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Entering Form 8846 credit information makes the balance sheet out of balance

SOLVEDby IntuitLacerte Tax10Updated September 13, 2021

When entering credit information for Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, in Lacerte, the Retained Earnings for the end of the year changes by the amount of the credit. This causes the balance sheet to be out of balance.

This happens because the credit is applied against payroll taxes included on the main form. Select your tax type below for instructions on resolving this issue.

  1. Go to Screen 13, Deductions.
  2. Locate the Deductions section.
  3. Scroll down to the Taxes subsection.
  4. Enter the appropriate payroll taxes paid in the Payroll taxes field.
    • If this amount is less than the credit, any remainder will be added to the end-of-year retained earnings.
  1. Go to Screen 20, Deductions.
  2. Locate the Deductions section.
  3. Scroll down to the Taxes subsection.
  4. Enter the appropriate payroll taxes paid in the Payroll taxes field.
    • If this amount is less than the credit, any remainder will be added to the end-of-year retained earnings.
  1. Go to Screen 15, Deductions.
  2. Locate the Deductions section.
  3. Scroll down to the Taxes subsection.
  4. Enter the appropriate payroll taxes paid in the Payroll taxes field.
    • If this amount is less than the credit, any remainder will be added to the end-of-year retained earnings.

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