Federal Misc Dedns Line 23 bug

[GAD3]

After completing our taxes we found a figure of 177, 320 on the federal forms "Misc Dedns" line "23 Loss incurred from total distribution of all Roth IRAs", which did not occur.  Using the Tax Data button at the top of TurboTax I scrolled to the Misc Dedns part, and Line 23 wasn't even shown. 

It was transferred over to our State of California  "Schedule CA" line 21 as a type "IRA". Line 30 of Schedule CA uses this deduction amount rather than the standard deduction.  

I cannot determine where this number came from.  Has anyone else had this problem?

I called into support, and the person was not helpful at all.  After a while of literally no advice on how to fix it or answer to where it came from, I was disconnected.   

I think this is a bug and am posting here hoping that the TurboTax team picks up on it.  I'm thinking of starting a new TurboTax file and see if it shakes out.

[JohnB5677]

Please help me to clarify what is going on.

• What platform and version are you using.  Example  Deluxe Online, or Premiere Desktop
• What is the Data Source button that you refer to?
• Do you see a number like that on your tax return?
• What form are you looking at?
• You mention Misc. Deductions on the Federal, and IRA on the state?

[GAD3]

Hi John,

I'm using Premier Desktop on my iMac.

In Turbo Tax click on Federal Forms.  On the left I go to the form "Misc Dedns".  On line 23 there is a number in the box.  Which there shouldn't be.  I first click on the box to and it becomes outlined in black.  Then look up at the header and there is a "Tax Data" icon.  I click on that and another window opens with the title "My Tax Data".  In the box are listed Form 1040: Individual forms.  All the forms are open, listing line items for each.  Clicking on the arrows on the left I close them until I get to "Misc Dedns".  There are 12 line items listed, all indicating "Transfer" as a "Type".  Line 23 is not listed.

The number on Line 23 is used as a deduction on my California taxes, Schedule CA - California Adjustments - Residents (CA 540), Line 21, "Other expenses - investment, safe deposit box, etc. List type ____IRA________   177,320.

As stated, I don't know where this number came from, and Turbo Tax does not lead me to a source.  

Hope this helps.  

George

[JohnB5677]

Looking at the "Misc. Deductions"  worksheet, line 23 is "Loss incurred from total distribution of ROTH IRAs". 

I suggest you first check any 1099-Rs that you may have posted. 

However, I suspect that it is something entered while going through the California interview.  Please go through it a second time.

Also, check the FORMs list for California.  You may identify something there.

[GAD3]

Yesterday we started a new file without transferring any information forward from a previous return so as to minimize the problem.  We are both retired and have pensions.  We have not worked in 14 years, so we haven't been able to contribute to IRAs from work.  Last year we took $50,000 from my Spouse's IRA and moved it her Roth IRA.   We subsequently took out $15,000 and put it in our savings account.

On page 2 of our Federal IRA worksheet:

Line 35 Conversion contributions taxable at conversion....50K

Line 48 Distributions from 2021 conversions taxable at conversion ... 15K

Note the difference is 35K, which doesn't show up anywhere..

On our Schedule CA (540) 2021 side 5, Part II Adjustments to Federal Itemized Deductions:

Line 21 Other expenses - investment, safe deposit box, etc. List type... IRA   21 35,000

This should not be a deduction.  And we don't know if we are doing something wrong, or the if Turbo Tax (TT) is at fault.  Our brokerage information was uploaded from our broker.  We really didn't  have any questions concerning this "IRA" deduction .

I think for some reason TT is subtracting the $15K from the $50k and is treating the difference of $35K as a deduction.  Based on how I described our IRA withdrawals above, are they located correctly on the Federal IRA worksheet?

We do these withdrawals every year and have not experienced this problem before.  

Thanks for any help you may be able to provide.

George

[GAD3]

I just went back and looked at this years return where we transferred in 2020s information.  See my first post.   I went to the IRA Information Worksheet and found on Part II Line 7 Basis in Roth IRA conversions ... Spouse 192,320 

Part V Line 39 Distributions from cumulative pre 2017 conversion... Spouse 15,000 

Schedule CA(540) : California Adustments, Part II Adjustments to itemized deductions, Line 21 Other expenses - investment, safe deposit box etc. List type.... IRA  .. 21 177,320

192,320 - 15,000 = 177,320 is where this deduction came from, and again we don't know why Turbo Tax is doing this.

Thanks again,

George

[GAD3]

I seemed to have correct the problem by updating my Federal Retirement Plans and Social Security>>IRA, 401(k), Pension Plan Withdrawals (1099-R).

I apparently answered one of my spouses questions wrong about disbursement?

Thanks,

George

[damackall]

I have the same problem!  On macbook pro, OSs 10.15.7.

Help!  Sent my fed taxes already, Schedule A line 23 has a value like my roth IRA value, line saying I cashed in  all my IRA, which is an error.  Now I can find a way to fix turbo tax's odd behavior.  I can't edit Schedule  A's values.

Dale 

Premier desktop.

[CarissaM]

Please follow the instructions here to contact us by phone. @damackall