Lacerte Rep tells me you can't E-file a 1040 that has a W-2 from a single employer with income from more than 4 states. Does anybody know a work around this? I have an athlete that has income in 35 states and would hate to paper file all of those.
I don't think Lacerte is the issue, I believe the IRS is the one dictating the number of states e-file issue; same as not being able to e-file if the withholdings are > 50% of the gross wages.
If that is the case, I don't thing trying to "work around" the IRS rules would be a good idea.
IMHO
Is there a way you can input part of the wages on one W2 entry, part of the wages on another W2 entry, etc, etc?
Amy, thats kind of the work around I was thinking about. Just wondering if anybody else has done that.
Here is how I handle a client who is the sound engineer for a touring band with a similar situation. Look at each state wages separately first. You might be below the filing threshold for some states. If no or very little withholding from state, I just kick those out. If it costs me more to rep and charge the client than he would get back in state taxes then not worth it.
If you still have more than 4 states to file then you are stuck with paper. My client's payer issued a complete W-2 for each state. I guess it depends how much was allocated to each state. I have been able to just file four from time to time, but been stuck filing paper with 10 or more to do.
