Re: I have a client that gets spousal retirement compensation on a W2 annually. The amount is in box 1 and also box 11. It is taxable. Lacerte is backing out to 0

loricpa100 · ‎10-12-2023

I have been inputting the same for a decade. This year it is backing it out as a non qualified plan and making it zero taxable. I do not agree and cannot find where / how to override this automated subtraction on the W2 worksheet. I have deleted and reinput the W2 to no avail

BobKamman · ‎10-12-2023

Is it putting it somewhere else, like as a pension? Is this from a deferred compensation plan? I had a client a few years ago with one of those and IRS kept insisting he qualified for EIC. So maybe now they want it shown differently.

loricpa100 · ‎10-12-2023

Called Lacerte. The 1040 Sch 1 was revamped (thank you IRS) and now line 1 is blank and it is reflected on Sch 1, Line 8t

Posting this for anyone else who may have an issue. Thanks for trying to help!

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sjrcpa · ‎10-12-2023

Reading the instructions and looking at the return would have saved you that call.

Just sayin.

The more I know the more I don’t know.

loricpa100 · ‎10-12-2023

Um, has been the same for over a decade with this client on location and Lacerte input. As I do not have many clients with the new Line 8 items, the instructions were not top of mind. Yet thank you for pointing out what seems obvious after the fact. Happy tax season to you!

sjrcpa · ‎10-12-2023

Same to you.

The more I know the more I don’t know.