2696
The following diagnostic is generating:
For electronically filed returns, the state of Maryland does not allow "Other Subtractions" for which there is no corresponding state letter code assigned by the state. This return must be filed as a conventional paper return. Other Subtractions that are not allowed for electronically filed returns: Other Subtractions input by the user, Maryland Wage Adjustment, NOL Adjustment, Lottery Winnings, IRA Adjustment, Pension Adjustment, Gambling Adjustment, Qualified state tuition earnings adjustment.
Solution:
Check for use of state if different
Any entry in any field labeled "State, if different" in Lacerte can generate an adjustment for the difference between the federal and state amount. These adjustments might be correct for a Maryland full-year resident return but are not generally correct for a Maryland nonresident return. Form 505 has a separate column for the federal and state figure so "State source amount" entries should be used rather than "State, if different". To e-file Form 502, Other Additions and Other Subtractions must be entered into screen 51.271, Maryland Modifications, so that they generate a valid e-file code. One frequent cause for this diagnostic to generate is when an amount is entered in the field, (16) State wages, if different (code 13) in Screen 10, Wages, Salaries, Tips. If the amount is due to a state pickup amount from Box 14 of the MD W-2, enter the difference in State pickup amount [MD] (Screen 10; Code 132) instead. This amount will carry to line three of the Maryland Form 502. Removing the amount from the field, (16) State wages, if different (code 13) in Screen 10, Wages, Salaries, Tips, will remove the diagnostic if that's the only entry that caused it to generate. Do not re-enter the information in Box 14 under the Electronic Filing (W-2) section. The Lacerte program automates the State Pick-up calculation. An entry in the field , State pickup amount [MD] will include the amount as an addition modification on the main form. It's no longer necessary to enter the addition modification in Screen 51.271, codes 14 or 74.
