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Troubleshooting Lacerte diagnostic ref. 3443 - defining part-year/non-resident time periods

by Intuit•1• Updated 1 year ago

Using Iowa as the example state for this scenario, Lacerte is generating the following diagnostic:

Dates defining part-year/non-resident time periods have been entered in the Iowa "Part-Yr./Nonres. Information" (Screen 55). This information conflicts with the "Full Year Resident" status designated in Client Information. Please adjust the independent inputs to reflect only one. (ref. #3443)

The diagnostic won't prevent you from e-filing. However, you may be able to resolve the diagnostic using the steps below.

Follow these steps to resolve the diagnostic:

Keeping with the example scenario where Iowa is the state involved, follow the steps below.

Go to Screen 55.121, Iowa Part-Year/Nonresident.
Remove any nonresident or part-year resident entries.
- Amounts entered on this screen may remain if the client is required to have amounts entered for the spouse on a Married Filing Separate return.

Follow these steps if the previous steps don't resolve the issue:

Go to Screen 1, Client Information.
Remove the checkmark from the Full year resident? box.

Lacerte doesn't support dual state residency.

How do I input dual state residency for clients?

Currently, a dual state residency return (for example, the taxpayer living in one state and the spouse living in another) isn't supported within Lacerte. You'll have to either manually prepare the return or utilize separate client files for each state.

Follow these steps to create a copy of the client file:

From the Client List, highlight the client you want to copy.
From Client menu in the upper left hand corner of the screen, select Copy.
Give the new file a different client number.
- This is limited to 8 characters.
Click OK.

You can use the original file to prepare the state return for one resident state, while using the copy to prepare the return for the other resident state.

For example, if the taxpayer resides in New York for the entire year, and the spouse resides in California for the entire year, you can create the joint return for federal purposes and then copy the file. Use the first file for the New York resident return and the second file for the California resident return.

This also applies to taxpayers and spouses living in the same state briefly, and moving to separate states for any portion of the year.

Lacerte Tax 2023

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