Is the Montana IRA distribution data entry screen functional for part year resident IRA distributions received?

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The Montana IRA income is allocated by period of residency opposed to the AZ (state moved to) treatment of date and amount of actual distributions. This results in an over-reporting of IRA income on the state returns. Is this fixable by modifying the data entry or is it a software problem?

Lacerte Tax

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George4TacksAnswer

Level 15

For the taxable portion use Ctrl+E to open a detail to split between the two states

Answers are easy. Questions are hard!

George4TacksAnswer

Level 15

For the taxable portion use Ctrl+E to open a detail to split between the two states

Answers are easy. Questions are hard!

K

kalo5asmiAuthor

Level 3

Thank you but that doesn't seem to affect the result. To elaborate, client has $113,150 in taxable IRA distributions--$67,600 in MT and $45,550 in AZ all coded by state in screen 13.1. Lacerte apportions $75,433 to MT based on 8/12ths period of residency--.66666667 whereas AZ receives $45,550 based on the state entry coding. This inconsistency results in an overstatement of $7,833 of pension income on the state returns. I want Lacerte to include MT income by state coding on screen 13.1 not by using some formula allocation.

qbteachmt

Level 15

I found the wording and stand corrected, that IRA is treated differently than lottery winnings:

"Line 9 – Montana Source IRA, Pensions and Annuities
If you are a nonresident, the IRA distributions, pensions and annuities that you reported on Form 2, line 4b, is not Montana source income and is not taxable to Montana.
If you are a part-year resident, enter all the taxable IRA distributions, pensions and annuities included in your total on Form 2, line 4b, received during the part of the year that you were a resident."

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George4Tacks

Level 15

Now - How to get Lacerte to do that.

Answers are easy. Questions are hard!

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