I have an income which I want to specifically make non-taxable. How do I do this?
Transactions to Income and Member accounts where the tax labels of these accounts are set as Not Applicable Permanent Difference or Not Applicable Timing Difference will not be calculated as taxable in the tax return. They will display in the tax return under Other Non-Taxable Income.
To change a tax return label of an account:
|From the Main Toolbar, go to Accounting.
|Select Chart of accounts from the list.
- Use the locate and edit the income account
- Once the account is selected, from the edit screen, select More Details >>.
- Under the Tax Label field, select Not Applicable Permanent Difference or Not Applicable Timing Difference from the drop down list. SF360 will now add this item back as non-taxable income when calculating taxable income as part of the Create Entries process.
- Select Save.