Federal-to-state data transfer overview

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To save time and ensure accuracy, UltraTax CS automatically transfers certain information from a client's federal tax return to their state returns, where applicable.

Note: Data that is transferred from the federal return to a state return is displayed in blue in the state input screens. By default the cursor skips these fields, but you can set an option to change the default.

Data transfer from federal to state applications

When changes are made to federal data, UltraTax CS automatically transfers the changes to the client's state return(s) without requiring you to open the state input screens to invoke the transfer.

  • If the data does not need to be modified for the state return, UltraTax CS transfers the data from the federal input screens directly to the state forms.
  • If the data needs to be modified for the state return, UltraTax CS transfers the federal data to state statement dialogs or state input fields.

Data transfer from federal to state applications and proforma'd data

For clients whose data you have entered directly into UltraTax CS, all relevant data automatically transfers from the federal input screens to the state input screens. However, for clients whose data has been proforma'd, the prior year's state return is considered the best source of data. Therefore, UltraTax CS automatically detects if a client's data has been proforma'd, and if it has, UltraTax CS suppresses the federal data transfer for appropriate fields in order to avoid overwriting the proforma'd information.

Note: To have UltraTax CS display red chevrons to highlight fields or statements where it has preserved proforma'd data, mark the Distinguish overruled input screen fields checkbox in the Setup > User Preferences > Data Entry tab. This option will also add an Input Screen Overrules tab to the Federal Diagnostics dialog; this tab will list all overruled fields for easy access to that data. 

Data transfer from federal to state applications of different entity types

UltraTax CS also transfers federal data to different state entity types.

  • 1040 states: UltraTax CS transfers data for full-year residents, part-year residents, and nonresidents.
  • 1120 states: In some states, UltraTax CS can automatically convert and transfer a federal S Corporation to a C Corporation.
  • 1065 states: In some states, UltraTax CS can automatically convert and transfer a federal partnership to a state LLC.

Statement dialog data transfer from federal to state applications

UltraTax CS automatically transfers statement dialog data from the client's federal return to the state return. Therefore, you do not need to complete a federal return before processing a state return.

Changes made to a federal statement dialog are automatically reflected in the state statement dialog with the following exceptions.

  • To modify a federal amount that is transferred to a state statement dialog, update the amount in the statement. UltraTax CS will preserve the overruled amount and not retransfer the federal amount.
  • A federal statement dialog item is not retransferred to the state application if the item was deleted from the state statement dialog.
  • Items that you add to a state statement dialog (as opposed to items transferred from another source) will not be overwritten by the federal data transfer.

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