1041 - 2% deductions flow to state ret
Some states do not conform to the TCJA.
On a 1040 the 2% itemized deductions flow to the State return because the input forms are created to do that.
On a 1041, the 2% deductions do not flow automatically. Instead, a box must be checked. (Form 32)
#1. A diagnostic to remind the preparer to check for 2% deductions would be VERY helpful.
#2 Suggest setting up a 1041 in a similar fashion to the 1040. A separate input form for 2% deductions
#3. Or use AI to assist the preparer in recognizing this situation. My hope is that AI become likes a reviewer with insights such as "I noticed that you are doing a CA 541. Remember that CA does not conform to the TCJA. Here are some areas you should review."
(AI is used in the ITA so I hope it to be implemented soon in LC.)
