59565

[#1]

The following diagnostic is generating: 'Social security benefits are being deducted. Please submit copies of all SSA 1099 statements with your return.' There is no withholding or anything unusual with the SSA 1099. Why am I getting this error?

[IRonMaN]

I would try deleting your Social Security entries and see if the error goes away.  If it does, then go back in and try entering them again and see what happens.

[COLOCPA]

I received the same error message.  

I tried deleting the Social Security entries and then re-entered the data.  That did not resolve the issue.  Client had similar data last year but no corresponding error message requiring attaching copies of their SSA-1099s.  

Is this a new IRS requirement, or a bug in Lacerte?

[sjrcpa]

Is this a state thing?

[COLOCPA]

Actually, it is a Colorado diagnostic.  I misspoke when I asked if it was a new IRS requirement.  

But, the issue did not exist last year. 

[COLOCPA]

After further research, Colorado did in fact change the requirements when claiming a deduction on the 2023 Colorado tax return related to social security income taxable on the Federal return.  Including copies of taxpayers' Forms SSA-1099, when filing the Colorado tax return electronically, did not exist prior to 2023.