Pensions not included in 1040 Line 4a? But is included in Line 4b. Line 4b should not be > 4a. Line 4a should be all 1099-R B1, Line 4b sum of Box 2a.

[susanepdean]

Just so sloppy.  I talked to a person about two weeks ago who said that it would be fixed the next day.  But is isn't

[iamwhoiam]

@susanepdean I gave up and filed the way it was.  I didn't want to force any changes and didn't want to snail mail the federal.  Be careful with the updates.  There was an update last week when I opened TT and I thought it might be for 4a and 4b so I let the update go through.  There were no errors in my tax forms before the update but afterwards there was an error in my state and I had to go back and review everything and found that there were new interview questions regarding home mortgage interest.  
I really don't think a fix will be coming any time soon when it comes to IRAs, pensions and annuities.

[Gabby-s-Grandma]

Okay, I said I'd do an additional comment after send my info to my brother, who is the Florida leader of the AARP volunteers that do senior's taxes for them for the IRS.  My brother ran my numbers using the IRS software provided to the AARP volunteers.  The IRS software's total for line 4a included a total of my husband and my pensions and the total of the IRA distribution, while the TT software line 4a excluded our pensions.  Line 4b was correct through, with the Turbotax software - it showed the entire pensions, which were 100% taxable, plus the taxable portion of the IRA distribution, since we did a QCD (qualified charitable distribution).  Following my brother's advice, I did an override on the turbotax 1040 worksheet, and entered the total of our pensions on the "Pensions" line (which Turbotax left blank).  Then when I went bank to Form 1040, line 4a now showed the same amount that the IRS software did - total for line 4a included a total of my husband and my pensions and the total of the IRA distribution.  However, since I did an override, Turbotax would not let me file electronically, and I had already paid an extra amount to file the CA state return electronically.  As my brother had advised me, I printed & filed both Federal and Tax returns by mail.  I'm a "better be safe than sorry" "take no chances" kind of person.  After reading comments from Turbotax users that were having troubles with their returns after filing electronically, using Turbotax's amounts for line 4a, I didn't want to file electronically and risk further time-consuming issues with the IRS.

[ted7]

I had the same issue.  I did the override on the 1040WKS and the 1040 looked correct.  When I went to electronically file, it did a check and  said it ready for efiling.  It made me pay $24.99 for PA.  Then at the next step is said it could not do it electronically since there was an override.  I have been trying to find a way to get my $ back.  Does anyone have a way to contact a real Turbotax person?  It is bad enough  they they can't do a simple fix for this, but then charge you for something that can't be completed.

[cwqjr]

It is NOT NECESSARILY incorrect that 4a is less than 4b. See the 1040 instructions starting on page 28. <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf">https://www.irs.gov/pub/irs-pdf/i1040gi.pdf</a> There are defined rules where items don't need to be included in 4a but are included in 4b. Check to see if these exceptions apply to you. I've waffled over this for days. I have pension, IRA and railroad retirement amounts. According to the way I read the instructions, my IRA should NOT be included in 4a, and they aren't. But fully taxable pensions, it says, also don't need to be included in 4a, and they are. I'm going to file it as TT has done it even with questions.

[ted7]

I just contacted Turbotax and talked to someone who reviewed the issue with me.  She brought in a specialist who said that Turbotax has reviewed the issue and feels that they are doing it correctly per the IRS rules.  I discussed the various issues that I saw in this blog and she said she will pursue it farther.  At this point there is no fix planned, so I am continuing to paper file with the override on the 1040 WKS.

[iamwhoiam]

I just checked my refund status via IRS "Get Refund Status" web page and it shows that my refund was approved and the refund amount is what I expected.  Hopefully this is the case.  Supposed to be direct deposited in a few days.  I was very hesitant to e-file because of 4a<4b and because I had talked to an IRS agent who said 4a>4b and also because some people had issues with that and got over-refunded.  However others got the correct refund amount.  

[iamwhoiam]

My refund was direct deposited today and it is the correct amount.

[tc-in-kc]

I also logged this problem 4 weeks ago with TT and heard via cs that a Tier 2 engineer said TT knew about problem and I was added to email list to receive notice when fix was available.  Well, it's now April 7 and I called and talked to 3 levels of TT people again.  NO FIX.  I was told to go ahead and e-file with the line 4a mis-calculation. I even had TT rep send me an email with recommendation from Tier 2 engineer to file with the mistake.  {I also took a screen shot of the 100% Accurate Calculation Guarantee screen before I e-filed}.    Been a long long time TT user but am really disappointed this year....going to rethink using TT next year.

[iamwhoiam]

@tc in kc I gave up waiting for a fix because I figured that no fix was coming.

[brandark2000]

I show more on line 4b than 4a but that seems correct per the 1040 instructions.  I have an IRA with a partial rollover and fully taxable pension.  For the taxable pension:  " If your pension or annuity is
fully taxable, enter the total pension or annuity payments (from Form(s) 1099-R, box 1) on line 4b; don’t make an entry on line 4a."

[pfridder]

I am trying to file my return and 4a is still wrong.  We have 2 IRAs and one pension.  The IRAs both have taxable amount less than gross.  The pension is fully taxable.  4a is showing only the IRA gross amounts.  4b is showing the taxable amount from the IRAs plus the pension.  I tried overriding the pension amount, but with an override TT won't let me file electronically with an override.  I tried increasing the gross pension by 49 cents and decreasing the taxable amount by 49 cents but that didn't work.  If I mark the pension as an IRA, I get the correct amounts on form 1040, but wrong amounts on form 8606.  I finally set up a fake 1099 for $1.00 gross, $0 taxable.  That makes the gross over by $1, which I figure is better than having it short by $37,500.  TT really should have fixed this 100%, not just a halfway fix, prior to April 15.  I think I'll be looking for different tax software next year.  This is ridiculous.

[brandark2000]

"We have 2 IRAs and one pension.  The IRAs both have taxable amount less than gross.  The pension is fully taxable.  4a is showing only the IRA gross amounts.  4b is showing the taxable amount from the IRAs plus the pension.". This is correct per the 1040 instructions for lines 4a and 4b.  4a doesn't have to be greater than 4b.

[marty8445]

it's now June and they still haven't changed it - Tax Act is a much much better program, especially if you have foreign elements

[zbaba4]

I've been struggling with this issue for 3 days (and 3 calls to TT) and just found this discussion. Most have figured out how TT might have messed it up, but like others I am ready to file so I want my 1040 to look right. To do that just uncheck the box 7  (IRA/SEP?SIMPLE) on the IRA 1099R data entry or import. Then the 1040 looks right. The IRS only has your 1099R from your IRA manager,, not the TT data entry,  so thats OK.

But in order to prove to skeptical (or less knowledgeable) TT support that there really is a problem, I created a 1099R for an IRA, box 7 checked, and made the gross amount different from the taxable amount. Form 1040 picks up the gross amount in box 4b, clearly a real error regardless of interpretation of IRA instructions.