Add Automatic Carryforward tracking for Rhode Island 529 Contributions
I would like to request an enhancement to Lacerte regarding the handling of Rhode Island (RI) 529 CollegeBound contributions.
Rhode Island allows taxpayers to deduct up to $500 (Single) / $1,000 (MFJ) per year for 529 contributions, with unlimited carryforward of excess contributions to future years. This creates an ongoing state-level carryforward that should be tracked and applied annually.
Currently in Lacerte:
- Contributions can be entered on Screen 51 (State Modifications)
- The annual deduction limit is applied correctly
- However, there is no clear mechanism to track or carry forward unused contributions
As a result, practitioners must:
- Manually track excess contributions outside of Lacerte (e.g., spreadsheets)
- Recalculate remaining carryforward each year
- Re-enter or adjust amounts without system support
This creates unnecessary risk of error and inconsistency, especially for long-term clients making large or recurring contributions.
Notably, ProSeries and other tax software platforms already support this carryforward functionality for Rhode Island, including tracking and automatic application in subsequent years.
Suggested Enhancement:
- Add a Rhode Island 529 contribution carryforward field
- Automatically calculate unused contributions each year
- Proforma the carryforward to the following tax year
- Apply the annual deduction limit while reducing the carryforward balance
- Provide visibility (worksheet or diagnostic) showing:
- Current-year contribution
- Deduction taken
- Remaining carryforward
Why this matters:
- Aligns Lacerte with Rhode Island tax law
- Brings parity with other Intuit products (ProSeries)
- Reduces manual tracking and potential errors
- Improves efficiency and accuracy for tax professionals
Thank you for considering this enhancement. This would significantly improve the usability of Lacerte for RI-based practitioners and clients utilizing 529 plans as part of their planning strategy.
