Glitch in tax review of Bailey distribution 2024

[mominholland]

I'm getting an error statement that my claimed Bailey deduction, which TurboTax has added up and categorized correctly, "cannot exceed $109,156., [note the possibly extraneous '.' before the comma] the total of all of your taxable pensions on your Federal tax return. The amount highlighted in the entry box as exceeding $109,156, is $100,802. The last time I checked, $100,802 is less than $109,156.

$100,802 is actually the correct number and is derived by TurboTax from my two inputs indicating Bailey deductions. The two other IRA inputs are NOT  Bailey-eligible and are correctly classified as taxable by the NC return. This same amount, $100,802 is correctly reflected as a deduction from the total income which has been passed from my Federal return.

The only error I see is that the 'review' cannot be passed. 

I'm stuck, and hoping that it can be easily fixed by Turbotax.

[SteamTrain]

@mominholland 

Not sure I could figure it out......BUT,

1)  are you using "Online" or "Desktop" software?   They work somewhat differently. 

2)  Only yourself for Bailey, your both you and spouse?

3)  Exactly what types of Bailey-eligible forms.   Just Military 1099-R?  or CSA-1099-R? or NC state pension 1099-R?,  

....would need to test whatever mix you might have as the forms can be somewhat different.

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You might end up having to delete your 2 Bailey 1099-R forms (one at a time) and re-entering them (yeah a pain).   Still, might be worth it to edit each one anyhow, and check what the value is in 2a of each  (if box 2a has a value)...or box 1,

(or box 16 for any forms with a box 14 value...though, you likely wouldn't have any state withholding on a Baily-eligible plan....and, I seem to recall that the "Online" software won't always show a box 16, where Desktop does for most forms except CSA- or CSF-1099-R)

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BUT, if you Uploaded any from a picture or a PDF file.....DON'T, those types of uploads can introduce all sorts of errors.  Delete any of those upload types first, and re-enter them manually where you type in the data...being very careful to hit the decimal point and not the comma.

(I hit that wrong so often, I've been thinking I need to paint a larger spot on my laptop keyboard for the tiny-decimal, since it looks almost exactly like the adjacent tiny-comma).

[mominholland]

Thankyou for your response!

Thanks for your answer!

1. I'm using "desktop" Home and Business.

2. The 1099-R Bailey Forms are just for my spouse, a qualified federal civilian, no military.  We've been filing with the Bailey exemption for his pension for a number of years with no issues once we sent in a couple of forms.  This year is the first time with the pension and an RMD from his Thrift Savings Program.  The 1099-R arrived with the "IRA/SEP/SIMPLE box NOT checked and with nothing entered in Box .  (If I leave it unchecked it sorts this into the "pension" bucket on income summaries. If I go ahead and check that box, it gets sorted into IRA distribution.  Otherwise there is no effect on it counting as "Bailey".)

3. I had entered the forms manually. I did delete the two 1099 -R forms this morning and enter them again, manually.  I got the same error message.  However, I decided to plow ahead, and TurboTax appears to be letting me file, at least up to the point of adding direct deposit information, even with the error code.

As an aside, I had checked, out of old habit,  that the pension form was a CSA-1099, instead of a 1099-R.  I've now fixed that.

I am still waiting on an additional investment form before filing on Friday, so I may just let this percolate until then. If I still believe that the transferred numbers are correct and North Carolina is treating the right things as "Bailey" I will go ahead and file, even with the "error" codes.

Thanks!

[SteamTrain]

Correct...the IRA box shouldn't be checked for those.

Did you check the TSP as being "Bailey".   Usually it's not, but certainly possible for a 73-yr-old....but depends on what exact date the spouse started contributing to it.  (or, are you indicating the TSP is only partly Bailey-eligible??)

And if you originally entered the TSP as a CSA-1099-R, you shouldn't just check the other box in Forms Mode...you should delete it and re-add it as a standard 1099-R....because if entered originally as a CSA-1099-R, the tax software moves at least one entry on the CSA form the interview, into different boxes on the "Forms Mode" sheet.

_________________

I haven't been able to get my Desktop Premier to pop an error yet, for $100,500 Bailey-eligible from 3 different 1099-Rs, including one CSA-1099-R.  And a couple other non-Bailey 1099-R forms.... Such that total retirement $$ was over 110,000.  

[StevePri]

I'm having the same problem.  Turbotax adds my 1099R and 1099-int and has the correct figure but in the review prior to filing it says the error cannot exceed that amount, which it doesn't.  Very aggravating.  The numbers have been triple checked and there is nothing wrong.  Turbotax also says I could file a paper return which negates my desire to use Turbotax.

[mominholland]

I'm not sure what "fix" I actually stumbled into, but changing our OPM 1099-R (which was wrong) to a CSA-1099 seemed to help the problem. (The form was identified as 1099-R on the top, but CSA-1099 on the left hand side.)

TSP distributions for the "employee" contributions are Bailey qualified, as long as contributions started by 12 August 1989.  That is my interpretation after searching NCDOR for "Bailey Thrift Savings Plan. Since my spouse, as a CSRS employee was not eligible for any government match, he was vested immediately in his employee contributions. Let's hear for the packrats of the world who managed to hold onto original forms from 1989!  And also to those of us who never moved money out of TSP, which would have made it Bailey-ineligible.

We have filed Federal and State successfully, and are expected a refund on 25 Feb.  

I fully expect NC to ask for copies of the forms supporting our TSP Bailey claim, as they did when we stated claiming the CSRS pension. If I find out we are wrong, I'll circle back with an update.

I hope this helps! 

[SteamTrain]

@mominholland 

True...if you accidentally enter a CSA-1099-R as a plain 1099-R can cause all sorts of issues.  I seem to recall that at least one box of the CSA-1099-R entry form, that gets moved (by the software) to a different box in the hidden background worksheet, so that the taxable amount calculations get processed properly.

I suspect that all OPM 1099-R forms are actually either the CSA- or CSF-1099-R sub-variety.   (I don't know who issues the 1099-R forms for TSP accounts, but those are likely plain a 1099-R)