Critical Diagnostic #55438

[moorecpa]

This critical diagnostic appeared today:

"Georgia adjustments related to non-taxable unemployment compensation allowed under the American Rescue Plan are currently under development.  Verify the accuracy of the return and make state adjustments if necessary before filing the return. [ref. #55438]."

Can anyone point me to what is "under development" in Georgia in regards to this?  Does anyone know if Georgia is going to not conform and force a state adjustment (addition)?

[TylorValdez1]

Georgia does not conform to the federal exclusion. The Lacerte Georgia program has not been updated to addback the federal exclusion amount but will be in the future.

[rambem]

I'm pretty sure that the same diagnostic comes up for all of the states.  I'm in SC and they say that unemployment taxable on the Federal return is taxable to SC.  I've been able to file returns that have this critical diagnostic.  I've seen a couple of other state address the issue directly and have been able to file those as well.  You may want to check GA and see how unemployment is taxed or if they've announced guidance.

[Duane Miller]

We are getting the same critical diagnostic for PA returns, even though unemployment compensation has never been taxable to PA.

[TylorValdez1]

Diagnostic ref. 55435

The following diagnostic will generate on returns with unemployment compensation when this box isn't checked:

The American Rescue Plan, enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020 for returns with modified adjusted gross income (MAGI) less than $150,000. If married, each spouse receiving unemployment compensation gets the exclusion. To apply this provision, check the "Apply the American Rescue Plan Act provisions" checkbox in the Miscellaneous input screen. (ref. #55435)

To clear this diagnostic on returns not yet filed:

1. Go to Screen 3, Miscellaneous Information.
2. Scroll down to the Miscellaneous section.
3. Check the box labeled Apply the American Rescue Plan Act provisions.

We will turn off each state's diagnostic as soon as development of automatic calculations for that state is complete.

[NJTaxman2019]

I could not file with the critical diagnostic so my workaround was to check the box in screen 3 to Apply the American Rescue Plan.  The I efiled Federal only.  Then unchecked the box and efiled PA.

[rgvafp]

TylorValdez1:  When will Lacerte be updated to add back UCE?  At the very least the program should NOT be prohibiting e-file (which is what occurred after yesterday's update) while Intuit Tech Support figures this out. 

[TylorValdez1]

We will update the following article as we add the changes for different states.

https://proconnect.intuit.com/community/lacerte-tax-news-updates/discussion/state-unemployment-relea...

[KarenT]

That used to work, but now for some reason it isn't working anymore.  I've made the adjustment myself on the Kentucky return and added back the unemployment.  I just need a workaround so that I can efile the return.

[TylorValdez1]

@moorecpa GA UCE is not in the program version 41.0406. Please update Lacerte to include the calculation.

[MrsFrazier]

I'm in KY and I just efiled a return with the same diagnostic by disabling the e-file error checking function.  It's under e-file support tools.  You just click on "disable e-file error" and then say "yes" to the prompt.  So far, it's e-filed fine.   

[Claymore]

Is there a work around for the District of Columbia? Same error message.