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Processing options

Tax exempt income

When creating a binder, you can select how you want the 
Tax Exempt Income
 to be allocated for state purposes.
Follow these steps to configure Tax Exempt Income options: 
  1. Initiate creating a new binder.
  2. On the
    Create New Binder
     window, select the
    Processing Options
     tab.
    PROCESSING OPTIONS settings
  3. Select
    Tax Return
    .
    Select Tax Return
  4. Locate the
    Tax Exempt Income
     section.
    Tax Exempt Income section
  5. By default,
    State non-taxable
     is selected. When this is selected, all tax exempt income will be considered
    State non-taxable
    .
    note
    If the resident state is Texas, Washington, Florida, or Nevada, then tax exempt income will always be treated as state non-taxable.
    "State non-taxable" selected by default
    Select 
    State taxable
     if you want all tax exempt income to be considered 
    State taxable
    .
    Select "State taxable"
    Select 
    Automatically determine state taxability
     to have the system determine the state taxability automatically by matching the security descriptions with the predefined list, abbreviation table, and state names. If you choose 
    Automatically determine state taxability
    , you need to choose how to consider unmatched descriptions. They can be considered either 
    State non-taxable
     or 
    State taxable
    .
    If you selected
    Automatically determine state taxability
    , then the checkbox next to
    Show transaction details in the Review Wizard step
     will be selected and grayed out by default. When state taxability is determined automatically, the detailed tax exempt income transaction will always be shown in the Review Wizard.
    "Show transaction details in the Review Wizard step" not available
note
The ability to automatically determine state taxability begins processing for new binder around February 15 of the calendar year.
By default, these settings will match those chosen in 
Admin
Tax Return
Tax Exempt Income
. You can make changes here for this particular return. These settings will override the ones made in 
Admin
.
View detailed explanation on Tax Exempt Income.

This article applies to:

  • PRODUCT: SurePrep

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