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Tax Return options overview

State K-1 (Capturing State K-1)

Capturing and exporting State K-1 data can be customized to your firm's preferences. You can select whether to only capture proforma data, proforma plus new state(s), or no states at all.  During verification, State K-1 not captured by OCR will be marked as
Bookmark Only
 and exported to SPbinder and tax software without any data. A verifier can also clear the
Bookmark Only
 checkbox then capture the data if necessary.
Example: If your domain settings only capture proforma State K-1, and the new state requires you to file a K-1 for state tax returns then you can clear the check box to capture the new state.

State K-1 Options

Follow these steps to select how State K-1 should be handled: 
Select
FileRoom
 >
Admin
 >
Tax Return
.
On the location dropdown, select the office location. The tax return option changes will apply to the selected office location.
Go to the
State K-1
 section.
You can select from the following State K-1 options:
Option name
Captures/Exports
Description
Capture and Export all the State K-1 data for Proforma'd States only
Only States with Proforma
Captures/Exports State K-1 data to tax software if proforma exist in the tax software (Resident and Non-Resident).
Selected by default for Outsource services.
Capture and Export all the State K-1’s
(i.e. Proforma'd + New)
All State K-1
Captures/Exports all State K-1 data to tax software. Includes (proforma) states already in the tax software and any new states that were submitted.
Selected by default for all services (except Outsource)
Bookmark Only State K-1’s (Do not pick data)
None
Bookmarks all State K-1 data. Data would not be captured or exported to tax software. Irrespective of the state being proforma’d or not, Resident/Nonresident.

Review Wizard: Verification

OCR will capture and identify State K-1 as either resident, non-resident, or a new state that is not available in the tax software. OCR will automatically capture/omit data based on the selected firm/domain level setting. Stamps are placed on top to help the verifier check if the document needs to be captured or Bookmark Only without capturing any data.
Stamps
States with (proforma) data in the tax software can be
Resident
 or
Non-Resident
 according to how they're defined in the tax software. The
Non-Resident
 stamp appears if the State K-1 is a proforma state that's not the taxpayer's primary residence (according to proforma in the tax software). 
Resident
State K-1 won't show a stamp.
States without (proforma) data in the tax software will show the
New State
 stamp.
Auto verified State K-1 pages will also have purple a
Auto Verified
 stamp on top.
Capture or Bookmark Only
Based on the default selected option, OCR can capture or omit State K-1 data. State K-1 that shouldn't be captured by OCR will be marked as
Bookmark Only
and exported to SPbinder and tax software without any data. However, during verification, a verifier can clear the
Bookmark Only
check box then capture the data if necessary.
To check the State K-1 option for the current binder, select the
Engagement Information
 icon on the toolbar.
On the
Engagement Information
 window, you will see all 3 available options. The selected option indicates how the OCR and verifiers should handle each State K-1.

Option 1

Capture and Export all the State K-1 data for Proforma'd States only
Only proforma state will be Captured (Resident & Non-Resident)
New state will be
Bookmark Only
 and not captured. 

Option 2

Capture and Export all the State K-1’s (i.e. Proforma'd + New)
Proforma state will be Captured.
New state will be captured. 

Option 3

Bookmark Only State K-1’s (Do not pick data)
No State K-1 will be captured or exported to the tax software. Select
Bookmark Only
.

SPbinder

In SPbinder, State K-1 appears in
INDEX TREE
 >
Schedule K-1
. You can see which State K-1 is associated with Resident (RES), Non-Resident (NRE), or a New State (NEW) based on the initials next to the name.

Requirements

Requirements
Details
Firm settings
  • Proforma states only
  • All State K-1 (Proforma + New States)
  • Bookmark all State K-1 (no data)
Binder Type
  • 1040
  • 1041
Leadsheets
  • Classic
  • Simplified
  • None
Services
  • Outsource (Onshore & Offshore)
  • 1040SCANverify (Onshore & Offshore)
  • 1040SCAN PRO+
  • 1040SCAN PRO
  • 1040SCAN ORGANIZE+
  • 1040SCAN ORGANIZE
Tax Software
  • CCH Axcess Tax
  • GoSystem Tax RS
  • Lacerte
  • * ProSystem fx Tax (Tax year 2022 and earlier)
Submission Type
  • FileRoom
  • API
  • TaxCaddy
  • GoFileRoom
Tax Year
2019 onwards
* Available for binders created after this feature is enabled.

This article applies to:

  • Product: SurePrep

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