turbo tax business windows Income Reconciliation

[jds58]

When reconciling book to return income

    if I use the book income before current year fed tax accrual I get a difference of I get a difference of -1479

   of I use the book income after fed tax accrual I get a difference of 3206

Add 1479 and 3206 and they equal the tax accrual of 4685.

I cannot get this to balance.

[KeshaH]

You may be missing or even double counting a book/tax adjustment on your Schedule M-1. A book/tax adjustment is and income or expense item that's treated differently on your financial statements and your tax return.

Examples of book/tax adjustments include:

- nondeductible expenses (such as meals & entertainment, or fines & penalties)

- differences in depreciation

- nontaxable income such as municipal bond interest

Check your Schedule M-1 Smart Worksheet to review your adjustments and update accordingly.