This article will help you understand when, and how to use the different sourcing options available on the K-1 in Lacerte.
When entering a multi-state K-1 you always want to start with the Federal Amount.
Federal Amount column:
Use this column when amounts need to flow to the Federal return and the resident state return.
Sourcing the Federal Amount column.
Use CTRL+E to open the source box on the Federal Amount column. From here you can use code N and code S to show Lacerte how to source the amounts.
- Use code N to tell Lacerte to report this amount on the Federal return. This will still flow to state returns that start the return on Federal Amounts.
- Use code S to tell Lacerte to report this amount directly on the state return, bypassing the Federal return.
- To remove an N or S Code click in the N/S field and choose the blank option at the top of the list.