Generating Schedule R in Lacerte

Before you start:

• Income limits still apply per the Schedule R form instructions.
• Schedule R will only generate (show in bold on the Forms tab) if a credit is applicable on Schedule R, line 22. If line 19 is zero or less, the credit cannot be taken.

Lacerte will automatically generate the Schedule R for an elderly client if they meet the qualifications in the Schedule R instructions. See Why is line 21 blank? for more information.

Table of contents:

To generate the Schedule R for a disabled person who received a 1099-R:

Follow these steps to check Schedule R, Part I, boxes 2, 4, 5, 6, or 9:

1. Go to Screen 13.1, Pensions, IRAs.
2. Enter the information from the 1099-R received.
3. Scroll down to the Other Information section.
4. Check the box Report taxable amount on Schedule R (amount flows to Schedule R, Part III).
5. If applicable, check Report taxable amount as wages (pre-retirement age). The amount will flow to Schedule R, but also show as wage income instead of pension income.
6. Go to Screen 38.2, EIC, Residential Energy, Other Credits. (Screen 39 in 2013 and prior years.)
7. Scroll down to the Elderly Credit (Schedule R) section.
8. Enter any Nontaxable pensions, annuities, disability (13b) (if applicable).
9. Check the box, Filed physician disability statement in prior year (if applicable).
10. Enter the Date of retirement due to disability.

Back to Table of Contents

How do I check the box in Part II line 2?

Checking the box on Screen 38.2 to indicate your client Filed a physician disability statement in prior year will check the box on the form, as long as box 2, 4, 5, 6, 0r 9 at the top of Schedule R are checked, indicating that a statement of permanent and total disability is needed.

Back to Table of Contents

Why is line 21 blank?

When Schedule R line 19 is zero or less, the rest of the form won't be completed. Review lines 12-18 for accuracy.

When line 19 is greater than zero, Lacerte uses the Credit Limit Worksheet from the form instructions to calculate the limit on line 21. Click on the green WKS link next to this line to open and view the worksheet.

Back to Table of Contents

Can I override the credit on line 22?

Line 22 will print the smaller of line 20 or 21. You can override the credit amount if you need to manually attach a separately prepared Schedule R, or if you need to suppress the credit entirely.

To override or suppress the credit:

1. Go to Screen 38.2, EIC, Residential Energy, Other Credits.
2. Scroll down to the Elderly Credit (Schedule R) section.
3. Enter an amount in Schedule R [O]. Enter -1 if you want to suppress the Schedule R for this client.

Lacerte will suppress the Schedule R and print the credit you entered directly on Schedule 3. Unless you set the credit to zero, you must attach a manually prepared Schedule R to the return.

Back to Table of Contents