It appears the Proseries program has marked all transferred information as state income taxes being done as general sales tax for the previous year rather than the as the actual state income tax deduction on from schedule A of the prior year return.
This is by default causing all the state refunds to be calculated and reported as non-taxable for the current year, when they should be taxable (fully or partially) in most cases.
This looks to be a BIG SNAFU in the programing.
Solved! Go to Solution.
Yes, client files that were transferred into 2018 early in the season had this bug.
It was fixed back in January, but the only way for the file to be "fixed" is to delete the client file and re-transfer into 2018...or just open the state refund worksheet and mark the correct box.
Seems like each year there is some kind of early transfer bug...its always best to wait as long as possible to transfer all clients in. I only transfer in as they arrive for their appointment, so I have not had this issue except for my own return and a "dummy/sample" return I transfer in early for testing purposes.