Form 8615 Update

[digixmax]

The form got released today.

However, I noticed that the two methods of computation: using parents' marginal rate (so-called pre-TCJA rules") vs. using estate/trust rate (so-called "TCJA rules") follow exactly the same input navigation by asking for parents' return info (which doesn't make sense), but yield different tax results (which is to be expected), and the Qualified Dividends and Capital Gains Tax Worksheet for the "TCJA rules" has the wrong numbers on lines 8 and 15.

This for me casts some doubt on the reliability of the output.

Anyone else having the same experience and concern?

I am hoping that Intuit "Employee Tax Experts" on this thread would get their TurboTax software developers to investigate this

[Anonymous]

@digixmax Found this post because I too am wondering about these options.  If I say Yes, use the pre-TCJA,  the Fed amount due is $259.  If I say No, it is $9.  I would have thought it would be the other way around if there were any differences at all. I'm holding off on filing my kids returns because of this.

[digixmax]

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@Anonymous wrote:

@digixmax Found this post because I too am wondering about these options.  If I say Yes, use the pre-TCJA,  the Fed amount due is $259.  If I say No, it is $9.  I would have thought it would be the other way around if there were any differences at all. I'm holding off on filing my kids returns because of this.

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I too have found that the pre-TCJA tax is significantly more.

[xsd]

I think TurboTax is probablhy right about lines 8 and 15 in your screenshot because of the rules on page 3 of the 2019 Instructions for Form 8615 which and more limits to the text printed on the worksheet..

[digixmax]

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@xsd wrote:

I think TurboTax is probablhy right about lines 8 and 15 in your screenshot because of the rules on page 3 of the 2019 Instructions for Form 8615 which and more limits to the text printed on the worksheet..

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Great catch!!!

Indeed there are more rules in the instruction  booklet for lines 8 & 15 computation than showed on the form itself:

Using the Qualified Dividends and Capital Gain Tax Worksheet
for line 7 tax. If you use the Qualified Dividends and
Capital Gain Tax Worksheet to figure the line 7 tax, complete
that worksheet in its entirety but with the following modifications.
1. Line 8. Add Form 8615, line 6, and $2,650. Enter the
smaller of the result and the amount listed below for your filing
status.
• Single or married filing separately—$39,375.
• Head of household—$52,750.
2. Line 15. Add Form 8615, line 6, and $12,950. Enter the
smaller of the result and the amount listed below for your filing
status.
• Single—$434,550.
• Married filing separately—$244,425.
• Head of household—$461,700.

[digixmax]

Another finding: efiling is not supported if pre-TCJA option is selected.

[LinaJ2020]

Per IRS, 

If you're filing your taxes for the first time and are younger than 16, IRS rules say you will have to print and mail your tax return. 

@digixmax

[Jake20]

My child's 1040 was rejected 2 days ago.  IRS said issue was with 8615.  I meticulously went through calculations and find nothing wrong.  Email from Turbo Tax said they would walk me through making corrections.  I talked to them by phone. No help. They said update to 8615 would be available today (March 19).  No update will post to my program.  I'll try again tomorrow.

[Flying108]

Same happened to me.  Does not give a lot of confidence in this software.  It would be nice to know exactly what happened, what the fix was, and if it is in place.  Please post if you have success with Form 8615. 

[chrisn32]

The exact same thing happened to me...not sure what to do next...wait for Turbo to update?

[eric31]

Looking at the federal forms list, it shows as "available"; however, I also have not seen the update become available.

Given the number of people using and updating TurboTax at this point, I expect that the availability of the update will vary once they start pushing it to the update servers. It likely has to propagate through whatever Content Delivery Network service they are using to all the local points of presence. That being said it would be nice if they could at least let us know that they have started pushing the content, or have delayed it again.

[fhk111]

An update was received this morning on 3/20/2020. State and Federal taxes remained the same.  Is the fix acceptable to refile the return?

[Anonymous]

There's no way to know what the update was because TT doesn't produce release notes anymore. In another thread, one of the Experts said that if an update affects a return that you already filed, you would receive an email.  LOL, that is such BS.

[eric31]

I saw the update early this morning, updated, and filed. The filing has been rejected, now saying that a form 1040 update is required, with an update date of 3/19/2020. Since I updated 3/20, I am not sure what to make of this message. However, the update that I downloaded was for the program itself, there were no form updates available separately.

[Flying108]

I might sit on this a week and see what transpires.  Wish we had some more insight......Form 8615 has got to be pretty popular.