I'm getting this same diagnostic even though I've allocated EVERY income & expense item on both the federal & state special allocation sheets & the CA K1s are correct (the income items on the ordinary income on CA is higher than federal by each partners share of the PTET).

Why can't Lacerte fix these stupid diagnostics even after you do what it tells you to do.

But then I've found this to be a sloppy program.  I don't think they are doing any material investing in it anymore, they are trying to force everyone to go to their online version.