How to Force Schedules L, M-1 and M-2 to Print in Drake Tax
On the PRNT screen, select Force-print Schedules L and M-1. Drake omits those schedules when the client falls under the receipts and assets threshold, so a small client return prints without them by default. Forcing them is how you get to see whether the balance sheet ties.
- Open the return
- PRNT screen
- Items to Print
- Force-print Schedules L and M-1
| Trial balance account | Drake Tax screen and field | Lands on |
|---|---|---|
| Schedules L and M-1 | PRNT, Force-print Schedules L and M-1 | Pages 4 and 5 of the return |
| Form 1125-E | PRNT, Force-print Form 1125-E, Officer Information | Form 1125-E |
| Autobalance | PRNT, Reverse autobalance setup option | Stops the retained earnings plug |
| Schedule M-2 out of balance (1120) | EF Message 0042 | Blocks e-file until resolved |
| Partner capital mismatch (1065) | Return Note 044 | Schedule L line 21 versus M-2 line 1 |
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Try it freeHow to Force Schedules L, M-1 and M-2 to Print in Drake Tax on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory (the account this page is about) | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Why they are missing
The client is under the threshold. Drake does not print Schedules L, M-1 and M-2 when the receipts and assets tests say they are not required, so for a small business return they simply are not in the output.
The return is complete without them. What is missing is your ability to check the balance sheet.
The case for forcing them on small clients
Three reasons, all of which cost less now than later:
- A beginning balance error carried forward compounds, and it is cheapest to find in the year it arises
- The M-2 roll forward is the quickest confirmation that distributions and net income were handled correctly
- A client who crosses the threshold next year needs the prior year figures to be right, and nobody will have looked at them
The PRNT screen also carries the two other options worth setting at the same time: Force-print Form 1125-E, and Reverse autobalance setup option. Those three together turn a return you cannot audit into one you can.
The messages that appear once the schedules exist
Forcing the schedules does not make them tie, and that is the point. Two Drake messages become relevant:
EF Message 0042 on an 1120 means Schedule M-2 is out of balance, and an EF message blocks e-file until it is resolved.
Return Note 044 on a 1065 means the beginning of year amounts do not agree between Schedule L line 21 and Schedule M-2 line 1. The fix is usually in section L of a partner's K1 screen rather than on the balance sheet.
Worksheets that help
In View/Print mode, WK_PCAR and WK_M2 show how Drake built the partner capital and M-2 figures. When the schedules disagree and the inputs look right, those worksheets are where the arithmetic becomes visible.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | Schedules L, M-1 and M-2 |
| Form 1065 | Schedules L, M-1 and M-2 |
| Form 1120 | Schedules L, M-1 and M-2 |
Common questions
How do I force Schedule L and M-1 to print in Drake?
On the PRNT screen, select Force-print Schedules L and M-1 under Items to Print. The same screen has Force-print Form 1125-E and the option to reverse autobalance.
Why are Schedules L, M-1 and M-2 not printing in Drake?
Because the client falls under the receipts and assets threshold that makes them optional, so Drake omits them by default. The return is still complete; what you lose is the ability to see whether the balance sheet ties.
What is EF Message 0042?
On an 1120 it means Schedule M-2 is out of balance. Because it is an EF message rather than a note, it blocks e-file until the underlying difference is resolved.
What is Return Note 044 on a 1065?
It means the beginning of year amounts do not balance between Schedule L line 21 and Schedule M-2 line 1. The cause is usually in section L of a partner K1 screen, and the WK_PCAR and WK_M2 worksheets show how the figures were built.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 18, 2026.