How do I make non-wage income non-taxable?
To specify that non-wage income is non-taxable, you may do the following: 1. Go to the Case, Income & Expense screen for your state’s financial affidavit. 2. Scroll down until you find the section for the income you are entering. (If you do not find it explicitly, there will be blank lines for you to […]
How can I specify that wages are not taxable for Social Security or state taxes?
You can specify that any wage is exempt from federal income tax, state income tax, Social Security tax, and/or Medicare tax. Here’s how: 1. If you are entering wages on a child support screen, click the “Complete” tab at the top. (You do not have to do this if you are entering wages on an […]
How do I enter or change Filing Status?
You can enter or change filing status on the Parties and Children screen, with the first Party, as shown below. To change the second party’s filing status, click on “Other Party.”
How do I enter an interest-only mortgage?
Here are the steps to enter an interest-only mortgage in Family Law Software. At the top level, click the “more info” (green 3-dots) button: Open the section for the first mortgage: Check the box for the “Detail method.” Fill out all the information. Click the “more info” (3-dots button) at the bottom of this section. […]
Client pays taxes in two states
If one of the parties files a nonresident return for a second state, there typically is no adjustment you need to make. This is because the resident state typically allows a credit for the tax paid to the nonresident state, limited to the amount of tax that would apply to that income in the resident […]
How do I enter responsibility for the mortgage shifting from one party to the other?
Here is how to specify that Party A is taking the mortgage over from Party B after, for example, four years: 1. Set Party B as initially paying the mortgage. 2. On the “more info” screen for the mortgage, specify that Party B will make a balloon payment in the amount of the balance at […]
How do I enter rent for a party who is paying rent?
You can enter it where you enter expenses. There will be a Real Estate section, and you will see a button to enter “Tenant expenses.”
How do I handle depreciation recapture?
If a real estate property was rented or used for business, and then is sold, there may be depreciation recapture on the rented portion. Depreciation recapture provides that some of the gain on a sale of real estate is ordinary income. It applies if a method other than straight line was used to depreciate the […]
How can I handle a net operating loss carryforward?
A net operating loss carryforward is an anticipated tax deduction in excess of regular taxes calculated by Family Law Software. If you want to focus on the income aspect, you can override the “Other income” line on View/Edit Taxes for each year in which the loss will be carried forward. Enter the amount of the […]
How do I show a retirement from a business, or sale of a business?
Go to the “more info” screen for the business. You will see a question about whether the business owner will retire or the business will be sold. the question is worded this way so it can cover both retirement and sale. This is where you enter a sale or retirement date. If the business has […]