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Troubleshooting Lacerte diagnostic ref. 37490

by Intuit Updated 7 months ago

If the amounts you enter in the Adjustments to Federal Taxable Interest section on Screen 11, Interest Income exceeds the total federal taxable interest, the following diagnostic will generate:

  • Interest Income Item #: Adjustments to federal taxable interest exceed federal interest. (ref. #37490)

If the amounts you entered are accurate and the adjustments entered are greater than the income amounts, you can check the box next to the diagnostic to indicate that it's been reviewed. Otherwise, you need to make any necessary corrections to the income or adjustment amounts to resolve this diagnostic.

Follow these steps to resolve the diagnostic:

  1. Go to Screen 11, Interest Income (1099-INT, 1099-OID).
  2. Click on the 1099-INT listed in the diagnostic from the left navigation panel.
  3. Scroll down to the Form 1099-INT section.
  4. Make sure the amounts entered under the Interest Income subsection are correct:
    • Banks, savings & loans, credit unions, etc
    • Seller-financed mortgage (enter address & SSN below)
    • U.S. bonds, T-bills, etc (nontaxable to state)
  5. Scroll down to the Adjustments to Federal Taxable Interest subsection.
  6. Make sure that the adjustment amounts don't exceed the Interest Income amounts.
    • If the amounts are incorrect and exceed the adjustment income, make any corrections now.
Lacerte Tax

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