wap2412
Level 2
‎03-19-2024 06:31 PM

I need to know if Lacerte is handling Trust state income tax refunds correctly. I have a client that is being taxed on over $30,000 of state tax refund even though they only were able to deduct $10,000 of state income tax in the prior year on the form 1041.

0 Cheers
Reply
sjrcpa
Level 15
‎03-19-2024 08:02 PM

No they are not handling it correctly. Don't you have a Diagnostic saying they are not applying the tax benefit rule?


The more I know the more I don’t know.
Reply
wap2412
Level 2
‎03-19-2024 08:43 PM

Thanks 

I will check that in the morning 

Reply
wap2412
Level 2
‎03-20-2024 07:15 AM

I do not have that diagnostic.

William

0 Cheers
Reply
sjrcpa
Level 15
‎03-20-2024 09:14 AM

You'll need to apply the tax benefit rule and manually calculate the taxable refund amount, if any.


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