topic Can program be corrected so Simple Plan contribution is not showing up duplicated? in Retirement tax questions

Can program be corrected so Simple Plan contribution is not showing up duplicated?

gremail — Tue, 04 Jun 2019 22:43:15 GMT

The forms allow for Simple Plan information to be included in the Deluxe 2017 version on the Keogh, SEP and SIMPLE Contribution Worksheet -- you input both employee contributions (lines 5a/b/c) and employer matching contributions (line 5d), but only the employer contributions (line 5d) are supposed to be carried over to Line 28 of the Form 1040. This worksheet form is not working correctly as my total of employee and employer contributions is at the bottom of the page (Part V Line 2) as the amount to transfer over to the Form 1040 Line 28.

This is also affecting Form 8880 line 2 as the amount carried over is double the amount of the employee contribution throwing off the calculation and causing the Credit for Qualified Retirement Savings Contributions to be wrong.

Are you asking about a SIMPLE IRA plan established under...

dmertz — Tue, 04 Jun 2019 22:43:16 GMT

Are you asking about a SIMPLE IRA plan established under your self-employment business? SIMPLE IRA contributions made through a W-2 employer do not go on your tax return at all.

I've deleted your attachments because they were revealing...

dmertz — Tue, 04 Jun 2019 22:43:17 GMT

I've deleted your attachments because they were revealing your private information on this public forum.

If you are instead asking is regard to a SIMPLE IRA plan...

dmertz — Tue, 04 Jun 2019 22:43:19 GMT

If you are instead asking is regard to a SIMPLE IRA plan established under your sole-proprietorship or a partnership, both your elective deferrals and your employer contribution are required to appear on Form 1040 line 28.

To comments 1 & 3: This is a SIMPLE Plan contribution mat...

gremail — Tue, 04 Jun 2019 22:43:20 GMT

To comments 1 & 3: This is a SIMPLE Plan contribution matched by employer (not self-employment) and according to the government supplied Keogh/SEP/SIMPLE/401(k) Contribution worksheet under SIMPLE, Line 5d specifically says "Enter matching contributions ONLY to report on Form 1040 Line 28." The company matching contributions are additional income. I understand that employee contributions do not appear on the tax return, just the worksheet. To comment 2: Thank you for keeping an eye out for my private information, I didn't realize part of my name was on it -- the numbers don't matter, they were helping identifying the issue.

The issue still exists. The above comments were clarifyin...

gremail — Tue, 04 Jun 2019 22:43:21 GMT

The issue still exists. The above comments were clarifying but not answering the problem.

Since you are an employee of the company, you do not repo...

dmertz — Tue, 04 Jun 2019 22:43:23 GMT

Since you are an employee of the company, you do not report the employer contribution anywhere on your personal income tax return. Your employer gets the deduction for the employer contribution, not you. The only benefit that you get on your personal income tax return is from your own elective deferrals to the SIMPLE IRA plan by your employer reducing the amount that your employer reports in box 1 of your W-2 by the amount of your elective deferrals that your employer reports with code S in box 12 of your W-2. Enter amounts shown on your W-2 only on TurboTax's W-2 form.

Your tax return should have nothing on Form 1040 line 28 and you should have no entries on the Keogh, SEP, and SIMPLE Contribution Worksheet. Switch to forms mode and delete the Keogh/SEP Wks. The Keogh/SEP Wks is only for use by someone who is self-employed or a partners in a partnership.

THIS makes sense. Thank you. In making this change the Fo...

gremail — Tue, 04 Jun 2019 22:43:24 GMT

THIS makes sense. Thank you. In making this change the Form 8880 Credit for Qualified Retirement Savings Contributions numbers are corrected.... but this does make for a benefit for me when the Credit for Qualified Retirement Savings Contributions is transferred to Form 1040 Line 51. This auto-fills so I don't THINK I have created the error on my own... but maybe. Can you help with this also?

The Retirement Savings Contributions Credit is a nonrefun...

dmertz — Tue, 04 Jun 2019 22:43:26 GMT

The Retirement Savings Contributions Credit is a nonrefundable credit. This means that it and other nonrefundable credits cannot be used to reduce your income below zero. if it is appearing on Form 1040 line 51 you *are* getting benefit from the credit. However, because this credit is applied before certain other nonrefundable credits, it's possible that this credit is reducing the effect of some other credit on Form 1040 lines 52 through 54 to keep the amount on line 56 from going below zero. Some of the credits on lines 52 through 54 are subject to carryforward of the unused portion to next year (and beyond, if necessary).

Great! Thanks again! You have been very helpful.

gremail — Tue, 04 Jun 2019 22:43:27 GMT

Great! Thanks again! You have been very helpful.