State tax accrual

Accrue state tax to the federal return

Go to
Organizer
States
Common State
Tax Accrual
.
Verify the states you want to include taxes from on your federal return.
Select the options to accrue the following:
State tax
Franchise tax
Intangible/Other tax
Go to the
City Tax Accrual
tab and select any city taxes to accrue to the federal return.
For taxes not calculated by the system, such as New Hampshire business enterprise tax, select
To Accrue Other Taxes
or go to the
Other Taxes - Override
tab.
Do a full recompute to process all the tax accruals.
Review the state tax accrual at
Tax Forms
States
Common State
State Tax Accrual
.
note
The total transfers to Form 1120, Page 1, Line 17, as
Automatically accrued state and local taxes
.

Accrual options

Accrual to the federal balance sheet is the default. The system automatically transfers the total accrual amount to
Other Current Liabilities
on Form 1120, Page 5, Schedule L, Line 18.
If you want to transfer to Schedule M-1 instead of the balance sheet:
Go to the
Accrual Options
tab and enter
Current-year book state taxes expense
to change the option from
Balance Sheet
to
Schedule M-1
.
If the tax accrual amount is greater than the book amount, the system transfers the excess to M-1, Line 8.
If the book amount is greater than the tax accrual amount, the system transfers the excess to M-1, Line 5.
If Schedule M-3 is also computed, accrual will transfer to Schedule M-3, Part III, Line 3.
Select
Disable automatic accrual
to prevent the calculation of the accrual. Use this option if you want to prevent the accrual amounts from changing on the federal and state returns.
note
Any previously accrued amounts will remain on the federal and state returns.
Select
Deactivation
to remove all the information for state tax accruals. This deletes the state tax posted on the federal and state returns.

Consolidated/combined returns