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How to resolve Lacerte diagnostic ref. 42263 - Property Tax Deduction or Property Tax Credit is claimed

by Lacerte Tax 2023 Updated 6 months ago

When preparing a 1040 Individual return with New Jersey as a state, you may get the following diagnostic:

  • When the New Jersey Property Tax Deduction or Property Tax Credit is claimed, the block and lot number are required. This information can be found on the taxpayer's property tax bill or local tax assessor. (ref. #42263)

Lacerte uses the filing status, age and gross income level of the taxpayer to determine whether to complete Worksheet F - Property Tax Deduction/Credit. If the taxpayer qualifies and has Property Taxes entered on Screen 25, Itemized Deduction Lacerte will generate Worksheet F.

  1. Go to Screen 53, Other Credits.
  2. Click on New Jersey Homestead/Property Tax Deduction from the top left navigation panel (if not already selected). (This will take you to Screen 53.081.)
  3. Enter a 2 in, 1= homeowner, 2= tenant, 3= both (MANDATORY).

If a 2 has been entered and you are still generating the diagnostic please verify your NJ Version is 35.0318 or later. This issue was resolved on an update released on 3/18.

  1. Go to Screen 53, Other Credits.
  2. Click on New Jersey Property Tax Deduction/ Credit from the left navigation panel. (This will take you to Screen 53.082.)
  3. Enter the Block (ex: Block 3105.62 enter 3105). (required for e-file)
  4. Enter the Block suffix (ex. Block 3105.62 enter 62). (required for e-file)
  5. Enter the Lot (ex: Lot number 14.3 enter 14). (required for e-file)
  6. Enter the Lot suffix (ex: Lot number 14.3 enter 3). (required for e-file)

All four input fields must be completed to resolve this diagnostic. This information can be obtained from a property tax bill or the local tax assessor.

  1. Go to Screen 53, Other Credits.
  2. Click on New Jersey Property Tax Deduction/ Credit from the left navigation panel. (This will take you to Screen 53.082.)
  3. Enter a 1 in, 1= does not qualify, 2= force.
Lacerte Tax

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