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Installation

• How do I install BNA Income Tax Planner?
  Show the Answer.
  Answer:
  

  Read and download the installation guide (PDF).

• Where can I locate ITP license file that is created during program activation?
  Show the Answer.
  Answer:
  

  For the standalone edition, this is a per-user file located in C:\Documents and Settings\(login name)\Local Settings\Application Data\BNA Software\BNA Income Tax Planner\BLM.dat. For the network edition, this is a per-server file located in the application installation folder.

• What ports need to be open on a firewall to allow activation to occur over the Internet?
  Show the Answer.
  Answer:
  

  Only port 80, the standard HTTP port, needs to be open.

• Can the application be activated over the Internet if my firm requires authentication (username and password) in order to access the Internet?
  Show the Answer.
  Answer:
  

  Yes, the application supports the use of proxy servers to access the Internet. The proxy server settings are obtained from the Internet Explorer proxy server settings screen. You will be prompted automatically for a username and password, if necessary. Obtain the username and password from your IT Department. Once access is granted over the network, the Income Tax Planner application can be activated normally.

• What are the differences between the ITP standalone and network edition activation processes?
  Show the Answer.
  Answer:
  

  The standalone edition activation can be delayed for up to 30 days after installation. During this time the application will operate in a 30-day trial mode. Once this period expires, the application must be activated or support contacted to receive a one-time extension to the trial period. Each standalone application must be activated and the license file from one installation cannot be shared with another installation. The network edition must be activated during installation as there is no trial period offered for this edition. The activation is done on the server, and the end-user clients do not need to activate.

• Can the network edition of the application be installed and activated on the Citrix or Microsoft Terminal Services platform?
  Show the Answer.
  Answer:
  

  Yes, the application supports Citrix and Microsoft Terminal Services. Use the activation wizard to install and activate the application over the Internet.

• Can the standalone edition of the application be activated and installed on the Citrix or Microsoft Terminal Services platform?
  Show the Answer.
  Answer:
  

  Yes, the application supports Citrix and Microsoft Terminal Services -- each user will be required to activate. Each user's license file will reside in their My Document's folder on the Citrix platform. Use the activation wizard to install and activate the application over the Internet.

• Will I need to reactivate when I receive web updates over the Internet?
  Show the Answer.
  Answer:
  No. Any update received during the year, after the CD release is mailed does not need to be re-activated. Re-activation will need to be done at each CD release.
• I just purchased additional licenses. How do I enter my new password?
  Show the Answer.
  Answer:
  

  If you've installed the program on a network server then:

  • Start the program from any user workstation or in the admin mode.
  • Press F8.
  • From the Options Menu, select "Network Password."
  • Type in the new password and click OK. You'll see the number of licenses change.
  • Run "setup" from the net folder in the folder the program was installed in at each new workstation. This will create an icon at the new workstation.

Printing

• I get the message "The font Garamond contains a bad/Bbox" when trying to open an Adobe Acrobat file created in the program.
  Show the Answer.
  Answer:
  

  In order to keep Adobe files to a reasonable size for emailing purposes, the decision was made to allow Adobe to do the font mapping for BNA Income Tax Planner files. Therefore, not all font choices available in the BNA program are supported for an Adobe file.

Program

• How do I delete data files in program versions 2000.2 and later?
  Show the Answer.
  Answer:
  

  Using the standard method provided under Windows, under Explorer, and all similar dialogs:

  • Right-click the file(s) that you want to delete.
  • Select Delete from the pop-up menu.
  • From the Options Menu, select "Network Password."
• How do I delete network users?
  Show the Answer.
  Answer:
  

  • From the Start Menu, select Run.
  • In the text box, type the path to the program directory followed by "itwin.exe /admin". For example, type:
    :\itwin\itwin.exe /admin
    Press OK.
  • After the program has loaded, click OK to delete the admin version informational message.
  • From the Options Menu, select "Delete Network Workstation..."
  • In the Delete Network Workstation dialog, select the workstation ID that you wish to delete.
  • Click the Delete button.

Tax

• How do I enter the "parsonage or minister's housing allowance" for the self-employment tax calculation?
  Show the Answer.
  Answer:
  

  To enter the "parsonage or minister's housing allowance" for the self-employment tax calculation, go to the Ordinary Income worksheet, double click on the Self-Employment Income row to access the Self-Employment Income and Loss worksheet. Enter the "parsonage allowance" on the TP's SE Tax Income Adj. row.

• Why doesn't the program calculate the additional exemption credit for seniors and blind taxpayers in a projection with California as the resident state?
  Show the Answer.
  Answer:
  

  This information is on the "Filing Status" Worksheet and therefore can't modify the "State Tax Personal Exemptions - California" worksheet. Any additional California exemptions for elderly or blind taxpayers must be entered on the "Class 2 Exemptions" row of the "State Tax Personal Exemptions - California" worksheet. The program multiplies this entry by the exemption amount and allows the result as an additional exemption credit.

• How do I tell the program that the taxpayer is a dependent?
  Show the Answer.
  Answer:
  

  On the Filing Status worksheet there is a row called "Must itemize supported" that is there specifically to indicate that the taxpayer is supported by and claimed as a dependent on the parent's return. The program will use the appropriate standard deduction or earned income, whichever is greater.

• How do I enter passive activities that are subject to self-employment tax?
  Show the Answer.
  Answer:
  

  Enter them on the passive worksheets.

  When you enter the individual activity, you will find that one of the available item "types" is TP SE Inc. If you, select that type, self-employment tax will be charged against the income for that activity.

• How do I indicate that the taxpayer is a real estate professional?
  Show the Answer.
  Answer:
  

  Enter them on the passive worksheets.

  When you enter the individual activity, you'll find that one of the available item "types" is TP SE Inc. If you, select that type, self-employment tax will be charged against the income for that activity.

• I'm getting a message saying that the "Total Prior Year State Credit...is smaller than the Estimate Pd for Prior Year". What does this mean?
  Show the Answer.
  Answer:
  

  The amount on row 20 (Total Prior Year State Credit) of one of the State and Estimated Withholding worksheets is less than the amount on row 21 (Estimate Paid for Prior Year). This represents an erroneous entry, since the estimate is part of the prior year credit. Be sure to include the amount entered on row 21 (Estimate Paid for Prior Year) in the row 20 (Total Prior Year State Credit) entry.

  For more details, we encourage you to review the sections in the Tax Reference Guide (and the program's help system) for the State Estimated and Withholding worksheets.

• Why is the program limiting my contribution deduction to 20% instead of 30%?
  Show the Answer.
  Answer:
  

  You have entered the capital gain property contribution on the row for 30% charities rather than on the row for 50% charities. The allowable limit for 50% charities is 30%; for 30% charities it is 20%.

• Why am I not getting a limitation for investment interest expense?
  Show the Answer.
  Answer:
  

  You must use the investment interest expense worksheet in order to get a limitation. That is true of any calculation in the program for which there is a dedicated subworksheet.

  If the entry is put on the total row rather than on the dedicated subworksheet, the entry will simply be deducted at 100% and that may be wrong.

• Why is the program adding back the AMT exemption for a married separate taxpayer who is in an AMT situation?
  Show the Answer.
  Answer:
  

  IRC Section 55(d)(3) specifies that for a married individual who files a separate return, "alternative minimum taxable income shall be increased by the lesser of (i) 25 percent of the excess of alternative minimum taxable income (determined without regard to this sentence) over the minimum amount of such income (as so determined) for which the exemption amount under paragraph (1)(c) is zero, or (ii) such exemption amount (determined without regard to this paragraph)."

  For years after 1992, before 2001, and after 2004, the add-back is 25% of alternative minimum taxable income over $165,000, limited to $22,500.

• My 1040 preparation software indicates that I have a minimum tax credit. Your program is not giving me one. Why?
  Show the Answer.
  Answer:
  

  You may have incorrectly entered a deferral item as an exclusion item. The only way you get a minimum tax credit is by entering deferral adjustments or preferences.

• Why is my AMT not being reduced when I have a foreign tax credit?
  Show the Answer.
  Answer:
  

  The most likely explanation is that the AMT FTC has not been entered.

  The foreign tax credit that you have entered in the Foreign Tax Credit Row of the Credits worksheet will not transfer to the AMT worksheet. The AMT FTC must be entered separately in the AMT Foreign Tax Credit row at the bottom of the Credits worksheet.

• How do I put Schedule C information into the program?
  Show the Answer.
  Answer:
  

  Either simply enter a net amount for the taxpayer in the Self-employment Income & Loss worksheet or, if more detail is needed, create a custom worksheet from the Taxpayer's Self-empl Income row and enter the income and expenses there. You can create a general purpose custom worksheet in a template client field if you want the custom worksheet to be available for every client.

• I have a large number of K-1's and would like to use the annualization analysis feature. I want the program to annualize the amounts for me, but the program's 100 custom/annualization worksheets aren't quite enough for me, since a K-1 typically has 5 income items. What can I do?
  Show the Answer.
  Answer:
  

  To conserve worksheets, try the following:

  Instead of using custom/annualization worksheets for nonpassive items on the individual activity worksheets, set up custom worksheets below the regular worksheets. For example, enter interest and dividends on custom/annualization worksheets located below the Interest and Dividends Worksheet. This should help conserve custom/annualization worksheets. You can maintain the audit trail by naming the entity on the custom/annualization worksheet.

  After conserving the number of worksheets as described above, if you still need more custom/annualization worksheets, print the individual activity worksheets, zap the custom worksheets, then reuse the hundred custom worksheets. (The detail will be lost within the analysis, but the totals will remain.)

• How do I enter passive capital gains and losses?
  Show the Answer.
  Answer:
  

  Call up the Passive Activity Inc/Loss worksheet from the Ordinary Income worksheet and double-click on the Individual Activities row. On the Individual Activities worksheet you'll tell the program the characteristics of each activity.

  After entering a description, you'll answer some Yes/No questions. After answering the last one, you'll be on the Activity #X worksheet.

  Here you'll see Item 1. When you go to the Type (of income) row and click on the arrow, you'll see a drop-down list offering a menu of types of income. Select the default of "Ordinary" and enter the ordinary income for the year on the Current Year Income/Loss row for item 1.

  Then go to Item 2, click on the arrow in the Type field, and choose any of the other income types. Enter a number on the Current Year Income/Loss row for Item 2. The numbers will flow to the appropriate worksheets throughout the program, but most importantly, any offsetting of prior year losses will take place correctly.

• How do I enter incentive stock options?
  Show the Answer.
  Answer:
  

  Assuming the requirements of I.R.C. Section 422 are met (including 422(a)), first enter the spread for the year of exercise as a positive amount on the Other Deferral Adjs row of the Alternative Minimum Tax worksheet (accessed by double-clicking on the Tentative Minimum Tax row of the Main Worksheet). Then, for the year of sale, enter the spread as a negative adjustment on the AMT Adjs to Other Long-term G/L row of the Capital Gain/Loss-Alt Min worksheet (accessed by double-clicking on the AMT Capital G/L row of the Alternative Minimum Tax worksheet). If the ISO generated a minimum tax credit, the credit will appear on the Minimum Tax Credit row of the Credits worksheet. To view the credit, return to the Main Worksheet and double-click on the Nonrefundable Credits row. Then double-click the Minimum Tax Credit row to see the details of the credit calculation.

• How do I enter capital gains and losses into the security transaction analyzer?
  Show the Answer.
  Answer:
  

  From the Main Worksheet, double-click either the row entitled "Net Short-term Gain/Loss" or "Net Long-term Gain/Loss." This takes you to the Capital Gains and Losses worksheet.

  Double-click on one of the rows entitled "Security Transaction Analyzer." This will take you to the Security Transaction Analyzer. Enter the description, followed by the owner, the date acquired, the date sold, the sales price, and the cost or other basis. The program will automatically classify the gain or loss and place it on the correct row on the appropriate worksheet.

  The Security Transaction Analyzer worksheet should only be used for investment transactions. Do not use this worksheet for Section 1231 transactions or sale of personal assets (such as a residence). It also should not be used for unrecaptured section 1250 gain.

• How do I enter capital gains and losses?
  Show the Answer.
  Answer:
  

  The program has two regular tax capital gain and loss worksheets: one for 28% rate capital gains and losses, and one for all other gains and losses. The 28% Rate Capital Gains and Losses worksheet is a subworksheet of the Capital Gains and Losses worksheet.

  From the Main worksheet, double-click either the row entitled "Net Short-term Gain/Loss" or "Net Long-term Gain/Loss." This opens the Capital Gains and Losses worksheet. You enter capital gain and losses through this worksheet.

  In general, there are 6 different kinds of capital gains and losses:

  • short-term gain or loss
  • 28% rate long-term gain or loss
  • long-term unrecaptured section 1250 gain
  • 5-year long-term gain from assets the holding period for which begins prior to 1/1/2001
  • 5-year long-term gain from assets the holding period for which begins after 12/31/2000
  • other long-term gain or loss

  If the item is taxed at a 28% rate, double-click the row entitled "28% Rate Gain or Loss." This will open the 28% Rate Capital Gains and Losses worksheet. Enter the item taxed at the 28% capital gains rate on this worksheet. Note: Under current law all long-term loss carryovers are treated as 28% rate.

  For other gains and losses, either enter the figure on the appropriate item row of the Capital Gains and Losses worksheet, or double-click the appropriate row item to open a subworksheet to enter the amount. For example, subworksheets are available to handle capital gain dividends, passive activity income and loss, and Section 1231 gains and losses.

  There are also two corresponding AMT worksheets to handle AMT adjustments to capital gains and losses as well as capital loss carryovers as computed for AMT purposes. Note that regular tax AMT capital loss carrovers from years prior to the first year of an analysis are entered on the regular tax worksheets; you must separately enter AMT capital loss carryovers from such years on the AMT worksheets.

  You may also use the Security Transaction Analyzer to enter capital gains and losses from security (stocks and bonds) transactions. This worksheet simplifies the entry process for such gains and losses, since it automatically determines the categories into which they fall, based on the acquisition and sale dates. See the FAQ for the Security Transaction Analyzer for details.

  For more details, we encourage you to review the sections in the Tax Reference Guide (and the program's help system) for the above mentioned worksheets.

Need technical support?

Online:	Product Support Form
Telephone:	1-800-424-2938
Hours:	Monday - Friday, 9am - 7pm ET
Fax:	1-703-341-1616

 

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Software Updates

BNA Income Tax Planner CD version 2009.3 was shipped to all current users on August 5, 2009.

The current service pack for BNA Income Tax Planner is 2010.1 and was released on January 22, 2010.

 

Installation Instructions

Read and download the BNA Income Tax Planner Installation Guide (PDF).

 

Tutorial

Have a free trial of BNA Income Tax Planner Federal? Read the Tutorial (PDF) to help you to begin using the software as quickly as possible.

 

BNA Income Tax Product Training

Get up to speed fast with industry-leading, CPE-accredited training.

 

Individual Income Tax Articles

Read articles about individual income tax.

 

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