M-1 Advanced

What is it? 

The Advanced Method is where you wish to be more specific on where you wish to place your M-1 adjustment. It requires you to: 

  1. Make M-1 Offset Accounts for each type of M-1 Adjustment.
  2. Tax categorize the M-1 Offset account to the correct M-1 line.
  3. Make Journal Entries to the originating account and the Offset account.

Tallyfor's M-1 Report will automatically summarize the Additions to and Subtractions from Taxable Income.

How to set it up.

a) Create Offset Tax Only Account for each M-1 lIne you need.

b) Map each M-1 offset account you created to the appropriate M-1 line tax category

How to use it.

Journal to the newly created accounts. 

For adjustments for items NOT on books you may need to make an additional tax only accounts (eg Additional Taxable and Other Tax Deductible) 

M-1 Reconciliation Detail Report

Your report will look like this.

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