@GeorgeB7 @LenaH This is very good news. I would like to see someone actually file before fully trusting it. Is it possible TurboTax shows that it should not be rejected in their test but then when someone goes to actually file it would be rejected? So many people have said when they had Form 8881 in their return it just wouldn't work. Hopefully someone can actually file with it now and show that it works.
I would personally really like to do this but on the online version. I am happy to be the guinea pig. If you can put me in touch with the manager you worked with I would be happy to call in and walk through trying this in the online version. I couldn't actually file but I could do everything up to that point so they can troubleshoot this.
I just tried in the online version and here are the problems.
1. If you fill out a Schedule C for a company and say it has no W-2 employees, which is true for a sole proprietorship, then TurboTax online doesn't even show you the option for the Pension Plan expenses section that the auto-enrollment credit comes from. Even if you search for that expense option, it won't show you the option unless you say you have employees. This is a flaw. Sole proprietors with no W-2 employees can still claim the auto-enrollment credit so they need to be able to access that Pension Plan expenses screen too.
2. Just for testing, I claimed to have a W-2 employee. This allowed me to see the Pension Plan expenses screen. But the next problem is it asks about pension plan costs. If you put $0 for that, which is correct for a sole proprietor that is only claiming the auto-enrollment credit and not the startup credit, then Form 8881 doesn't get filled out for the auto-enrollment credit.
3. Just for testing, if I claim to have a W-2 employee and also put any amount in for the pension plan costs, then I can choose the auto-enrollment credit and it seems to work properly. Then I can go back and remove the made up pension plan costs I entered and put it back to $0 and the auto-enrollment credit information will still stay. This seems to be a workaround, though it requires me to falsely claim to have a W-2 employee.
4. In the scenario listed in point 3 above, it seems that everything is then filled out correctly. I see the $500 auto-enrollment credit in the proper places on Form 3800. However, when I go to view or print my return, Form 8881 isn't included. It is referenced correctly on Form 3800. But I don't see the actual Form 8881 at all for some reason.
So at least in the online version, TurboTax has a few things to fix. It shouldn't require all these workarounds. I shouldn't have to make up a false W-2 employee just to access the pension plan cost screen. I shouldn't have to make up any pension plan startup costs just to be able to claim the auto-enrollment credit. And it should include Form 8881 when I view or print the return so I know it's there and filled out properly.
I would appreciate if everyone can continue working on this to make sure it's working properly. If I can help troubleshoot or test I will be happy to get on the phone and do so.
