There is a difference between the tax return and the pension exclusion worksheet.
1. You should exclude the full $10,000 since 50% beneficiary. There is no way you can be expected to know everyone else's RMD which is why you use the trick of doubling the amount of decedent for a 50% beneficiary. More on this, see #3.
2. No, the 50% does not apply to the dollar amount, it applies to the $20,000 exclusion. You want to say 50% to get the $10,000 exclusion.
3. Correct, you have to double the amount of the decedent pension. You are entering your share instead of doubling it. This is for calculation purposes only. Your actual amount from the form comes into the return. This is for the worksheet to calculate the exclusion. Two different things. You can't use the actual amount for the full pension. You have to double it for the program to calculate the correct exclusion for 50% of the decedent pension.
Again, the 1099-R is safely entered in the return. This is a worksheet calculation.
Your goal is to have the proper exclusion and the correct percentage. Please follow the steps from before and it will work correctly. You just need to double the distribution for the decedent amount and it will work perfectly!
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