Education

I realize that 970 say "Don't report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040, 1040-SR, or 1040-NR. These aren't taxable distributions".  But that's because I dove into and weeded through the 79 page Pub 970.

 

If I went through the process of entering the form, counting on TT to correctly do my taxes, and answered this correctly, as presented, I have Additional Schedule 1 Line 8z Other income as well as Schedule 2 Line 8 Additional Tax added to my return. That's $1,000 in excess tax.

 

Does Turbo Tax expect users to know that their instructions are wrong, and either answer the question incorrectly or unilaterally decide that the distribution is not taxable, despite the software thinking that it is?  I don't think users should be depending on to read IRS guidelines and max tax decision that the software doesn't support.