All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Valued Pioneer
Posts: 3
Registered: ‎02-08-2018

1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

[ Edited ]

Hello,

 

My wife's mother passed away last year. She inherited her mothers IRA which was from from Principle Life Insurance CO.

 

She opted for the lump sum pay out at the time and had checked the box to have them withhold Federal and State Taxes. They withheld Federal taxes but nothing for State(IL).

 

Our taxes are pretty simple as we do not itemize. I have always done my taxes with no issues and this will be my 4th year with H and R online.

 

I have been going right along, answering the questions, uploading forms via (take a picture feature). Its all pretty much, yes, no, verify which I do. Well, I got to the 1099-R form which was uploaded and verified and on the next page got the following message.

 

"You'll need help to complete your taxes online.

Since you have an IRA you inherited from someone other than your spouse, you'll need an H&R Block tax pro to help you complete your 2017 taxes.

Most online tax prep programs don't cover this, but we've made it easy for you to finish and file with Tax Pro Review without starting over."

 

I then have the option to click yes(for $89.99 more) or no I will do them on my own.

 

When i select I will do them on my own I get the following message.

 

"I understand that the IRS and my state's tax office might consider my 2017 return to be incomplete if it doesn't include the forms I need"

 

What am I missing here, I assumed when I was already paying $74.99(federal) + $36.99(state)for the online feature all the forms would be included and filed ? Is this a simple attempt to try to get me to spend another $89.99 or is it something that can not be filed on my own.

 

 

 

 

Pioneer
Posts: 1
Registered: ‎01-30-2016

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

Hello,

I'm having the same problem.   Spoke with a rep at the 800 # & was told that some updates were being made on Feb.9.

Checked on 2/10 and still same message.

 

Visited a local H&R Block office and was told that they can't help because its a different program than what they use & it was recommended that I do the $89.00 option for a tax rep to review.

 

Meantime I've input my return on Turbo Tax and had no problems....their program requested information on the inherited IRA.

 

Please post if you find out what's happening w. Block.     I plan to wait a couple more days before filing. 

 

 

Highlighted
Valued Pioneer
Posts: 3
Registered: ‎02-08-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

 It is 02-13-2018 12:26CST, Went in and completely deleted the old 1099-R information and did a manual enter of it all again....well....same thing...

You'll need help to complete your taxes online.

 

Since you have an IRA you inherited from someone other than your spouse, you'll need an H&R Block tax pro to help you complete your 2017 taxes.

 

Most online tax prep programs don't cover this, but we've made it easy for you to finish and file with Tax Pro Review without starting over.

 

Valued Pioneer
Posts: 3
Registered: ‎02-08-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

I broke down and filed my forms last night and paid the $89.99 extra.

 

Within a few hours I received my notice that my tax pro had reviewed everything and they were done. I logged in and nothing at all changed. I went though and reviewed all the forms and no extra form, file, boxes, nothing was added or changed. It was identical to what I had already selected and had filled in.

 

So, if indeed what you are saying is a "glitch" with H and R, well, it's a nice little $89.99 "glitch".

 

Like I stated previously, We do not itemize. I have filed with H and R for a few years now and never been told I needed a pro to review it. This was all triggered by the 1099-R(inherited from a NON spouse).

 

I have gone over and reviewed my taxes from the pro several times in hopes to catch something that was added, confirmed, just anything showing me what the tax pro had to do that I could not do or did not do with the online filing and their was nothing additional. I was not called, emailed, messaged asking for any more information or anything about what I had entered already.

 

 

Pioneer
Posts: 2
Registered: ‎04-03-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

[ Edited ]

Just tried filing and got the same message... what gives?!?  Ia's already 2 months since this post started.  Is H&R Block against free e-file for those who have inherited IRAs?  Depending on the annual distribution of the individual, paying $89.99 fee could be significant.

Pioneer
Posts: 2
Registered: ‎04-03-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

After a little researching, still not really sure why H&R Block has to add this new hassle.

 

Rules:

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

 

Form 5329 required

https://www.irs.gov/pub/irs-pdf/f5329.pdf

 

Looks like I just need to fill out line 1 and line 2 to exempt from the early distribution penalty.

 

Guess I will just file a paper form this year and mail it in.

Pioneer
Posts: 2
Registered: ‎04-09-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?

I am in the same boat.  For the past number of years I have had no problem using the normal filing.

 

However I am getting the same message regarding upgrading.

 

The problem is though I cannot figure out how to actually upgrade. I clicked on other forms like the FAQ suggested in order to get a trigger to upgrade, however there has been no prompt to upgrade.

 

I really don't know how to proceed with this as I am running out of time. anyone else with a suggestion on how to actually upgrade to premium or whatever is needed to continue correctly?

 

Thanks

Pioneer
Posts: 2
Registered: ‎04-09-2018

Re: 1099-R (Inherited from NON spouse) Requires a H and R Tax Pro ?