Maine Rejection due to Schedule 1, Line 2(i) "Other."

[tylerseiferheld]

Nearly impossible to trace back to what the "other subtraction" could be. Lacerte is generating the description as "K-1 Adjustment" but not allowing me to drill down to find the adjustment. Maine wants a more descriptive explaination before they will accept the tax return. Ideas on what it could be?

[PhoebeRoberts · Accepted solution]

Is the adjustment material to the return? If so, how have you reached the conclusion that the Maine return was prepared correctly? Particularly on complex returns for less-popular states, Lacerte does not always reach the right conclusion, and it reaches the right presentation even less often. "K-1 adjustment" that can't be easily tracked down usually means there's something really obscure that Lacerte is even less likely to get right. 

The easy way to get that presentation on the return is to make an entry into the State If Different column on the K-1 input, but I'm assuming you'd have been able to track that down.

Looking at the Maine return, with which I have zero previous experience, my guess is that it's bonus depreciation related, but you really need to figure out what the right answer is and then force Lacerte to do that.

If it's not material to the return, or you've handled the appropriate adjustment elsehow, set up a dummy K-1, and enter the amount you want to get rid of as a positive in the State if Different column as the only entry on that screen.

[PhoebeRoberts]

For instance, do you have an asset treated as UPE, linked to a K-1, on which you took bonus depreciation?

[IRonMaN]

I don't know that there are a lot of Maine users visiting this place so it might be faster if you try giving support a call.