Lacerte Program Changes for Massachusetts Conformity
With Massachusetts' most recent conformity to certain provisions in public law No. 119.21, Lacerte has been updated to accommodate these changes.
The following diagnostic will be introduced and will trigger when MA is included in the state inventory.
- "The state of Massachusetts enacted HB 5470 with selective conformity to OBBA provisions. New Section 179 Maximum Dollar Limitations and Threshold Costs before Reduction require changes before filing or amending this return. Please check the MA Conformity Checkbox in the Miscellaneous Screen to apply the new MA adjustments. (ref. #61991)"
When this diagnostic is present, the following input screens can be accessed to trigger the new calculations:
- Individual & Partnership - Screen 3
- Corporate - Screen 4.1
- S Corporate - Screen 3.1
Once this checkbox has been marked, the diagnostic will clear indicating the MA conformity changes have been implemented.
An additional diagnostic will also display referencing the expensing of research and experimental expenditures;
- “The state of Massachusetts enacted HB 5470 with selective conformity to OBBA provisions. The state no longer conforms to full expensing of research and experimental expenditures (IRC 174A). Any expenditures fully deducted for Federal will require adjustments using the state if different codes and must be amortized separately for the state. (ref. # xxxx)
Considerations:
Q1. What if I've already filed my return?
A1. If you have already filed, MA has recommended the return be amended to incorporate these changes. Follow the steps available in How to amend a state return in Lacerte. Once the return has been set up as an amended return, go to the applicable Miscellaneous input screen and check the box for Massachusetts conformity update (HB 5470), this will trigger the program to implement the conformity changes for MA.
Q2. What if I haven't filed my return yet?
A2. If you haven't yet filed your MA return, go to the applicable Miscellaneous input screen and check the box for Massachusetts conformity update (HB 5470), this will trigger the program to implement the conformity changes for MA.
Additional details available at Mass.gov: https://www.mass.gov/technical-information-release/tir-26-4-massachusetts-conformity-to-certain-provisions-in-public-law-no-119-21
