@samgrif I think it needs to be changed, even if the instructions MAY be interpreted as TT is doing. Here is my reasoning:
I don't want to give the IRS any reason to kick the return out and look at it. Why might they do that? Because the gross distribution amount on line 4a will not agree with the gross distribution amount filed by the payors. Think about all this logically:
WHY were lines 15a and 16a on the form (pre-2018)? So the IRS would see the gross distribution amount matched what they had from the payors, indicating that all 1099s were reported.
Why was it OK to have those two lines be zero in some cases? Because the gross distribution amount was on the form on lines 15b and 16b, so no need to put it on 15a and 16a as well.
What is happening with TT's treatment? The gross distribution amount appears NOWHERE on the 1040. So what does the IRS have to do to ensure that all 1099s are reported? Maybe have a person look it over? Write a program to bypass the matching check? Process the return, flag it, and have someone ask questions a couple of years from now? I have lots better things to do with my time than answer questions from the IRS even though my return is correct.
The better interpretation, and what I understand Tax Slayer and H&R Block are doing, is to include total gross distributions in 4a.
