56694

The following diagnostic is generating:

One or more Federal W-2, Box 10, Dependent Care Benefits, amounts have been entered on this return. Massachusetts does not conform to the Federal increased exclusion from gross income for employer-provided dependent care assistance. Massachusetts exclusion amounts continue to be $2,500 for married filing separate returns and $5,000 for all other taxpayers. Verify the excess was correctly included as MA wages on the W-2(s), and if not, adjust accordingly.

Solution:

This diagnostic will be triggered if there is input in sceen 10 Wages for Dependent care benefits or if there is a override in Screen 33, Dependent Care Credit (2441)>General Information>Dependent Care Benefits>Employer provided (W-2 box 10) [O].

Clicking on the diagnostic from the Diagnostics takes you to screen 10 Wages.

Double-check the entry in (10) Dependent care benefits is correct.

Double-check the entry in screen 33, Dependent Care Credit (2441)>General Information>Dependent Care Benefits>Employer provided (W-2 box 10) [O]

Adjust accordingly if need be.

Critical, will not prevent e-file transmission.

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Comments
Kyle_M_CPA
‎03-12-2022 01:37 PM
‎03-12-2022 01:37 PM

Dealing with the exact same issue.... can't figure out how to get rid of this. I will update if I figure it out...

sjrcpa
‎03-12-2022 03:57 PM
‎03-12-2022 03:57 PM

Can you turn off the efile validation?

brendanorourke
‎03-28-2022 05:51 PM
‎03-28-2022 05:51 PM

I'm currently struggling with this same diagnostic - anybody find a solution yet? I'll post if I do... 

madeleinerose
‎03-30-2022 08:17 PM
‎03-30-2022 08:17 PM

Has anyone tried to disable the error and file the return? We are getting the diagnostic not only when the benefits on the w-2 are $5000, the Massachusetts maximum, but also when the benefit is less than that maximum.

sjrcpa
‎03-30-2022 08:20 PM
‎03-30-2022 08:20 PM

@madeleinerose Why don't you give it a try?

Kyle_M_CPA
‎04-02-2022 08:37 AM
‎04-02-2022 08:37 AM

Ok, so if you click the check box next to the warning and its crossed out you can E-File. I have one that has been processed and accepted. It seems silly to be stuck in critical and not informational warnings but at least we can work around it.

strongsilence
‎04-16-2022 05:31 PM
‎04-16-2022 05:31 PM

I marked S in the Source box to mark the Benefits as specific to the other state. The diagnostic went away.

BobPAmeritaxMassachusetts
‎04-16-2022 09:38 PM
‎04-16-2022 09:38 PM

Diagnostic 56694 about dependent care difference message seems like something is remiss.  At this late date of 04/16/2022 not sure why this is the 2nd message that I got today and why it should hold me up.  Seems unnecessary,  oh for the good old days of Lacerte I guess.