Colorado does not conform to the Cares Act

Forum|Forum|5 years ago
October 6, 2020
2 replies
9 views

I get this error that Colorado does not conform to the CARES act and I should manually calculate the federal taxable income. When I enter the FTI, the error doesn't go away.

Lacerte Tax

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George4Tacks

Level 15

Is this just a warning? If so, you can just ignore it and go ahead and file the return. Many of these do NOT go away when you make an adjustment to satiisfy the warning. https://proconnect.intuit.com/community/individual/help/diagnostic-reference-ref-frequently-asked-questions/00/4175

Answers are easy. Questions are hard!

itonewbie

Level 15

As George says, it's just a warning to have you take a second look to make sure the return is correct before it is filed, in case you overlooked that.

You shouldn't override the FTI. Unless you know exactly what you are doing, overriding is almost always a bad idea. CO starts with FTI and makes various adjustments to arrive at CO taxable income. If that return includes any non-conforming provisions, those amounts are entered as adjustments (either addition or subtractions) instead.

Question to you is whether your client's return has any non-conforming provisions due to retroactive application or decoupling. If not, you simply need to check off the diagnostic so that you could submit the return for e-filing.

---------------------------------------------------------------------------------Still an AllStar

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