Entering Capped Defined Benefit Income Streams (Item 7)This guide helps you resolve validation errors or doubled taxable income when entering capped defined benefit income streams at Income - Item 7.
Issue:
Entering figures directly into the Assessable amount from capped defined benefit income stream field triggers an error asking for components. If you then fill out the Taxable amount components manually, LodgeiT adds both entries together, doubling the taxable income.
How to Fix It (Step-by-Step):
To resolve the error without doubling the income, you must clear your manual entries from the main form fields and enter the data exclusively via the Income Stream Worksheet.
1. Clear Manual Entries: Remove any manually typed figures from Item 7 (both the assessable amount field and the component fields) on the main form layout.
2. Open the Worksheet: Scroll to Item 7 (Australian annuities and superannuation income streams) and click the + Add / Edit Worksheet button.
3. Fill out the Payment Summary Details:
- Enter the Gross untaxed amount or Taxed element exactly as shown on the client's PAYG payment summary superannuation income stream.
- Ensure you tick the specific checkbox or dropdown indicating that this income originates from a Capped Defined Benefit Income Stream.
4. Let LodgeiT Calculate: Once you fill out the worksheet components and save it, the system will apply the ATO capping rules automatically. It will map the correct, single Assessable amount back to Item 7 on the main return without doubling the figure.