Form 1120 for accrual corp, how do you have the state tax automatically deducted on the federal return?

[bingram]

The state tax calculated should be deducted as tax expense on page 1 of the form 1120.  Do you have to manually do that?

[IRonMaN]

I'm pretty sure you do have to do that manually. 

[sjrcpa]

Even when the software can do it (Lacerte) I do it manually. The software can mess up the Balance Sheet; and I don't trust it with multistate returns.

[George4Tacks · Accepted solution]

https://proconnect.intuit.com/community/s-corporation/help/ending-balance-sheet-is-out-of-balance-on... should have what you need - especially the List of all automatically calculated items and how they're generated. e.g.

Prepaid state tax: under the General, Miscellaneous Information (Misc./Other Info.) screen, if you select the box to Accrue state tax option 1, the program will automatically calculate this line using your state estimated tax payments and the amount of actual tax calculated on this year's return.

Under General, Miscellaneous Information (Misc./Other Info.) screen, If you select the box to Accrue state tax option 2, the program will automatically calculate this line using your state estimated tax payments and the amount of actual tax calculated on this year's return.

The calculation is based on entries in the Payments, Penalties & Extensions, Estimated Tax screen, in the Overpayment applied from 20XX field, and any state quarterly estimates you entered as paid.

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The calculation is based on entries in the Payments, Penalties & Extensions, Estimated Tax screen, in the Overpayment applied from 20XX field and any state quarterly estimates you entered as paid. The program will also make M-1 adjustments for state tax if applicable.

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Federal tax payable: Under the General, Miscellaneous Information screen, if you selected the Accrue federal tax box, the program will adjust this amount based on the tax calculated on this year's return.

State tax payable: under the General, Miscellaneous Information screen, if you selected the Accrue state tax option 1 or Accrue state tax option 2 box, the program will adjust this amount based on the tax calculated on this year's return.