Lacerte is seriously lacking on the M1PR return. Yes, you have to manually add back the QCD from an IRA.  Screen 53, MN Household Income, Additional Income line.

I also have to fake out the form when someone has an annuity withdrawal with their contributions listed in box 5 on form 1099-R.  Lacerte includes the total withdrawal on M1PR, not the taxable amount. So my work around is to enter in the after-tax contribution on the line that says “gross distribution from 1035 exchange”.  This way, that amount doesn’t show up in income and I have the 1099-R to back up what I did.  I used to be able to enter a negative number with the explanation, but no more.  When I checked with MN Revenue, they said the software was wrong and it should be changed. I didn’t bother to do that as Lacerte doesn’t listen and is hard to reach. Maybe they should have a Minnesota preparer assist the software developers with their forms.  Just saying!