Incorrect retirement exclusion on GA return

[Fiddle]

I entered a 1099-R for my spouse with $46 in taxable income. Spouse is 68 and code on 1099-R is 8J. The GA return isshowing $92 ($46*2) as his retirement exclusion amount which is incorrect - should be $46. 

I have 1099-Rs in my name with code 4 and all of these are being included correctly on the retirement exclusion. I am 63. 

Any ideas why my husbands exclusion was doubled. 

[Fiddle]

Additional information. This appears to be as a result of the 8J code on the 1099-R. I entered the same thing in Taxact and it worked correctly so it looks like it is an error in the GA version of TurboTax. If I override it with the correct amount, will it prevent efiling. Thanks

[DoninGA]

Where are you seeing this amount for your spouse doubled?

I just did a test return for Georgia and created a Form 1099-R with a code of 8J for a $2,500 distribution,

On the Georgia Income and Retirement Worksheets it correctly excluded $5,000 of earned income and the $2,500 of income reported on the 1099-R for a total of $7,500.  These amounts flow to the Georgia Schedule 1 Retirement Income Exclusion on Lines 5 for Maximum Earned Income and Line 11 for Taxable IRA Distributions.  No doubling of amounts noted on either the Georgia Retirement Worksheets or the Georgia Schedule 1 Retirement Income Exclusion 

[Fiddle]

Thanks for your reply. I am seeing it on line 7a of the retirement worksheet under my spouse's column. Same place you are seeing the $2500. I think I have found the issue. On my 1099-R, the IRA/SEP/Simple box from the Custodian is not checked. When I check the box, the amount shows as $46 as it should. If you have some time, would you mind seeing if your box was checked and if it was, can you try it unchecked. 

Thanks

[Fiddle]

BTW .... the IRA/SEP/Simple box is not supposed to be checked on a Roth Distribution so the custodian did it correctly. So I still think Turbo Tax has an error. 

[DoninGA]

Yes, I checked the IRA/SEP/SIMPLE box on my test Form 1099-R.  Since this was from a Roth IRA the box should be checked.  In box 7 the J code is specific - J—Early distribution from a Roth IRA, no known exception (in most
cases, under age 59½).

[Fiddle]

Hi DoninGA

Per the IRS instructions for 1099-R: 

"Box 7. Distribution Code(s)

Enter an “X” in the IRA/SEP/SIMPLE checkbox if the distribution is from a traditional IRA, SEP IRA, or SIMPLE IRA. Do not check the box for a distribution from a Roth IRA or for an IRA recharacterization."

So, based on this the IRA box should not be checked. 

Would you mind doing your test again with the IRA box unchecked and see if GA doubles the amount excluded as retirement income. Thanks.

[DoninGA]

@Fiddle Well, you just showed me a new fact on the 1099-R that I was not aware of, Thank You.  

I removed the check mark on the IRA/SEP/SIMPLE box and sure enough, it doubled the amount of the taxable distribution in box 2a on the Form 1099-R that flowed to Georgia Schedule 1 Retirement Income Exclusion Line 11.  The amount should be $2,500 but is doubled to $5,000.

So this is a bug in the TurboTax Georgia state program.  I will notify the TurboTax Moderators of this forum who will pass this on to the developers.  There is no telling when this will be corrected.   

Thanks again for posting this problem and updating my on the Roth IRA issue.

[Fiddle]

Thanks @DoninGA for all of your help. I really appreciate it. 

[Fiddle]

Thanks again @DoninGA  for submitting the request to the developers. I thought you may be interested to know that they fixed the issue and so the correct amount is now showing on the retirement exclusion. 

[DoninGA]

@Fiddle Thank you for letting me know.  Much appreciated.