03-08-2014 03:41 PM
Using H&R Block Deluxe software that will not handle an IRA rollover correctly. I have tried everything except an overide because then I cannot file electronically. If it is something I am doing wrong, I sure don't know what it is. HELP!
03-08-2014 05:51 PM - edited 03-08-2014 05:54 PM
It is really hard for us to know what is going on with a return we cannot look at. All I can suggest is that you double check your entries on your 1099R form. The Box 7 distribution code is REALLY important as it tells the program how to handle the distribution. For a rollover I would expect to see a "G" code in that box, but other codes may apply depending on your situation.
If the program is calculating your taxable IRA distributions incorrectly it will also calculate your taxable Social Security incorrectly. The more you earn, the more SS is taxable up to a maximum of 85%.
Hope this helps!
Taxes are often confusing and difficult. Any advice offered is general tax advice. Please consult with a tax pro to receive advice specific to your tax situation.
03-10-2014 06:30 PM
Reply I got suggests the IRA distribution code may be wrong as that tells the program how to process it. The code on the 1099 is 7 and when I look at the work sheet I see the following problems.
1. Line 7a non conversion distribution is wrong. The amount rolled over is correct.
2. Line 7 is 0 which is wrong.
3. When I look at 'lets check income', it shows 0 for the IRA distribution and Soc Sec income is too low.
4. What should be in 16b is in 15a. 15b is 0, but should be the distribution.
5. 16a should be blank but has the IRA distribution amount.
6. 16b content is wrong and a rollover is indicated'
From the above,, this old programmer believes the program has a bug or two that needs correction. Perhaps I should try TurboTax. Or just rely on my own understanding of IRS directions.