Maryland Form 511

[Rosemarie Ritchey]

I am having a problem with the MD Form 511.

The IRS Form 8825 now has a deduction for the "state taxes".  My federal income is now x lower by this deduction, which means the Line 2 of the Form 511 will need to be overriden to reflect this state tax add back.

So,w hen you override Line 2 of the Form 511 to add back the state taxes, it throws off the percentages listed on line 5a and 5b, which it does not equal 100%.  When I go into the Schedule K 38.271 and manually override the resident/nr individuals/entities percentages-- it works out on the 511, however IT DOES NOT work correctly on the supplemental 510 K1s.   Is there a workaround?  

Is anyone experiencing this issue in ProSeries or Lacerte besides me?

[peb]

Yes - same problem. On the phone with Lacerte trying to see if they have done anything with this.

The workaround is put the MD taxes on page 1 form 1065 as state income taxes, then in other deductions, show a negative adjustment for the taxes, so page 1 Form 1065 now is zero. Put the full taxes including the MD taxes paid on the 8825 and the calculations come out correct with K-1s that are correct.

Page 1 of the 1065 is generated, but this is the only way I have been able to e-file with MD. All the other override nonsense has failed.

Good Luck.