2018 state tax refund wks calculations

Forum|Forum|6 years ago
December 7, 2019
20 replies
45 views

Is there a bug with the 2018 Individual ProSeries program calculations of taxable State tax refunds from 2017 received in 2018? My program (fully updated as of 2/6/19) reflects the refund as non-taxable when I think it should be taxable. Part II, Line 5 is showing $-0- when on my 2017 Sched A Line 5 reflected $15,608 of State Income Taxes paid and deducted. Is there a problem with the program or am I not reading something correctly?

ProSeries Professional

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Best answer by garman22

This issue was fixed several weeks ago. If you had transferred your files prior to fix, you would need to delete and re-transfer your clients. If you've worked on any clients prior, you'll need to re-transfer the ones you have not. Either that or manually make change on the worksheet.

G

garman22

Answer

Intuit Community Champion

This issue was fixed several weeks ago. If you had transferred your files prior to fix, you would need to delete and re-transfer your clients. If you've worked on any clients prior, you'll need to re-transfer the ones you have not. Either that or manually make change on the worksheet.

IntuitCharlene

Community Manager

Development is looking into this issue.

If the Income Taxes box is not checked on Line C of the State and Local Income Tax Refund Worksheet and it should have been then you would want to check that.

If you are sure the full prior year refund should be taxable this year you can skip making the manual adjustment and just check the box below line 4 for "Use this worksheet to complete taxable refund amount? - If no, skip this Smart Worksheet. Total refund from Line 1 column (b) will be reported as income."

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Accept as solution" and then just changing the Accept as solution to Mark as Best Answer, mine gets cutoff, so it is too long. I changed mine to the following and it fits. -->**Say "Thanks" by clicking the thumb icon in a post**Click "Mark as Best Answer " to mark the post that answers your question.

T

TaxPrep99

Level 3

Charlene--so what did "Development" determine when they looked into this issue?

This has caused a major problem for tax preparers and has harmed our clients who have had returns filed with erroneous state tax refund information (tax refunds that should have been taxable and were not reported as taxable). How can we log a complaint with Intuit as to how this was handled and who will be paying our clients interest and penalty that may be charged when we have to amend returns to report this income that Proseries erroneously missed?

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