UltraTax has two codes for calculating the amount a taxpayer can/will contribute to their IRA. Similar to Lacerte, one can calculate the maximum amount that can be contributed but that includes amounts that would be nondeductible under certain circumstances. The second option in UT calculates and limits the contribution to the amount that is deductible. Since many clients only want to contribute the amount that is tax deductible, the latter option makes it is easy and straightforward way to advise the client how much to contribute, no matter how often other amounts in the return change that could impact the calculation. It also avoids having to change the input screen once the final deductible contribution amount is determined to avoid an 8606 from getting generated. Is there a workaround to having Lacerte show only the deductible amount as the contribution?
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Enter. View. Remove excess amount. Done.
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