Individual Mississippi Nonresident Return - Program Change

[IntuitAlicia]

Individual Mississippi Form 1040 corrections will be included in a Lacerte program update release June 28, 2023 (Version 43.0628).

This change impacts the following return types:

• Nonresidents filing on form 80-205 with a deduction for Self-Employment taxes (80-205/page 2/line 62)

Lacerte was incorrectly computing the amount of self-employment deduction for Mississippi purposes, which could result in a lower deduction than allowed.

To Engage the Updated Calculations:

1. Go to Screen 51.301, Mississippi Modifications
2. Locate the Adjustments to Gross Income section
3. Check the box for Recalculate MS self-employment deduction

This checkbox will allow you to;

• Update the calculation for newly filed returns
• Review calculation differences on previously filed returns to determine whether or not an amendment is needed
• Maintain the original calculations on any previously filed returns

The following diagnostic will also generate when the MS amount on line 62 is incorrect. This diagnostic will take you to the checkbox:

Form 80-205, page 2, line 62: The self-employment deduction in the Mississippi source column is incorrect. Correct this by checking the "Recalculate MS self-employment tax deduction" box at the bottom of the Adjustments to Gross Income section of the Mississippi Modifications screen. (ref. #58921

E-File Details:

• Returns that were previously filed and accepted can be amended. 
• Returns that were previously filed and still in process, will be held and rejected once the release is live.
• Returns transmitted on the older version will be blocked, requiring a program update to e-file on the most current version.

[IntuitAlicia · Accepted solution]

For more Lacerte News and Updates, click here.