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How to transfer form 1040-NR schedule NEC income to states using Proconnect?

Level 4

Let me provide a specific example for the ease of discussion:

An F-1 student with 5 year stay in the United States living in California the whole year, she has wage income from Google as part of training (OPT), and also has capital gains on her personal investment account at Fidelity from sales of Facebook, Amazon, Apple and dividends from IBM, GE, Home Depot.

I believe she needs to file 1040-NR reporting capital gains and dividends on schedule NEC on federal return, but the income on schedule NEC will not flow to the state using ProConnect tax software. How do you solve the problem?

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Level 15

My assumption is that your client is still within the 5 calendar years limit.  The numbers on Sch NEC will not flow.  Your only option is to enter those as adjustments on Sch CA but State & Local > Modifications > CA doesn't have all the relevant line items, which means you will need to improvise.

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Level 15

My assumption is that your client is still within the 5 calendar years limit.  The numbers on Sch NEC will not flow.  Your only option is to enter those as adjustments on Sch CA but State & Local > Modifications > CA doesn't have all the relevant line items, which means you will need to improvise.

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Still an AllStar

View solution in original post

Level 4

Yes, CA does not have built-in items, but I can write in, just like that if I do not like any of the presidential candidates, I can write in my own. That said, I think PTO should flow the Sch NEC to states, and do the states allocation as well if multiple states involved. I will write a request for enhancement. Thanks for the reply, and I already marked it as the correct answer.

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Level 15

When it comes to inpatriates, taxes morphs into a whole different animal because many of the familiar rules no longer apply and discrepancies between how states and Fed determine tax residency add another dynamic to the complexity on top of the usual conformity considerations.  And that is why GoSystem Rs and ProSystem FX remain the software of choice for international tax firms.

If Lacerte/PTO won't get the basics of FEIE for multi-year sourcing and FTC for fiscal year countries right after so many years of complaints and we're talking about returns as produced being wrong, I'm not hopeful they can resolve something that involves much more convoluted tax logic.

For what it is, Lacerte/PTO can handle relatively complex returns decently despite the various flaws.  I've spent too much time trying to get things fixed and so did my friends who have been with Intuit for much muuuuuuuuuch loooooooooooonger.  Saying my serenity prayer and following what it says faithfully save my sanity and make my days more productive.

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Still an AllStar