Steven N
Level 2
02-02-2026
05:21 PM
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I also have contacted Lacerte about this. To work around it I use Schedule K line 22, Other Schedule K Items. Under "Deductions" on the last line it lets you put in numbers for federal and state only. I use code ZZ and put in the both the FTB and the Pass Thru Entity taxes there so they are only deducted on the federal return. The drawback is that it is it puts it on Line 13 on the K-1. You could flip this and deduct it on both and add it back for state purposes under miscellaneous deductions . I do not think this is actually a Lacerte issue. I think it's the way the 8825 was designed.