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Calculations

Calculation of General Sales Tax Deduction Worksheet, line 3

UltraTax CS uses the following amounts in the calculation of line 3:
  • Amounts entered in the A screen, Non-taxable income. This may include, but not limited to, Veterans’ (VA) benefits, workers’ compensation and public assistance payments.
  • Non-taxable combat pay included in the W2 screen, Box 12, Code Q.
  • The refundable portion of refundable tax credits from the prior year, as determined by amounts on the Two Year Comparison Report.
The following example illustrates how the refundable portion of refundable tax credits from the prior year calculates.
Two Year Comparison Line
Amount
Total tax
1,800
Income tax withheld
5,000
Additional child tax credit
950
Other refundable tax credits
1,200
Other payments
300
Total payments
7,450
Tax due/-refund
-5,650
UltraTax CS calculates the refundable portion of refundable tax credits by computing refundable credits as a percentage of total payments, and multiplying the result by the net refund. Therefore, using the previous amounts, refundable credits as a percentage of total payments is 0.288590604 ($2,150, comprised of the $950 additional child tax credit plus $1,200 other refundable tax credits, divided by total payments of $7,450). This result is then multiplied by the net refund ($5,650) to arrive at the refundable portion of refundable credits ($1,631) reported on line 3 of the General Sales Tax Deduction Worksheet.

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