8915E Overstates Distributions on 1040

[dmertz]

TurboTax is definitely doing the correct fraction calculation that you quoted from the instructions for Form 8606 line 15b.  I've performed this calculation manually to confirm each of the examples I tested.  The fraction simply applies the basis proportionately between the CRD and the non-CRD parts of the distribution.

[macuser_22]

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@fanfare wrote:

@dmertz 

I was able to get rid of "Rollover"

I could not say I did not roll any over.

I had to say I rolled some over, and enter zero.

I still get a different taxable amount from the other package which I believe does it correctly. I can see those forms but not the TurboTax forms.

the difference is around $200.

I believe the reason may be the following.

Instructions for Form 8606 state:

"If you have distributions unrelated to qualified disasters, as well as qualified disaster distributions, you will need to multiply the amount on line 15a by a fraction. The numerator of the fraction is your total qualified disaster distributions and the denominator is the amount from Form 8606, line 7."

Some of the packages I tried did not calculate and apply this fraction.

Can you see if TurboTax (Online or download) is doing that?

I can't see the forms so I don't know, but right now I'm inferring it does not.

Thank You.

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Using the above figures, my 8606 15a is 164,999. (That is the $165,522 distribution minus $523 of basis).

Per the 8606 line 15 instructions line 15b would be:

164,999 X (100,000 / 165,522)  =  99,684.      The $99,684 goes on the 8915-R form line 13.

The part that I am having trouble understanding is why the taxable amount for 2020 is the 8606 line 15c ($65,315) and not the 8915-E line 19 (zero)  since more than 1/3 was paid back and should not be subject to 2020 tax.?

[dmertz]

The amount that goes on line 4b is the sum of the amount Form 8606 line 15c and the amount on Form 8915-E line 19.  The amount on Form 8606 line 15c is the taxable amount of the portion of the distribution that is not CRD and the amount on Form 8915-E line 19 is the taxable amount of the distribution that is CRD.  The CRD repayment applies to the CRD portion on Form 8915-E, not to the non-CRD portion on Form 8606.  To apply to the non-CRD portion the rollover must be a regular 60-day rollover, not a CRD repayment.

[macuser_22]

Got it.