ProConnect HelpIntuit HelpIntuit

Why are diagnostics generating when MFJ is selected on 1040-NR return in Lacerte?

by Intuit Updated 2 months ago

When selecting MFJ Status on a Form 1040-NR return, several diagnostics generate in Lacerte indicating that spouse income has been entered on a return where the status isn't Married Filing Jointly:

  • Partnership #: The partnership is marked as the spouse's or joint but the taxpayer's filing status is not married filing joint. (ref. #4357)
  • S-Corporation #: The S-Corporation is marked as the spouse's or joint but the taxpayer's filing status is not married filing joint. (ref. #4358)
  • Estate or Trust #: The estate or trust is marked as the spouse's or joint but the taxpayer's filing status is not married filing joint. (ref. #4359)
  • Form W-2 #: Marked as the spouse's but the taxpayer's filing status is not married filing joint. (ref. #362)
  • Pension, IRA #: Marked as the spouse's but taxpayer's filing status is not married filing joint. (ref. #382)
  • Form W-2G #: Marked as the spouse's but taxpayer's filing status is not married filing joint.(ref. #9384)
  • Schedule C #: The sole proprietorship is marked as the spouse's or joint but the taxpayer's filing status is not married filing joint. (ref. #573)
  • Sch F/Fm 4835 #: The sole proprietorship is marked as the spouse's or joint but the taxpayer's filing status is not married filing joint. (ref. #40780)

Why are these diagnostics generating?

When a return has been marked to file Form 1040-NR in Screen 58.1, Nonresident Alien (1040NR), the program won't recognize the Married Filing Jointly Filing Status selected on Screen 1, Client Information.

See the sections below from the IRS Instructions for Form 1040-NR for more information.

  • Restrictions for Dual-Status Taxpayers (page 13):
    • Joint return. You cannot file a joint return unless you elect to be taxed as a resident alien (see Election To Be Taxed as a Resident Alien, earlier) instead of a dual-status taxpayer.
  • Election To Be Taxed as a Resident Alien (page 12):
    • You can elect to be taxed as a U.S. resident for the whole year if all of the following apply.
    • You were married.
    • Your spouse was a U.S. citizen or resident alien on the last day of the tax year.
    • You file a joint return for the year of the election using Form 1040 or 1040-SR.

To make this election, you must attach the statement described in Nonresident Spouse Treated as a Resident in chapter 1 of Pub. 519 to your return. Do not use Form 1040-NR.

Lacerte Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads