@skst wrote:
I appreciate your input regarding how to work around this bug. The IRS instructions say to compute the tax myself and, therefore, enter 0 on line 2b. After I overrode TT20's incorrect value on line 7, everything was fine. That seems like a simpler solution than stating this is not an inherited IRA just to make TT20 display the correct questions that it should have displayed in the first place.
Now it seems that there are two bugs in TT20: 1) It should enter the correct value on line 7, and 2) it should display the COVID/CARES questions for inherited IRAs.
You cannot e-file with any overrides. Line 7 should be blank for a rollover. (That is not an IRS worksheet just an internal TurboTax worksheet).
There is no bug. And the IRS instructions do NOT say that.
https://www.irs.gov/instructions/i1099r
IRAs other than Roth IRAs.
Traditional, SEP, or SIMPLE IRA.
Generally, you are not required to compute the taxable amount of a traditional, SEP, or SIMPLE IRA nor designate whether any part of a distribution is a return of basis attributable to nondeductible contributions. Therefore, except as provided below or elsewhere in these instructions, report the total amount distributed from a traditional, SEP, or SIMPLE IRA in box 2a. This will be the same amount reported in box 1. Check the "Taxable amount not determined" box in box 2b.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
