Why is the software automatically putting a 1 in the box for "disaster related to Coronavirus" in the 2020 Qualified Disaster Distributions for Pg 13.1 Pension and IRA distributions????? This isn't something that was entered in 2020 and yet it is in 2021

[Heather-Consultax]

Why is the software automatically putting a 1 in the box for "disaster related to Coronavirus" in the 2020 Qualified Disaster Distributions for Pg 13.1 Pension and IRA distributions????? This isn't something that was entered in 2020 and yet it appears in 2021.  These were not classified as disaster distributions in 2020.  On one client a 2 was enter in that box, which isn't even an option.   It isn't happening on every client, but on most.  I cannot find any correlation as to who has this issue and who doesn't.

HELP!!!!!

Has anyone else noticed this??

[George4Tacks]

When did you do your proforma? If it was recently, contact support. If it has been a month or more ago, you likely should delete at least that client and try the proforma again. If it goes through correctly, then I would delete every 2021 return you have not yet touched and do the proforma again. You can proforma all and the program will prompt you as to whether to overwrite existing returns. 

Early issue of the organizer and proforma are notorious for having errors. 

[Heather-Consultax]

I did my Proforma two weeks ago.  This morning I updated my program and brought some clients forward to 2021 again, and the issue has not gone away.  I've already accidentally e-filed a client with the code in place and I have no idea what that is doing on the return or what it is telling IRS.  This is so frustrating.  I do not want to do beta testing during tax season.  And I'm not new to Lacerte, we've been using this software since it's inception, my client number is 591 for goodness sake. UGH!!!!

[George4Tacks]

Curious George wants to know - Do these clients have zip codes that might be in a disaster area? What state? 

I just reviewed my California returns and I don't see any with this problem. I know the wretched feeling of being a subject of what seems to be a severe programming issue. Maybe @IntuitGabi can get someone to contact you and figure out what happened.

[George4Tacks]

I think it might be some extra input from the latest update!!

On closer inspection I found by using Batch Input, Screen 13.1, code 1359 (Taxpayer) has a 2 and 1459 (Spouse) has a 1. 

This is for the new 8915 F and the form is now being added to the return, just those ugly codes. 

[Heather-Consultax]

It's nutty.  It inserted this code with either a 1, 2 or 3 for every client and some spouses that had a 1099R last year.  The majority of my clients are in southern California.  I only filed 3 returns that had any disaster distributions in 2020 and I'm finding this code in every client record.  One more thng to clean up

[Heather-Consultax]

No it did not.  Just one more thing I'll need to make sure gets deleted prior to filing.  After looking at it a bit closer I'm hopeful that it pertains directly to Form 8915 and doesn't show up anywhere else.  Fingers crossed!  Thanks for the input George!!

[George4Tacks]

I THINK that the 1, 2 or 3 is really a counter (of sorts) for the number of 1099R forms that are apparently not affected by this nutty stuff.

[bob4]

We just discovered this morning that if something other than a 1 is in the field, Lacerte is NOT bringing the deferred amount from 2020 into the taxable income for 2021.  Agreed - no time for beta testing during tax season!  I don't recall seeing a notice that this field pro forma'd incorrectly.  I kinda rely on these guys to get it right...