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Error in Alabama Schedule RS for Roth Conversion

For state of Alabama, schedule RS, parts 2 and 3 are incorrectly doubling the amount in column I for Roth Conversions.   For example, a Roth Conversion of 20K in column E gets doubled to 40K in column I.  

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4 Replies

Error in Alabama Schedule RS for Roth Conversion

I have also noticed an apparent bug which double counts the Roth conversion amount.

Column E is the Gross Distribution (which includes the RMD and Roth conversion amounts).

Column I is the Alabama Taxable amount, but TurboTax seems to be adding the Roth amount to the Gross Distribution amount.

This double counts the Roth conversion amount as taxable to Alabama.

 

How to correct?

 

Error in Alabama Schedule RS for Roth Conversion

Thanks for responding, we are seeing the exact same problem.  I haven't found a way to report directly to TurboTax.  

Error in Alabama Schedule RS for Roth Conversion

From another thread, this is the solution

"Yes, when you enter the data on the federal form (1099-R) for a traditional to Roth conversion, it will compute the federal taxes correctly, however, the taxable amount you convert AND the amount you roll-over to a Roth are both imported into the State (Alabama) tax form as reported income, thereby doubling the amount.  You need to go to your State Tax section and under menu selection of Income, then Retirement Distributions, it will take you to a screen that says that “Some or All of Your Distribution is Taxable”.  Both blocks may be filled in due to you answering the 1099-R questions on your federal return.  However, it is a one “OR" the other option, and you need to manually decide which one is more appropriate for your situation.  By deleting the value in one of these blocks, your State Income should now be correct. "

Error in Alabama Schedule RS for Roth Conversion

Thanks, that fixed the problem.

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