Is there a way to override the OK 511CR and 512-S to take the entire tax credit available? Lacerte is bugged and only allowing 84%. Paper file inbound, I guess

stephen-ridenour · ‎07-31-2023

Client has a valid PTE election in place on an S-Corp. Client has established credits far exceeding the amount of Electing Pass-Through Entity Tax, but Lacerte is arbitrarily limiting credits to 84.2% of tax due on all S-Corp clients with Oklahoma state tax credits and a PTE in place. There are no statutory restrictions on the particular credit with respect to total tax or taxable income. The program is also placing the entirety of the credits on the Oklahoma SH Summary as if passing them to the shareholders, despite using some of them on the 512-S.

PhoebeRoberts · ‎08-01-2023

If it helps at all, it looks like the credit utilization is being capped at the 4% rate for entities and nonresident individuals, rather than using the actual Oklahoma tax liability calculated on the 587-PTE. I agree with you that Lacerte is doing it wrong, and I can't come up with a workaround that gets the right presentation.

I can't replicate the credits' appearance on the OK Shareholder Summary.

Lacerte doesn't support OK credits particularly well, but this is worse than the normal lack of support.

Stephen Ridenour · ‎08-01-2023

Try the Contributions to a SGO with carryover from prior year and new credits this year.