The following critical diagnostic is generating in Lacerte:
e-file: Military Combat Pay was reported on form W-2 but no special Military Processing for a member of the U.S. Armed Forces was indicated in the E-file Miscellaneous input screen (Screen 4.4). (ref. #6665)
This diagnostic generates when there's a W-2 with nontaxable combat pay (code Q).
Follow these steps to resolve the diagnostic:
- Go to Screen 4, Electronic Filing.
- Select E-file PDF/Miscellaneous from the left navigation panel.
- Locate the Miscellaneous section.
- Select the applicable option from the Special military processing (Ctrl+T) dropdown menu.
- Enter the Date combat zone entered.
After completing these entries, the diagnostic will disappear. If you don't have this information, you'll need to paper file the return.