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How to resolve Lacerte diagnostics ref. 3162 and ref. 3161

by Lacerte Tax 2023 Updated 6 months ago

This article will help you resolve the following diagnostics for excludable dividends:

  • e-file: Excludable dividend items, such as nominee distributions, are not allowed for Arkansas e-file. This return must be filed as a conventional paper return. (ref. #3162) (ref. #3161)

How to resolve this diagnostic

Currently, Lacerte does not support nominee distributions for AR E-file.

  • If nominee distributions have been entered correctly, this return will need to be paper filed.
  • If nominee distributions or excludable interest/dividend items have been entered incorrectly, remove any entries to resolve this diagnostic:
    1. Navigate to Screen 11, Interest Income.
    2. Scroll down to the Form 1099-INT section.
    3. Remove any entry in the field labeled Nominee interest as applicable.
    4. Remove any entry in the field labeled Tax-exempt interest (1099-INT in error) as applicable.

Or

  1. Navigate to Screen 12, Dividend Income.
  2. Scroll down to the Form 1099-DIV section.
  3. Remove any entries in the field labeled Nominee total ordinary dividends as applicable.
  4. Remove any entries in the field labeled Nominee qualified dividends as applicable.
  5. Remove any entries in the field labeled Nominee capital gain distributions as applicable.

Or

  1. Navigate to Screen 20.3 Estate and Trust Information.
  2. Scroll down to Part III(Lines 1-8)Beneficiary's Share of Current Year Income (Loss)
  3. Remove any amounts under the column State, if different assigned to Arkansas entered in (1) Interest Income or (2a) Ordinary Dividends.
Lacerte Tax

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