While reviewing Form 8995-A (Form 8995 Schedule A) of my federal return prior to E-filing, I noticed the values printed on lines 9 and 10 of Form 8995A appear to be incorrect:
Line 7 Subtract line 6 from line 5: 11,059
Line 8 Phase-in range: 50,000
Line 9 Divide line 7 by line 8: 0.002212 (incorrect, should be 0.22118)
Line 10 Applicable percentage. Subtract line 9 from 100%: 0.7788% (incorrect, should be 77.882%)
It looks like line 9 is being divided by 100, possibly due to an incorrect conversion of the result of the division from a percentage to decimal. The value on line 9 should just be the result of dividing line 7 by line 8 with no further calculations (11059/50000 = .22118).
It looks like line 10 is not being converted to a percentage. The value on line 10 should be calculated by subtracting the value in line 9 (.22118) from 1 (100%) and then multiplying the result by 100 to convert from the result from a decimal to a percentage (e.g. (1-.22118)*100 = 77.882%). The form is requesting the value to be a percentage.
All the other calculations on Form 8995-A appear to be correct. I don't think this will affect my e-filed form as all other calculations appear correct. There just appear to be formatting errors in the calculated values on lines 9 and 10 of the generated Form 8995-A. Has anyone else seen this error? How do I report this to Intuit for correction? Should I hold off on E-filing until Intuit corrects the printed form?
Correction - the form with the error is 8995-A, not 8895-A (my bad!) 😁
No, as long as the values reported on Form 8995-A are correct, you may e-file your return.
Note that the IRS rounds all numbers to whole dollars, so the calculations shown on the forms may not be mathematically accurate to several digits. But the displayed results should be correct.
The errors in the printed values are not rounding errors, they are errors of 100x magnitude. The software really needs to be fixed.