Jude
Level 1
06-10-2021
02:02 PM
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I have calculated the credit for both Fed and State of LA tax return for repayment of wages to Employer in subsequent tax year pursuant to SSDI adjustment.
The Fed tax credit was properly placed screen 38.2 as "Credit for repayments (IRC 1341)
Question: Where do you input the Credit calculated for The State of Louisiana?
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PKCPAMST
Level 5
06-10-2021
09:38 PM
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If a federal credit is taken under IRC Sec 1341, the taxpayer can take a deduction, not credit, on the Louisiana return.
In Lacerte, go to Screen 51 - Modifications. In the fourth field from the bottom - Other nontaxable income (Ctrl+E), enter “IRC Sec 1341” Income and the repaid amount. It will print on IT-540-2D, Schedule E under Exempt Income with Code 49E.
