I have a client that was born before January 2, 1956 but died before their 65th bday in 2020. Lacerte did not check the box on federal. The standard deduction is incorrect on federal. I did not catch this and efiled the return. Missouri rejected the efile with the explanation that the age check boxes did not match the standard deduction amount. Missouri has the correct boxes marked. Has anyone else had this happen?
Missouri may have different rules, but from IRS Pub 501:
Higher Standard Deduction for Age (65 or Older)
If you are age 65 or older on the last day of the year and don't itemize deductions, you are entitled to a higher standard deduction. You are considered 65 on the day before your 65th birthday. Therefore, you can take a higher standard deduction for 2020 if you were born before January 2, 1956.
Use Table 7 to figure the standard deduction amount.