NC conformity with tuition and fees deduction
Lacerte : 2010My NC client's state return shows an add-back to state income for the Federal tuition and fees deduction, presumably because NC wasn't going to go along with the last 2 Federal tax laws (the one passed 12/17 containing the relevant extender provision for my client). Apparently the most up-to-date article on North Carolina's website, is dated 2/15/11, over a month ago.
It states in part, "It is highly anticipated the General Assembly will adopt the tuition and fees deduction ... Therefore, taxpayers may go ahead and claim those deductions ... If for some reason the 2011 General Assembly chooses not to adopt the federal extension of the higher education expense deduction ..., individuals who claimed these deductions on their 2010 tax return will need to file an amended 2010 North Carolina individual income tax return."
I assume Lacerte is taking the position that if it isn't in the law, the program can't take the position the state seems to encourage people to take. Could there be an option (is there one I'm not aware of?) in the program, to take that deduction and not have to add it back for NC purposes?
I may have to put my particular client on extension anyway, which may solve his problem without his even knowing it, but does anyone have a feel for how soon the program might change, or how soon the NC legislature might conform with the newest Federal laws?
