This article will help you resolve the following diagnostics for excludable dividends:
- e-file: Excludable dividend items, such as nominee distributions, are not allowed for Arkansas e-file. This return must be filed as a conventional paper return. (ref. #3162) (ref. #3161)
How to resolve this diagnostic
Currently, Lacerte does not support nominee distributions for AR E-file.
- If nominee distributions have been entered correctly, this return will need to be paper filed.
- If nominee distributions or excludable interest/dividend items have been entered incorrectly, remove any entries to resolve this diagnostic:
- Navigate to Screen 11, Interest Income.
- Scroll down to the Form 1099-INT section.
- Remove any entry in the field labeled Nominee interest as applicable.
- Remove any entry in the field labeled Tax-exempt interest (1099-INT in error) as applicable.
- Navigate to Screen 12, Dividend Income.
- Scroll down to the Form 1099-DIV section.
- Remove any entries in the field labeled Nominee total ordinary dividends as applicable.
- Remove any entries in the field labeled Nominee qualified dividends as applicable.
- Remove any entries in the field labeled Nominee capital gain distributions as applicable.
- Navigate to Screen 20.3 Estate and Trust Information.
- Scroll down to Part III–(Lines 1-8)–Beneficiary's Share of Current Year Income (Loss)
- Remove any amounts under the column State, if different assigned to Arkansas entered in (1) Interest Income or (2a) Ordinary Dividends.