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How to resolve Arkansas diagnostic Ref. 3162 and Ref. 3161 in ProConnect Tax

SOLVEDby Intuit3Updated 1 year ago

One or both of these e-file critical diagnostics are generating:

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 #316162 or Ref #3161

Make sure you paper-file nominee distributions and excludable interest and dividends returns

If you’ve correctly entered nominee distributions or excludable interest and dividends returns, but still encounter diagnostic Ref. 3162 or 3161, you’re attempting to e-file them. 

See Selecting to paper file a return in ProConnect for instructions on paper filing.

Make sure you didn’t enter nominee distributions or excludable interest and dividends by mistake

Remove the incorrect entries to clear this diagnostic. Entries on three sections may be the culprit.

Section 1: Interest Income (1099-INT, 1099-OID)

  1. Under Input Return, go to Income and select the Interest Income (1099-INT, 1099-OID) screen.
  2. Select Details.
  3. Under Adjustments to Federal Taxable Interest, remove any amount in Nominee interest and Tax-exempt interest (1099-INT in error).

Section 2: Dividend Income (1099-DIV)

  1. Under Input Return, go to Income and select Dividend Income (1099-DIV)
  2. Select Details.
  3. Remove any amount in Nominee total ordinary dividends, Nominee qualified dividends, and Nominee capital gain distributions.

Section 3: Estate or Trust Info (1041 K-1)

  1. Under Input Return, go to Income.
  2. Select Passthrough K-1’s and then Estate or Trust Info (1041 K-1).
  3. Select the Lines 1–8 tab.
  4. Under Part III - (Lines 1-8) - Beneficiary's Share of Current Year Income (Loss), remove any entries in the STATE, IF DIFFERENT column for (1) Interest income or (2b) Qualified dividends.

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