Took a dist from traditional IRA, and entered the 1099R on TT. Later re-evaluated and made a smaller (deductible) contribution. I was iterating through TT trying different contribution amounts to get the best tax benefit. The tax improvement was incredible. Finished up and got ready to file. As I was reading over the complete return, I noticed that TT gave me a nice Retirement Savings Contribution Credit. But IRS says Reducing eligible contributions. Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included above
Dug up the form 8880 on TT where they calculated my great RSCC, and noticed that TT shows ZERO for traditional RIA distributions, even though, as stated earlier, I entered the 1099R and the large distribution shows as income on 1040. TT should be smart enough to populate form 8880 when we enter a 1099R. It shouldn't be up to me to just happen to notice that this form is filled out wrongly. Check it out, show the programmers, get it fixed.
