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Common questions about corporate income in Lacerte

by Lacerte Tax 2023 Updated 6 months ago

For tax year 2023 returns: The IRS has implemented a new transition rule that delays reporting threshold changes. Your client may still receive 1099-Ks for transactions under the new, lower thresholds but they may not need to be separately stated in the tax return. Click here for more info.

Below, you'll find answers to frequently asked questions about corporate income in Lacerte:

How to enter PPP loans and EIDL grants in Lacerte

  1. Go to Screen 13, Income.
  2. Under Gross Income enter the amount in Gross receipts or sales as reported on the Form 1099-K.
  1. On the Detail tab, go to Screen 13, Income.
  2. Go to the Interest Income section.
  3. Enter the interest income received by the corporation in the applicable field:
    • Interest
    • Tax-exempt interest (in-state bonds)
    • Federal tax-exempt interest (out-of-state bonds)
    • State tax-exempt interest (US bonds, T-bills, etc.)

There are two solutions for entering dividend income in Lacerte. Per the IRS instructions for Form 1120, Form 1120, line 4, dividend income comes from Schedule C, line 19.

However, you should report dividends or earnings received from mutual savings banks as interest income.

To enter dividend income from Schedule C, line 19:

  1. Go to  Screen 13, Income.
  2. Scroll to the Dividend Income and Inclusions section.
  3. Complete the applicable subsections for the type of dividends to report:
    • From Domestic Corporation
    • Debt Financed Stock
    • Certain Preferred Stock
    • From Foreign Corporations
    • Nontaxable Dividends
    • Fully Taxable Dividends

To enter dividends from mutual savings banks as interest income:

  1. Go to Screen 13, Income.
  2. Locate the Interest Income section.
  3. Press Ctrl+E in Interest (Ctrl+E).
  4. Enter the Description.
  5. Enter the Amount.
  6. Select OK.
Lacerte Tax

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