Common questions on Form 1040 in Lacerte

Below, you'll find answers to frequently asked questions about Form 1040 in Lacerte.

Table of contents:

Why isn't my 1099-R flowing to line 4a?

If the distribution code is "P" or "R", then the distribution needs to be reported as income on last year's return instead. If your client already filed, you'll need to amend their return to include the income. 

To amend the return in the prior-year program:

1. Open 2022 Lacerte.
2. Open the applicable client return.
3. Go to Screen 59, Amended Return (1040X) before making any changes.
4. Select the returns to amend from the dropdown in Federal/State return(s) to amend (Ctrl+T) (MANDATORY) and select OK to continue.
5. Verify the time and date listed in the information window, and then select OK.
   • Lacerte will automatically bring over original amounts from the return into the Original Amounts column on this screen. If the amounts don't auto-populate, make sure the F4 status of the return isn't marked as Return Complete.
6. Go to Screen 13.1, Pensions, IRAs (1099-R).
7. Scroll down to the Other Information section.
8. Mark the checkbox labeled 2023 Form 1099-R with distribution code 'P' or 'R'.

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How do I enter total pensions and annuities for line 5a?

If the pension or annuity is fully taxable, line 5a will be left blank and the taxable amount will print on line 5b. If the pension or annuity is partially taxable, but the 1099-R doesn't show the taxable amount, follow the instructions in this article for using the General rule or Simplified Method to have Lacerte calculate the portion that's taxable.

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When can I report a capital gain without including a Schedule D?

Per the IRS instructions for Form 1040:

"You don’t have to file Form 8949 or Schedule D if you aren’t deferring any capital gain by investing in a qualified opportunity zone fund and both of the following apply:

1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements); and
2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain)."

When your return meets those conditions, Lacerte will check the box on line 7 automatically.

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How is line 13 calculated?

Lacerte uses Form 8995 or 8995-A to calculate the QBI deduction. The worksheet that generates with line 13 shows how the deduction for one half of self-employment tax is allocated to arrive at the Qualified Business Income for each given activity.

For more information, refer to this article.

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Where do I enter estimates paid or a 2022 refund applied?

1. Go to Screen 6, 2023 Estimated Tax Payments.
2. Enter the Overpayment applied from 2022 field.
3. Enter the Amount paid fields to get estimates to flow to the return.
   • If you have amounts entered in the Voucher amount (memo) fields that pro forma'd from last year's return, and the client has paid them, enter a 1 in the 1=treat all "Voucher amount (memo)" entries as "Amount paid" entries instead.

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