Montana software & Unemployment

[mtnmom2]

Not a question for the community but since Intuit doesn't offer a platform for us to alert them to issues: I'll put it out here:

INTUIT: the software (Lacerte) for Montana is NOT, I repeat, NOT calculating the adjustment for unemployment exclusion from taxable income correctly on these filing status':  SINGLE, MFJ & HOH.

It is, somehow, calculating it correctly for MFSS.  Please fix this ASAP & send an update out.

[abctax55]

You can always submit any product defects directly to tech support.

[qbteachmt]

Intuit is just now issuing the expected update dates for State issues.

You don't need to notify them; they already know and have been working on it.

[Reeciekee]

Thank heavens you posted this as I thought I was going INSANE!!!  So I'm having the same problem: Montana MFS is working beautifully.  All other statuses SUCK.  I'm doing a workaround because I'm sick & tired of waiting on Lacerte.  My clients shouldn't have to wait weeks & weeks for their tax returns.  I have not had to call support in the last few years so I just bit the bullet & called today.  SHOCKED to find out they don't offer phone support on the weekends.  This is a tax program.  We don't have weekends off during tax season.  Why do they???  Maybe it's time to change software.....

[qbteachmt]

Montana issued specific instructions if you are filing after March 12:

https://mtrevenue.gov/2021/03/17/2012-arpa-ui-exemption/

Under the American Rescue Plan Act of 2021, taxpayers who received unemployment compensation in 2020 and have a Federal Modified Adjustment Gross Income of $150,000 or less can exclude up to $10,200 of unemployment compensation from gross income. On March 12, 2021, the IRS provided guidance on how to report the exclusion of unemployment compensation on the Form 1040.  For more information, please visit the IRS website.

Unemployment compensation is never taxable in Montana. As a result:

• Taxpayers who have filed their Form 2 as of March 12, 2021 should not amend their Montana returns to report this new federal exclusion of unemployment compensation if it was already excluded on Montana Form 2.
• Taxpayers filing after March 12, 2021, must follow the revised instructions for the lines below to exclude all unemployment compensation from Montana income tax.

Instructions for Montana taxpayers filing after March 12, 2021:

Schedule 1, line 8 – Other Income

Enter the amount from Form 1040, Schedule 1, line 8, including the federal exclusion of unemployment compensation.

Additions Schedule, line 14 – Other Additions.

In addition to other Montana additions reported on this line, enter the total amount of the federal exclusion of your unemployment compensation reported on Schedule 1, line 8. Enter “UCE” in the specification box.

Subtractions Schedule, line 7 – Unemployment Compensation

Enter the unemployment compensation from Schedule 1, line 7. Do not subtract the federal exclusion of unemployment compensation from this line.

[Reeciekee]

Appreciate the instructions, qbteachmt.  Just wanted you to know that we know how it should work here in Montana so instructions on how to treat unemployment in Montana were unnecessary.  My frustration is that it is almost 3 weeks out from the law change, and we have to do a workaround, AND the fact that Lacerte does work correctly for unemployment on MFS returns but does not work on other filing statuses.  That's all.  Look forward to the update on Tuesday.  Really hoping it is correct.  If not, workaround, here we come, or I get to spend a few hours on the phone with tech support.  No reply needed. Thank you.

[qbteachmt]

"so instructions on how to treat unemployment in Montana were unnecessary."

I simply brought over the text from MT DOR. It is a way for those who are concerned to be able to see if the program has it in the right place(s) or not. That's how you would determine if an update made those entries correctly.

It's not my contribution. It's your resource.

[mtnmom2]

kindly give us directions on how to do this.  I swear I had been thru every hyperlink & can find no email link to tech support.

[mtnmom2]

So, we got 2 updates today!!! (don't get too excited, neither of them fixed the MT issue w/ unemployment or the PTC pay back issues).

An update to the MT issue w/ unemployment is entering a negative number in "other Income" (pg 3 of Form 2, line 8 which to the eye seems to correct the problem.  Until you go to e-file & then it gets rejected because of the negative number in that field. 

It would be nice if these solutions were actually tested before they were sent out.

[qbteachmt]

You should not need to do anything. The program updates have been released. You would confirm that you see what you need to see. Links:

https://proconnect.intuit.com/community/form-1099-g/help/generating-the-unemployment-compensation-ex...

https://proconnect.intuit.com/community/lacerte-tax-news-updates/discussion/american-rescue-plan-in-...

[mtnmom2]

yeah, the software had an update...... puts a negative number where the e-file function rejects the compete return.  NOT a fix.