How to resolve Lacerte diagnostic ref. 45535 - Copy of state's tax return required

This article will help to resolve the following e-file critical diagnostic:

• "The other state's tax return will have to be printed to PDF and attached to the (Resident State) return." (ref. #45535)

This diagnostic is triggered by six different states under varying conditions. A single return may receive multiple 45535 diagnostics if more than one state's requirements apply. Find your state below for resolution steps, then follow the general attachment procedure at the end of this article.

For background on the general PDF attachment process, refer to Attaching PDF documents to an individual return for e-file (Form 1040).

Arkansas (AR)

Arkansas requires a PDF copy of the tax credit certificate(s) or appropriate documentation for Natural State Initiative (NSI) Tourism Development to be attached to the electronic return.

When following the general attachment steps below:

• In the Arkansas Information subsection, check the box to Send PDF - attachment with Arkansas return.
• From the Form and line number on state return dropdown, select Business Incentive Credits - Natural State Initiatives (NSI) Tourism Development.

Hawaii (HI)

Three different conditions can trigger this diagnostic for Hawaii. Identify which condition applies to the return and follow the matching guidance below.

N-288A withholding reported on Form N-15

Attach a PDF of Form N-288A. In the Hawaii Information subsection, select Form N-288A Statement of Withholding from the Form and line number on state return dropdown.

Income tax paid to another state or foreign country greater than zero

Attach a PDF of the tax return(s) from the other state(s) or federal Form 1116. From the Form and line number on state return dropdown, select Tax Paid Another State.

Pass-through entity tax credit or Hawaii real property sale

Attach a PDF of Schedule K-1 if either of these applies:

• The taxpayer is claiming the Pass-through entity tax credit on Form N-362.
• The pro rata share of taxes withheld and paid by a partnership, estate, trust, or S corporation on the sale of Hawaii real property interests is greater than zero.

New Mexico (NM)

Check the PDF and confirm that Copy of Other State Tax Return(s) to support Other State Tax Credit is selected.

Ohio (OH)

The diagnostic may read: "To qualify for the PTE credit prepare and attach the applicable form, or indicate that a copy has been or will be faxed by checking the Supporting Documentation for Credits Faxed to State in the Other Credits Screen."

To resolve for PTE Credit (per OH IT1040 instructions):

• Attach the OH IT K-1 issued by the PTE reporting income taxes paid, and/or report indirect PTE credits (attach the K-1 as a PDF and link to Pass-through Entity Credit).
• Choose IT NRC from the Ohio Information dropdown.
• The Supporting Documentation for Credits Faxed to State checkbox is near the bottom of Screen 53.121.

Virginia (VA)

For resident returns, add the state abbreviation even if it is not Sch. OSC/CG.

West Virginia (WV)

If gambling losses are reported on Schedule M, attach the first two pages of the federal return, Schedule A, and all W-2Gs. If not provided, the modification will be disallowed.

How to attach the PDF to the return

Use these general steps after identifying the state-specific subsection and dropdown selection from the sections above:

1. Go to Screen 4, Electronic Filing.
2. Use the top left panel to navigate to Screen 4.4, e-file Miscellaneous.
3. Select PDF Attachment.
4. Enter a description of the file.
5. Mark No to Send PDF attachment with federal return.
6. Check the state-specific subsection box identified above (for example, Send PDF - attachment with Arkansas return).
7. In the Form and line number on state return dropdown, select the option identified above for your state.
8. Select Attach PDF and browse to the applicable PDF document.
9. Select OK to save.