Mississippi Part Year Resident Return with Other State Wages
Here is my situation:
Taxpayer works for Louisiana employer for all of 2018. He moved from Louisiana to Mississippi in 2018, so he’s a part year resident in both states.
Louisiana employer withholds, as expected. He must file LA return b/c he has LA sourced income and LA taxes all of his wages (no Lacerte problem there).
MS taxes his wages for the pro-rated period in 2018 in which he was a MS resident, but then he is entitled to a credit for taxes paid to LA.
Here is my problem:
Per the MS Dept of Revenue, the only way for a MS part year resident to claim a credit for taxes paid to another state is to complete Form 80-401 with a code 99, which is nonstandard. The credit is calculated on the 80-401 and carries to the front page of the nonres/part year MS return. Lacerte won’t allow data entry of a nonstandard code for Form 80-401. If I bypass the Form 80-401 and force the credit to appear on the correct line of the front page of the return, I then get an e-file diagnostic that I can’t e-file.
Lacerte tech support suggestion was:
1 Paper file
2 Manually complete Mississippi Form 80-401, attach as PDF, then bypass the e-file diagnostic and send the return, hoping that MS will accept.
I am hopeful someone else has a better solution.