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How to find accounting method from past tax return?

Forum|Forum|5 years ago
February 12, 2021
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I don't understand where to find the method used. The Turbotax help says "Form 1120, page 3, Schedule K, line 1." which is completely unhelpful.

There's just a monetary value entered for that line as far as I can see.

Where do I actually find which method was used previously?

Thank you kindly.

TurboTax Business Windows

Best answer by OkGo1000

I see cash on schedule C in the personal docs but just found accrual with schedule B in the business docs.

Update: So the one with personal definitely isn't correct. Think there was an update with turbotax yesterday and today I see correct location in help:

"Accounting Method
Find your 2019 accounting method used on

Form 1120S, page 2, Schedule B, line 1."

Thank you Ray for the help. I would like to mark yours as the best answer but it would be misleading in the end. It did help me to get this figured out though.

RayW7

Look on your Schedule C Worksheet, Line F will indicate which method you used from last years return.

Most taxpayers operate on the Cash Basis of accounting.

The most common method is the Cash method- reporting income in the year actually received it and reporting expenses in the year actually paid.

The Accrual method of accounting is a bit more complicated and is often used by businesses that carry an inventory. Income is reported in the year earned even if not received yet, Expenses are reported as incurred even if not paid yet.

O

OkGo1000Author

So fast! Thank you.

That allowed me to find it but it was found in the personal return docs. I was looking in the business docs which is where I expected it to be. Don't know which is should be with but that was confusing.

Without your help, would not have looked elsewhere.