I have a client that took out 100K from his 401k under the CARES act. The 1099 is coded 1 and I eliminated the penalty with code 12. The 8915E is populated and shows 33K taxable for this year, with carryovers for the next 2 years. So far, so good.
My issue is with his state. He lives in Wisconsin. Based on what I'm reading, it appears that WI follows Fed treatment. But the software (Lacerte) doesn't seem to be doing this.
It generates WI schedule I Adjustments to convert 2020 Fed AGI to amounts allowable for WI. Populates line 2H, pension adj and adds back 66K to the Federal AGI. So it looks like WI is taxing the entire amount.
Does this seem correct, those that are familiar with WI? If not, how can I fix this in Lacerte? Anyone know? Thank you.
Here is the link that makes it sound like WI follows Fed:
(#10)
My issue is with his state. He lives in Wisconsin. Based on what I'm reading, it appears that WI follows Fed treatment. But the software (Lacerte) doesn't seem to be doing this.
It generates WI schedule I Adjustments to convert 2020 Fed AGI to amounts allowable for WI. Populates line 2H, pension adj and adds back 66K to the Federal AGI. So it looks like WI is taxing the entire amount.
Does this seem correct, those that are familiar with WI? If not, how can I fix this in Lacerte? Anyone know? Thank you.
Here is the link that makes it sound like WI follows Fed:
(#10)
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