Ever since the 5/31/22 update to Lacerte, I had a diagnostic that says the Colorado sales tax refund on line 32 cannot be claimed after April 18, 2022 for tax returns with no state income tax liability or no income tax withheld. Has anyone else seen this? I don't see any reason why after 4/18 you can't claim the refund. I have it on multiple returns that are residents and have tax liability. They don't have withholding but not sure why that would matter. Thanks
I'm having the same problem. I emailed Lacerte and they say that they are correct. I disagree. If I put $1 of withholding in the return the diagnostic disappears.
I have the same issue and will call Lacerte on Monday. I looked up the actual rule on https://tax.colorado.gov/TABOR. The actual rule says "AND" but Lacerte's diagnostic says "OR". The rule says "Eligible full-year residents who do not have a Colorado income tax liability AND are not claiming a refund of wage withholding, must file a return by April 18, 2022. (This must refer to people that are otherwise not required to file.)
So, Lacerte is giving the diagnostic when either of those things occur, however the taxpayer is ineligible only if there is NO TAX LIABLITITY AND ALSO NO WITHHOLDING. Not OR.
My client is retired with oodles of investment income, no withholding and definitely has a tax liability. Should be eligible for the sales tax refund. I will post again after I talk to Lacerte. It's generally faster to call Lacerte with questions, but they are closed right now. It was difficult to locate this post.
Spoke with Lacerte this morning. They insist that the diagnostic is correct. Apparently CODR issued the wording that way to all of the software providers. The rep also let me know he has been getting lots of calls from users about this and that some returns have actually been rejected, after overriding the diagnostic.
I plan on overriding the diagnostic and also calling CODR to let them know about the "AND" on their website and the "OR" they fed to the software providers.
It is just not logical that they would intentionally omit any taxpayer without withholding from getting the sales tax refund regardless of their taxable income. I believe the intention of the 4/18 deadline was for the people that are only submitting a tax return to get the sales tax refund, but would normally not need to file. Zero tax liablity and Zero wthholding.
Hopefully others will do the same and let CODR know about the error.
TABOR refund Efile error message. So how do you override Lacerte to let the return process through Efile?
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