it. So that is your eleven twenty. So now we will go to poll question number three. This is poll question number three. How are s corp shareholder distributions typically handled for tax purposes? Are they taxed as wages, included on schedule k one, and maybe taxable based on the shareholders basis, Tax free in all cases or included as ordinary income on form eleven twenty. This is poll question number three. Answer from your screen or the poll tab. You don't need the right answer. You just need an answer. And I'll give you another ten seconds or so. Last five, four, three, two, one. And the correct answer here, also bullet number two, but included on schedule k one may be taxable based on the shareholders basis. So now we look at qualified business income deduction. This has been around for some time, so I won't spend a whole lot of time here. But I do wanna let you know that ProConnect does have the ability to calculate the QBI deduction and generate form eighty nine ninety five as long as you input the information necessary for it to calculate. So you will need to enter the income and expenses. You will need to enter wages. You will need to check check off the SSTV box if applicable. So you wanna make sure that you formally, tick that box. If you had any amounts that were related to cooperatives that may apply, you will need to enter those. And if applicable, you'll also need to enter the aggregate tax ID number if you are aggregating activity. So you do need to put all the inputs in, but ProConnect can calculate and generate the form. For schedule e, QBI will calculate for activities marked as land, self rentals, real estate proactivity, activity, or claiming a safe harbor. So you do have the ability to calculate it. I think it works pretty seamlessly. We've been doing QVI and ProConnect for some time, so very simple process there. When it comes to the balance sheet, and troubleshooting the balance sheet. So remember, if you are meeting those question for requirements for example, then you may not even see your balance sheet. But if you like to make sure that balance sheet is accurate, period over period, and you were, you know, making sure that your taxpayers prepared for whatever, if they were to go to another tax, professional and have that carryover information be accurate, you wanna make sure that you troubleshoot your balance sheet. Now if you, do need to report the balance sheet, then, of course, you will need to make sure that the balance sheet is correct. Some of the most common issues, ending balance doesn't match the beginning balance. Generally speaking, this is an issue with carry forward prior year data. Could be data that you had in your previous return, could be, data that is perhaps missing from a prior, tax return. So, that is usually the cause there. If your assets are not equaling your liabilities and equity, something's missing. The good thing about this is in the diagnostics, it's gonna tell you how much you're off, and I find that that is very helpful for pinpointing where the issue is coming from. And if you have unrecorded transactions like loan adjustments, depreciation of these contributions, this distributions, this could also throw off your balance sheet. Now as I'm making adjustments to, like, fix really anything, not just the balance sheet, I think flagging comes in handy because, you can always get back to the number that you were questioning, or making an adjustment to as opposed to trying to remember, especially if you're coming back, a few days later. In ProConnect, if you were fixing your balance sheet, on the left hand side in the input window, that's where you're gonna go to your balance sheet schedule l, and then balance sheet m one m two line item. You wanna view your actual schedule l from the check return tab. Again, working from two screens, I find it very helpful. Input screen on one and then that check return tab or that review return, page so that you can see the impact of the changes. Check those automatic calculations for things like inventory, depreciation, intangibles, amortization, partner, capital accounts. Again, you just wanna go down the line to fix what could be causing the issue. If you put an amount in the ending column, it's gonna override the program's automatic calculation. And if you were trying to zero it out, you wanna put a negative one. In general, if you're trying to get something to zero out nine out of 10 times, negative one will do that for you. And then, of course, use the diagnostics to your advantage. There are thousands of diagnostics and they will help you to avoid, things that could cause your return to reject, things that are gonna cause you headaches, in the future. So make sure you pay attention to those diagnostics before you submit a tax return to your taxpayer to review and sign. When we are looking in ProConnect at the balance sheet and you have manually entered information, if you're having trouble, with it bouncing, double check whatever you manually input, especially during tax season where it's very easy to transpose a number. So just go back and double check things like that. And then for when you're in ProConnect, anything that the program automatically enter is going to be marked. So you'll know, on the input screen when you take a look at it. ProConnect will automatically generate that balance sheet if your total receipts and your total assets are over two fifty k. If for any reason you want to either force or suppress, there will be an override option in, ProConnect. And if you are unable to find it, again, just use the search tool. Miscellaneous information often has these overrides, but sometimes it can be right in the same section. If you are, for example, trying to, force or suppress this schedule, then you wanna just go ahead to that miscellaneous information. If you input a one there, then you are going to force and it's a little small. I apologize. But if you print this screenshot, you'll be able to see here. Corporation total receipts and total assets at the end of the year are less than $2.50 k, and then that's going to just go ahead and suppress it. For the balance sheet reconciliation of book income to income per tax return and the analysis of unappropriated retained earnings, this is not going to print unless you force an override if you put a one there. Last and final polling question. I hope you haven't missed the others or had any trouble, but if you did, this is your last chance to get this one in. And it's an easy one. Poll number four. Would you like a personalized sales demo or consultation about what you've learned in today's training event? Yes, please contact me or no, not at this time. You'll select there. And while you do that, something I wanted to make sure to mention. So when you're sending out those k one packages or you are doing extensions, that's all just one credit. Like, one tax return is one credit. So if you file an extension for a partnership return, for example, when you come back to file the actual tax return, that's not an additional credit. Like, that's still just your same one credit. So it's not like you use credits to file the extension and then file the actual tax return and then send out key one packages. One return is one credit, which I think, comes in handy because you're not paying twice. And I know that there are a lot of things when it comes to subscriptions that we end up paying twice, and that's not the case here. So I did wanna make sure that I mentioned that while you answer this poll. Would you like a personalized sales demo or consultation? Yes, please. Or no. Not at this time. Five more seconds. Five or three, two, one. That is the last poll question, and here is our recap. We went over inputting home office deductions in the form ten forty, special allocations and generating slash sending k one packages in the ten sixty five, entering data into the ten forty one for grants or trust, c corp, s corp returns, how you would enter officer compensation, shareholder distributions, QBI deductions, some factors to consider, and then some balance sheet troubleshooting tactics. The takeaway there is that the diagnostics are your friend. Clear them, and the ones you actually don't need, ignore, but make sure that you take a good look at both the suggestions and the critical diagnostics. Support and community, you are not in this by yourself. So in addition to these webinars, you have the support of other Intuit accountants. There's the website so that you can search the program's guide and resources and explore the community. Connect with other experts and tax pros like yourself, get inspired, hear what they're doing, learn from their mistakes, and all of those good things. If you were looking for more free training and resources like this one here, you have the education center at accountants.intuit.com/training. Live webinars, recorded webinars, beacons, modules, and important articles. You also have the tax pro center, accountants.intuit.com/taxprocenter. I hope you found this webinar to be helpful. If that survey has not popped up yet, take a look for it and complete it. I promise it's really quick. Let us know what you thought about this webinar and if you found it helpful. I'll talk to you soon. Until next time, be well.