57344

The following diagnostic is generating:

The Colorado sales tax refund on Form DR 0104, line 32 cannot be claimed after April 18, 2022 for the tax returns with no state income tax liability (Form DR 0104, line 11) and no income tax withheld (Form DR 0104, line 18). To suppress the state sales tax refund calculation, select the box "Taxpayer not eligible to claim state sales tax refund" in the Miscellaneous Information/Direct Deposit screen, under the Colorado Miscellaneous section.

 

Solution:

1) Go into screen 3, Miscellaneous.

2) Scroll to the "Colorado Miscellaneous" section.

3) Check the box "Taxpayer not eligible to claim state sales tax refund". This will suppress the sales tax amount refund on line 32.

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Peaches
‎07-11-2022 04:12 PM
‎07-11-2022 04:12 PM

I have reported to Lacerte that this diagnostic is incorrect.  See tax.colorado.gov/TABOR

The actual rule says "AND" but the diagnostic says "OR".

Under "How the 2021 TABOR Surplus Will Be Refunded", 2nd bullet point, "Eligible full-year residents who do not have a Colorado income tax liability AND are not claiming a refund of wage withholding, must file a return by April 18, 2022." (emphasis added).  (This must refer to people that are otherwise not required to file.)

I spoke with a Lacerte rep this morning and he said that as of 7/5, CODR had instructed all software providers to use the "OR".  However the state's website shows "AND".  So, Lacerte is not changing the diagnostic.

I will be overriding the diagnostic to e-file for my client with a state tax liability, but no withholding.  I called CODR and the rep agreed with me that the diagnostic is incorrect and that the tax returns should go through claiming the sales tax refund if there is an amount for either withholding or tax liability on the Colorado return.