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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

Taxpayer and spouse currently live in NJ. Taxpayer is military and began service in PA. Uses PA as his designated home state. Met spouse in PA. Moved to NJ for spouse’s new employment. Spouse only had NJ tax withheld. PA & NJ are tax reciprocal states. What boxes need to be checked in NJ return to show no income or tax in order to get withholding refunded? All income needs to be reported on PA return. I’m assuming that I file a NJ non-resident because of PA military residence. How do I get NJ to exclude both incomes so that no tax is due and all withholding is refunded? I also assume that there is no way that the refund can be applied to PA. That would be total wishful thinking.Thank you Community!

Does Lacerte take recommendations for activity leading up to the spring tax season?Every year my most stressful period is from the last week of January to the third week of February, not because of clients or tax laws; but because I have to check every day for forms to be ready for e-filing. Eventually they become available and practitioners complain along with me on message boards while we wait. Other practitioners who use ProConnect and ProSeries report having forms and e-filing available weeks ahead of Lacerte. And when we ask, its usually pointed out that Lacerte has to wait for approval from the government to be able to submit filings, but don’t the other software need approval as well - why can’t Lacerte be the one ahead? I guess my question is can we, as Lacerte customers, ask Lacerte to be ready a few weeks earlier than it usually is to allow for less stressful tax season? Is there something we can do to have the software ready to file sooner? Are Proconnect and ProSeries filin

I have a self-employed overseas client who is filing with his Foreign Tax Credit (not the 2555, which doesn’t allow the refundable CTC) so he should be entitled to the refundable portion of the child tax credit.When I exclude the Self employment tax on Form SE (due to Totalization Certificate of Coverage I am attaching) it wipes out the refundable Child Tax Credit refund. He only has $70k income, so is well below the threshold. How do I get it to allow the refundable tax credit without a manual override, which would necessitate a paper file and possibly a review? Prior tax preparers for the last several years have gotten him this refund but ProSeries is not allowing it.Is there anything I can do to restore the refund?Thanks for any advice!

Working on a 2024 return and had to show “active” participation for the program to allow losses in excess of total rental income for two short term rentals  It appears from research that the correct choice is “material”, but that choice will not allow the losses

Hi everyone,I have a new client who has e-filed an extension Form 4868 with FreeTax USA. How do I handle the existing extension when preparing his 2025 tax return? Do I attach a .pdf?Thank you!!

Looking for resources to help you through Form 5500 deadline? We've got you covered. 💡 To make filing a little easier, we've gathered our most frequently used Lacerte Form 5500 resources in one place. Whether you're generating returns or extensions, troubleshooting signature requests, or looking for answers to common Form 5500 questions, you'll find quick access to the guidance you need.📚 Explore Hot Topics for Form 5500 here

We're aware of an issue affecting sign-in to Intuit products, including EasyACCT.Customers attempting to sign in may see the following message:"There's an issue on our end. We're on it."Our teams are actively investigating and working to restore service as quickly as possible. We apologize for the inconvenience and appreciate your patience while we resolve this issue. We'll provide additional updates as soon as more information is available.

We're aware of an issue affecting sign-in to Intuit products, including ProSeries Tax.Customers attempting to sign in may see the following message:"There's an issue on our end. We're on it."Our teams are actively investigating and working to restore service as quickly as possible. We apologize for the inconvenience and appreciate your patience while we resolve this issue. We'll provide additional updates as soon as more information is available.

We're aware of an issue affecting sign-in to Intuit products, including ProConnect Tax.Customers attempting to sign in may see the following message:"There's an issue on our end. We're on it."Our teams are actively investigating and working to restore service as quickly as possible. We apologize for the inconvenience and appreciate your patience while we resolve this issue. We'll provide additional updates as soon as more information is available.

We're aware of an issue affecting sign-in to Intuit products, including Lacerte Tax.Customers attempting to sign in may see the following message:"There's an issue on our end. We're on it."Our teams are actively investigating and working to restore service as quickly as possible. We apologize for the inconvenience and appreciate your patience while we resolve this issue. We'll provide additional updates as soon as more information is available.

Hello, I get the following error message for an individual 2025 Illinois return, “The Preparer FEIN is required for e-file.” I am a sole proprietor and do not have a firm employer identification number. In the firm/preparer section under Options, I left the firm EIN field blank and checked self-employed in my preparer section with SSN entered. Is this a glitch or am I missing something? Thank  you.

I have a partnership client who made charitable donations in 2025.  I am trying to figure out how to get this on the partners K-1’s.  Schedule K is in balance,  My return is showing M-1 out of balance by the exact amount of the giving total ($568). Schedule M-2 I can’t figure out how to get rid of the error.  Where do I go from here? 

I’m doing a 2023 1120. Filing federal and MA state. I’m getting a critical diagnostic that says balance sheet is off for MA. The difference is that the net assets being depreciated are not carrying to the MA balance sheet. I don’t know why. Is there a state input I need to make separate from the federal balance sheet entries?

I’ve watched a few videos about Intuit Tax Advisor and it always shows numbers for the columns on the Clients list page. For some reason, my page only shows XXXXX for all the columns. It would be nice to see the potential tax savings without having to start a plan for the client. I’m using ProConnect, and I’m able to make plans in Intuit Tax Advisor without any issues. I just can’t see any numbers until I start a plan. The training videos show numbers instead of XXXXX. If anyone has a solution that will show the numbers, I’d love to hear it. I’ve include a screenshot to show what I’m seeing. Thanks in advance for anyone who helps out. 

Hi all!I’m pretty stumped on this question, and I was hoping y’all could help me navigate it: My is a California resident and a shareholder in a multiple person S-Corp based in Montana. On the federal K-1 issued by the S-Corp, the Ordinary Business Income amount (i.e. box 1) is $53,114. On the the California K-1 issued, I have four boxes with figures for Ordinary Business Income: Box b (amount from federal k-1): $53,114  Box c (California adjustments) $315 Box d (total amounts using California law): $53,429 Box e (California source amounts and credits): $14,548 My question is, when inputting the source amounts in Proconnect, what should I use for CA Source Income?  Should I be inputting “box e: California source amounts and credits” as California source income? Or do I report “Box d: total amounts using California law” (or maybe it’s a different amount?)? I’m under the impression that I should be reporting the “box d” amount, since my client is a California resident and I believe CA ta

Hello Community,I have a quesion regarding one of my clients vacant not available for rent rental property.About four years ago my client got tired of dealing with tenants and took her rental property off of the rental market and it is not available for rent.  In the past four years she has spent about $30,000 in property taxes, auto mileage, insurance and repairs.  In the past if my mind serves me correctly I have capitalized all of these expenditures and if she starts to rent the property I will begin to depreciate these exepenses.  If she decides to sell I will add to basis of property.I have done some recent research and found that some of the research says outside of taking an itemized deduction for property taxes and if she had any mortage interest the rest of the costs are non recoverable carrying charges.  Possibly only if her repairs were big items that were improvements in nature could be added to the basis.I would like to know what would the people in the community do in thi

Dear tax community members, I have a big question.I have a new client who has over $105K NOLs from 2019 & 2020  that his  CPA failed to carryback under CARES Act. The client could really use it to offset taxes from prior years. Based on his  2020 tax return, the NOLs were  carried forward - there was no 1045 with that return - does that mean the CPA elected to waive carrying back the NOLs?   If so can the election be revoked?I plan to amend  his 2014 - 2018 returns to claim the NOLs and  amend 2019- 2020 returns  to carry them back. By domino effect, it would offset a pending $35K tax liability from a previous year and trigger a refund For what I read, time has expired to use 1045 , but F1045- Schd B (p.4) should be used to amend 2020 and carryback the NOLs, do you agree?I intend to prepare a nice paper package for the IRS with cover letter and calculation summary, and copies of all the tax returns  with matching amended returns … with a bow on it.  Are there other forms I should i

In 2025, salaried client worked in California for a company for 1 month and then was transferred and moved to  Washington state. Her W2 erroneously showed 50% of her income attributed to California. When her payroll dept was notified, they overstated her income for California, they issued a corrected W2, showing her California income and state tax withheld at roughly 1/12th of her salary.Meanwhile, her paycheck stubs show her California income and withheld tax at equal to the first W2 so the reissued W2 might have the correct income for California but the withheld tax is considerably lower than the check stubs show. The company payroll dept is refusing to reissue another W2.How should I proceed with this?Thanks!

I want to input 25.26.27 in form 8938 repeatedly. It take too long to input. Is there any repeat function in Tax pro Basic?

Are there any REP charges for past tax years (2014-2020) ?Thank you!

Case: I am preparing a 2025 individual tax return. The taxpayer received a 2025 Virginia Schedule VK-1 that reports the following:Virginia Addition – Line 10: Net income tax or other tax used as a deduction in determining taxable income — $6,500 Virginia Subtraction – Line 14: Conformity – depreciation — $1,400Question:   When I enter these two items in ProConnect under the "State, if Different" input screen, the Virginia return only shows the net amount of $5,100 ($6,500 − $1,400) on Form 760, Line 2 (Additions).However, I expected the return to show:$6,500 on Line 2 (Additions), and $1,400 on Line 7 (Subtractions).Has anyone encountered this issue? Is there a way to have the addition and subtraction reported separately on the Virginia return without preventing the return from being e-filed?Thank you very much!

Case:  The taxpayer received four Schedule K-1s related to stock sales during 2025. On two of the K-1s, the "Type of Entity of This Partner" field is listed as "Individual," while on the other two K-1s, it is listed as "Roth IRA."I am unsure how to report these K-1s, as they appear to be related to stock investments rather than direct business ownership. Specifically, I have the following two questions:The taxpayer also received a standard Form 1099-B from his brokerage account reporting stock sales. Is there any overlap between the information reported on Form 1099-B and the Schedule K-1s received from these investments? In other words, since the stock transactions have already been reported on Form 1099-B, do the schedule K-1s still need to be reported on the taxpayer's 2025 individual income tax return?How should the two Schedule K-1s that list "Roth IRA" as the partner type (Part II, Line I1) be handled on the individual income tax return? Should these Roth IRA-related K-1s be disr