Understanding Lacerte diagnostic ref. 4137

This article explains why the following error messages appear:

• Form 1099-R #1 - e-file state not found in state inventory, please use e-file state overrides to assure that proper information is put in the e-file (ref. #4137)
• Form W-2-R #1 - e-file state not found in state inventory, please use e-file state overrides to assure that proper information is put in the e-file (ref. #4137)

About this diagnostic

When you input 1099-R or W-2 information and enter a state abbreviation under State and Local...Electronic Filing, in the St (15) field, it'll create a diagnostic if you aren't filing a return for that state. This is purely an informational diagnostic and won't affect the e-filing of this return. It gets created because the program notices you've entered a state that differs from the states added to the return.

There are two things you can do:

• Ignore the diagnostic; it's only informational and won't impact the return or e-filing of it.
• Remove the entry from Screen 13.1, (code 824) or Screen 10, (input sheet code 816).