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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.