Use a tape measure to measure, mark and level the whole perimeter of the soffit.
Measure the first pieces of 2x4s to cut for the bottom ledger.
Transfer measurements to the 2x4s and make the appropriate cuts using a chop saw or circular saw.
Install the 2x4s to the existing studs under the drywall using 2-1/2" wood screws and a screw gun. Attach them completely around the perimeter.
Measure, cut and attach the parallel supports to the walls by toe nailing them into the existing studs.
Measure, cut and attach the cross bracing to keep the frame firmly attached.
Measure and mark the top plate area. Lay the level perpendicular to the existing frame to determine where to attach the top plate.
Measure and cut the pieces for the uprights, which will keep the whole frame together.
Once the whole frame is finished, measure and cut the drywall pieces and attach them with 2" drywall screws.
Install the corner bead, which will make the seams tighter and protect the corners of the soffit.
Spackle and sand your drywall, and then paint with your desired color.
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85 Dollar Store Hacks