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Mississippi Part Year Resident Return with Other State Wages

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Level 2

Here is my situation: 

Taxpayer works for Louisiana employer for all of 2018.  He moved from Louisiana to Mississippi in 2018, so he’s a part year resident in both states. 

Louisiana employer withholds, as expected.  He must file LA return b/c he has LA sourced income and LA taxes all of his wages (no Lacerte problem there).

MS taxes his wages for the pro-rated period in 2018 in which he was a MS resident, but then he is entitled to a credit for taxes paid to LA.

Here is my problem:

Per the MS Dept of Revenue, the only way for a MS part year resident to claim a credit for taxes paid to another state is to complete Form 80-401 with a code 99, which is nonstandard.  The credit is calculated on the 80-401 and carries to the front page of the nonres/part year MS return.  Lacerte won’t allow data entry of a nonstandard code for Form 80-401.  If I bypass the Form 80-401 and force the credit to appear on the correct line of the front page of the return, I then get an e-file diagnostic that I can’t e-file.

Lacerte tech support suggestion was:

1 Paper file

2 Manually complete Mississippi Form 80-401, attach as PDF, then bypass the e-file diagnostic and send the return, hoping that MS will accept.

I am hopeful someone else has a better solution. 

Thank you!

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Level 14

Those are the only 2 options I can think of.


ex-AllStar

View solution in original post

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2 Replies 2
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Level 14

Those are the only 2 options I can think of.


ex-AllStar

View solution in original post

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Level 15

"I am hopeful someone else has a better solution"

Option 3 - Move to Texas?   I hear their state returns are pretty easy 🙂 

I want to stay healthy so I am social distancing from Intuit.
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