1099-Q. Why is Lacerte limiting Elementary and Secondary Education Expenses to $10k on a per taxpayer basis rather than a per beneficiary as specified in Notice 2018-58?
Release out today adds state selection fields but does not fix the federal issue of Lacerte not allowing $10k per beneficiary without tax but still taxing more than $10k per taxpayer.
Two more updates and still not fixed. Last week's update at least added the ability to specify a beneficiary but it still inappropriately adds income to federal and does not add the income and penalty to California.
@toddcbad I would take a look at the Sch 1, line 21 worksheet to see what you do not agree with there for Federal. I would then suggest calling in to our support so that we would be able to take a look at your file. I do see that CA does not conform to federal and I have a return that is adding back on the Sch CA line 21 the amount for tuition earnings. Also, on the 540 line 63 I see an amount generating for tax attributable to Qualified Plans (3805P).
I have 2 benes entered each with $10k of qualified elementary and secondary education expenses and $10k distributions. The spouse is the recipient for both. The qualified amount is carrying to the worksheet for one but not for the other. This results in the earnings from one of them being included in income.
@toddcbad I was able to duplicate it. It has been reported to development for their review. I have attached you to this and you will receive an update via email when one becomes available.
