dwashburn
Level 2

 Problem with Social Security benefit subtraction along with retirement pension, annuity, IRA.

 

Line 3 - Taxpayer social security benefit is correct, but if the taxpayer is over the age of 65, they are entitled up to $24,000 subtraction. Lacerte isn't doing this correctly and should be automatic. My case is a 75 year old taxpayer with taxable social security benefit of less then 24,000 but has regular distributions of about 18K. I expected line 4 to be the difference in line 3 and 24,000. but it did not populate.

 

Line 3 if the taxpayer's taxable social security on Federal return is higher then 24,000, then they would get the higher amount. Line 4 would then not populate.

 

This issue i expect would be the same for lines 5 & 6 if Married Filing Jointly with taxable social security and other retirement distributions that qualify on the Federal Tax Return.

 

I expect this issue to be a problem for a lot of Lacerte users who are based in Colorado and doing Colorado returns. Please review and correct those lines based on the DR 0104AD instructions.