Company Information Income Tax form used 1120 vs 1120s

w joyner · ‎January 19, 2019

Hello I have used QuickBooks Desktop (currently 2017 pro) with the same database file for over 14 years . The other day I noticed that under the setting: My Company / Company Information / Report Information / Income Tax Form Used we are setup for 1120 (Corporation). We have always been a 1120s (S Corporation). If I switch this setting to the correct one (1120s), what problems if any will occur? Does this setting make any difference in QuickBooks? How does this affect my company file or the way QuickBooks works? etc. etc.

Thanks

qbteachmt · ‎January 20, 2019

It is a Cross Platform Marketing setting for importing this QB file into an Intuit professional tax preparation program or into TurboTax for business. If you never do this at all, the entire "tax line mapping and tax form setting" is Pointless in QB. It isn't a QB function.

Changing the tax form will result in currently Mapped accounts to be unmapped.

As a consultant, I check your setting to see which type of entity you are, and if this is in use, it is set right.

You might not ever even care. If it mattered, you or your tax preparer would have noticed before now.

Change it, then don't bother Mapping Accounts.

View solution in original post

qbteachmt · ‎January 20, 2019

It is a Cross Platform Marketing setting for importing this QB file into an Intuit professional tax preparation program or into TurboTax for business. If you never do this at all, the entire "tax line mapping and tax form setting" is Pointless in QB. It isn't a QB function.

Changing the tax form will result in currently Mapped accounts to be unmapped.

As a consultant, I check your setting to see which type of entity you are, and if this is in use, it is set right.

You might not ever even care. If it mattered, you or your tax preparer would have noticed before now.

Change it, then don't bother Mapping Accounts.

baldscotty · ‎February 02, 2019

This is my first year using QuickBooks desktop and TurboTax Business desktop. The entire year I had my Tax Form company info in QuickBooks set to sole proprietor. Of course, now my import to TurboTax business will not work unless I change the tax form to partnership. My business was formed as an LLC properly with the secretary of state and with the EIN. I recieve the alarming notice that "income tax settings now invalid and will be deleted in all accounts!" What repercussions will this have regarding all my data I have entered for 2018 if I say yes and continue?

thanks

qbteachmt · ‎February 02, 2019

"The entire year I had my Tax Form company info in QuickBooks set to sole proprietor."

You can change that at any time.

"Of course, now my import to TurboTax business will not work unless I change the tax form to partnership. My business was formed as an LLC properly with the secretary of state and with the EIN."

That's not what Tax Line Mapping relates to. It relates to Sched C or 1065 or 1120 or 1120S tax Form Lines. Mapping of Chart of Accounts to Tax Form Lines for reporting.

"I recieve the alarming notice"

It's a Reset Notice. It's not Alarming.

"that "income tax settings now invalid and will be deleted in all accounts!" What repercussions will this have regarding all my data I have entered for 2018 if I say yes and continue?"

It's not changing Data. The Tax Prep reports in QB will no longer have any accounts linked to any tax form Lines, because they have been Reset to "nothing linked yet."

baldscotty · ‎February 02, 2019

Thanks for the rapid response and information. Can I remap all the data so it imports correctly into Turbo Tax?

do appreciate the assist!

Anonymous · ‎February 03, 2019

Hello, baldscotty.

You can remap the data in QuickBooks if needed to avoid issues when importing. Here’s how to check the assigned tax mapping:

Go to Reports at the top and select Accountant &Taxes.
Choose Account listing (For a sole proprietor, I filter the report to include just income and expenses).
Check the tax line column. Double-click the account to edit if you need to change or add tax mapping.

For additional information about importing QuickBooks data into TurboTax, please refer to this article: https://ttlc.intuit.com/questions/1901107-how-do-i-import-quickbooks-data-into-turbotax-business.

Thanks for dropping by.

qbteachmt · ‎February 03, 2019

I open the Chart of accounts and right click on it. Choose Customize Columns, Bring the Tax Line column into your view. Now you see everything possible. Keep in mind that QB does not offer everything you need for tax import to work on its own.

Y2F · ‎February 03, 2020

Hi,

You mentioned cross market platform to import to TurboTax. It requires me to update "Income Tax form Used" before importing. Will desktop TurboTax business not import QB desktop Pro 2017 unless it is set to a corporate setting? Thanks, LMK

Kendra H · ‎February 03, 2020

Good morning, @Y2F.

I'd be glad to assist you with if Intuit TurboTax requires you to update the Income Tax Form Used before importing.

I'm here to provide some clarification. According to the TurboTax Help website, the 2019 TurboTax Business CD/Download software can import directly from QuickBooks 2014-2020.

Also, before you get started importing your QuickBooks data, here are some tips:

Your QB Desktop company file must be in single-user mode and should have been opened at least once on the computer you're using to import.
Be sure that your company file is up to date before importing so that your books match your tax return.

Here is a detailed article from Intuit TurboTax about importing your QuickBooks data into TurboTax Business: Importing QuickBooks Data

If you have any more questions or concerns, please don't hesitate to reach back out. Happy Monday!

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Company Information Income Tax form used 1120 vs 1120s