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Lesson 1 of 7 · 2:29
W-2 Input
Enter a client's Form W-2, including wages, withholding, box codes and state information, and save it to the return.
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Written instructions
Open Form W-2
Go to Federal Section → Income and click BEGIN next to Form W-2 (Wage and Tax Statement).
Choose the W-2 type and employee
Leave This is a standard W-2 checked, or check This is a corrected W-2, This is a substitute W-2 or This is a railroad W-2 to match the form.
On a married filing jointly return, use the e Employee's name dropdown to pick whether this W-2 belongs to the taxpayer or the spouse. On other filing statuses the name is filled in for you.
Enter the employer
Enter b Employer identification number (EIN), c Employer's name and the employer's address. The information must match the IRS Master File.
ProWeb builds an EIN database as you work: once an EIN has been entered before, typing it again fills in the rest of the employer details.
Enter wages and withholding
Under Wages, enter 1 Wages, tips, other and 2 Federal tax withheld.
Boxes 3 through 6 (Social security and Medicare wages and tax) calculate automatically. If the client's W-2 shows something different, click into the field and change it to match the form.
Enter box 12, 13 and 14 items
Pick any codes from the 12 and 14 a - Code dropdowns and enter their amounts. Check the box 13 items that apply: Statutory employee, Retirement plan or Third-party sick pay.
Enter state information
If the employer reported state wages, go to State Information, pick the 15 State, and enter the Employers state ID number, 16 State wages, tips, etc. and 17 State income tax. Fill in local boxes 18–20 Locality name if they appear on the form.
For some states, instructions or codes appear at the bottom of the section once you select the state.
Add more states if needed
If one W-2 lists more than one state, click Add another state and enter the next state's details.
Save the W-2
Click SAVE & ENTER ANOTHER if the client has more W-2s, or CONTINUE if not.
The W-2 Wage Statement summary lists each W-2 entered so far. Use the pencil to edit one or the trash can to delete it. The AGI in the Return Summary updates once the form calculates.
- A control number is not required for filing online, so the form has no field for it.
- On a married filing jointly return, always check the employee dropdown so each W-2 goes to the right spouse.
Lesson 2 of 7 · 9:44
Schedule C and 1099-NEC
Enter a 1099-NEC, carry it to Schedule C, and work through the Schedule C income, expense and vehicle sections.
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Written instructions
Open Form 1099-NEC
Find the form with the Form Finder, or go to Federal Section → Income and click BEGIN next to 1099-NEC (Nonemployee compensation). Schedule C is listed right below it.
Enter the payer
Under Payer Information, enter the Payer's name, Address (street number & name), ZIP code, City, town, or post office and State.
Enter the Payer's TIN from the form. If the payer used an SSN instead of an EIN, check Use payer's SSN as ID.
Enter the compensation
Recipient Information is already filled in from the return. Scroll to Income, enter the amount in 1 Nonemployee compensation, and click CONTINUE.
Send the income to Schedule C
On Transferring 1099-NEC to Schedule, choose how to report the income: Schedule C - Business Income or Schedule F - Farm Income. Nearly all 1099-NEC income goes to Schedule C. Click CONTINUE.
Enter the business name and ID
On Schedule C, enter the Business Name (leave blank if there is no separate business name).
Leave Employer ID blank if the client uses their SSN as the business ID. The business address is optional.
Look up the business code
Under Business Type, click Click here for a list of Business Codes. In Business or Professional Activity Codes, type a keyword in Search Business Codes and click the matching code. It fills in the code and description. Click CONTINUE.
Use the Schedule C menu
Schedule C (continued) breaks the form into sections: Basic Information About Your Business, Questions About the Operation of Your Business, Income, Cost of Goods Sold, General Expenses, Car And Truck Expenses, Depreciation, Other Expenses, Qualified Business Income Deduction and Expenses for Business Use of Your Home.
A blue BEGIN button means the section hasn't been touched. Once you enter data, it turns dark and reads EDIT.
Review income from the 1099-NEC
Click EDIT next to Income. Total Income from Form 1099-NEC already shows the amount you entered. It is added automatically, so don't enter it again.
Enter any other income in Gross receipts or sales, Returns and allowances or Other Income. You can type a single total.
Itemize amounts for detail
To record where a total came from, click the list button to the right of the field instead of typing a total. Click Add, enter a Description and Amount for each entry (for example, revenue by month), and click CONTINUE.
The field then turns gray and shows the calculated total. It can no longer be typed into directly. To add or change entries, click the list button again.
Enter general expenses
Click BEGIN next to General Expenses. On Schedule C - Expenses, type an amount next to each expense line (for example Rent or lease of equipment, Supplies or Meals), or use the Itemized Amounts button to list individual payments the same way you did for income. Click CONTINUE.
Enter car and truck mileage
Click BEGIN next to Car And Truck Expenses. Enter the Description of Vehicle, the Date you placed your vehicle in service for business purposes and the business miles. Also enter Commuting and Other miles if any.
Check the boxes that apply: another vehicle available for personal use, personal use during off-duty hours, evidence to support the deduction, and whether that evidence is written. Click CONTINUE.
Finish and review the summary
Complete Depreciation, Qualified Business Income Deduction and Expenses for Business Use of Your Home as needed. Depreciation is covered in its own lesson.
Forms you add appear under Income in the left menu, and you can click them to jump straight in. When you exit Schedule C, Schedule C Income from Business shows total income, total expenses and net income for each business. The Return Summary on the right updates as you go.
- Itemized amounts give you a record of how each total was built. Preparers have used these printed details to answer IRS questions in audits.
- The 1099-NEC list shows which schedule each form was Carried To, so you can confirm the link.
- You can't claim both actual car expenses and mileage for the same vehicle. Actual expenses go in the depreciation section.
Lesson 3 of 7 · 2:05
Schedule B – Navigation and Entry
Find the interest and dividend forms and enter a 1099-INT so it flows to Schedule B.
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Written instructions
Open the interest and dividend forms
Type schedule in the Form Finder and pick Schedule B from the list. Or go to Federal Section → Income and click BEGIN next to the 1099-INT, DIV, OID entry (Interest income, dividends, and distributions).
Choose the type of income
Choose the type of interest or dividend item you want to enter:
- Interest Income, Form 1099-INT
- Original Issue Discount, Form 1099-OID
- Dividend Income, Form 1099-DIV
- Seller Financed Interest Income
Click CONTINUE.
Enter the payer
Enter the Payer's Name, Payer TIN or EIN and the payer's address. Use Taxpayer, Spouse, or Joint? to set whose income it is.
Enter the amounts from the form
Each field is labeled with its box number, so copy the amounts straight from the form. Examples are Interest Income (Box 1), Early Withdrawal Penalty (Box 2) and Federal Tax Withheld (Box 4).
If there was state withholding, complete State Withholding 1 (and 2 if needed) with the State, State Identification Number and State Tax Withheld.
Save the form
If the client has more of these forms, click SAVE & ENTER ANOTHER. A blank form opens so you can enter the next one. Otherwise click CONTINUE.
Review, add, edit or delete entries
The Interest and Dividends list shows each entry's type, payer, owner and amount. Click Add Interest and Dividends to enter one you missed. Click the pencil to edit an entry or the trash can to delete it.
- In newer versions, the Income list shows this entry as Schedule B - Forms 1099-INT, DIV, OID.
- The pencil (edit) and trash can (delete) icons work the same way on every list screen in ProWeb.
Lesson 4 of 7 · 3:53
Schedule D – Navigation and Entry
Open Schedule D and enter a stock sale and the sale of a client's main home.
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Written instructions
Open Schedule D
Type schedule in Form Finder and pick Schedule D, or click Income in the left menu and click Begin next to Capital Gains and Losses (reported on Schedule D).
Choose a Schedule D area
The Schedule D Capital Gains menu lists Capital Gains and Loss Items, Additional Capital Gains Distributions, Other Capital Gains Data (including Capital Loss Carryover), Sale of Main Home Worksheet and PDF Attachments. Click Begin next to Capital Gains and Loss Items.
Describe the sale
On the Capital Gains Transaction screen, select who the form belongs to under Form belongs to, enter the Description of Property (for example, stock), then pick the Date Acquired and Date Sold.
If a date isn't known, leave it blank and use the Alternate Option checkbox instead.
Enter sales price, basis type and cost
Enter the Sales Price, choose the Select cost basis type option that matches the 1099-B (for example 1099-B, Box 12 Cost Basis Reported to the IRS), and enter the Cost.
Add any adjustments
If the gain or loss needs adjusting, type the amount under Adjustments (use a negative sign for a loss), then check every adjustment code that applies from the list below it.
Save and add more transactions
Click Save & Enter Another to start a new blank transaction, or Continue when you've entered them all.
Enter the sale of a main home
Back on the Schedule D menu, click Begin next to Sale of Main Home Worksheet. Under Basic Info about the Sale, enter Date of purchase, Purchase price, Date of sale and Sale price, plus any depreciation fields that apply.
Answer the ownership and use questions
Under Info about your home, enter how many days in the last 5 years the home was the main home and was owned, for the taxpayer and spouse. Check the first-time homebuyers credit box only if it applies, and check Check here if you qualify for the Maximum Exclusion or the Reduced Maximum Exclusion when the client qualifies. Click Continue.
Enter purchase fees and basis adjustments
On the next screen, enter any Fees you may have paid when you bought your home (such as Legal fees, Surveys, Title Insurance) and General Adjustments (such as Selling expenses and improvements). These are optional; click Continue.
Review and return to the menu
The Sale of Home Worksheet grid shows the sale. Click Continue again to return to the Schedule D menu.
- When the ownership and use days qualify for the maximum exclusion, the gain on the home sale is excluded and does not increase the client's tax.
- Watch the Refund Summary on the right to see each entry's effect on AGI and the federal refund.
Lesson 5 of 7 · 5:01
Schedule E – Navigation and Entry
Add a rental property on Schedule E and enter its basic information, depreciation and expenses.
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Written instructions
Open Schedule E
Type sch in the Form Finder and pick Schedule E. Or go to Federal Section → Income and click BEGIN next to Supplemental Income and Loss (Reported on Schedule E).
Answer the 1099 question
Check the box if the client made payments during the year that require filing Form 1099. Otherwise leave it blank. Click CONTINUE.
Enter owner and property
On Schedule E Rent and Royalty Information, use Form belongs to to pick the taxpayer, the spouse or Both (on a joint return).
Select the property Type (for example Single Family Residence). Enter a short Description and the property's address.
Enter rental use
Leave Check if personal use unchecked for a pure rental, and confirm the Percent of ownership.
Enter Rental Payments Received (including rental income reported on Form 1099-K), the number of days the property was rented at fair rental value, and the number of days it was used for personal purposes.
Answer the participation questions
Check the boxes that apply. They unlock other options:
- Check here if you are a member of a Qualified Joint Venture
- Check if you actively participated
- Check here if you are a real estate professional or sold or disposed of the property this year (This will allow ALL losses)
If you check the real estate professional box, a field appears for the amount to adjust from Net Investment Income. Click CONTINUE.
Enter depreciation for the property
Schedule E Rentals and Royalties shows the property you're Currently Editing and its sections. Click BEGIN next to Depreciation.
On Depreciation Input, enter the Description of asset, Date placed in service, Cost and Percentage of business use. Choose the Depreciation method (for example MACRS 27.5 YR for residential rental) and enter the Useful life. Click CONTINUE, then CONTINUE again on the asset list.
Enter rental expenses
Click BEGIN next to Expenses and enter amounts on the listed lines, such as advertising, cleaning, commissions, insurance and legal fees.
For an expense that isn't listed, use the add option. On Schedule E Rental/Royalty Other Expense, enter a Description and Amount, and click CONTINUE. Repeat for each additional item.
Enter car and truck expenses if needed
If the client drives to manage the property (for example to collect rent or do maintenance), click BEGIN next to Car and Truck Expenses. Entry works the same as on Schedule C and is covered in its own lesson.
Add another property
Click CONTINUE to reach the Schedule E Rental/Royalty list. To enter another property, click Add Another Rental/Royalty and repeat these steps.
- Sections you've completed turn dark and show EDIT. Sections still to do show a blue BEGIN.
- On Depreciation Input, the system does not calculate current-year Section 179 limits. Enter only an amount you've confirmed is allowable.
Lesson 6 of 7 · 2:29
Depreciation Navigation and Entry
Add a depreciable business asset from Schedule C and enter the minimum information needed to calculate depreciation.
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Written instructions
Open the depreciation section
From the Schedule C menu, click BEGIN next to Depreciation. This opens Depreciation Input.
Describe the asset
Under Basic Information, enter the Description of asset, the Date placed in service, the Cost and the Percentage of business use.
Choose the method and useful life
Select the Depreciation method (for example STRAIGHT LINE) and enter the Useful life, which must be at least 3 years.
Enter Section 179 and prior depreciation if any
Enter a Section 179 deduction only if the client is taking one. The system does not calculate current-year Section 179 limits, so enter only an amount that is within the limits.
For an asset placed in service this year, leave Prior year special depreciation and Accumulated depreciation blank. For an older asset, enter the amounts already taken.
Skip options that don't apply
Leave these blank unless they apply: Check here if this is a mid-quarter property, the disposition date, Check here if you would like to opt out of special depreciation, and Listed Property Information. Click CONTINUE.
Add another asset
The Depreciation Asset list shows each asset and its date placed in service. To enter another one, click Add Another Asset and repeat the same steps.
- At a minimum, each asset needs what it is, when it was placed in service, what it cost, its business-use percentage and how it will be depreciated.
- Once you pick a depreciation method for an asset, stay with it in later years.
- If an asset was disposed of and is taxable, also fill out Form 4797, as the note on the screen says.
Lesson 7 of 7 · 2:07
Car and Truck Expense – Mileage
Enter a vehicle's business mileage and the required substantiation questions so the program calculates the car and truck deduction.
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Written instructions
Open Car And Truck Expenses
From the Schedule C menu, click BEGIN next to Car And Truck Expenses. The same section and entry steps are used on Schedule E and Schedule F.
Describe the vehicle
Enter the Description of Vehicle and the Date you placed your vehicle in service for business purposes.
Enter the miles
Of the total miles driven during the tax year, enter the Business miles, plus any Commuting and Other miles.
Answer the substantiation questions
Check each box that applies:
- Check if you have (or your spouse has) another vehicle available for personal use.
- Check if your vehicle was available for personal use during off-duty hours.
- Check if you have evidence to support your deduction.
- If yes, check if the evidence is written. (for example, a mileage log)
Save and let the program calculate
Click CONTINUE. The vehicle appears on the Schedule C Car and Truck list, and the program calculates the deduction and updates the refund. Click Add a Schedule C Car and Truck to enter another vehicle.
- Actual car or truck expenses go in the depreciation section for the business. You can't claim both actual expenses and mileage for the same vehicle.
- Newer versions split business miles into Business miles before 7/1 and Business miles after 6/30. Enter each part separately.