- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Thinking about this a little more, it seems like TT is reversing the portion of the QTP that should be taxable and non-taxable. The gross QTP is $12,699 with $9,268 earnings. All of this should be tax free. However, with the LLC of $2,000, up to $2000 of the $9,268 would be double dipping. Therefore, the portion of the $2,000 that is double dipping, perhaps that is the $1,972, should be the amount on line 20 & 23. Can I assume that if I tell TT to not take the LLC, then I will get the entire $9,268 earnings tax free? Taking the LLC should reduce my non-taxable earnings by the equivalent amount so either way should have the same tax due. They effectively are one and the same. This does not appear to be the way TT is calculating this.
From what I am experiencing, there is a mathematical issue in TT in filing out 1099-Q Summary AND a logic bug in the wizard for figuring out the optimal education claiming strategy. If taking the LLC generates a larger tax bill than not taking the LLC, the wizard should not go down this path. Also, the wizard should explain why the entire earnings portion of the QTP is not being allowed.