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Level 1
June 10, 2021
Question

How to enter the Credit on LA State Tax return for Repayment of W-2 wages to employer relating to SSDI

  • June 10, 2021
  • 1 reply
  • 15 views

I have calculated the credit for both Fed and State of LA tax return for repayment of wages to Employer in subsequent tax year pursuant to SSDI adjustment.

The Fed tax credit was properly placed screen 38.2 as "Credit for repayments (IRC 1341)

Question:  Where do you input the Credit calculated for The State of Louisiana?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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1 reply

Level 6
June 11, 2021

If a federal credit is taken under IRC Sec 1341, the taxpayer can  take a deduction, not credit, on the Louisiana return.

In Lacerte, go to Screen 51 - Modifications. In the fourth field from the bottom - Other nontaxable income (Ctrl+E), enter “IRC Sec 1341” Income and the repaid amount. It will print on IT-540-2D,  Schedule E under Exempt Income with Code 49E.