Leadsheets variance - Schedule A

Line 5a State and local (Income Taxes or General Sales taxes)

Amount attributable to estimate tax paid in the following year for No Override tax Deduction Sheet
  • The reference for the amount attributable to estimate tax paid in the following year for Input Form 1099 G: State Tax Refund won’t reduce state tax calculation for Schedule A, line 5a. This will cause a variance in the Tax Return Reconciliation.
  • To eliminate the variance, explain to it and enter the state tax withheld amount in the
    State & Local Income Taxes Variance Analysis
    section in the
    Tax Deduction Worksheet
    leadsheet.
    Due to the Amt Attributable to Estimate Tax pd in the following year

Line 5b State and local real estate taxes

Vacation Home
  • Amounts relating to the Vacation Home are not captured in SPbinder. This will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain to it and enter the variance amount in the Real Estate Taxes Variance Analysis section in the
    Real Estate Taxes
    leadsheet.
Due to Real Estate Taxes from - Vacation Home

Line 8a Home mortgage interest and points are reported to you on Form 1098

Vacation Home
  • Amounts relating to the Vacation Home are not captured in SPbinder. This will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain it and enter the Mortgage interest expense amount in the Mortgage Interest (Form 1098) Variance Analysis section in the
    Mortgage INT-1098 Received
    leadsheet
The
Calculation of Mortgage
interest credit in Form 8396 isn't captured in workpaper.
  • Form 8396 calculation for Mortgage interest credit is not captured in SPbinder. This will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain it and enter the variance amount in the Mortgage Interest (Form 1098) Variance Analysis section in 'Mortgage INT-1098 Received' leadsheet.

Line 8b Home mortgage interest is not reported to you on Form 1098

Tax Software Specific: ProSystem fx
Limited Home Mortgage Interest Deduction
  • Input Form A-7 is not captured in SPbinder. This will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain it and enter the Mortgage interest expenses amount in the Mortgage Interest (No Form 1098) Variance Analysis section in 'Mortgage Interest –Form 1098 Received' leadsheet.

Line 9 Investment Interest Expenses

Investment Interest Expense carried over to next year
  • If Investment interest expense exceeds net investment income, the excess will be carried over to the next year. This Form 4952 calculation is not captured in leadsheets. And hence it will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain it and enter the disallowed investment interest expense in the Investment Interest Expenses Variance Analysis section in 'Investment Interest Expense' leadsheet.

Line 16 Other Itemized Deductions

Leased vehicle information
  • References for Fair market value of leased vehicle and Vehicle leases on Input Form 2106 related to Schedule A are captured only for porting purpose and are not used in leadsheet calculation. This will cause a variance in Tax Return Reconciliation.
  • To eliminate the variance, explain it and enter the amount of variance in the Job Expenses & Union dues Variance Analysis section in the
    Job Expenses & Union Dues
    leadsheet.
Tax Software Specific: Lacerte
Expenses for second vehicle onward
  • References for Second vehicle onward in Employee Business Expenses are captured only for porting and are not used in leadsheet calculation. This will cause a variance in Tax Return Reconciliation
  • To eliminate the variance, explain it and enter the amount in the Job Expenses & Union dues Variance Analysis section in the
    Job Expenses & Union Dues
    leadsheet.

Code for Itemized Deduction

Go to
FORM 1040 (Pg 1)
, on Line 9
Standard Deduction or Itemized Deductions (Schedule A)
will show
SD
to the left of the
Per Leadsheet
column.
By default,
Schedule A
will be automatically marked as
SD
for Standard Deduction.
To change
Standard Deduction
to
Itemized Deductions
, select the
Schedule A
sheet tab, then enter
x
in the
Code for Itemized Deduction
field.
Go to
FORM 1040 (Pg 1)
, on Line 9
Standard Deduction or Itemized Deductions (Schedule A)
will now show
ID
for Itemized deduction and the amount for
Per Leadsheet
will also be updated.
To revert changes back to
Standard Deduction
, change
Code for Itemized Deduction
to an empty field.
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