MN M1PR and Qualified Charitable Distribution

[CPAChris]

It appears that Charitable IRA Distributions entered on the pension screen are not flowing to the form M1PR (property return for Minnesota) as Additions to Income.  Anyone else had this issue?  I have had a property tax return audit for a client on this.  I would think it would have been an automatic flow through.  

[IRonMaN · Accepted solution]

I don't do Lacerte, so I can't answer that part of the question, but for what it's worth, it isn't an automatic addback in ProSeries either.

[TaxLadyTerri]

Lacerte is seriously lacking on the M1PR return. Yes, you have to manually add back the QCD from an IRA.  Screen 53, MN Household Income, Additional Income line.

I also have to fake out the form when someone has an annuity withdrawal with their contributions listed in box 5 on form 1099-R.  Lacerte includes the total withdrawal on M1PR, not the taxable amount. So my work around is to enter in the after-tax contribution on the line that says “gross distribution from 1035 exchange”.  This way, that amount doesn’t show up in income and I have the 1099-R to back up what I did.  I used to be able to enter a negative number with the explanation, but no more.  When I checked with MN Revenue, they said the software was wrong and it should be changed. I didn’t bother to do that as Lacerte doesn’t listen and is hard to reach. Maybe they should have a Minnesota preparer assist the software developers with their forms.  Just saying!

[sjrcpa]

Intuit doesn't learn.

Remember the year that MN stopped accepting tax returns from Intuit until they fixed the errors?

[IRonMaN]

Some of us remember that year quite well🤢

[CPAChris]

The software is so expensive and the last few years I think it has had some issues.  I've used it for 20 years, but I think every year of switching!

[IRonMaN]

"but I think every year of switching"

I think just about every Intuit software user thinks the same thing.  But then again, I'm guessing a lot of the users of other software have the same thoughts.  Everybody is looking for nirvana in tax software but I don't know that anybody has yet found the perfect coexistence of price vs software performance quite yet.

[TaxLadyTerri]

After 20+ years using Lacerte and getting beyond retirement age, I'm not about to learn new software.  As the cost of Lacerte increases, so do my fees.