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Under SECURE 2.0 Act (Section 117), eligible small employers with 25 or fewer employees automatically qualify for a 10% increase in elective deferral limits. For tax year 2025, the standard SIMPLE IRA limit is $16,500, but for eligible small employers, the limit is $17,600 for taxpayers under age 50. My Case: Tax Year: 2025 Taxpayer: Age under 50 Employer: 25 or fewer employees (eligible under SECURE 2.0) W-2 408(p) Deferral: $17,600 (the fully permissible 2025 limit for this employer sizeIssue: The software is evaluating the W-2 against the standard $16,500 threshold instead of applying the SECURE 2.0 $17,600 limit. As a result, it triggers Critical Diagnostic Ref #7862, flagging an excess salary deferral of $1,100 ($17,600 – $16,500) and attempting to add it to taxable wages on Form 1040.Since this is a valid contribution under current law, how can we suppress or clear this diagnostic without incorrectly increasing Schedule 1 / Form 1040 wages, or is a program update scheduled t

I’ve tried fiddling with this and even tried using Gemini and so far no luck. maybe some whiz kid here can help. Here are the basic facts.Client is MFJ, part year resident NY and GA. The GA residence was only 2 weeks in 2025. I was inclined to just do a full year NY resident return, but spouse has GA wages for the time they lived there. Client has $113k NOL that is 100% originating from NY; there is no connection to GA. I understand that GA makes you add back the NOL as positive income, but from what I’ve read, it shouldn’t add the full amount back in excess of positive income to create a much bigger GA AGI. However, the program keeps creating an adjustment for the full amount, which creates income over $60k when GA wages were only $2793. Now it appears client owes $5200 even after the income ratio is calculated. I’ve tried allocating income both on Schedule 3, in the Income/Retirement worksheet, and using some combo of both, and no matter what I do, I either have an error saying entri

Is there a limit on the number of w-2G entries in Lacerte.  I have a client with an estimated 690 W-2G’s.

I have a client returns from 2024 and 2025 which the state of Maryland is refusing to issue the refund and it appears to be with how the software is handling the non-resident income. The Customer is a VA resident but had one W2 from MD. State of VA taxes all the income hence I filed a non-resident return for MD. Apparently it had to be a paper return because when I check the box which says not required to file, It doesn’t let me e-file however the refund is denied saying there is no MD income on the filed MD return. Looks like checking that box zeros out MD income making it possible for a full refund to be issued for taxes withheld. I need to file an amendment to get the customer’s refund- I’ve done it before and didn’t get good results hence I believe I’m not doing something right. ProConnect support hasn’t been helpful either. Has anyone been through this or have any idea on how I can effectively file this to get the customer’s refund approved?

Hello, everyone. I have a question regarding a partnership owned 50/50 by a married couple.The husband participates in an employer-sponsored 401(k) plan through Amazon. The wife does not have another 401(k) plan, and a $12,000 contribution was made to a Solo 401(k) on her behalf.When I enter the $12,000 contribution on pages 5–6 of Form 1065 in ProSeries, the program automatically allocates $6,000 to each partner’s Schedule K-1. However, the entire $12,000 should be reported only on the wife’s Schedule K-1 in Box 13, Code R.How can I specially allocate the entire $12,000 contribution to the wife’s Schedule K-1 instead of having ProSeries divide it equally between the two partners?

Case: The taxpayer formed a single-member LLC (SMLLC) in Delaware and previously lived in Delaware. In early 2026, he moved to California and became a California resident. He does not want to close the Delaware SMLLC and intends to continue operating the online business and selling products through the Delaware LLC while living and working in California.My question is: What steps does the taxpayer need to take in California with respect to the Delaware SMLLC? Specifically, does the Delaware SMLLC need to register as a foreign LLC in California, and would it be subject to California's $800 annual LLC tax and any other California filing or tax requirements?Thank you so much!

S Corp sold sec. 179 assets with gain from sec. 179 recapture. The recapture amount is not appearing on the 1120S 199A Statement.Will the sec. 179 recapture gain be reported on the individual shareholder’s 1040? If so, where is the amount entered on the 1040 QBI statement? There doesn’t seem to be a line for the gain.Thank you.

I’m working on a family’s tax returns.  Grandpa died and left some IRA to his kids (2) and grandkids (4).  There was basis in the IRA.One grandkid’s tax return came out just as I expected.  I entered basis in the IRA and the 12/31/25 value.  Form 8606 calculated the nontaxable portion of the 2025 distribution.  The other five tax returns I entered the same information, but not Form 8606 is not being generated and the whole beneficiary IRA distribution is being taxed.Nobody has their own traditional IRA. All of the grandkids are claimed as dependents on their parents tax return.  I’m pretty sure I entered the information the same way in each return--using the IRA info worksheet and can’t figure out what’s going on.  Help!

Is there a way to turn off the 453A(c) information footnote that prints on Form 1065 K-1s? My partnership has a special allocation of the capital gain among the partners from the installment sale . So the capital gain generated by the 453A(c) footnote is not accurate as it does not take into account the specially allocated capital gain.

I have a number of clients which are due large refunds.They have received NOTICE CP 05 from the IRS. They have provided their identification informat. It has been well over 60 Days but still no refund.Any idea whom I could contact ? Has anyone else experienced this issue ? Thanks,

I have almost completed filing all my clients FY25 taxes on either Pro or Basic (my Primary) license.I would like to create a copy on a separate computer as a backup. I already have Pro Series Basic and Pro installed on the second computer but have not populated the client information.Which files from the original computer do i need to copy over to the backup computer? I have backups of all completed returns stored in PDF on a secured external drive.Thanks.  

Pro Series Basic will not print a 2025 tax form.  Shows an error message of 4-0.  I did buy a new computer since 2025 tax season was complete.

I had to change computers and individual returns for which I efiled 4868 do not show extension as accepted.

In the past, TP rented out home and created passive loss carryovers.  This year, they moved into the home BUT rented out a room 100% of the year (so falling under the vacation home rules).  I’ve got most everything working properly EXCEPT that Lacerte is allowing the prior passive losses to offset the current income renting the room generated.  I am getting a diagnostic telling me that the passive activity rules do not apply this year, instead it’s the vacation home rules -- great, we agree.  What I cannot figure out is how to not show the income on the 8582 BUT still show the prior year losses, which I believe is appropriate.  I’ve tried reporting as a nonpassive activity (which seems the most appropriate since that indeed is the case here, but that doesn’t seem to have any effect, even though that’s what it’s supposed to do).  I’ve got number days rented and number personal use days both at 365 -- since they are renting a room this is correct.  Anyone have any thoughts?  I’d apprecia

Where to input an ERC Refund in 2024 Corporate tax input in Lacerte

I am an MSP that is working with a client that uses QB, Lacerte, DMS. At current, working with the DMS Archiving function. Selections were made for archiving. In the status window it displays the archiving status. Many clients / folders are not being archive. Status: Not Archived [Folder Locked]. I understand that relates to the Client folder having a password. My question here, is there a bulk operation that can be used to remove the password or disable the protection for these clients that are protected. I hope that this does not need to be done individually. Thanks

I filed a 2025 return for a married couple filing each as married filing separatelyI filed the wife with itemized deductions. I then completed the husbands with itemized  deduction information .But accidentally on April 15th I filed it with .a standard deduction.After receiving a letter disallowing from New York disallowing the inconsistency in claiming different deductions.I filed an amended Federal and New York return for the husband with the additional payment required.New York continues to claim both both husband and wife must file with the standard deduction.The wife has significant deductions and the net tax is less if they file MFS.Should I re file ?  

Can I run a single licensed products  under my username and password on two of my laptops on would serve as back up?Thanks

All Posts, read and unread, are the same color.  How do we know what we have read and what is new?

how can I fill out the 15f, 16b1 16c, 16e, and 16f of the Form-8621, Part V in Proconnect?

Can you file a 1040 now and the state return later? 

I already filed a 1040x for a client; but now need to amend the return again. How do I get the ProSeries software to allow me to file it electronically? 

Taxpayer receives both income and carried interest on form K1.  For purposes of Schedule 1, the carry is treated as capital gains.  But for purposes of form 461, Limitation on Business losses,  the carried interest should be treated as income on line 5.  This seems impossible t do in Lacerte, where the input for 461 comes directly from Schedule 1.  Anyone know a way around this?  Customer service has no answers and no one seems to care, which pretty much eliminates Lacerte as a software for dealing with finance.  Any other programs that might do this?

Case: I am preparing an amended Virginia Form 760PY because the taxpayer forgot to report interest income from a Treasury bond (Form 1099-INT). When I prepare the amended Virginia return, the net tax change is $0, and the amended return still shows the original $4,000 refund from the previously filed Virginia tax return.Question: Is there a place on the amended return to indicate that the taxpayer has already received the refund from the original return? I'm concerned that the amended return still displays the same refund amount, and I'm not sure whether this could cause any issues when the Virginia Department of Taxation reviews the amended return.Thank you for your help!

Case: I helped a married couple file their 2025 individual income tax return this year. They filed as Married Filing Jointly (MFJ). The husband lived in Washington state for all of 2025. The wife lived in Virginia from January 1, 2025, through January 26, 2025, and then moved to WA to live with her husband for the remainder of the year.For their original state returns, I filed a Virginia Part-Year Resident Return (Form 760PY) using the following residency periods:Husband: 1/1/2025–1/1/2025 (to satisfy the software requirement that both spouses appear on the joint federal return) Wife: 1/1/2025–1/26/2025The wife recently informed me that she forgot to provide a Form 1099 issued by the Department of the Treasury. They would now like to file an amended return to report this additional interest income.The Form 1099 contains the following information:Date: 12/19/2025 Description of security: IAAAA Series I Savings Bond Box 3 – Interest on U.S. Savings Bonds and Treasury Obligations: $1,900M