Programming causes material error on PA state returns gross income Line 1 calculation

[amy58]

The issue: PA state returns Line 1a Gross compensation begins with W2 Box 16 State Wages. PA income tax rules say that employees are taxed on all taxable compensation so the PA wages "should" equal Medicare Wages. If they do not, the taxpayer must complete PA Schedule W2 Reconciliation to identify the differences between the PA wages and Medicare Wages.

ProConnect has a checkbox on the W2 input screen to prompt PA W2 Reconciliation to calculate along with entry boxes.

The issue: If a taxpayer has imputed taxable income from group life insurance in Box 12 the amount carries to Schedule W2 RW. However, Line 12 of W2 Reconciliation does not complete the calculations in columns b and c for the totals. Therefore, these amounts are not considered in the calculation of PA Line 1 Gross Income. The income amount will be too high and the taxpayer will pay unnecessary tax. This deficiency violates preparers Circular 230 due diligence rules.

The correction: Please correct the programming so the PA W2 Reconcilation worksheet calculates properly and is referenced by PA 40 Line 1a. Currently when checking the return the return "suggests' that this be corrected but users have no way to do this.