- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Has anyone noticed that North Carolina will not add back non-NC muni dividends unless it is entered on the interest screen? It also appears that it is also not handling US Bond interest correctly either for NC. NC has updated their forms this year and there no longer is a generic add back field so cannot use that option.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes....I've noticed the first issue. My client was below the filing threshold and I thought this may have something to do with it. Thank you for sharing!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This also appears to be happening with US bonds too.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have contacted Lacerte about this and they are supposed to be working on it. however, I don't think they know the complexity of this problem. They will also need to add lines in the modifications screen for interest income from obligations of states other than NC (addition) and interest income from obligations of the US or US possessions (deduction) so we can add these items coming from K-1's. I hope they are seeing this and will fix everything because I am sitting on returns waiting for this fix.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you for your reply. I am hoping this will be resolved quickly.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I am having the same problem. I am using the work around of entering information on the Interest screen (Screen Page 11), and then making a note in the client files about the work around. At a minimum, I think Lacerte should have a diagnostic about this until fixed.
Also, if you do enter data on the interest screen in order to get the correct add-back in NC, be careful that the tax-exempt interest on 1040 Page 1 still reflects the accurate amount of total tax exempt interest because that will affect the clients' MAGI for calculations such as their Medicare premiums.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks for the reminder about Medicare. Have you found a work around for the critical diagnostic for Form D-422 still not being included in the program?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I was able to file a return yesterday - even with that critical diagnostic. I have also removed the penalty from a return, and then told the client that they may receive a bill for estimated tax penalty. In both of those cases, the total underpayment penalty was less than $50.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks, I can relate to your frustration. It would also be nice if Lacerte could manage to update the new deadlines on the letter.