This has been my first tax year using Lacerte. I believe the program is calculating itemized deductions incorrectly on the Iowa return for MFS returns. (The deductions are supposed to be prorated between spouses based on their net income, even for MFS returns.) I've challenged the calculation with Lacerte, but they come back and say the program is calculating it correctly.
Has anyone else noticed this? Thank you for your input.
Carrie
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Per Lacerte, this is a program limitation. To my knowledge, in 45 years of doing income taxes, IA has never sent any type of notice reflecting the issue. At the moment, the simplest solution to come up with the "correct" answer is manually calculating the correct %, then increasing or reducing one of the items on the split return. If IA ever sends a tax notice, I'm sure they would accept the "program" limitation issue answer once they realize the correct deduction was taken.
Thank you so much for your response. This seems crazy to me - I switched to Lacerte from Drake this year, and if Drake can do this right, I'm shocked Lacerte can't. But thank you.
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