Multistate S corporation state allocation

Forum|Forum|21 days ago
August 4, 2026
2 replies
36 views

Alabama S corporation with separately stated passive dividend income entered on Form 20S Schedule B as nonbusiness income, zero allocated to Alabama. Schedule C excludes the dividends, but Lacerte continues to apportion Schedule K line 5 and include the amount on nonresident K-1 line K and Form EPT. What supported input or override removes the dividend from the Alabama apportioned amount without changing the federal Schedule K amount?

sjrcpa

Level 15

Allocation and apportionment are different. Zero in Lacerte requires “-1”. What is Alabama’s treatment for dividends? Some states allow you to allocate 100% to home state. Some say you have to apportion.

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

S

SarahAuthor

Level 3

These dividends are nonbusiness and require allocation to a different state. AL allows this with the nonbusiness amounts being reported on Schedule B. However, this input does not stop it from flowing as an apportioned item on Schedule K, Line 5, and I have been unable to find a workaround. The jump-to function doesn’t work for the apportioned column. and -1 for AL in the State if different column doesn’t work on Screen 20. State Sche K does not provide an input however, Screen 46.401 does allow an override to exclude the dividends from the K-1s. But this means the K-1s don’t add up to the Sch K for AL. Bottom line is that the dividends should not be apportioned or allocated to AL but nothing omits from Schedule K, Line 5 that I can find in Lacerte.

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