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client resident in two states - how to show in Lacerte

1040tax
Level 2

Hello,

I have a client that is domiciled in AZ yet spent over 183 days (and had a permanent place of abode for >11 months) in 2019 in NY. Per ARS 43-102, the client is considered to be resident in AZ due to the domicile, yet is also a resident in NY (per TB-IT-690).

Therefore we need to file resident returns in both states, yet Lacerte only allows me to select one state as state of residence, and produces a NR or part-year form for the other state.

How do I get Lacerte to produce resident returns for both states?

Labels (1)
9 Replies 9
CharlotteEA
Level 2

He would be considered a part year resident in each state. In the client info screen make sure you have both states and click the Multi-State Return. Remember your rep access. Under state and local tab choose 55 and enter the dates. Remember to identify all entries to the proper state.

0 Cheers

Thanks for your answer, but I disagree. Both states consider the taxpayer a full year resident. NY because he spent practically the whole year there, and AZ because of his domicile (even though he had very little physical presence).

Thus, there are no 'dates' to enter, and he is not a part year resident!

0 Cheers
baorleans
Level 1

Did you receive your answer?  I have the same issue and can't seem to find out how to handle.  You are 100% correct, taxpayer must be classified as a resident of both states.

1040tax
Level 2

No. Sadly I didn't find a method. I had to do it manually, i.e. prepare one return, file, then do the other state separately.

 

Ridiculous

0 Cheers
Taxcoach
Level 2

Hi,

I'm in the exact same situation now and wondering if there's an update to this thread, or if the answer is still to prepare one return, file and then prepare the other one? That seems like a huge problem that Lacerte should address.

BobKamman
Level 14

When all else fails, read the Instructions.

Form 309, Page 2, "Dual Resident"

0 Cheers
Taxcoach
Level 2

While I appreciate the attempt to help, I don't appreciate the snarky response. I am not filing an AZ return. I was looking for some friendly colleague help in a general sense, but I'll figure it out.

1040tax
Level 2

I have read the instructions, but they obviously do not explain how to set Lacerte to allow two resident returns.

 

the question was how to set this up in Lacerte. It was not how to calculate the AZ tax manually.

Taxcoach
Level 2

Thank you for your proper response & feedback. That's exactly my issue. I read the state instructions, but my issue was how to get Lacerte to do it. I couldn't figure it out and was hoping someone had the answer. Thank you for commiserating.